Cross-Cultural Implications on Management - Case Study Example

Cross-Cultural Implications on Management Introduction Cross-cultural differences in the business environment create significant challenges for employees taking assignments across the globe. Cross-cultural differences and challenges thereon are determined by the general distance in practices between the involved cultures. As an illustration, there is a relatively smaller gap in cultural practices among western cultures than in a cross-cultural interaction between Western and Asian cultures. For a manager from the UK taking up work assignments in the UAE, there are several fundamental changes in the delivery of expected input from a cultural perspective. Issues touching on suitable management style, decision-making, communication barriers, motivation, negotiations and employee organization constitute some of the challenges encountered. This discourse discusses cross-cultural management issues that emerge from a perspective touching on the issues mentioned above. Theoretical contributions on the topic facilitate the development of the cross-cultural setting experienced by a UK national discharging managerial duties in the UAE. Arabian Business Environment (UAE) The UAE is located in the Middle East, Asia, with a population that is predominantly Arab. However, the expatriate component of the population grows every year due to the lucrative investment opportunities currently available in the UAE. The most dominant socio-cultural force that shapes the business environment in the UAE is, therefore, the Arab culture that is hugely synonymous with Islamic principles and religion. For a manager from the western socio-cultural setting within the UK, the Arabic and Islamic context is a significant change worth considering due to the distance between the two cultures. Establishing close ties defines business relations in the UAE (Kwintessential n.d, para.1). Religion defines most of the UAE socio-cultural and economic practices to such an extent that nearly every business transaction or decision taken falls within religious scrutiny. The following theoretical insights explain the above cross-cultural issues observed in the UAE business context as explained from an academic perspective. Theoretical Background Among the major theories formulated to explain the cross-cultural phenomena include theories by Edward Hall and Mildred Hall as well as those by Geert Hofstede and Fons Trompenaars. In light of Hall and Hall’s postulates, it is clear that the best approach to navigate through cross-cultural challenges is through the simplification of cultural communication and the reduction of possible barriers (Hall 1980, p. 53). The theorists propose the context culture rating which determines how entangled the business setting is with religion, nationality identity, perceptions and personal attitudes. High context cultures have a close association between business and these factors such as in the UAE and the Arab setting. Low context cultures such as in the UK, on the contrary, recognize formal contexts that are distantly far from the mentioned factors. The communication environment is, therefore, different in the two settings, and the manager needs to reorganize appropriate approaches to fit in the communication demands. Geert Hofstede considers various dimensions of cross-cultural implications on business processes such as power distance where the larger the distance, the more equal the distribution among employee hierarchies. The measure of uncertainty avoidance, individualism and collectivism and gender roles also contribute to the determination of the appropriate action to be taken in management. Trompenaars postulated almost similar perspectives as Hofstede by characterization of cross-cultural demands on management with regard to issues such as universalism and particularism, internal and external control among other fundamental cultural diversity comparisons (Hofstede 1980, p. 22; Trompenaars 1993, p. 102). From the theories highlighted above, it is clear that the cross-cultural setting exposes the organization and the manager to a number of scenarios requiring specific subjective responses. Familiarization with the local cultural setting is, therefore, an important concept for the overseas employee likely to come across fundamental changes in cultural practices. A UK national discharging duties in an Arabic environment must indulge the cross-cultural insights in a number of input areas as discussed below. Management Style Management styles applicable in hierarchical societies work well in the UAE due to the orientation to a highly patriarchal organization. People occupying managerial positions in a hierarchical setting may find authoritative managerial style as an effective approach than the egalitarian style. The manager from the UK will, therefore, need to adopt the local expectation of taking a more direct management stance since the cultural expectation from the human resource determines the achievement from the applicable managerial style. In such a setting, the manager is expected to deliver direct directions and instructions to the employees who recognize the paternal authority over any other delegation or devolution setting that is effective in the western cultures. Subordinates in the UAE and in other hierarchical organizations are likely to follow instructions if delivered to them directly from the manager. Lack of a clear instruction line may relate to and be interpreted as a poor leadership approach. In order to ensure that compliance and sense of authority succeeds in such a setting, a direct style of management must apply with little or no interference through delegation (Moveone 2011, para.11). Unfortunately, in view of the cultural setting in the UK where managers may act through intermediate officials in the delivery of managerial instructions, employee initiative is likely to be higher than in the UAE. Managers in the UAE must, therefore, devise ways to ensure that the employees remain as initiative oriented and not entirely dependent on the manager to deliver leadership and issue directives. Apparently, this emerges through constant reminders on a scheduled pattern where the manager presumably takes charge at all times and remains seen to in charge. Decision Making Processes In the UAE, the business environment dictates that inclusion forms part of decision-making process for the establishment of good will and trust. Exclusion of important players in the decision making process is not necessarily based on the lack of consultation or collection of opinions. Inclusion in such a setting includes open explanation and timely dissemination of decision related guidelines for purposes of integration of important players into the business processes. The tricky part includes the determination of the appropriate level of inclusion to avoid making disclosure to irrelevant audience. Senior officials must get information on all managerial decisions before implementation to avoid sending messages of insubordination. Juniors must also get information that touches on their work in order for the manager to send messages of authority across all sections of junior staff (Kwintessential n.d., para.5). Juniors should not openly question the role of the manager in decision-making but the impact of creating the impression of timely inclusion in every decision is important in valuing them. It is important, therefore, to premeditate on the impact of decision-making process and implementation on the operations of the organization from the manager’s perspective. This will allow formulation of the best stakeholders’ inclusion and dissemination of arrived decisions without sending the wrong signals or compromising on confidential decisions. Communication and Negotiation: Implications and Issues The primary communication issue is based on the language applied for official business interaction as the fundamental barrier to communication. For the UK national working in the UAE, learning Arabic will be a necessity despite the fact that several official communication may be conducted in English. Other communication concerns within the UAE include addressing various individuals from the background of a hierarchical organization. While making addresses to people of higher hierarchy or age, the expatriate manager must observe the use of honorable approach as age and authority are highly regarded in the culture. According to Hosie, Lehaney and Willemyns (2011, p. 252), nonverbal communication such as facial expressions and nodding as well as discourse variables such as small talk, self-disclosure and willingness to listen also impact on the quality of communication in UAE. The juniors are supposed to honor their seniors through communication, and they should be repaid through respect. The more direct management style that is effective in the setting implies that the manager is in constant contact with the subordinates and seniors. It is, therefore, important to accommodate local communication attributes in the interactions. While initiating addresses, greetings are a show of honor and respect in the Arabic culture. It is not positive if communication is conducted in a rush, which dictates that a clear communication plan is employed. Simple communication is preferred and direct to the matter at hand for purposes of clarity (Kwintessential n.d., para.7). During business negotiations, favorable personal relationships are important in the determination of success on the managerial process. In the UAE, events are important outcomes than time, which implies that the results of the negotiations should comply with cultural expectations as opposed to timely conclusion, focus of the western culture. Rushing negotiations to fit timelines would not be a welcome approach in the UAE. Trust is built in repetition of key areas of the negotiation, which would otherwise be hastily considered a nuisance in western cultures, which underscores the importance of patience and tolerance when negotiators ask similar questions in UAE negotiations setting (Cohen 1991, p. 136). Motivation and Performance Management The organization directives influence the level of employee involvement in operations, due to the heavy orientation to patriarchal socio-cultural organization in the UAE. It, therefore, follows that the motivation of the employees largely originates from the management outcomes. The UK expatriate manager will have to take direct employee involvement to address issues likely to affect employee motivation such as commitment. By ensuring that the disparities between business principles and local culture are continually reduced, the manager is likely to achieve higher motivation outcomes from the employees. As an illustration, time is not an important business factor in the UAE but the opportunity it holds to productivity and earnings must be contextualized as a motivational tool. Team Working Versus Individual Working Preferences The UAE environment is based on close friendly relationships, which define the organizational culture that must comply with the surrounding cultural expectations. Employees have distinct roles to implement in the organization, which must depict some level of hierarchical organization. Under teamwork, employees are likely to be dependent on the team leader for direct guidelines. In the hierarchical setting, employees are not expected to take initiative for fear of overstepping their mandate. Teamwork must, therefore, be supplied with close team leadership to bring out the best results. Within the strict guideline expectation of the UAE setting, group leaders must always take charge of operations of the team to fill the position of authority. For better results in the teams, members need to be motivated to have cordial relationships where respect and honor are developed and sustained. The socio-cultural environment in the UAE is based on collectivism as opposed to individualism in the west, making it an ideal setting for teamwork to flourish. However, the need for close relationships, seeking acceptance, respect for others, ascription, shame upon mistakes and propensity to collaboration may complicate determination of success in teamwork. In terms of individual contribution in any hierarchical setting, employees may require tighter oversight due to reliance on guidelines. More leaders may be needed to deliver guidelines and carry out supervision for every employee. In light of the expectations of the employees regarding management’s role of giving out instructions, lack of initiative and deliver leadership at various levels affects individual contribution. Recommendations It is important for the expatriate UK manager to undergo basic UAE culture training to familiarize with the expectations in the new assignment (Aston, Bennett, and Colquhoun 2000, p. 240). According to the authors, equipping the expatriate with the appropriate skills to tackle challenging differences in cultural practices is an intangible asset invested toward success in overseas operations. Extra skills required in the delivery of such an assignment will include evaluation of the character of the individual to comply with high the demands for tolerance and accommodation of local culture. Negotiation skills possessed must also coincide with the expectations of the local culture. Overseas dispatch will require prior experience with the local conditions and needs, which may be facilitated through orientation business trip before dispatch in the capacity of the manager. It would be important to consult other British firms operating in the UAE to facilitate sustainable transition in the new environment. International human resource management (IHRM) insights will be important in the fulfillment of various duties for the manager while in the UAE. References Aston, A, Bennett, R, & Colquhoun, S 2000, Cross-cultural training: a critical step in ensuring the success of international assignments, Human Resource Management, vol. 39, no. 2-3, pp.239-250. Cohen, R 1991, Negotiating across cultures: communication obstacles in international diplomacy, United States Institute of Peace Press, Washington, DC. Hall, ET 1980, Dance of life, Doubleday¸ New York, NY. Hofstede, G 1980, Culture’s consequences: international differences in work-related values, Sage Publications, Beverly Hills, CA. Hosie, P, Lehaney, B, & Willemyns, M 2011, Communication and social identity dynamics in UAE organizations, International Review of Business Research Papers, vol. 7, no. 2, pp. 245-256. Kwintessential, (n.d.) Intercultural management – UAE and Dubai, [Online] Available from [Accessed 14 March 2012]. 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