Cross-Cultural Management - Coursework Example

Cross Cultural Management Introduction According to the observation of Adler, “cross-cultural management explains the behavior of people in organizations around the world and shows people how to work in organizations with employees and client populations from many different cultures” (Kawar, 2012). The significance of cross-cultural management lies within the continuing co-operation in between companies with the emergence of globalization in diverse nations wherein complexities may arise owing to the dissimilar cultural backgrounds (Kawar, 2012). In this context, cross-Cultural management is considered as a technique which assists organizations to manage these cultural differences in order to establish a sustainable diverse environment within the workplace. This management technique assists managers to compete with these diverse cultural challenges as well as opportunities and to develop sustainable work culture by managing employees in an efficient manner. In the present day business context, it has been observed that the notion of globalization has created more awareness wherein it has become a necessity for the managers to be more concerned towards the cultural aspects while making decisions in terms of job related activities. Organizations which follow and implement this technique have been generally able to make superior decisions and develop effective workplace relationship amid the employees. Moreover, with the successful incorporation of this management technique, organizations are able to comprehend the values and beliefs of the employees who belong from diverse cultural backgrounds. Due to the diversity in the cultural perspectives, it is recognized that the business culture amid various nations of the world also vary significantly. This variation can be apparently observed from the prevailing Western business culture and eastern business culture. In order to operate successfully, a particular organization aiming to undertake global business operations needs to comprehend the global business etiquettes appropriately (Kawar, 2012). With this concern, the paper intends to discuss regarding the cross-cultural management scenario by taking into concern the United States and Spain from Western culture, while China and India from Eastern culture. An in-depth analysis about how an organization should operate its business within these diverse cultural environments would also be provided. Moreover, this discussion also depicts the similarities and dissimilarities of the two nations from Eastern as well as Western cultures in terms of varied aspects of life such as appearance, gestures and meetings among others. Brief Description of Western Culture Western culture is primarily regarded to be endowed with the Western civilization and lifestyle where the representation of distinctiveness is apparent within ethical values, heritage of social norms and belief systems within the community people. Western culture is categorized by a congregation of artistic, philosophic, legal as well as traditional themes which has played a significant role in order to shape the Western civilization since the 4th Century. In Western business culture, a majority of the business organizations follow a unique value system through which they maintain sustainable cultural environment within the workplace. It has been observed that the organizations of the Western countries always aim to follow unique cultural concepts, traditional guidelines, working styles and morale specifications within the respective workplaces. The organizations always believe that these cultural forms on the basis of the traditional employees’ working behavior and attitude would lead them towards the path of success. On the basis of several scholarly researches, it has been observed that people of this culture always seek for ensuing common goals and following external circumstances along with internal work situations regarding the fulfillment of the common objectives. These working methods are observed to be channelized throughout the different generations with respect to the Western business culture. In this context, a majority of the Western scholars have emphasized that the prevailing unique value system is the core element of success for the business organizations. In Western countries, corporate leaders always attempt to establish appropriate working value system which helps them to enhance the performance of the individual employees (Dooyeweerd, 1979). US Business Culture The United States is considered as a nation which aims to uphold an essential belief in the aspect of equality. At present, the US consists of ‘multicultural mosaic’ of about 290 million people who descend from different races and cultural backgrounds. American culture visualizes an effective sense of regional as well as ethnic identity which is demonstrated by a large number of sub-cultural populaces located in various geographical regions. It is necessary for the organizations aiming to operate in the US business periphery to comprehend the US culture while conducting business within this nation as well as with the companies based in the US. American culture primarily entails individualism, egalitarianism and low cultural context (Communicaid Ltd, 2012). The dimension of individualism plays an imperative role within the lives of community members in the US. American culture significantly demonstrates individual initiatives and private achievements. ‘Independence’ and ‘self-reliance’ are effectively considered within the workplace to be the most significant aspects to achieve by the workforce where businesses are often conducted in a sustainable manner (Communicaid Ltd, 2012). ‘Egalitarianism’ is considered as a significant element which depicts the idea of equality within the American culture. With due consideration to the prevailing cultural differences of American society, the notion ‘equality’ emphasizes upon collective social relationships. The people of America believe in equal rights, equal opportunities and equal social compulsions for every aspect of their life. It has been observed that societal difference is quite low amid the people in the US in terms of wealth, status, age and financial conditions. Hence, in a majority of the business environments Americans call each other by their first name (Communicaid Ltd, 2012). In terms of low context culture, Americans are primarily task oriented and their basic objective of communication is to exchange opinions, facts and information. In the US culture, conflicts and arguments at times occur within the process of sharing the individual opinions as people do not hesitate to deliver negative but constructive responses. The appearance of such kind of direct communication style at times can create an uncomfortable situation for people who particularly belong from other cultural backgrounds as they might not be abreast with such kind of business interactions (Communicaid Ltd, 2012). Doing Business in the US The US is recognized to be the world’s third leading country both in terms of population as well as size. The US is considered as a nation which aims to rapidly progress effectively with the prevailing unique cultural differences. Moreover, it has been observed that America has witnessed a huge level of immigration from different parts of the world which has enabled to mould the nation in a distinct manner. In order to conduct business effectively, it is essential for the overseas organizations to understand the working practices of the US. In the US, within the working culture, punctuality is one of the essential components of business activities wherein it is expected that every employee should attend meetings or appointments on time. Task deadlines are strictly followed in American business culture. A majority of the Americans always intend to strictly follow job related assigned deadlines in order to obtain instant outcomes. Consequently, the notion “Time is Money” is effectively considered and followed in every organizational business culture. The efficient American employment ethics implies that a majority of the employees prefer to do work for long hours as well as for overtime which is the common practice within their employment culture. Professionalism as well as accountability regarding individual performance is effectively valued within the American work culture. Due to this reason, managers always follow unique approaches in order to resolve complex working environment related circumstances. Moreover, the organizations in the US make attempts to develop business relationships rather than personal relationships through which they are generally able to easily attain business goals as well as objectives. Americans always follow and create clear distinctions amid the work colleagues and the friends as well as relatives within their social life (Communicaid Ltd, 2012). Spanish Business Culture Geographically, Spain is located in South-Western Europe and comprises a wide range of landscapes, desert areas along with snow-covered mountains. Spanish culture has emerged over the years on the basis of its traditional history which influences the people in every aspect of their life. It has been observed that Spain has diverse as well as unique regions, which has been a key contributor for the emergence of diverse personalities amid the people of the nation. Suitable and efficient business characteristics in Spain can only be evaluated by understanding its highly developed elaborated culture. There are certain key values of Spanish culture which should be considered as well as comprehended by the overseas organizations while conducting their businesses within this nation. These key values are face, individualism and uncertainty avoidance (Communicaid Ltd, 2012). In terms of the value of ‘face’, it is observed that Spanish culture primarily emphasizes upon individual pride where ‘criticism’ as well as embarrassment are always attempted to be avoided by the Spanish people while communicating with each other. For instance, at the time business meeting, every employee always represents themselves in a logical manner in order to minimize any embarrassment that may happen due to wrong communication style and negative behavioral attitude. It has been further observed that in Spanish culture, competence and control are the two important aspects within their working environment which are crucial for demonstrating positive attitude and behavior (Communicaid Ltd, 2012). In relation to individualism, personal characteristics are highly valued in Spain which shows individual attributes and social status. Contextually, Spanish culture always emphasizes upon the significance of ‘self’ as well as ‘a person’s family. Moreover, Spanish culture is largely influenced by its past experiences, family values along with a sense of identity that are among the vital aspects within the society of Spain. Additionally, personal qualities, representation of attitude and behavior, image and personal relations are considered as the crucial components within the contemporary Spanish culture. In the present business context, personal characteristics are effectively valued along with technical capabilities as well as possessed experiences within the workplace (Communicaid Ltd, 2012). It can be recognized that in the Spanish culture, the dimension of uncertainty avoidance is regarded as a crucial element which signifies taking cautious approaches by the people towards any fresh ideas. In Spain, people always attempt to minimize uncertainties within the business environment, but frequently accept a known risk scenario. Contextually, people always maintain and follow certain rules, regulations and specific structure in order to ensure effective control amid the uncertain circumstances in every aspect of their activities. In business scenario, managers always prefer to deliver accurate responses to the questions and like to focus on providing precise instructions in order to reduce conflicts (Communicaid Ltd, 2012). Doing Business in Spain Spain is considered as the third leading nation within the European Union which has faced several unstable as well as booming past historic experiences which comprise dissolution of Spanish empire, fascist dictatorship and the initiation of democracy. Due to this reason, Spanish culture has drastically emerged and continuously developed over time. The country strictly follows religious understandings which influence the people to establish modern and advanced culture. According to Spanish working practices, working or employment hours vary across the different regions of Spain. It has been observed that office hours initiate at morning and close at mid-evening. In this similar context, it has been further observed that Spanish culture follows “Europeanised” style in the present times particularly in northern region. In terms of organizational viewpoint, business meetings or appointments always are made in advance and it is suggested that confirmation letter should be send prior to conducting any meeting. Business organizations of Spain always expect positive behavior and punctuality regarding overseas visitors and clients. Due to the unusual working structure, it has been observed that Spanish people generally prefer to conduct meetings or appointments in mid-morning. In order to conduct business in Spain, it is necessary to establish personal contacts with the native people. Spanish people always choose to do business with those cultures with whom they are familiar with. Therefore, by establishing personal contacts outside organizations can initiate negotiation procedures in an efficient manner. Moreover, it is also essential to develop effective business relationships and construct constructive rapport with the colleagues within the Spanish business environment (Bauer, 2005). Brief Description of Eastern Culture Eastern countries primarily comprise a wide variety of cultures, unique philosophical systems and social structures which specifically are referred as Eastern culture. The Eastern culture encompasses Indian subcontinent and Eastern nations such as China, Japan, Taiwan and North Korea among others. Eastern culture is developed on the basis of various traditional themes and value systems. Contextually, Eastern religion generally involves Confucianism, Shinto, Far Eastern Buddhism and Daoism. Similarly, Indian religions involve Buddhism, Sikhism, Hinduism and Jainism. By comprising all these religions, the Eastern culture is demarcated on the basis of several unique features, themes and value systems. The attributes of the Eastern countries show several kinds of cultural heritage where various nationalities, ethnic groups and societal groups play an imperative role in order to develop distinctive cultural systems among every nation (Chang, 2013). Indian Business Culture India is considered as a nation which comprises both diversity as well as permanence in nature. This nation brings out its unity in diversity characteristics through artistic and inventive combination of different religions, races, cultures and languages. The social system and identity of India has remained sheltered by a rich cultural heritage ranging of about 5,000 years due to which this nation is considered as one of the oldest civilizations in the world. The vital element of Indian culture which is essential to understand for the overseas business organizations is the traditional system and communication style that form the nation’s society in an effective manner. The major values of Indian culture entail Hinduism & traditional caste system, Fatalism and Collectivism (Communicaid Ltd, 2012). In terms of traditional caste system, the different religions of India should be respected in order to establish effective business relationship. Even though the Indian caste system is the direct result of Hinduism, the culture system remains influenced by the hierarchical structure within the business organizations (Communicaid Ltd, 2012). Fatalism is considered as one of the significant qualities of Indian culture. The idea of ‘Spirituality’ and ‘Karma’ remain extremely important within the decision making procedure of Indians. Moreover, Fatalism also encourages the concept of ‘Time’ within the Indian culture where the outcomes of business decisions at times take a long time and are never hurried (Communicaid Ltd, 2012). Collectivism reflects the effective essence of Indian culture where community members always prefer orientation and follow the decision of hierarchical settings. In Indian cultural system, a lack of confidentiality and lesser personal space have been observed where generations of family prefer to live together under single roof. The business activities in India effectively emphasize upon interpersonal contacts, evasion of conflicts along with following an indirect approach within the communication system (Communicaid Ltd, 2012). Doing Business in India In the present business context, Indian’s business market is continuously expanding which provides greater opportunities for both domestic as well as overseas business organizations. The visualization of Indian’s economy shows effective inflow of overseas investments. It has been observed that the education system of India has drastically evolved to become competitive and the nation is regarded as one of the leading suppliers of skilled scientists, engineers and technicians, which enhance the attractiveness of the overseas business entities. Moreover, Indians always prefer punctuality but it is not reciprocated most of the times (Communicaid Ltd, 2012). It order to conduct business, it is suggested to make an appointment at least a month before and confirm it appropriately. A majority of the business organizations always prefer to fix business meetings or appointments for late morning or early afternoon. Decision making is quite a time-consuming and thoughtful procedure within the Indian culture. Adherence to deadlines is at times not provided the major priority within the business culture. In the business scenario, hierarchies always prefer to check and analyze the behavior and attitude of the employees within the workplace before assigning job responsibilities. In this regard, ‘face’ and ‘self-esteem’ are the two considerable aspects of the Indian culture wherein individual conflicts and arguments within the business situation are handled in a careful and sensitive manner. Due to the apparent hierarchical system, the interpersonal relationship among the Indian top-level managers and their employees are quite comparable with that of the close relatives. A majority of the business organizations in India prefer to initiate their meetings or appointments with friendly conversation. This comprises initiating personal interrogations regarding family background and culture in order to develop adequate understanding and trust before making any decision (Communicaid Ltd, 2012). Chinese Business Culture China is considered as one of the leading nations throughout the world in terms of population as well as technological advancements. At present, ‘The People’s Republic of China’ is continuously emerging and is also considered as one of the leading nations in terms of economy within the globe. In China, a unique attributes of culture is to construct an effective sense of egotism which is the traditional viewpoint of the nation’s history. In order to conduct business in this nation, it is necessary for the organizations to understand the ethical perspectives as well as the value system of the Chinese culture. The key values of this nation’s culture are Guanxi, Mianzi, Keqi and Confucianism (Communicaid Ltd, 2009). In terms of ‘Guanxi’, Chinese culture primarily reflects ‘relationships’ and ‘connections’ with each other. ‘Guanxi’ is primarily considered as a communication system which constructs trust and promotes cooperation within the Chinese culture through which people aim to easily attain everyday task schedule. The people of China always establish supportive relationships on the basis of shared respect which is the key aspect of their cultural system. In the business environment, considering the preaching of ‘Guanxi’ accurately helps to minimize conflicts and frustrations among the employees (Communicaid Ltd, 2009). ‘Mianzi’ or ‘Face’ is one of the significant aspects, which is essential to be considered while making interactions within the business environment. In China, cultural aspects such as ‘losing face’, ‘giving face’ and ‘saving face’ are the vital elements for successful business (Communicaid Ltd, 2009). ‘Keqi’ is regarded as the combination of two Chinese words i.e. ‘Ke’ refers to guest and ‘qi’ implies behavior. This cultural notion suggests thoughtful, polite and appropriate positive attitude. As per the business culture, it is quite significant for the employees as well as hierarchies to represent humbleness and respect in terms of gestures and appearance while making communication with each other (Communicaid Ltd, 2009). ‘Confucianism’ is considered as an ethical belief system which is based on learning and writing as per the methods idealized by philosopher Confucius. It has been observed that philosophical system of China is still considered as a crucial cultural aspect towards the development of this nation’s society (Communicaid Ltd, 2009). Doing Business in China From the year 1978, China opened up to the global economy and an inflow of foreign investments stated to commence due to which this country experienced a lot of political as well as economical changes. In the year 2001, due to the establishment of World Trade Organization (WTO), this nation has been able to deliver effective potential market opportunities regarding investment and sales for the overseas investors. In order to conduct business in China, it is essential to possess punctuality and respectful behavior within the organizational culture. It has been observed that Chinese do not prefer to deal or communicate with unknown persons whom they do not trust. It is also necessary for the foreign organizations to establish and make appropriate introduction regarding their counterparts’ prior to conducting business within this nation (Communicaid Ltd, 2009). Chinese culture always prefers long-term relationship within business culture and avoids hurried negotiation based decisions. Chinese people believe and follow trust which is based on beneficial relationships while making communication regarding business purposes. Moreover, Chinese business culture adheres to unique greeting norms and expects friendly welcome from the new employees or organizations. Collectivist methods of thinking are quite essential for conducting business within this cultural environment. During business negotiations, humility and patience are the two considerable aspects for the overseas organizations (Communicaid Ltd, 2009). Similarities and Differences of Western and Eastern Business Culture There are a wide range of similarities as well as dissimilarities between the Western and Eastern business cultures in terms of communication, beliefs, values, religions, people, perception and most significantly business environment. In relation to cultural comparison, both Western and Eastern cultures make ‘dispositional interferences’ in the similar way but both of them differ in terms of ‘situational interferences’. In this similar context, several cross-cultural management studies postulate that people of Eastern countries organize personality information in similar manner alike the Western nations. People of Western culture always show low self-esteem behavior within the business environment (Norenzayan & Choi, n.d.). In relation to Eastern culture, people of Eastern countries always possess high self-esteem attributes within their working activities. It has been further observed that differences between Western and Eastern cultures also influence the factors such as social consistency, economies and political development among others. In relation to learning and teaching approaches, the facts show that Eastern culture is more democratic and economically as well as socially developed as compared to the Western culture. In terms of religious perspectives, Eastern culture comprises Buddhism, Confucianism, Islam, Taoism and Jainism whereas Western culture comprises rational, scientific and goal-oriented people. Eastern culture always follows and is influenced by religious perspectives where a majority of the people believe in psychological viewpoint i.e. life after death. Conversely, in Western culture, people believe that there is only one life wherein they do not believe the concept ‘afterlife’. Western business culture always prefers to follow its unique value system in order to establish sustainable environment within the workplace. Conversely, Eastern business culture based people always follow the dimensions of ‘Face’ and ‘Self-Esteem’ in order to reduce conflicts and arguments among the employees (Brown, Cai, Oakes, & Deng, 2009). Conclusion The core notion that emerges from the overall discussion is that cross-cultural management technique plays an imperative role through which organizational managers appropriately understand the employees who belong from diverse cultural backgrounds. Through this management technique, organizations can comprehend the issues as well as the needs of the diverse cultural people and establish sustainable work environment. Due to globalization, organizational managers and employees are often required to be shifted from one part to another part of the world for business purposes. With the help of this technique, managers can easily evaluate the cultural differences of every nation. Moreover, from this aforementioned discussion, it has been also observed that in order to conduct or expand business in an international basis, it is necessary for the organizational managers to accurately evaluate business cultural differences amid the native as well as the overseas countries. Through this way, mangers can successfully conduct business in foreign nations and operate it in a sustainable manner. References Bauer, C. (2005). Doing business in Spain and Latin America. Retrieved from http://www.home.hs-karlsruhe.de/~roin0001/nav-imc/student-projects/Report-Spain-Latin-America_2004.pdf Brown, J. D., Cai, H., Oakes, M. A., & Deng, C. (2009). Cultural similarities in self-esteem functioning east is east and west is west, but sometimes the twain do meet. Journal of Cross-Cultural Psychology, 40(1), pp. 140-157. Communicaid Ltd. (2012). Doing business in the United States of America: US social and business culture. Retrieved from http://www.communicaid.com/access/pdf/library/culture/doing-business-in/Doing%20Business%20in%20the%20USA.pdf Chang, S. J. (2013). When east and west meet: An essay on the importance of cultural understanding in global business practice and education. Retrieved from http://www.aabri.com/manuscripts/09201.pdf Communicaid Ltd. (2012). Doing business in Spain: Spanish social and business culture. Retrieved from http://www.communicaid.com/access/pdf/library/culture/doing-business-in/Doing%20Business%20in%20Spain.pdf Communicaid Ltd. (2012). Doing business in India: Indian social and business culture. Retrieved from http://www.communicaid.com/access/pdf/library/culture/doing-business-in/Public%20Course%20-%20Doing%20Business%20in%20India.pdf Communicaid Ltd. (2009). Doing business in China: Chinese social and business culture. Retrieved from http://www.communicaid.com/access/pdf/library/culture/doing-business-in/Doing%20Business%20in%20China.pdf Dooyeweerd, H. (1979). Roots of western culture. Retrieved from http://www.reformationalpublishingproject.com/pdf_books/Scanned_Books_PDF/RootsOfWesternCulture.pdf Kawar, T. I. (2012). Cross-cultural differences in management. International Journal of Business and Social Science, 3(6), pp. 105-111. Norenzayan, A. & Choi, I. (n.d.). Cultural similarities and differences in social inference: evidence from behavioural predictions and lay theories of behaviour. Retrieved from http://www-personal.umich.edu/~nisbett/cultsim.pdf Read More