Cross-Cultural Management in International Businesses - Term Paper Example

Topic: Cross Cultural Management in International businesses Introduction In the 21st century businesses, agriculture, technology, and people’s way of life is also changing. There are increasing global ventures of different business and the managers of these businesses and companies face many challenges in management across different cultural settings (Usunier, 1998). On deciding to enter into businesses across different cultural borders, managers need to take in consideration many factors. Among the factors, managers need to consider are cultural differences, differences in language in those countries, the kind of challenges the employees will face in the foreign jobs assigned, the knowledge of how to assist and develop the employees, and ensuring they are up to date skill wise while in other country setting that might be underdeveloped (Jackson, 2013). Cross-cultural management refers to a system applied by global managers managing global businesses that are in cultural variations, the practices they employ, and the preferences they offer to both employees and consumers to ensure the success of these companies. As globalization increases, the cultural diversity, preferences and practices are significantly increasing, and thus there is a need for cross-cultural management to be effective in bridging the communication gaps in every cultural setting (Usunier, 1998). Communication is a major consideration in intercultural discussion (Rosen, 2000). Working in different cultural zone revolves around the ability to communicate effectively in that new venture with different and unique cultural practices. As today’s’ global businesses are very complex entities, one of the most fundamental principles to succeed remains constant, the need for communication. Management need to ensure they understand and get understood across different cultural boundaries (Usunier, 1998). Cross cultural management: competencies and transfer of knowledge In every cultural setting managers need to portray own competence in handling issues in business because of the difference in cultures. Cross-cultural competence refers to the ability of managers and other individuals to function effectively and productively in a different culture. It consists of three form of competencies: skills (aptitudes and abilities), personal attributes (beliefs, values, and personality traits), and cultural knowledge (Jackson, 2013). Knowledge transfer entails the ability of a global manager to apply effectively the managerial skills and abilities in different cultural area. The managers are able to teach their employees who may also be foreigners the best practices in a new country with different cultures. Holden (2002) asserts that core cross-cultural management comprise several competencies: interactive translation, participative competence, collaborative cross-cultural learning, experience and values, transfer of cross-cultural knowledge and creation of a collaborative atmosphere. The main purpose of cross-cultural management lies on the need to facilitate effective interaction in different cultural settings. Holden’s model of cross-cultural management c Participative competency entails the ability to be part of the interaction even in a non-native language. The ability to interact and find new things, acquire and manage information, attitudes, and skills in real-time communication forms the centre of cross-cultural competence. Interactive translation refers to the ability to negotiate meanings and acquisition of tacit knowledge such as observation and imitation. According to Mendenhall et al., (2012), managers should be in a position to examine openness and silent assumptions and test a wide range of practices and thoughts on how to better the company in a different cultural setting. Working in networks, knowledge transfer, and collaborative cross-cultural transfer closely links. People working in networks are able to share different skills, as participants are givers and recipients in the process of interaction. Through cooperation with the idea that people from different backgrounds appreciates and considers taking advantage of synergetic perspective taking, companies achieves competitive advantage. According to Holden (2002), the atmosphere created by global managers is significant in the success of their companies. Developing trust is critical in structuring of a collaborative atmosphere that breaks cross-cultural difficulties. The need for cross-cultural management Globalization processes are very quick and in the same time very unstable, in that business communication tends to be more cross-cultural or multi-cultural (Rosen, 2000). In multicultural contexts, business connections are very complex as problems also come up in different life settings. Thus, there is a growing need for cross-cultural management in businesses as also economic links are increasing globally (Mendenhall et al., 2012). According to Jackson (2013), growing global competition and the increased migration causes a great need for cross-cultural management. People with high competence leave own countries and opt to work in foreign countries that offer better work and living conditions. As international businesses expand, there are more migrants and creates the need for emphasis on cultural circumstances. Global managers need to be observant and flexible in focusing on cultural factors that may affect the businesses both positively and negatively (Usunier, 1998). It is necessary to apply the cross-cultural management skills in solving the problems that arise between members of the organization both in the internal and external environment. There are different intercultural problems that global leaders experience in multicultural enterprises. The ability to manoeuvre through them determines the success of a business. Different countries have different standards, ethics and practices as practical business activity are different among people, cultures, countries, and these may be major challenges in managing global businesses. Legal standards, customs, management systems, and the socioeconomic systems are also critical sources of problems that managers should consider. Management systems differ in different cultural settings and state of economic situations in different countries directly affects the activities of an enterprise (Usunier, 1998). The ability for managers to cope with the economic, legal, political, and cultural aspects underlines the success of the organizations. There are several ways that managers can effectively overcome cross-cultural barriers. Managers need to portray a sense of respect and courtesy, as they are the fundamental pillars of intercultural business success (Mendenhall et al., 2012). They should show appreciation and consideration of different breeds of culture in openness and great civility. They also need to be tolerant not only in respecting people’s views but also tolerance and correction in case of different working mistakes. Global managers also need to have a sharp way of identifying problems. It is important to check on the context of the problem, those involved, the situation and the possible outcomes. Early identification of the cause of the problem helps in curbing it before causing major damage on company’s activities. Managers also need to know the law that exists in different countries. The legislation on employment, marketing of products, distribution, and the cultural requirements are necessary to consider (Guang & Trotter, 2012). The knowledge of cultural taboos is paramount to ensure offenses or misunderstandings do not arise. Inability to learn certain cultural practices and taboos can harm a business reputation and lead to running out of the market. Managers should encourage interaction among employees and with clients to form stronger relationships and break cultural barriers (Jackson, 2013). They should set a suitable way of giving instructions in that employee can understand and take positive steps in performing the activities of the organization. In most cases where communication may be a barrier, written instruction may serve the employees well as there is enhancement of own confidence. The major point of consideration needs to be their knowledge of cross-cultural communication. Challenges facing global managers Moving from the national to the global environment bears many challenges to global managers. In a global setting, the market becomes larger and competition increases (Mendenhall et al., 2012). Managers take more time in finding the effective way of entering in different markets and the means of competing effectively. They also face the challenge of competition for labour as it becomes more complex in different country setting. In particular, having people of different cultural backgrounds who understand the job requirements and can function well to yield results with suitable job qualification and experience may be a challenge (Guang & Trotter, 2012). Legal and tax requirements may be so complex in different countries forcing managers to take an interest on other cross-cultural factors that may affect the business. Environmental and labour legislation may also differ significantly thus challenging global managers on taking effective measures on solving other problems of culture (Usunier, 1998). Marketing of company products determines the success of such companies in the market. In most cases, managers focus mainly on how to market the products and form a successful business foundation thereby forgetting the fact that cultural understanding is a major factor in searching a suitable marketing strategy (Jackson, 2013). Conclusion In the modern world, it is clear that managers at global business level need to embrace cross-cultural management skills to sail through in businesses. They need to assess the cultural factors that may affect their business and find the suitable way of combating the challenges. With the cross-cultural competencies discussed above every manager would be in a position to deliver comfortably the roles allocated. It is also clear that an effective communication is a major cross-cultural factor that they should embrace in making life in multicultural settings successful. References Guang, T. & Trotter, D. (2012). Key issues in cross-cultural business communication: Anthropological approaches to international business. African Journal of Business Management, 6(22), 6456-6464. Holden, N. J. (2002). Cross-cultural management: A knowledge management perspective. London: Prentice Hall Jackson, T. (2013). Management and change in Africa: A cross-cultural perspective.New York: Routledge. Mendenhall, M. E., Oddou, G. R., Osland, J., & Maznevski, M. L. (Eds.). (2012). Global leadership: Research, practice, and development. New York: Routledge. Rosen, R. H. (2000). Global literacies: Lessons on business leadership and national cultures. R. T. Rosen (Ed.). New York: Simon and Schuster. Usunier, J. C. (1998). International and cross-cultural management research. London:Sage Publications. Read More