Importance of Cross-Cultural Management - Assignment Example

CROSS CULTURAL MANAGEMENT Table of Contents Table of Contents 2 Element 3 1 Importance of Cross Cultural Management: 3 2 Conception of Cross-Cultural Management before study: 4 1.3 Knowledge gained from Module: 5 1.4 Areas for improvement: 6 Element 2: 8 National Culture and Values have impact on Management Style and Practice of International Managers: 8 Conceptualisation - Awareness of the problem and possible options: 8 Research: Information regarding the contemporary scenario: 10 Development: Decision Making Processes: 11 Reflection and Conclusion: 13 Reference List: 15 Element 1: 1.1 Importance of Cross Cultural Management: With the growth in business complexity, numerous variables have evolved and transformed themselves into decisive factors in designing our lifestyles and environment and to name a few, globalisation, technological growth and economical stability can be mentioned. The most attractive concepts in context of cross cultural management are globalisation and technological growth (Benedict, 2009). Both these concepts have reduced the differences and barriers among the global population. As the concept of globalisation is being accepted by the corporate sector and the social sphere, cultural diversity is increasing. On the other hand, technology is one of the major players in context of building platforms for cross-cultural communications across geographical barriers. Apart from the materialistic resources, business management aspects such as leadership are also a crucial factor in handling cross-cultural diversity in the workforce. The process and style of leadership being applied in the business reflects the ability of a firm to manage and solve the problems faced by their employee base. Leadership also directs the communication framework of the organisation and also creates a major impact on the employer-employee relationship. Thus, I came to gather that managerial abilities can be measured with the ability to lead the employees, solve their issues and also ensure that the organisational objectives are being achieved. Cross cultural diversity is one of the growing concerns in the corporate environment. As firms are focusing on expansion of their business by extending their business activities into new markets, the diversity in the employee base is increasing. On one hand, a culturally diverse work force is needed for ensuring innovation in the work structure and on the other hand diversity in the work force also increases the differences in work process and organisational functions. Firms are urging their managerial teams for developing a steady and sustainable strategy for managing cross cultural diversity. Considering my line of study and future professional objectives, cross cultural diversity management will develop a vital aspect in my skills and organisational responsibilities. Cross cultural management will not only help me in communicating with the workforce effectively but also ensure co-ordination among the employees. 1.2 Conception of Cross-Cultural Management before study: Before the module was started, I had limited knowledge regarding cross cultural management and its roles. I was of the conception that cross cultural management increases complexity in the business functions and reduces the efficacy of the work force. For me cross cultural management was a disadvantage for the management and can hamper the performance of the business. However, I was aware that expansion of business will only promote cross cultural diversity in the work structures of business houses. I strongly believe in the notion of team work and a united workforce and was not able to align cross cultural management with the managerial roles. Nor was I able to evaluate a proper solution for managing cultural diversity within the workforce of a company. The module helped me in assessing the advantages and the positive points of cross cultural management and how it can be managed in order to develop a unified workforce for a business. The integral role of the managerial staff of a company was reflected to me when I studied the module. My perception of managerial roles changed and I was able to understand the critical aspects of managerial responsibilities. Various models and concepts that were studied in the module helped me in understanding the organisational operations and the strategic planning process of a firm. It was clear to me that cross cultural management is an important aspect in the business management process of a firm and I have to learn to manage it and solve the problems faced by the workforce. 1.3 Knowledge gained from Module: The work activities conducted within the module has helped me in developing a clear understanding of the importance and managing process of cross cultural diversity in the employee base. Activities such as group discussion, team project development, etc where helpful in enhancing communication skills and also developing an understanding of the process of working with a variety of people from dissimilar ethnic background. One such incident was the planning process for the assignment build up where our team was gathered for deciding upon the activities and roles of each team member. Two of the members were from different cultural background. One member was African European and another member was Indian. Relating to this situation, I understood the problems that are faced by a manager in handling a culturally diverse workforce. Some of the common problems are language, communication signs, working styles which create problems in developing a plan for fulfilling the project objectives. The group discussions held during the session has helped greatly in formulating a process through which cross cultural diversity can be managed. I came to understand that people can perform up to their full potential only when they are comfortable and communicative. So, the group discussion meetings helped us get closer and understand each other in a better way. We started speaking openly about their problems and barriers that we face while communicating with others. For instance, I am an introvert and was afraid to speak my mind in a crowd but group discussion sessions helped in opening up to my team members and state the problems I was facing. Similarly we came to understand that the business process of a firm also engages in strategies for developing an open work culture that allows the business to create a comfortable work place. This way the cultural diversity in the workforce can be managed and collaborate employee base can be formed. 1.4 Areas for improvement: The areas for improvement in my cross cultural management practices and personal skills will be evaluated with the help of Gibbs Reflective Cycle. This model helps in assessing the progress of an individual in relation to the personal aims and objectives set. Figure 1: Gibbs Reflective Model (Source: Brenton and Driskill, 2010, p - 34) Communication Skills: With the progress in the module, I started to realise and identify the mistakes I was making and the errors in my perception of cross cultural diversity management. As the module progressed, I was also able to compare myself with my peers and reflect on my own skills. I came to realise that my communication skills still needs to be improved. I must be capable of making my fellow teammates and colleagues comfortable in sharing their thoughts and problems. The business process of a firm includes many tasks and activities and the managers need to ensure that the employees are aware of their responsibilities and are performing according to the organisational needs. Thus, I have to ensure that my communication skills are in place for being a successful manager in an organisation. Leadership Skills: I need to improve my leadership skills so that I will be able to manage the problems of the employees working under my supervision and also guide them in the appropriate manner. On the other hand, I will need to understand the requirements of the organisation from me so that I can adopt the appropriate leadership style in accordance with the work structure and culture of the organisation. These factors will also develop the variety in my skills and create a better scope for my future aspects. Although I presume that I have a helpful and co-operative personality, I need to understand where to help the employees and when to let them learn by themselves and develop their skills. These factors are essential in the contemporary management practices. Project Management Skills: Managing projects is an important of the current day management process. A manager should be able to properly develop the planning and implementation process and also co-ordinate them adequately. Not only these, a manager should also have foresight for assessing the risks and uncertainties and develop suitable contingency plans. I need to learn the various concepts and processes being utilised in project management process. Also, project management process has both managerial and technological ingredients which make it complicated. I must be able to understand this subject thoroughly and develop an effective knowledge base which I can apply in the practical field of my profession. Element 2: National Culture and Values have impact on Management Style and Practice of International Managers: Cultural difference in the workforce is a common scenario all over the corporate industry. The business houses are focusing on formulating a strategy that can help them manage the cultural diversity and also align the workforce with the organisational work structure. Researchers such as Chatman and Spataro (2008) and Brown (2008) have explained that inherent cultural values and social beliefs of an individual play a major role in the business development process. In this context James (2010) mentioned that operational processes of a firm is designed according to the needs of the organisation, but they also need to develop scope for identifying barriers for the employees. Conceptualisation - Awareness of the problem and possible options: In the context of cultural awareness, Colella and Miller (2009) stated that as the work places are changing workforces around the world should try to identify the differences in the work culture and act towards establishing common factors in the work process. Although cultural diversity has been considered of significant importance for growth of society and business culture, researchers also debate obvert the problems created in a culturally diverse environment. Bate (2008) mentioned that identifying the cultural significance in a society or organisation also asks for measuring the cultural value among the employees. This helps in assessing the actual level of cultural diversity and its probable impact on the employees and the workforce. According to the studies of Flamholtz and Randle (2011), cultural diversity is essential in a work place for enhancing the potential skills of the employees and utilising them in the best possible manner. The growing demands of the corporate sector also demands for a culturally diverse workforce which will increase the scope and variety of ideas and contribution of the employees towards the organisational goals. However, researchers such as Schein (2006) and Bate (2008) have opined that cultural diversity increases complexity in the managerial process. Cultural diversity creates discrimination in the workforce in context of ethnicity and racism which can hamper the performance and productivity of the employees. Cross cultural management has been regarded both as bliss and an issue for the business houses. Cross cultural diversity is necessary for firms to operate in a multi-cultural environment and also utilise the available resources. However, the firm must be able to manage the employee force and their differences. DiBella (2008) stated that in order to manage cultural diversity a business must be able to understand the factors that motivate the employee in context of cultural and ethnicity. According to Jassowalla and Soshittal (2009), operating in the international market increases the scope of working with individuals coming from different backgrounds. This allows the business houses to understand and gain knowledge regarding the general behaviour of people of a particular country. Greger (2008) also mentioned that national culture also influences the work style and behaviour of the employees which can both positively and negatively affect the performance of the individuals. Managers operating in a multicultural workplace have considered communication to be one of the most effective techniques for enhancing employee communication and collaboration. However, the key barrier to communication is the diversity of languages of the employees and can also result in unprecedented scenarios leading to misunderstanding and chaos. On the other hand, growth in the concept of employee management has urged the managers to devise strategies for optimal utilisation of human resources. Flamholtz and Randle (2011) explained that managers cannot change the basic behaviour or the cultural practices of the employees; however they can try to align them with the work structure of the organisation. The organisational practices must be developed in a manner which does not hurt the religious and cultural sentiments of the employees and hence be used for reflecting a mutual workplace for the employees. Furthermore, Jassowalla and Soshittal (2009) added that employees are concerned about their faiths, beliefs and moral values all of which are triggered by the social and religious practices. Ensuring safety of these intangible aspects for an employee increases their loyalty towards the organisation and helps them in concentrating on their job. This process is long term and there is no exact variable for measuring its efficacy however the scope of management and employee communication is better and can help in developing national integrity for the workforce and the organisation. Research: Information regarding the contemporary scenario: Religion, national culture and moral values as stated above can be identified as crucial factors in managing a culturally diverse workforce. However, it is a tough task to accomplish. Managers operating in diverse work cultures are facing pressure from higher authorities for increasing employee performance while managing the discriminations in the work structure (Brown and Starkey, 2008). The ability to help the employees overcome their natural and basic instincts for the work process will help the managers in reducing interference from cultural and religious factors. Greger (2008) noted that in the contemporary scenario, firms are not trying to control their work practices rather are motivating the employees to work in difficult and challenging situations which can ensure mutual benefits. Jassowalla and Soshittal (2009) emphasised that business firms are trying to control diversity and cultural influence rather than devising a solution for enhancing equality in the work culture. It can be gathered from the academic researches that managers operating in international market places are facing challenges for aligning a diverse work force. One of the most prominent cases in this regard was the case of Ford’s business expansion. When Alan Mulally entered Ford as the CEO, the company was facing huge financial losses and their work culture was uncontrolled. The development of the company was doubtful under these conditions. Hence, Mulally introduced the concept of a unified workforce working towards a common goal irrespective of the work division and the differences among the work place of the firm. He focused on developing a network of communication which will connect the entire employee base of the company and reduce misunderstanding among the employees (Flamholtz and Randle, 2011). The workforce of Ford consists of around 500000 employees all over the world and Mulally was focusing on developing a unified workforce by establishing a common platform for communication and shared vision (Flamholtz and Randle, 2011). These factors helped him in nullifying the effects of cultural diversity and also reduce the influence of national culture in the work place. The practices of Mulally reflected an apt managerial skill and process for the managers to manage cultural diversity. However, factors such as country of origin, external relations with the host nation of the organisation are essential factors which dominate the behaviour of the employees towards the organisational goals (Brown and Starkey, 2008). For instance, third world countries such as Iranian employees working in American Embassy and other American firms showed outrage during the 1979 revolution in Iran (Chatman and Spataro, 2008). These factors are also included in shaping the national culture of an individual. Development: Decision Making Processes: DiBella (2008) stated that decision making process of managers in a firm can be broadly classified as autocratic or participative decision making. However, Brown and Starkey (2008) mentioned that decisions regarding employee communication and work performance of a firm are mostly based on the needs of the employees and are not directly related with business functions. This also enhances the confusion in the decision making process of the managers. Chatman and Spataro (2008) observed that in some cases, managers have to ensure that the employees have the right perception regarding their work culture and work process so that they can be loyal towards the organisational cause. Greger (2008) further added that employee loyalty and performance are also related with the ability of a company to manage the differences among their workforce and make them feel equally important. On the other hand, Flamholtz and Randle (2011) argued that managers try to reduce the cultural influence on an individual whereas they should be focusing on helping the employees to treat their personal and professional practices in a separate manner. This point was picked up by the Chatman and Spataro (2008) who commented that managers operating in international market place face cultural diversity not only in employee management but also in terms of their customers. However, customer diversity and employee management are handled with different policies. According to Jassowalla and Soshittal (2009), managing internal diversity is not only based on the cultural aspects but also includes the differences in way of work and performance of the employees. Often it has been observed that business requirements include the aspect of managing the workforce of a firm and also urges the managers to create a mutual platform for the business and employee growth. The ability of the managers in this context is measured on the basis of the collaboration among the employees (Brown and Starkey, 2008). In an attempt to assess the probable impacts of national culture on the work process of an individual, Greger (2008) noticed that if the employees are not able to relate their experiences and inherent skills with the culture of an organisation, they fail to perform. However, it is not possible for a company to nurture and design their work structure based on the individual problems of the employee base. Thus the primary task of the managers is mainly to identify the individual requirements of the employees in context of national culture and group them accordingly which will help the organisation in creating a proper employee management policy. Some of the established models used for understanding the culture and nature of the employees in the corporate sector are the Big Five Dimensions of Culture, Hofstede’s Cultural Dimensions etc (Chatman and Spataro, 2008). These tools help in reflecting the nature, behaviour, attitude of the employees and also highlight the relationship between the employees and the organisational culture (Brown and Starkey, 2008). This is helpful for the managers in developing their strategies or plans for controlling the diversity among the employee base and reduces the cultural significance in the work structure. Reflection and Conclusion: The discussion and research related to cultural significance of a business reflected the aspects which creates cultural diversity, factors that influences cultural diversity in work place, process of managing cultural diversity and the influence of cultural diversity on the practices of managers. The primary focus of the study was on assessing the impact of national culture and value on the work process of the managers in the international market place. The analysis of the existing researches reflected that organisational functions are dependent on the ability of the employees to work as a single unit with a shared vision. However, differences in the cultural identity of the employees also create problems in managing the workforce. Thus, it becomes difficult for the managers to establish a common rule or strategy for the entire workforce. On the other hand, some of the researchers stated that functions of the managers in relation to diversity management are mostly focused on controlling the cultural factors. However, researchers claim that managers should try to help the employees in treating their professional and personal lives differently. This will again help the firms to create an environment where the personal interests or beliefs of the employees will not crash with the professional work culture. One of the important aspects of managing the cross cultural diversity in the business firm is that the growth of the business is simultaneous to the growth of diversity in the workforce of a firm. The ability to manage the different requirements of the employee base and also ensure a supportive work culture reflects appropriate management of cultural diversity in the workforce. It is clear from the discussion that cultural diversity or the influence of national culture on the work force of the firm will always exist. However, managers can create a different platform for the work structure that does not collide with the business practices and hence can develop a better work culture. Reference List: Bate, S., 2008. Strategies for Cultural Change. 4th ed. Oxford: Butterworth Heinemann. Benedict, R., 2009. Patterns of Culture. 5th ed. Boston: Houghton Mifflin. Brenton, A. L. and Driskill, G. W., 2010. Organizational Culture in Action: A Cultural Analysis Workbook. 4th ed. London: McGraw-Hill Higher Education Brown, A. D. and Starkey, K., 2008. The Effect of Organizational Culture on Communication and Information. Journal of Management Studies, 31(6), pp. 807-828. Brown, A. D., 2008. Managing Understandings: Politics, Symbolism, Niche Marketing and the Quest for Legitimacy in IT Implementation. Organization Studies ,16(6), pp. 951-969. Chatman, J. A. and Spataro, S. E., 2008. Using self-categorization theory to understand relational demography-based variations in people’s responsiveness to organizational culture. Academy of Management Journal, 48, pp.321-331. Colella, A. and Miller, C., 2009. Organizational Behavior A Strategic Approach. 5th ed. New York: Leadership Press. DiBella, A. J., 2008. Culture and Planned Change in an International Organization: A Multi-Level Predicament. The International Journal of Organizational Analysis, 4(4), pp. 352-372. Flamholtz, E. and Randle, Y., 2011. Corporate Culture: The Ultimate Strategic Asset. 3rd ed. New York: Harper Collins. Greger, K.R., 2008. A positive corporate culture is the soul of retention, Hotel and Motel Management, 214(10), p. 10. James, W., 2010. Corporate culture and the quality organization. 5thed. New York: Leadership Press. Jassowalla, A.R. and Soshittal, H. C., 2009. Cultures that support product innovation processes, Academy of Management Executive, 16(3), pp. 42-54. Schein, E., 2006. Organizational culture and leadership. 4th ed. San Francisco: Jossey-Bass. Read More