Cultural Environment and Its Implications for Managers - Research Paper Example

Running head: CULTURAL ENVIRONMENT AND ITS IMPLICATIONS FOR MANAGERS (COLOMBIA-BASED RESEARCH) Institution Group Name Abstract This piece of writing examines how cultural environment in Colombia impact managers’ roles in the organization. Hofstede model of cultural dimensions have been used to analyze various aspect that affect the entire performance of a manger. Since the model (Hofstede Model) requires a comparison of culture in two or more countries, United States has been used as a case of analysis. Four Dimensions (individualistic, power distance, masculinity and uncertainty avoidance) regarding Hofstede Model have been discussed. Apart from the analysis of these parameters with respect to Colombian culture, also determinants of culture in the country have been discussed. Religion, face and hierarchy and business network are the factors that are discussed. Graph has been used to compare the cultural parameters in the two countries. Recommendations as well during the study have been made for the benefit of Colombia managers. Introduction World The inevitable essential changes in the current world especially in social and political grounds have demanded managers to ‘think and be active globally’. Organizations as well as business enterprises particularly in the twenty-first century era need to categorically understand the virtual inferences of culture on the business goals/objectives. A range of disciplines, for instance sociology, organizational behavior besides the management, have examined comprehensively the issue of intercultural management and its implications. Why, in the twenty-first century, so important to be very vigilant of cultural environments and their impacts that is normally involved in management? Adekola and Sergi (2007, 178) concluded in their research that when dealing with any other aspect that requires people’s attention, success or failure of a strategy entirely depends on how effectively workers in the corporate employ their skills in the new environment. This ability normally depends on sensitivity and responsiveness of employees in the new environment. Managers in the current multicultural global organizations usually experience cultural differences that perhaps may interfere with the attainment of the desired results of the organization (Yeung and Tung, 1996). Both the researches conducted by Hofstede and Trompenaars points out the dominant values in the system. These values, in one way or another, affect individual thinking, the way of action as well as his/her feelings. Geert Hofstede model explains relevant dimensions that merely pose cultural problems to management in organizations. These dimensions include, power distance, uncertainty avoidance, individualism verses collectivism, gender equality and long-term verses short-term orientation (future orientation). This model therefore is very important when analyzing the impact of cultural environment on mangers in Colombia. There is no universal evaluation model (system) that assesses cultural aspects uniformly to date (Hofstede et al, 2010). However, every model normally focuses on the four common dimensions; 1. Time and space (Power Distance Index-PDI) 2. Equal rights of men and female in the organization (Masculinity-MAS), 3. Individual position in the society (Individualism-IDV), and 4. Uncertainty Avoidance Index-UAI. These four dimensions in Hofstede model will be used to evaluate the cultural outlook of Colombian managers and its implications. It is important to know also that comparison of regions helps much in different analysis levels. Therefore, the research will exclusively integrate the analysis of western culture (Europe and India) as well as that of Colombia. When we talk of cross-cultural management, Tjosvold and Leung (2003, 159) says that there are three idiosyncratic aspects that brings in a common attention when it comes to management on managers. These include; First, managers need to understand the interaction between the organization and socio-political and cultural environment (local) and their implications on the organization at all levels (both at macro and micro level), Secondly, more understanding is important on the interaction between international culture and its implications on organizational functions at all levels as well. Thirdly, managers need to understand the interaction between the organization and the global environment which is the ‘umbrella study’ of the diverse cultural environment. In analyzing major areas of human concern particularly in cultural perspective, we should know that culture is just but an observation that has been realized in the organization not in an individual, culture is a eloquent term which describes rather than evaluates, and culture has dimensions (value oriented as well as group oriented). Perhaps these three features will help us when analyzing data value studies presented by World Values Survey (WVS). Colombia In accordance with the parameters presented in the research by Chhokar (2007, 122), Colombia has actually been subjected to the new managerial system. The geographical location of Colombia hinge between North and South America placed largely on the northwestern part of South America. The country is sized the same as that of Portugal, France and Spain combined with a population of about 42 million. Colombia still has the problems with social and political stability which actually affect most of the organizations. Important Factors and Cultural Dimensions (Determinants of Culture) that Relate to Managers in Colombia Normally, basic values especially of people in the organizations are essential to be understood by managers. Understanding of these determinants of culture and related behaviors helps much during decision making processes and sets out the particularities of goal attainments as a manger. These dimensions include: a) Religion Colombia is overwhelmed with 95% Roman Catholic believers. It is one of the customary and conformist country of Latin America culture in which other religions (the protestants) play a small role with far less Jewish as well. However, Colombian constitution assures liberty when it comes to religious believes which has actually impacted positively on political stability of the country. Reflecting this in various organizations in the country, managers have considered catholic holidays as well as their customs as part of the utility. Therefore, regarding religion in Colombia is part of the strategy in most of the organizations and managers are obliged to offer to the employees. b) Business Network According to Venelli (…., 4), about 65% of most organizations are family-based businesses in Colombia. Essential values like reliance, harmony and reciprocity have made most of the families to rely on the workforce within their relatives. c) Face and Hierarchy Traditionally, a manger in an organization was supposed to hold a superior knowledge and skill in order to hold higher position. It is not a surprise that this is changing especially in this young generation era particularly in those people employed in the multinational corporations. As an efficient manger, one should set up a friendly work environment that eventually integrates the desired results. What kind of environment is this? Venelli (…, 5) said that a friendly work environment is that environment that maintains standards and depletes socio-cultural tension in the organization. Gender equality is another main aspect that needs to be focused on as well. Therefore, in moderating ideas about the hierarchy in the organization, most mangers in Colombia value the contributions by the entire group, rather than appreciating individual contributions. d) Future orientation Spontaneity is a well known word by Colombian managers. Colombians are more of present oriented than future oriented minds so they are reluctant to plan for the future. For example, during sports and perhaps other occasions, people in Colombia purchase tickets a few days to the event. However, the government together with some leaders of various large corporations has tended to build a stronger future oriented culture in the country. e) Power Distance Colombia is a closed and powerful elite community. Social inequality is normally a daily experience where by the benefits enjoyed by mangers particularly those at the top offices are easily realized. For instance, top managers have prolific offices, wear fashionable clothes, have special packing places for their cars and are served in different dinning. These people are usually regarded as “doctora” as recognition social type (Vanelli, 2007, 6). However, the main problem that perhaps may affect affiliation of various organizations in Colombia and pose a challenge as well to mangers is the level of human equality that is reflected by different people in the society. Hofstede’s research shows that power distance is normally measured using Power Distance Index (PDI). This implies that the values as well as the attitudes obtainable at the national level bring a contrast between ‘low-PDI’ countries and ‘high-PD’ countries. As far as managers in Colombia are trying to blow away older ways of doing things, parochialism and stems from monolingualism are still the main challenges. Managers have adopted ethnocentric attitude whereby they believe best practices are those of home. However, a small study by Vance (2006, 264) shows that some of the managers in Colombia have had adopted geocentric attitude which has enlightened the country to the global environment. At the moment, managers are world-oriented and are recently using approaches of other managers around the globe to reach the desired results. Cultural Dimension Evaluation (Colombia) Cultural environment normally have a great influence on organizational performance. Significant difference can be realized between United States of America and the Latin America (Colombia). When European score on cultural dimensions was calculated using Hofstede model, it was found that still there are crucial differences between the score when all the dimensions are considered in the analysis. The following graph represents the data obtained from World Value Survey Organization (WVS) analyzed through Hofstede model. figure, i Graph showing four dimensions of culture between Colombia and United States of America From the figure above, the difference in power distance (PDI) is relatively large between United States and Colombia (about 27). In this case, Colombia has the highest score PDI value of 67 compared to United States who have PDI value of 40. This implies that in Colombia, individuals (employees) normally work more in hierarchical system. According to Hofstede, hierarchy system in Colombia is not only accepted but also expected. So employees in Colombia accept that there is unequal distribution of power in organizations and institutions. Again, this shows that mangers encourages cultural training since the communication as well as workgroup behaviors perhaps may differ in different social levels. Therefore, managers are more likely to face tough power orientation influence when carrying out both the operational plans as well as strategic plans of the organizations. Due to this strong hierarchy, managers and leaders in Colombia have improved competitiveness by focusing on three aspects; 1) People Development, 2) Decision making process and 3) Organizational climate. (The three aspects are under power distance) POWER DISTANCE 1. People Development Usually in hierarchical societies difference among individuals are normally the order of the day (Parrado, 2011, 76). Colombia inequality signifies less hope for people like maids and watchmen which in most cases they are treated with inferiority. During dialogues, individuals in Colombia value respect as an important element of consensus therefore any process that needs negotiation as a manger, one need to consider the approach of addressing workers and how they would expect to be addressed too. 2. Decision making process Subordinates only expect to be told what to do in hierarchical societies (Tjosvold and Leun, 2003). It is not the same case at the equalitarian society. Subordinates usually expect to be consulted in this type of society. So it is hardly for supervisors to give feedback to their bosses especially when they at the lower rank. Colombian subordinates actually see their boss as non inclusive in their authority therefore they present less or no opinions at all. A Colombian company with a powerful pyramid-hierarchical system have the decisions taking too long since the order will have to be from one boss to another where one manager is not accustom to take any decision. Generally, decision making process in Colombia perhaps takes a longer time and subordinates on the other hand hardly present the feedback to the managers of the organizations. 3. Organizational Climate In Colombia, there is a wide range salary range between the top and the bottom managers. However, this perhaps is not normally the case in most equalitarian societies where there is a low salary range between the top managers and the line mangers. Reflecting from the GIN index, there is inequality in income distributions in United States as compared to Colombia. Initiative minds of managers normally account that when there is smaller margin between income and salaries in the organization, this leads to work motivation as well as commitment by employees. This motivating aspect brings a certain environment to employees in which as a manager you need to reflect or substantially focus on the real performance in order to reward employees at an uncompromised way. MASCULINITY INDEX (MAS). From the graph above (figure, i), United States and Colombia nearly have the same masculinity dimension. When we talk of masculine society, we refer on how women especially in organizations are represented; we can call it in other words ‘gender balance.’ At some point in various researches done by many researchers, though there is an adoption of foreign culture by managers in Colombian organizations, the value of life is still the fundamental aspect especially to the women. According to Pilhofer (2010), women are still considered as the ‘homemakers’ while men are ‘breadwinners.’ This culture perhaps looks as a regional challenge; however, the transition in the changing world is often easy. A ‘big’ question can we have western cultures acting as a training foundation for Colombia organizations? Hofstede Dimensions points out two important behaviors that help managers integrate essential country values that will eventually builds a sustainable cultural environment. They include; i. Negotiation behaviors From the data collected by WVS, EVS1990 and WVS199 are quite relative and it describes negotiable behaviors. Normally in egalitarian societies, for instance, Colombia, earnings, advancement and recognition are important when it comes to management in organizations. In this case, man is ought to be assertive, tough and modest. However, in Colombia the attitude is not the same. Earnings seem to outdo negotiation values therefore it is a challenge for managers to embrace cultural training in such societies. Colombia appears to be absorbed by win-lose affiliation that is normally based on cultural patterns. ii. The meaning of work According to Hofstede (2005), people work for survival in feminine societies while in masculine societies, individuals live to work. If we talk of Latin America, Samuel Guy says “Life in Latin America still protests that gathering of wealth is a major acquisition of culture in which one must renounce form depriving independently.” In simple conclusion for this statement, neither position nor achievement is worthwhile to build a corporate but what getting what you want is the main thing. This leads to a lot of answers for the question ‘why people work?’, for instance; Work is like a trade transaction Work is a hobby INDIVIDUALITY INDEX There is a significant difference in individualistic dimension between Colombia and other Western Cultures (This is according to WVS data, 2004). The difference has been reflected on the graph above which shows that Colombia (with IDV of 13) has a substantial collective society as compared to United States (With IDV of 91). The high score of United States indicates that the society in the region is more individualistic. This brings the discussion to ‘Collectivity’ versus ‘Individuality.’ Therefore, managers in Colombia are more likely to face stiffness when it comes to making decisions since different relationship patterns in the region as well as communication styles probably will cause divergence and conflicts. What are the implications then? Mangers need to focus on three areas in order to bring the situation in the region right; a) Efficient Communication In most cases, an honest person is characterized by an individualistic society communicating one’s mind. Looking at a collective society, there are some actions that are ought to be maintained in order to bring harmony; ‘avoidance of direct confrontation’ (Pilhofer, 2010). Take a situation of an American manager in Colombia. Since the Americans usually speak direct to the point, the issues perhaps will be compromised since Colombia employees (collective society) normally avoid speaking straight to the point. The manager will probably take more time in order to figure out the ideas that need to be passed. Therefore, managers in Colombia waste a lot of time in communicating simple insights to the employees in the organizations thus taking much time that would have been used to meet other useful achievements of the companies. b) Task Achievement Individualistic society and Collective society always contrast though they may share some similarities. In Colombia, relationship matters much in the organizations compared to achievement of goals (tasks). However, in more ‘civilized’ societies, managers prevails tasks over relationships (Chhokar et al, 2007). The management in Colombia is very ‘interesting’ to learn. For instance, a manager may consider setting appointment time to start may be at 10 minutes late and to end at 10 or 15 minutes late as well. The reason is that these 10 minutes are allocated for ‘non-business’ talks. Also during a business meeting in Colombia may include personal life information of an employee and may be the relationships. Generally, there is too much of wasted time in business doing a lot of ‘non-business’ activities which will eventually demonstrate a non-lucrative culture in the organization. Time management and training is the main success needed by managers in Colombia. These cultural patterns have entirely affect organizations’ competitiveness in Colombia since time allocated for tasks is merely consumed by non-business doings. c) Talent Development As mentioned earlier about relationships, friends in Colombia are part of the important division in the value system. According to Vanelli (2007), career development of an individual in Colombia is largely a contribution by friends, relatives and parents. At some point when the career does not go with one’s ability, he/she may find it difficult to make a living. Managers in organizations face the effect of these early decisions whereby the capacities of employees in the organization are not good enough to earn the organization a competitive advantage. If there is no cultural training in these organizations, there are high chances of managers looking for the friend/partner rather than looking for the best deal. UNCERTAINTY AVOIDANCE (UAI) From the graph, Colombia and United States have scored 80 and 46 respectively in Uncertainty avoidance. This implies that Colombia (a collective society) has less patience on the uncertainty as compared to United States (Individualistic society). There are three ways to manage uncertainties which are very essential to Colombian managers; a) Building of an Extreme Regulatory Environment Coming up with precise policies are very necessary when it comes to management of uncertainties. Hofstede (2005) figures out a weak uncertainty avoidance society and conclude that though there are few written and unwritten laws, there is no respect to these laws at all. Therefore, finding a legitimate body to enforce the existing laws in the organizations in Colombia may look tempting, but all in all, it is an option of building a regulatory cultural environment. At some point enforcing these laws is not a choice but an option in improving the competitiveness of the organizations. Many of the civilized societies have used the same strategy and up to date, they are far much ahead it terms of competitiveness. b) Work Group Goal Achievements Conflict arises when an employee realizes that his/her idea has been stolen by another employee in the same organization. Culture in Colombia is more egocentric in that make easier the emergence of conflict since the love and emotions of people are normally attached to these ideas. Cultural training is still the main aspect that needs to be radically developed in Colombia in order to get positive results from new ideas rather than wasting them. c) Innovation The determinants of culture discussed above shows that Colombia has strapping uncertainty avoidance. However, no one is ought to be offended for his/her belief. Managers in this case face a lot of challenges especially when ‘installing a new software’ in the organization with strong cultural effect. Acceptance of new idea is surely a difficult prototype which leads to frustrations to managers. Software of mind’ as stated by Hofstede, (2005) is an essential procedure of importing and managing a new idea in Colombian society. Though it could a longer time, the results later would light up the whole society and reduce anxieties on their ideas. It is a challenge and recommendation too to the Colombian managers to embrace cultural training in employees in order to make organizations more competitive in the global market. In conclusion, the incident of less competitive environment in Colombia is due to its cultural background. Though there are potential parts of improvements in terms of competitiveness, cultural values limit these opportunities. As seen from the Masculine Index and other dimensions, these entirely change the perception that would be fundamental for improvements. Managers in this case face a stiff challenge when it comes to making things right for improvements. Therefore, cultural training on the four dimensions (uncertainty avoidance, power distance, masculinity and individualistic) is ought to be embraced in order to develop a bicultural work environment. Managers have a great role in developing this kind of environment especially in this part of the globe. References Adekola, A., & Sergi, B. S. 2007. Global business management a cross-cultural perspective. Aldershot, England: Ashgate. Chhokar, J. S., Brodbeck, F. C., & House, R. J. 2007. Culture and leadership across the world the GLOBE book of in-depth studies of 25 societies. Mahwah, N.J.: Lawrence Erlbaum Associates. European and WVS Four Wave. 2004. Integrated Questionnaire. Hofstede, G. 2005. Culture and Organization. Software of the mind, pp. 147. Hofstede, G., & Hofstede, G. J. 2010. Cultures and organizations: Software of the mind : International cooperation and its importance for survival. (3. ed.). New York: McGraw-Hill. Pilhofer, K. (2010). Cultural knowledge: An ethical deconstruction of the concept as a foundation for respect for cultural differences from a post-colonial and Levinasian perspective.. Denmark : Frederiksberg. Tjosvold, D. and Leung, K. 2003. Cross-Cultural Management, Foundation and Future. London: Ashgate Publishing, Ltd. Vance, C., & Paik, Y. 2006. Managing global workforce challenges and opportunities in international human resource management. Armonk, N.Y.: M.E. Sharpe. Vanelli, H. 2007. How to do business in Colombia - a guide. München: GRIN Verlag GmbH. Yeung, I.Y.M., & Tung, R.L. 1996. Achieving Business Success in Confucian Societies; The Importance of guanxi (connections). New York: American Management Association,. Read More