International Culture and the Impact on Approaches to Managing People - Coursework Example

International Culture and the Impact on Approaches to Managing People Name Institution Name Date Table of Contents Table of Contents 2 Executive Summary 3 Introduction 4 The Importance of Culture in Different Business Dimensions 5 Importance of International Culture 5 National Stereotypes and Key Dimensions of Culture 5 Hofstede’s Cultural Dimensions and Managerial Implications 6 Trompeneer’s Seven Dimensions of Culture 9 International/Cross-Cultural Management 10 Conclusion 11 References 13 Executive Summary Culture has the capacity to influence the preferences and behavior of customers and clients. In order for a firm to successfully sell in a foreign market, the manager must adapt the product/service needs to meet the different needs of such customer groups. The advent of international HRM practices significantly increased the need for understanding organizational culture from a global perspective. Organizational culture of a given company is vastly affected by cultural orientations of people forming it. Multicultural workforce has become an obvious and common aspect of both multinational and national organizations and is increasingly growing; contrastingly, people’s cultures including preferences, values and beliefs differ. This paper discusses how International culture affects the approaches of managing people in organizations. Introduction The emergence of international human resource practices increased the prominence and attention to organizational culture. Culture in its context is responsible for governing and affecting all facets of life due to the fact that it influences societal attitudes, values, and behaviors. For instance, organizational culture of a given organization is directly related to the unique modes within which they perform their organizational activities. The organizational culture’s nature is vastly affected by cultural orientations of people forming it. In this aspect, organizational culture is viewed as the socially transmitted behavior patterns, values, norms and beliefs of a given organization and it is seen as a source of conflict. Global workforce dynamics management can only be successful when the management understands culture and its effects. National and organizational culture has great influence on international human resource practices. Multicultural workforce is increasingly growing; contrastingly, people’s cultures including preferences, values and beliefs differ. Having an in-depth understanding of international cultural difference is critical in managing people. This paper discusses how International culture affects the approaches of managing people. The Importance of Culture in Different Business Dimensions Managing a cross-cultural workforce comes with a myriad of issues particularly in the business contexts. For example, a manager from a foreign parent company has the obligation of understanding the local employees in the host country; this requires may need different organizational structures as well as HRM practice (Adler & Gundersen, 2007). Furthermore, for organizations successfully selling products and services to foreign customers need culturally sensitive adaptations to services, products, advertising and marketing. Companies in most cases tend to have dissimilar organizational and decision-making practices based on their evolution as well as cultures and subcultures they encompass. For business organizations to form successful alliances, there is need for understanding and their organizational differences (Punnett, 2012). Culture has the capacity to influence the preferences and behavior of customers and clients. In order for a firm to successfully sell in a foreign market, the manager must adapt the product/service needs to meet the different needs of such customer groups. Failure to do so may result into communication blunders and marketing mistakes. Importance of International Culture Regardless of the different globalization patterns, cultural differences still remain significantly important (Adler & Gundersen, 2007). Cultural convergence has been found to overstate the similarities between people from around the world. Cultures vary and their variations lead to significant differences with regard to how companies are confronted with complexities of doing business globally. Cultural stereotypes is a highly sensitive topic and problematic. National Stereotypes and Key Dimensions of Culture Culture at two levels: traditionally, there are two distinct approaches to culture; The psychological or psychic level; focusing on internalized norms, behavior and attitudes of individuals from a given culture The institutional level; focuses on national culture embodied in institutions including government, economic and educational institutions together with business organizations. Individuals who are born and raised in the same country tend to share same cultural characteristics. Nationality and culture coincide at some point; however, it is important to note that nations encompass a vast variety of institutions, religions, patterns of behavior, beliefs as well as distinctive subcultures. Understanding of national culture is difficult and thus understanding cultural characteristics of distinct cultural groups is through national stereotypes. Hofstede’s Cultural Dimensions and Managerial Implications Culture is a set of collective beliefs and values which distinguish individuals from one nationality from those of another. Hofstede identified and established four national culture dimensions including: Uncertainty Avoidance: this is the degree to which people feel uncomfortable particularly when they encounter situations that are ambiguous or uncertain. According to Hofstede, individuals in a low uncertain avoidance community are risk takers and appreciate flexibility and informality at the workplace (Crawley, Sailes & Walsh, 2013). On the other hand, those from high uncertain avoidance societies are risk averse and like rigid and formal decision making at the workplace. High priority is placed on rituals, procedures, and routines in organizations. This perceived difference with regard to tolerating uncertain situations has several significant implications of at both micro and macro levels. From a micro or organizational level, high uncertainty societies, there exist internal rules and regulations governing the employee work processes (Adler & Gundersen, 2007). In low uncertainty avoidance, managers give employees an opportunity to exercise freedom and discretion in their decision-making and not just relying on internal rules and regulations that are rigid. On the other hand at macro level uncertainty acceptance is highly vital for innovation due to the fact that it requires risk and change tolerance. Power Distance: this is the level to which people have same or equal power distribution. Large power distance culture, the power is mainly concentrated at the top and is held by few people while people at the lower or bottom levels of management are subject to decisions and instructions made and given by the top management. Small power distance cultures, the power are less distributed equally among members of the society. Managers in high power distance societies believe in giving subordinates instructions that are detailed with less or little room for interpretation. In this regard, subordinates are required to respect the superiority and authority of the upper management. Such cultures encourage inequality, lack of free communication across the different management levels, centralized control which stifles ideas and creativity of employees. High power distance results into steep organizational hierarchies which are characterized by autocratic leadership together with limited employee participation in decision making. Low power distance societies have organic traits; they lack hierarchical authority, they are decentralized promoting employee interaction, lateral communication and have less emphasis on rules and regulations. They are non-directive, with hands-off monitoring systems which necessitate creativity and explorations which are essential for successful innovations. Individualism vs. Collectivism: this is the extent to which people are integrated into groups. Individualism in its context refers to those people who are concerned with protecting their own interests notwithstanding collective or common societal goals and their role in the society. Individualistic culture encourages people to have authority to make decision based on what he/she thinks is best. In this culture employees are given freedom and autonomy. Collectivistic culture is a culture where people belong to groups or collectives and thus they look after one another in exchange for loyalty. People are not allowed independence and freedom for organizational members to creatively think thus does not foster innovative spirit. Collective cultures are reluctant in accepting diversity and variety in the society; there is immense pressure for uniformity and conformity in collective cultures which is an obstacle to innovation and creativity. Masculinity vs. Femininity: the distribution of roles between genders is the main concern of this dimension. Masculine dimension according to Hofstede is closely associated with achievement motivation concept. Masculine culture is where a performance driven society exists and reward and recognition are given for performance and hence are considered as the primary achievement motivation factors (Adler & Gundersen, 2007). Masculine culture gives utmost admiration and respect to the successful achiever who demonstrates assertiveness, fulfills his ambition and willingness to take risk for him to accomplish the set goals. Feminine cultures on the other hand emphasize on the quality of the entire ore whole life and not success, money, and social status; things that are easier and simple to quantify. In essence, in feminine culture, individuals are ready and willing to reach out to the underprivileged and less fortunate in the society and share there wealth with them. Organizations with feminine culture are said to be not competitive as compared to those with masculine culture. With regard to the above perspective, Hofstede provides vast and strong evidence of the significance of national culture as compared to one’s professional role, race, as a determinant of employee variations in terms of values, attitudes and behaviors. Trompeneer’s Seven Dimensions of Culture These dimensions are an expansion of Hofstede’s stereotypic framework and the comparison of different national cultures as well as focusing on management implication of cultural differences. The seven distinctive dimensions of culture were established using questionnaire responses Trompeneers study where countries were mapped a long a continuum (Adler & Gundersen, 2007). The culture or country in this regard is positioned relative to other on one or more dimensions. Relative positioning provides understanding of different conflicts and organizational and management problems that arise especially when groups, individuals or firms from these countries interact. These dimensions include: Universalism vs particularism: universalistic culture has rules and regulations that are applied to all circumstances despite of specific situations or conditions. Individualism vs collectivism: this dimension is wholly builds on Hofstede ideas and is hinged on whether personal values and rights are dominant or subordinate as compared to those of collective culture. Neutral vs emotional: this dimension is used to describe the level of emotions displayed in the workplace; it indicates whether subjective or emotional forms of assessment are thought as the foundation of good decision making within an organization. For example, some firms emphasize the use of data, reports, and analytical decision making by managers, while others feel that intuitions, opinions and gut feelings are used as a valid and credible criteria. Specific vs diffuse; this dimension is used to determine whether work relationships exist just in the workplace, or do they extend further into social contexts beyond the workplace. Achievement vs ascription; individual status within the organization which is contrary to those cultures that credibility, status, authority and power tend to based on merit (achieved) against such cultures where gender, class, education, and/or age define the characteristics (ascribed status). Attitudes towards time; time as a sequence of events versus several events undertaken at the same time views of time in this essence relates to punctuality for meetings and deadlines. Attitudes toward the environment; here the emphasis is placed on individual’s relationship with natural environment and nature. However, other cultures emphasize subjugation and control of environmental forces while others recommend on the need to work with nature in harmony with the environment. International/Cross-Cultural Management There are three key areas which encompass many factors together with cultural stereotypes and they include: Organizations: styles of organizational culture range from organic to inorganic or people oriented or systematic, formal or task oriented. Those organizations which operate around personal relationships together with social networks contrasts those that are functional and logical (Adler & Gundersen, 2007). However, both characteristics are displayed different cultures and different firms; however, balancing varies and can create tensions particularly when people or firms from different cultures try to cooperate. Organizations are required to understand these variations among countries, organizations, and groups of people are vitally important (Burke & Cooper, 2005). Multinationals are mechanistic and autocratic in nature as they emphasize on individual performance and rewards but they are also fairly team oriented. Leadership: styles of leadership range from individual oriented, autocratic, directive, and top down and authoritarian to group oriented, democratic, participative, bottom up or egalitarian. Managers from high power distance culture are viewed by those from other cultures to be autocratic and assertive but will tend to view others to be compromising or indecisive. Communication; from a face to face level, differences in language is the most prominent barrier to communication and thus cooperation and coordination (Adler & Gundersen, 2007). Conclusion Good transnational firms create awareness and appreciation of cultural difference among their employees and managers. Accordingly, they encourage adaptation of organizational practices or personal behavior to be in line with or suit the changing cultural mix in the firm, subsidiaries as well as key markets. They use training programs as well as various activities at the stage of induction, when new recruits joining the firm and/or an existing employee taking up roles in a new country. Accordingly, beyond awareness and adaptation, firms leverage cultural diversity within their organizations as well as combine best aspects of dissimilar avenues of doing things. Companies are now investing in their own socialization mechanisms including social events, meetings and conferences. Accordingly, firms use company internet, magazines, and/or in-house television channel used specifically for corporate communications are essential in supporting such processes. Other strategies used here include: Recognizing diversity Building diversity issues into HRM planning, recruitment, strategy, location decisions, alliances, and partnership Identify where and to what extent local divisions are to be empowered or encouraged to lead in expressing and managing diversity Encourage cross-border discussion and interaction Given the above discussion, international culture has virtually changed the way people are managed in organizations. References Adler, N., & Gundersen, A. (2007). International dimensions of organizational behavior. London: Cengage Learning. Burke, R., & Cooper, C. (2005). Reinventing human resource management: challenges and new directions. New York: Psychology Press. Crawley, E., Sailes, S., & Walsh, D. (2013). Introduction to international human resource management. Oxford: Oxford University Press. Parry, E., & Tyson, S. (2013). Managing people in a contemporary context. London: Routledge Publishers. Punnett, B. (2012). International perspectives on organizational behavior and human resource management. London: M.E. Sharpe. Read More