Failures and Criticisms of the Universalist Perspective - Coursework Example

CROSS-CULTURAL MANAGEMENT Student’s Name Course Professor’s Name University City (State) Date Cross-Cultural Management Introduction The Universalist perspective in international business management holds that human cultures and customs in various regions of the world, especially in terms of business management, are basically uniform, and that similar principles of management can hence be successfully applied in different parts of the world (Wild, Wild & Ball 2016). On the other hand, cultural relativist perspectives assert that successful international business management practices ought to be dependent on the various cultures of different regions since not all business management practices can fit into all the cultures across the world (Jones & George 2016). Cultural relativists support the idea of using local and traditional approaches in international business. Failures and Criticisms of the Universalist Perspective The use of either the Universalist perspective or the cultural relativist view has since time immemorial been the determinant of success or failure of international business ventures. Numerous research studies and case analyses continue to confirm that in order for cross-cultural negotiation and communication to be successful, comprehension of local or regional cultural practices is vital (Hitt, Ireland & Hoskisson 2017). The Universalist perspective proves ineffective time after time in international business operations. Therefore, international organizations do well to conform to the cultures of the new territories that they explore, thus doing as the Romans do when in Rome. Many critics of the Universalist perspective pin its failures on its imperialist and imposing nature. Cultures are forced to conform to a new, foreign and often unwelcome way of doing business, leading to resistance, such as from employees. For instance, when a company from a country that hinders women from holding higher positions of management seeks to venture into another country in which gender equality is valued, the expanding organization may fail to even establish itself in the new location if it holds on to this viewpoint on women and leadership (Wild, Wild & Ball 2016). The Universalist perspective poses a significant challenge to international business interactions that are cross-cultural. An international business with the Universalist perspective can be perceived as discriminatory to the beliefs of others if it maintains a rigid and a one-size-fits-all approach to international management. The approach of cultural relativism is hence a better alternative to the Universalist perspective. Cultural relativist perspectives hold that the principles of management can vary based on local cultures, traditions and values. This perspective ensures greater success of international businesses because of its respect for the potential usefulness of different viewpoints and cultures in international business (Jones & George 2016). Even though cultural relativism is bound to the ethical standards such as worker safety, fair play, and environmental protection, the perspective tailors its management in line with the prevailing culture. Impact of Culture on HR Practices Human resource management in international business is a very delicate process since different employees come from various environments and cultures. The human resource management must therefore seek to accommodate each employee within the organization. For an organization to realize its full potential, the policies and practices of the HRM must be designed in a manner that is in congruence with the variety of cultures of the employees (Christopher 2015). HRM practices that are aligned with the cultural factors in the international environment have proven to be very useful in ensuring a competitive advantage. The use of the Hofstede’s dimensions (layers) of culture has been common in attempts to understand the culture of a given area and incorporate such into the management practices of international organizations. The first dimension (that is, individualism or collectivism), outlines the degree of relationship that exists between the individual and the other members of the given society (Burrow, Kleindl & Becraft 2016). Secondly, power distance denotes the extent with which a given culture permits culture to be misused (Christopher 2015). Thirdly, uncertainty avoidance describes the manner in which various cultures approach the unpredictability that is associated with the future. Fourthly, masculinity/ feminity highlight the value that a given culture assigns to practices and values that are associated with the female and male genders (Burrow, Kleindl & Becraft 2016). Lastly, long-/ short-term orientation examine whether the values of culture emphasize on the future, present or past. These dimensions have been very important for international businesses in aligning their operations with prevailing cultures and traditions abroad. Culture influences both the structure of international organizations and their HR practices, such as the style of recruitment and compensation patterns. Based on the Hofstede model, for example, a culture that ranks high on individualism will prompt payment that is based on performance. Moreover, recruitment drives for overseas organizations often exhibit vast differences compared to domestic recruitment assignments. Recruitment and training hence emphasize on the ability to speak different languages, personality, adaptability, experience with various cultures, and stress management (Deresky 2017). Training of employees for international organizations also lays more emphasis on goal setting, culture, stress management, and language. This allows managers to understand the cultures of the new regions, failure to which the venture stares at failure. When Revlon, for instance, expanded its operations to Brazil, it introduced a Camellia flower scented perfume without knowing that the particular flower in used for funerals in the country (Hitt, Ireland & Hoskisson 2017). The product failed terribly. Culture also influences reward and compensation, such as by considering the costs of living in various areas. International companies hence utilize the branding method for various regions (the alocalized payment method), such as is the case in Kraftswoods and Microsoft (Hitt, Ireland & Hoskisson 2017). Culture also affects performance evaluations where for example, managers and employees in Indonesia value harmony and so local employees can be rated highly in order to preserve harmony. Human resource priorities are equally influenced by culture as priority is often given to leadership development rather than employee retention in order to train leaders that can survive and lead well in new cultures. Impact of Culture on International Negotiations, Leadership and Communication Culture has an immense effect on international business negotiations. Different cultures tend to negotiate in different ways. For example, Enron is known to have lost an important contract in India back when it was only a pipeline company. This loss was due to the local authorities feeling that the Enron was pushing the process of negotiation ‘curiously’ fast. This loss stressed the importance of culture in determining successful international negotiations (Bateman, Snell & Konopaske 2017). For a given culture, quick negotiations are welcome since their view is that time is money, while for other cultures, slower negotiations indicate trust from both parties. International organizations must thus often seek to bridge the cultural gap while entering into critical business negotiations. Different cultures approach negotiations differently. While certain cultures view negotiations as business contracts, others regard them as the initiation of important relationships. It is hence vital to ascertain a culture’s view in terms of negotiation, while also considering such aspects as the negotiating attitude, style, emotionalism, type of agreement, and so on. Cultural differences also affect organizational hierarchy and leadership in international business management. The hierarchy of organizations and attitudes concerning management often vary substantially from one culture to the other. Cultural norms can dictate whether employees in middle or junior positions of management are able to speak up, express opposing viewpoints, or question the decisions that are made by their seniors. Japan, for example, which is known for its high regard for respect for seniority and value for status and hierarchy, usually brings such ideas into the places of work (Deresky 2017). The workplace thus becomes a reflection of the country’s social equality levels or societal values. The junior employees/ managers thus show respect and formality towards their superiors in such cultures. On the other hand, Scandinavian nations like Norway prefer social equality and thus have organizations with hierarchies that are relatively flat, hence much more informal communication and cooperation within the organization. Communication is very important for nay business to realize success. International businesses are hence usually faced with the challenges of language barrier and understanding differences in culture (Bateman, Snell & Konopaske 2017). Although English is widely used in international business, it is important to consider how one conveys their message so that information is not lost or misplaced. While Indians, for instance, value nuanced and indirect communication, the Finns, on the other hand, value brevity and directness. A comprehension of the value of non-verbal communication in different cultures may also prove very useful for international business operations (Hitt, Ireland & Hoskisson 2017). In certain cultures, a kiss on the cheek, direct eye contact, or a firm handshake may be unusual or offensive. It is therefore advisable for international firms to handle differences in culture with caution, openness, sensitivity and a willingness to adapt, without which the venture will struggle. Conclusion Culture is therefore very important in determining the organizational structures and human resource practices and policies for international businesses. The culture of an area cannot be ignored by using Universalist perspectives of management. Management ought to align its strategies with the variables of different cultures in order to realize better commitment from employees and to ensure cost-effectiveness. Consumer satisfaction is also enhanced when culture is taken into account as the organization is better able to interact with its consumers. The culture of an area will influence relationships amongst employees, communication, discrimination, and a host of critical human resource policies and practices. In terms of international business, it is hence important to do as the Romans do while in Rome. Reference List Bateman, T. S., Snell, S. A., & Konopaske, R. 2017, Management, Dubuque: McGraw-Hill Education. Burrow J., Kleindl, B. A., & Becraft, M. B. 2016, Business Management, Boston, MA: South- Western Cengage Learning. Christopher, E. 2015, International Management and Inter-Cultural Communication: A Collection of Case Studies, Houndmills: Palgrave Macmillan. Deresky, H. 2017, International Management: Managing Across Borders and Cultures: Text and Cases, Essex: Pearson Education Limited. Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. 2017, Strategic Management: Competitiveness & Globalization: Concepts, Boston, MA: Cengage Learning. Jones, G. R., & George, J. M. 2016, Contemporary management, New York, NY: McGraw-Hill Education. Wild, J. J., Wild, K. L., & Ball, A. 2016, International Business: The Challenges of Globalization, Boston: Pearson. Read More