Challenges and Issues Affecting the Cross-Cultural Business Environments - Coursework Example

Cross-Cultural Management Name Course title Date Introduction Bhaskaran and Sukumaran (2007, p.p.55) claim that, the growth of globalization has had significant influence over the working environment in the business market. Employers interact with the different people from different cultures. Culture diversity has led to introduction of workplaces that are multicultural in various organisations across the globe. Understanding the impact of culture in any given organisation is important for effective and efficient operation of the organisation. Societal values have influence over individual culture and it affects the organisational culture in one way or another (Ravasi & Schultz 2006, p.434). Globalization affects have impacts on workplace cultures given that individuals from various backgrounds unite for the core purpose of achieving goals and objectives of the given organisation. A smooth flow in the organizations with cross-cultural setting is built by relationships created through the various meetings held for the purpose of administration and distribution of responsibilities. Mutual respect and understanding regarding individual culture with the aim of upholding the organisation culture results to equalization of employees. This leads to creation of a standard platform for effective management for the expansion and growth of the organisation. Cross-cultural management involves management of people and business operations at an international platform due to the variations of practices, cultures and consumers preferences in the global market. This helps establish a connection in communication gaps that exist among different cultures for improved relationships both at individual level and at business level. Due to this diversity in cultures different challenges and issues arises during management of employees in the business operations, this paper seeks to analyses these challenges and issues for proper management, growth and expansion of organisations in the global market. Communication issues The business environment has changing in different areas of operations due to globalization, growth of technology in information and technology issues, political issues, cultural, social factors, economic factors and legal factors. These factors have contributed to improved corporate social responsibility and sustainability in the market for the wellbeing of consumers in the competitive market. Culture issues have had significant influence in the globalized business market but have been faced by different issues and challenges. One of the challenges that managers face in any organization globally is communication problems contributed by the multi-cultural diversity in languages. Communication is a vital factor to the advancement of an organization since information, responsibilities, goals and objectives are passed through it from the management to the employees (Bhaskaran & Sukumaran 2007, p.p.60). The culture diversity has led to establishment of workplaces that are multicultural; this has resulted to development of cross-cultural communication that is perceived to be hard. In cross-cultural communication, there exist two groups of individuals: persons from the low-context and high-context cultures. These two groups have different strategies of communication thus making communication between them complex as well as a challenge to tackle. Depending on the context where communication occurs, the meaning as well as the interpretation of the message conveyed differs. Given that communication is a chief contributor towards success or failure of any organization, it is of supreme prominence for the management to address issues concerning communication. Culture expressed in different ways such as communication by use of symbols, signs, and words between the members of the given culture. Likewise, the organisational culture established in a business environment is conveyed to the fellow members as well as customers in a similar manner. Scholars have categorized different forms of communication into three categories comprising of traditionalism, critical-interpretivism in additional to interpretivism (Deal & Kennedy, 2000). Traditionalism do emphasize culture in form of symbols, conversations, myths and stories. Interpretivism on the other hand lays emphasize on shared meanings of certain things and objects in the boundaries of an organisation since there exists variations amongest organisation. Moreover, critical-interpretivism has its emphasize on culture through a chain of objects that exists with conflicting meanings. In most organisations, the common way of communication is traditionalism perspective and due to the existence of low-context and high-content cultures conflicts arises. The individuals from low-context cultures for example Germany, Switzerland, Scandinavia, and North America are different from individuals from high-context cultures such as Asia, the Middle East, Africa, and the Mediterranean. High content cultures express their needs through moods, signs and gestures while else individuals from low-context cultures use a lot of words in expressing themselves. This conflict arises a challenge hard for the management to solve to bring the two cultures at a compromise for effective running of an organisation. Establishment of a common language that is compatible to most employees is one of the solutions to solve such issues although more needs to be done for comprehensive solutions to be realized (Bhaskaran & Sukumaran 2007, p.p.64). Religion issues Moreover, globalization concentrates people from different cultures with different faith in to organisations for sole purpose of earning their living. Beliefs, norms and practices embraced by various religions differ considerably and they stimulate mixed reactions in workplace environments when referring to some critical issues. Management faces the challenge of handling issues related to religion that are complex to handle and comprehend, biasness from the management may lead to collapsing the workforce in the organisation due to divisions created from such issues. As a strategy to handle such challenges, the various managements locked religious practices, believes and norms out of the organisation allowing only general prayers to be conducted during organisation assemblies from different people representing distinct religions.(Deal & Kennedy, 2000). Religious advancement in organisations affects how business operations are handled bringing divisions even to the customers hence affecting the overall performance of the organisation in the market. Cross-cultural management requires wise decision makers and sharp individuals who foresees issues that may affect the organisation at the long run. Technology differences Technology is a considerable factor in the running of business transactions in the global market. Since technology advancement and application differs from one place to another, the rise of cross-culture in the organisation has resulted to organisations having people from areas with high level of technology application as well as those from low level technology advancement. Moreover, there exists people from different age groups with varied notions about technology with the young generation embracing computerization in all aspects of business operations while the older generation refers the manual system of operation. This brings differences between the two demographics requiring management involvement to solve such issues that poses challenges to the running of the business. Training is mostly preferred as the solution where the older generation is taught how to apply computerization in their operations since it improves efficiency, saves time, raises productivity as well as improves the quality of services and products. Management are forced to integrate technology in phases rather than over whole integration so that they accommodate some experienced employees who are vital in the success of the business. This has seen many businesses blossoming to reaching higher height by blending experience and technology amongst their operations in cross-cultural business environments (Hofstede 2012, p.79). Furthermore, political factor has had influence in contributing to challenges and issues affecting the cross-cultural business environments. Government undertaking in any country affects to the business entities and how they are run; considering that government policies have significant influence over the business market. Distribution of resources, tax policies, market control, investment policies, local currency, cooperate social responsibility and security factors are issues that affect the running of businesses in organisations in a given country. When management considers such issues, they can make informed decisions whether investing in the articular country is worthwhile. Investment policies and tax policies set by government forces determines the profit margins of an organisation while local currencies affect the monetary and fiscal policies that affect business transactions. Political stability is an influential factor that affects the running of business and mangers consider before investing in any economy. Uncertain political stability hinders investment while guaranteed political stability triggers investment hence a challenge to some business entities where political uncertainty arises. A cross-culture business entity has individuals from different countries or regions with varied political environments. Those from war torn areas are not affected by slight change in the political atmosphere while those from peaceful region are greatly affected by such issues. This affects the productivity of individuals hence affecting the overall running of the organisation, management are faced with challenges to handle such issues since they require more than internal decisions (Hofstede 2012, p.77). Multinational corporations The business practice of multinational corporations (MNC) where an organisation operates in different countries with centralized management in the home country is familiar in the current business market. Examples of such corporations are Proctor & Gamble, Ford Motor Company, Apple, Nestle, and Google. Most companies have varied reasons why they choose to go multinational such as due to saturation of the home market, identifying potential markets in other countries for sustained growth as well as realization of emerging markets that have potential to lead in business transactions in future. Google is an American corporation that is among the best top ranked well-doing corporations worldwide and its influence and significance is greatly felt among the internet service providers. It offers a range of services such as providing search machine, email service provider, Google plus social media, YouTube, internet advertising as well as cloud computing. Its operation managers have faced discrimination over issues related to the security of data they possess, censorship of the material they publish online as well as copyright issues. Individuals claimed that Google could be selling their data information to other companies with marketing interests but Google assured their customers of their integrity policies that restrict such undertakings. They have also tightened their censorship of material published in their online platforms to prohibit explicit materials being published online that are against many cultures. Google citing editorial policy that advocates that it does not publish materials that discriminates other groups and cultures has addressed the copyright issues. The Procter & Gamble Company (P&G) is American multinational company that deals with consumer goods. It deals with a range of products such as pet foods, personal care products and cleaning agents. It has achieved so much in the consumer market and has been ranked among the best companies worldwide. On the contrast, it has experience issues and challenges such as animal related products like animal testing issues from animal advocacy group. Other issues relating to nutrients contents in their products as well as their claims that they had health benefits have been challenged in the past. Their logo has also been challenged as being satanic with individuals circulating rumours that it was satanic organisation. This issue could have caused collapse of the company due to culture differences among their clients and employees. An issue arose when they suggested to consumers that Prilosec could cure heartburn, this affected the trust consumers had with their products. They addressed the animal testing issue that stated it was unfair and inhuman to test products with animals since they also had right to live. They started diagnosing the animals to prevent them from dying after testing their products. Moreover, they have sued Amway distributors individuals over the claims of satanic claims and the Church of Satan has denied any association with Procter & Gamble Company. Conclusion Finally, Culture has diversity and it incorporates various aspects relating to organisational perspective. Understanding of the history for different society together with their needs helps nurture relationships in organisations. Understanding of the cross-cultural environment in the organisation helps to set policies that govern the organisation for the benefit of organisation as well as the employees. Issues related to communication factors, political factors, technology factors as well as culture affect the management running in the business market. Cross-Cultural Management is a critical and a tough undertaking that need information, wisdom and good decision working to ensure that there is smooth running in the organisation. Standardization of norms and practices creates an atmosphere favourable for everybody eliminating favouritism or discrimination. Finally, all these factors related to the societal cultures significantly affect effectiveness of organisational culture in the cross-culture business environments. It these factors are addressed then running of cross cultural business environments. Recommendations The challenges faced by Google were critical to their success since their competitors could have magnified the issues leading to their downfall but their swift reactions towards the issues helped them retain their customers. The censorship issue was addressed for the interests of different cultures that have different values against explicit materials. Also to be addressed concerns the data privacy since more people are concerned about privacy of their information. I could have developed more strict policies that could give the customers the assurance of improved data security. For the Procter & Gamble Company issue I could have changed the logo to avoid controversy among different individuals, this could have solved the existing relations with the satanic deeds. The issues relating to nutrients contents I could have assured the consumers that all our products were standards and their contribution to health improvement was practical. References Briscoe, D & Schuler R 2004 International Human Resource Management, London: Routledge. Bhaskaran, S & Sukumaran, N 2007, “National Culture, business culture and management practices: Consequential relationships in Cross Cultural Management” An International Journal, Vol.14, No7, pp54-67. Hofstede, 2012 “Culture’s Consequences: International Differences in Work-Related Values: The cultural relativity of Organisational practices and theories, Journal of International Business Studies, Fall 1983, pp75-89. Ravasi, D & Schultz, M 2006, “Responding to organizational identity threats: exploring the role of organizational culture”, Academy of Management Journal, Vol.49, No.3, pp.433–458. Deal T. E. & Kennedy, A. A. 2000 Corporate Cultures: The Rites and Rituals of Corporate Life, Harmondsworth, Perseus Books. Read More