The Management of Multiple Cultures - Essay Example

Multicultural Management The management of multiple cultures within an organization is increasingly becoming a vital part of international organizations. This is due to the rapid growth of globalisation its impact on the global business (Bartlett and Ghoshal, 2002). Management across cultures enables international business to thrive. However, when managers ignore the issue of cross-cultural management, there is bound to be conflict or problem whose repercussions can be quite costly (Browaeys and Price, 2008). Understanding the fundamentals of cross cultural management is important in ensuring that managers are able to distinguish and understand cultural differences in different regions and within an organization. I. Models of Cultural Dimensions A. Hofstede’s Cultural Dimension Theory The Five Cultural Dimensions Model is the brainchild of Geert Hofstede, a Dutch academic. This model shows five dimensions which define work-related values that are also related to national culture. These five dimensions (Hofstede, 2001) are discussed below. 1. Power distance This dimension deals with the degree to which power is equally distributed in a society and the extent to which the said society accepts the distribution. A culture that is high power distance oriented has a preference for strong leadership styles, hierarchical bureaucracies. People in this kind of culture hold very high regard for authority. On the other hand, people in low power distance cultures favour autonomy and personal responsibility. 2. Uncertainty Avoidance This dimension addresses the extent to which people require clear structures and set boundaries. In high uncertainty cultures, individuals have a better mechanism for coping with risk and innovation. A low uncertainty culture puts a lot of emphasis on greater job security and standardisation. 3. Individualism vs. Collectivism This is the measure to which people hold their own self-interest as opposed to the interests of a group. In a collective oriented culture, the group’s needs are deemed to be more important than personal needs and the government plays a big role in markets. On the other hand, an individualistic culture values and encourages free will. 4. Masculinity vs. Femininity This dimension is concerned with the degree of the goal orientation of a society. A masculine society values status that is derived from position and wages while a feminine culture values quality of life and human relationships. 5. Time Orientation: long-term vs. short-term orientation This dimension looks at the extent to which a society values respect for tradition and long term commitments. Long term-oriented cultures greatly value thrift, long term planning and industriousness. Short-term oriented cultures are more concerned with living for the moment and celebration. How the Model is used to Investigate National Preferences This model is used to investigate national preferences by organizations which are planning to start operations in a new place. For someone planning to start a new business venture in a new culture, he can use this model to help him avoid stereotyping, which has nothing to do with individual behaviour (Browaeys and Price, 2008). Knowing about the different cultures can help in conflict management in international organizations. For instance, when a manager understands the best way to go about solving a problem within a certain culture, he can avoid further conflict that may have come about as a result of poor conflict resolution. Organizations that are planning to enter a high power distance culture, they must be ready to acknowledge the power of the leader (Bonache, Brewster and Suutari, 2001). For low power distance cultures, the organizational management has to use teamwork and be ready to involve teams in decision making. Managers working in high individualism cultures need to be people who can encourage expression of ideas and acknowledge accomplishments without going too deep into personal details. Low individualism cultures require managers who can respect age and wisdom. The managers in such cultures must respect traditions and they should not rush while introducing change (Becker, 2000). International organizations planning to start work in high masculine cultures must be aware of the fact that people expect that feminine and masculine roles be differentiated. However, organizations planning to enter low masculine cultures must be ready to treat men and women equally and to ensure that job practices are not prejudicial to either males or females (Bartlett and Ghoshal, 2002). In high uncertainty cultures, managers must learn to be clear about expectations while in low uncertainty cultures, they must not impose structure or rules without a firm reason. In long term orientation cultures, international organizations must show respect for customs and understand the need to reward loyalty and perseverance. In short term oriented cultures, managers should not hesitate to introduce change where necessary. They should live by the standards of the rules they create, but remain restful of others (Adekola and Sergi, 2007). Strengths and weaknesses This dimensions show that cultural differences do matter. Through the different cultures, one can understand how managers of international organizations normally operate following their countries’ values as opposed to the organization’s culture. This model provides international mangers in cross cultural relations an instrument to help them get to understand the difference in cultural values and behaviour. The model is also practical in that it negates the idea that a single set of dimensions can be universally applicable. The model conveys the principle that there are many different ways of structuring an organization depending on the existing cultures (Mead, 2005) (Trompenaars, 1993). One of the weaknesses of this model is its unlikely exhaustiveness. Hofstede added the fifth dimension much later after he had provided his model, thus raising questions as to the degree to which it can be applicable to different cultures. Hofstede’s model presents culture as a simple tool that can be controlled at will, and yet the reality is that it is far too complex to be straightforwardly used as an organizational control (Elashmawi and Harris, 1993). Hofstede’s model has also been on the receiving end for being too static. Critics claim that the model’s basis on a theoretical foundation that is deemed as weak, thus casting a doubt on its usefulness (Mead, 2005). This model can be improved by making it exhaustive. Hofstede used only some of the many cultures found in the world in compiling his dimensions. He might have left out some perspectives or dimensions that are found in the cultures that he did not include in his research. Some researchers have combined their own work with Hofstede’s to create more practical models. For instance, Henry Mintzberg combined his organizational structures with the five dimensions to create a model that reflected cultural management within an organization in the global world (Noe, 2004). B. Fons Trompenaars’ Seven Dimensions The Seven Dimensions model is a cross cultural model that was developed by Fons Trompenaars with help from Charles Hamden-Turner. The seven dimensions show how different cultures in the world interact with one another. Each of the dimensions is presented as a dilemma that consists of two opposing tendencies which are interpreted as pointers of basic values and attitudes. Cultures are unique from other cultures by the way they show preference for one side of a dilemma. The seven dimensions (Trompenaars, 1993) are: 1. Universalism vs. particularism What is more important – rules or relationships? This dimension addresses the degree to which a culture assigns importance to personal relationships or to the law. People in a universalistic culture believe that values, codes, general rules and standards are more important than the claims and needs of friendships and other personal relationships. In the pluralistic oriented culture, culture is seen in terms of intimate personal relationships and human friendship. The rules that exist in such cultures codify how individuals relate to each other. 2. Individualism vs. communitarianism Do we function as groups or as individuals? This dilemma presents the degree to which individuals perceive their level of functioning more as individuals or as a community. In the individualism oriented culture, the individual is perceived to be more important than the community. In this culture, people tend to take their own initiatives to ensure that their welfare, happiness and fulfilment prevail. On the other hand, a communitarian oriented culture puts more emphasis on the community than on the individual. Individuals in this society act in ways that are of service to the community at large. In doing this, they automatically meet their individual needs as well. 3. Neutrality vs. Affectivity Do we display our emotions or do we hide them? This dimension is concerned with the degree to which people show their emotions. People in the affective culture have no problem displaying their emotions. However, those in the neutrality culture do not overtly display their emotions. The individuals in these cultures know how to control their emotions. 4. Specific vs. diffuse How much/far do we get involved? This dimension addresses the degree to which tasks and responsibility are diffusely accepted or specifically assigned. In a specific-oriented culture, individual elements are first analyzed and then put together, with the whole being the sum of its individual parts. People’s lives are separated accordingly and interactions are very well defined. People from this culture put emphasis on hard facts, contracts and standards. In diffuse cultures, people view different individual elements as being related to one another; they are perceived from the perspective of the whole. In this culture, the relationships between elements are given more importance than individual elements. 5. Achievement vs. ascription Is status given to us or do we have to prove ourselves to receive it? This dimension presents the dilemma of if people have to prove themselves to get status or if it is given to them. In achieved status cultures, people gain status from their accomplishments. People in ascribed status cultures normally receive their status based on their age, wealth, gender and birth. 6. Internal vs. external control Do we believe that we can control he environment or does it control us? This dimension looks at the degree to which people believe that they control the environment or that the environment itself controls them. People in the internal culture believe that the environment can be controlled using the right kind of expertise and effort. Individuals in the external culture believe that as part of nature’s forces, man should live harmoniously with the environment. It is common for people in this culture to acclimatize themselves to external conditions. 7. Sequential vs. synchronic Do we do things one at a time or do we do several things at once? This dimension shows the degree to which people do things one at a time as compared to doing several things all at once. Different cultures differ in the way they respond to time. There are two aspects of time orientation. One is the relative importance that cultures normally assign to the past, present and future. Past Oriented cultures see the future as being a repetition of past experiences and events. Characteristics of such a culture include engaging in collective historic events and respect for the dead. Present oriented cultures’ behaviour is normally directed by everyday life demands. They do not care much for the past or the future. For the future oriented culture, planning is critical. Individuals in this culture do not see the past as playing any important role in future events (Hampden-Turner and Trompenaars, 2004). The other aspect has to do with the culture’s approach to time structuring. People in a sequential culture normally structure time chronologically and they perform their tasks one at a time. In the synchronic culture, individuals believe that time is intangible and flexible; they normally do several tasks at a go (Hofstede, 2001). How the Model is used to Investigate National Preferences These seven models are often used by managers who want to better understand new cultures. For instance, when a company wants to make trans-national businesses work, they normally study the new cultures before creating a strategy to make the business successful. This reduces the occurrence of intercultural misunderstandings which then reduces coordination cost. The seven dimensions are also used by marketers to help them comprehend how the reaction to a certain product is in different countries (Elashmawi and Harris, 1993). Strengths and Weaknesses one of the strengths of this model is that it can be used to provide an explanation on how national cultures differ from each other and how they can be measured. The research done by Hamden-Turner and Trompenaars shows that cultural difference is important and that there is need to reconcile these differences so as to enhance competitive advantage in international companies (Hampden-Turner and Trompenaars, 2004). This model also gives an appropriate tool to individuals who work in multi-cultural environments to help them better understand behaviours and value sets. One major weakness of the model is that it fails to show or recognize the influence that personal characteristics have on behaviour (Adekola and Sergi, 2007). The model also fails to show how to work with specific cultures. Another problem has to do with the seven dimensions which may not be conclusive (Browaeys and Price, 2008). One way to improve this model is by making the seven dimensions as conclusive as possible (Mead, 2005). This will make it more practical when it is applied to a wide selection of cultures. The model should include information on the influence of personal traits or characteristics to behaviour of individuals from different cultures (Thomas, 2008). This will help multinational corporations’ managers to understand individual employees in relation to the community where they come from. C. Problems that Expatriates from the American (USA) Might Face in a Chinese Culture In the American culture, individualism plays a significant role in the life of Americans. There is low ranking long term orientation which signifies lack of emphasis for long term traditional commitments (Lineham and Scullion, 2003). This means that Americans have great flexibility and can react quickly to opportunities as they come along. Power distance also ranks low in the US, which shows that there is a sense of equality in society. China on the other hand has high rankings for long term orientation. This indicates that the culture emphasise on a collective principle. It also indicates that the Chinese have a perseverance attitude. The country also ranks very highly on power distance, which signifies the unequal distribution of wealth and power and society (Morris, 1998). In terms of management, an American working in china would have a hard time trying to convince the Chinese of accepting change just like that. Motivation for employees will take a long time since in the Chinese culture, tradition is well respected and change has to be introduced slowly for people to accept it (Bonache, Brewster and Suutari, 2001). The American manager might be used to giving job positions without discrimination. He might have a hard time distributing job positions in the Chinese culture which has distinct roles for both men and women. II. Value and Relevance of Expatriate Training and Orientation Activities In the modern world, organizations are becoming more and more globalised. This gives rise to the need for expatriate professionals who can be sent to complete some specific international assignments and other critical tasks (Brewster, 1998 and Thomas, 2008). Several international crises are occurring in international businesses, whereby expatriates fail to complete given assignments (Jassawalla, Asgary and Hermant, 2006). The cost of expatriate failure can be reduced by improving the management of expatriates before and during their assignments. The management of the international workforce has a high level of influence on the success or failure of an international organization (Oddou, 1991). Training expatriates in the area of cultural awareness is very important in preparing them for a particular job abroad. Tung (1993) defines cross cultural training as the “intervention aimed at increasing an individual’s capability to cope with and work in foreign environment” (p. 5). In the global world today, cross-cultural training has become an important aspect of the relocation process of expatriates. How could this training help expatriates with the management of organisations? Cross cultural training for expatriates readies them in dealing with key business concerns such as conflict resolution, business culture, man-management, etiquette and interpersonal communication (Selmer, 1995). The training enables expatriates to gain effective communication and job skills that will help them work effectively with members of their new team (Brewster, 1989). Cultural Awareness Cross-cultural training enables expatriates to have a cultural awareness that will help them work well within and without the organization. One of the problems that most expatriates who have not been trained face is culture shock (Jassawalla, Asgary and Hermant, 2006). Culture shock can make one underperform due to the pressures involved in working in a new environment. This underperformance then translates into increased operational costs for the organization (Lineham and Scullion, 2003). Cross-cultural training enables expatriate managers and employees deal effectively with culture shock before it can have a lasting negative impact on their assignments. This training is essential in enabling the expatriate to understand the culture of the new place where he is working. Highlighting cultural differences during training goes a long way in preparing the expatriate for the new environment (Forster, 2006). Expatriates can enjoy the new culture without letting it get into the way of their new assignments. Resolving Ethical Dilemmas When managers in multinational companies are given ample training in cross-cultural issues, they are able to deal with ethical dilemmas that may arise within the organization. Managers will be able to make the right decisions regarding their organizations without having to cross any moral borders (Brewster, 1989). Proper management across borders is not possible with lack of cross-cultural training. International businesses need cross cultural training as it is the trend in the market these days (Wright, Geroy and Baker, 1996). Proper training is essential to help expatriate managers be able to handle issues such as people-management and client relationships in a new culture (Jassawalla, Asgary and Hermant, 2006). Expatriates need to know how things are done on the other side so that they can make decisions that will catapult the organization to the top of the competition. Requirements for Working in Multi-Cultural Teams and Developing Intercultural Relationships (Hofstede, 2001) Tolerance for ambiguity Behavioural flexibility Non-judjementalism Cultural empathy and non-ethnocentrism Interpersonal skills Belief in the mission Correspondence with career path Interest in foreign land experience Knowledge of host country language Excellent non-verbal communication skills Adaptive and supportive family Interest in the culture of the host country Willingness to adopt new attitudes and patterns of behaviour III. Conclusion Cross cultural management is a vital aspect of today’s international organizations’ management. There are many problems and business related issues that can be avoided when proper cross cultural training is carried out before people are sent to new cultures as expatriate managers. Studying a new country’s culture before commencing business helps individuals to get over culture shock quickly so that it does not negatively affect their performance in the organization. Cross cultural development should be encouraged at all levels of the organization’s structure so that no one in the organization suffers for being from a different culture. References Adekola, A. and Sergi, B.S., 2007. Global Business Management: A Cross Cultural Perspective. Surrey: Ashgate. Bartlett, C.A. and Ghoshal, S., 2002. Managing Across Borders: The Transnational Solution. Boston, MA: Harvard Business Press. Becker, K., 2000. Culture and International Business. London: Routledge. Bonache, J., Brewster, C. and Suutari, V., 2001. Expatriation: A Developing Research Agenda. Thunderbird International Business Review, 43(1), pp.3-20 Brewster, C., 1989. Managing Expatriates. European Business Review, 90(1), pp.46-78 Browaeys, M. and Price, R., 2008. Understanding Cross Cultural Management. 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