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Crossing Cultural Boundaries in Business Globalization has made it possible for companies to conduct business aggressively in different countries for expansion. Take the case of the world’s largest food chain - McDonald that has continuously expanded their operations to 119 countries. In the same manner, the business can operate successfully by considering first the most basic factor in overseas operations – culture. According to Prof. Geert Hofstede “ Culture is more often a source of conflict than of synergy.
Cultural differences are a nuisance at best and often a disaster." Businesses that have failed to analyze the culture of a host country would eventually fail and lose millions of money. Having said that, there are four dimensions in Hofstedes that can be used as a basis for minimizing the risk of managing culture issues in operations. It is highly suggested that the following intercultural dimensions be sought: low power distance, low uncertainty, low individualism and low masculinity.
Each of these dimensions would be discussed so readers would understand how these factors can increase the probability of a successful business in a host country. Low power distance would lead to more efficient decision-making inside the organization. If the host country has low power distance, it is easier to work through teams because people would not get tangled with organizational hierarchy. Instead, small groups can be established and team members can openly make suggestions. Everyone accepts responsibility for their mistakes and team members must learn how to collaborate closely.
This empowers the employees by allowing them to responsible for their decisions. Low uncertainty can lead to a competitive advantage – innovation. Competition is intense due to globalization thus it is important for an organization to move fast. Cultures with low uncertainty are more open to change and can easily adapt to changes. When this happens, continuous improvements can be made in procedures and processes so innovation is very possible. The organization would be able to move fast to reach its goals.
Moreover, employees are easier to manage because they can experiment with what works best so supervising can be done on a minimal level. Low individualism fosters a more united workplace because employees value the company like a family ( kwintessential.co.uk). Cultures with low individualism act collectively so people are willing o sacrifice their personal interests for the group’s sake. People are expected to conform so imposing discipline, order, and authority is much easier especially if the members realize that compliance is for the common good.
Also, cultures that exhibit this characteristic tend to be more loyal to their group and feel pride for belonging in a team. Finally, low masculinity promotes more peaceful resolutions within an organization. It is possible to encounter problems in communication especially among different cultural groups. Employees that have this characteristic exhibit personal closeness to one another because the members treat each other as family members. Relationships can deepen to a personal level so the group becomes cohesive.
If there are any conflicts, the group encourages members to resolve the issue peacefully. Indeed, if all the aforementioned cultural dimension features are present in the host country, the business can likely succeed. Work Cited Individualism. Hofstede’s Cultural Dimensions. Retrieved from http:/www.kwintessential.co.uk/ intercultural/individualism.html on Feb 25,2011.
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