Managing in a Global Society - Essay Example

?Introduction International management is a practice that is highly dependent on sufficient exposure, understanding and appreciation of the various cultures observed by different societies around the world (Turner, 2000). Failure to recognize this important aspect of management is a factor which can lead to heavy losses and in worse conditions, closure of businesses. This essay is a critical evaluation of the cultural aspects, which a UK investor should consider before opening up a subsidiary in Japan and the US. Cultural Challenges and Opportunities for a UK Investment in US and Japan Every society has its cultural practices and beliefs, which it protects jealously such that it becomes difficult for any individual or party to just come in and interfere with it. It is therefore the reason why international managers should take their time to study these cultures before introducing new products in the market or opening new subsidiaries (Turner, 2000). Communication, for example, is an important tool, necessary for transmitting ideas throughout an organization. However, it is worth noting that communication does not necessarily entail only the formal aspects such as through writing and speaking but also, it entails maintaining personal etiquette and as per the standards required by the host. The US and UK have English language as their official means of communication. Therefore, it would be easy for a UK entrepreneur to establish himself quickly in the US as opposed to Japan, which has Japanese as the major language of communication (Norbury, 2006). The language barrier present between UK and Japan requires foreign investors to study Japanese as their second language especially due to the fact that Japan scores highly under hofstede’s uncertainty avoidance index (Varley, 2000). This has promoted the creation of numerous social codes of conduct and laws which govern the way people behave in various settings so as to maintain predictability, and which can create ideological conflicts and misunderstandings. For example, Hofstede (1996) observes that the Japanese people are always keen on details such that they will take a long time to evaluate a business proposal so as to ensure that there are no unexpected risks and liabilities which would arise after a project is approved. It therefore means that the presenter has to exercise patience before pressing for response, failure to which it would be taken to mean that he is disrespectful thereby risking his success. Worse still is the fact that business negotiations may be hampered by lack of understanding for example due to the Japanese reluctance to say no or to criticize openly (Norbury, 2006). It may therefore be confusing for a foreign negotiator to find that everything he says is met with a positive response, while in the real sense his Japanese counterparts are against his propositions. Experts advise foreigners to concentrate more on their sign languages, which could be for example scratching eyebrows, tone in their voice, teeth clenching, frowning in between a conversation among others. For instance, frowning is a sign of disagreement and therefore, it would be wise to concentrate on the facial expressions or better, phrase your statements in a manner that will demand an outright yes or no as an answer (Varley, 2000). Coming from a country such as UK where open criticism is considered as normal, it would be taken as an insult and destruction of character to practice the same when negotiating with such people. The high uncertainty avoidance index (UAI) has also been described as a hindrance towards effecting change. This is due to the fact that these people are accustomed to predictability such that introduction of new working environments may not receive a friendly welcome (Hofstede, 1996). This is as opposed to the US whereby UAI is low such that it becomes possible for entrepreneurs to introduce new brands in the market and be able to make profit within short periods of time. This is an important observation, which a person intending to invest in the country should take into consideration especially so as to come up with viable strategies of conducting marketing and awareness campaigns. However, this may be considered both as a challenge and as a business opportunity. For example, if the US citizens are receptive to change, this means that a company would be compelled to keep close tabs and allocate more resources in the marketing department, especially if it is dealing with technology, which is dynamic, due to the understanding that there would be a lot of competition which would do away with the aspect of customer loyalty. On the other hand, if such a company conducts vibrant marketing of its products in Japan and the society accepts, then it means that customer loyalty would prevail over the entrance in to the market by new companies probably offering better and cheaper prices for the same products. It may be worth noting that due to this culture of uncertainty, employees are considered to be keener on maintaining their jobs unlike in the US where an employee can quit at any time and find another job (Turner, 2000). To some extent, this may prompt someone to believe that it would be cheaper to invest in Japan since the company would not be expected to incur a lot of expenditure for the purposes of employee retention. In a world that is continuing to champion for women empowerment, it is not surprising to find that some cultures still maintain the status quo, whereby men are considered to be assertive, competitive and ambitious, i.e. masculinity, as opposed to women, who are considered to be caring and fond of maintaining long term relationships i.e. femininity. According to Hofstede (2001), Japan is one country which scores highly under this cultural dimension i.e. masculinity as opposed to the US which scores relatively low. This means that if one was to open a subsidiary in Japan, he would be more successful if he allocates leading positions to male employees and at the same time consider having more men than women in the work force. On the other hand, it would be considered as gender discrimination if the same was to be effected in the US. Having understood this, a CEO in the UK should understand that women in Japan are accorded moderate respect and therefore, he should avoid the habit of sending female led delegations to represent the firm in business negotiations lest he would end up losing. On the contrary, an equally gender represented delegation would be held in high esteem in a US setting since it is most probable that the hosts would also be equally represented, which would create a first impression that there is like mindedness in the two groups. In addition, it is important to note that Japan is a country which scores highly i.e. 54 against United States’ 40 with regard to power distance index (PDI). According to Hofstede’s cultural dimensions, PDI is the level at which the society accepts inequality either in the work place or in the family life (Hofstede, 2001). This is an aspect which may pose a challenge to a foreign investor in Japan, especially if he is from UK, which has a PDI score of 35. Low PDI score means that equality in the work place is of great importance especially in establishing hierarchy of authority. In UK and US for example, supervisors and employees are considered to have a close relationship such that they engage in constructive, interactive and inclusive discussions with each other as well as top level managers before major decisions and changes are made. The Japanese on the other hand practice top down communication such that employees in the lowest level only take orders and instructions from superiors, whereby questioning is perceived to be disrespectful (Varley, 2001). In such an environment, it is common to find that there are huge disparities in remuneration but surprisingly, no complaints are launched to oppose the same. Based on these observations, if a person is intending to invest in the US, he will have to ensure that a good working relationship with employees is maintained at all levels, failure to which conflicts will arise. This may be achieved by allowing employee representation whereby they are allowed to elect their own leaders, who would then be allowed to sit in meetings so as to present their own points of view towards management issues. Conclusion Cultural disparities in the international platform have become a major determinant with respect to business growth and success. Therefore, Multinational corporations have the responsibility of ensuring that human resources are developed by incorporating training on matters concerning cultural diversity. A person intending to invest in US and Japan, for example, should consider various cultural differences as brought forward by Geert Hofstede. These include and not limited to; uncertainty avoidance index, which is high in Japan and low in US, masculinity vs. Feminism whereby Japan scores highly as a masculine society as compared to the US as well as power distance index, which is high in Japan. These would help the investor to strategize in marketing, allocation of leadership positions in the firm and preparation of the organization structure respectively Bibliography Hofstede, G. (2001). Culture's Consequences: Comparing Values, Behaviours, Institutions and Organizations across Nations, Sage Publications Hofstede, G. (1996). Cultures and Organizations, Software of the Mind: Intercultural Cooperation and its Importance for Survival, McGraw-Hill Norbury, P. (2006). Japan - Culture Smart: The Essential Guide to Customs & Culture, Kuperard Turner, C. (2000). Riding the Waves of Culture: Understanding Diversity in Global Business, McGraw-Hill Varley, P. (2000). Japanese Culture, University of Hawaii Press Read More