Cultural Differences and Training

Cross-Cultural Management

Education and Training for Cross-Cultural Management at IKEA

Business across borders has presented significant challenges for multinational organisations. Due to cultural differences between countries, a multinational organisation is compelled to take the differences into account during important processes such as human resource management. IKEA, a Swedish multinational firm, is one organization in which the challenge of cross-cultural management is relevant. Significant cultural differences between the U.S. and Sweden may make Swedish practices inappropriate in the U.S. All the same, the organisation can overcome cultural barriers by implementing a cross-cultural education and training program. The program, which would take the form of deliberately planned seminars and workshops, would equip employees with knowledge and ability to work effectively in a cross-cultural environment. It would be more appropriate for the organisation to hire an external cross-cultural management consultant as it may not have such expertise internally. Implementing the training program would obviously involve time and financial resources. Nonetheless, the long-term benefits would be worthwhile.

Introduction

Today, owing to factors such as technology, globalisation, as well as worldwide political and socioeconomic integration, business organisations have operations in different countries across the world. While this has been beneficial for businesses in terms of expanding their global presence, and enhancing their performance, it has presented significant challenges. Different countries tend to have different cultures. Culture literature extensively demonstrates that both individual and group behaviour are dictated by the underlying national or societal culture (Lucas, Lupton & Mathieson, 2006; Browaeys & Price, 2008; Bhattacharyya, 2010). Without acknowledgement of these differences, management across cultures can be a challenging endeavour. A particular style of management, for instance, may be appropriate for one country, but inappropriate in another. Education and training can be a powerful tool for overcoming the barriers presented by cultural differences.

IKEA, a Swedish furniture and home appliances firm, has operations in over 40 countries across the world, including Europe, North America, and Asia Pacific. Therefore, the topic of cross-cultural management is particularly relevant for the organisation. Without adequate cross-cultural knowledge, the organisation may not effectively manage its multinational operations. This paper presents a proposal for the implementation of education and training at IKEA to address the opportunities and challenges associated with managing across cultures. Though the organisation has operations in tens of countries of around the world, focus is specifically on the U.S., which is one of its largest markets. Taking into account cultural differences between the U.S. (host country) and Sweden (country of origin), the paper pays attention to culture shock, cultural identity, human resource management across cultures, and strategies for overcoming cultural barriers.

Culture Shock

One of the outcomes of coming across different cultures is culture shock. Culture shock essentially describes the disorientation an individual may experience upon coming into contact with an alien culture (Bhattacharyya, 2010). The disorientation often occurs when the individual moves to a foreign country. Behaviours and norms in the host country may cause the individual to experience discomfort, boredom, withdrawal, homesickness, as well as psychological distress (Browaeys & Price, 2008). The individual may resort to stereotyping or hostility toward nationals of the host country. Whereas culture clash may be a significant source of stress for some individuals, others readily assimilate into the host culture by abandoning their original identity (Bhattacharyya, 2010). Other individuals adopt cultural aspects of the host country they perceive as positive, while maintaining their own identity.

Culture shock is a relevant concept for IKEA. Though there are a number of similarities between the American and Swedish cultures, significant differences exist. These differences can be a source of shock for Swedish nationals moving to the U.S. Some of the aspects of the American culture a Swedish national would find peculiar include obsession with cars, friendliness, fixation with body weight and image, a fast lifestyle, widespread gun ownership, abusive language, as well as censorship. In addition, Americans expect everyone to have knowledge of English and to have a robust sense of patriotism. Other aspects include expensive healthcare, extensive use of credit cards, giving tips virtually for every service offered, little availability of public transportation, and unusually large distances between cities.

The friendliness of the Americans can be particularly troubling for Swedish nationals, who generally prefer to maintain personal space. Whether on the streets, at work, or the store, Americans are fond of greeting and initiating conversations with others with enthusiasm. Swedish nationals may find the over-friendliness upsetting. At work, for instance, a Swedish individual may be irritated by friendly gestures from colleagues of American origin. Generally, the Swedish individual would be interested in work matters as opposed to creating friendships or engaging in conversations just about anything. Therefore, it is important for IKEA to consider the culture shock its Swedish employees would receive when working in its U.S. subsidiary.

Cultural Identity

Cultural identity is also a relevant concept for IKEA. It basically denotes the extent to which an individual identifies with or feels part of a group (Bhattacharyya, 2010). The identity is informed by factors such as nationality, race, ethnicity, language, historical background, religious beliefs, gender, and sexual orientation (Browaeys & Price, 2008). Cultural identity is what makes an individual or a group of individuals to perceive themselves as unique from the rest. Whereas Americans may be defined by a number of aspects, one major aspect that defines them is their determination to achieve their fullest potential and pursue individual happiness. Americans desire to be self-reliant and independent, they are adventurous, and strongly believe that one's success or failure is directly related to their deliberate choices and actions. For Swedish individuals, the lack of a uniform cultural identity is evident. This may be due to the rich ethnic diversity of Sweden. Swedish people tend to be characterised by acceptance of differences and tolerance for diversity. In addition, similar to the Americans, Swedish people strive for independence and self-reliance.

The impact of cultural identity on an organisation cannot be denied. This is particularly true in an organisation with individuals from diverse cultures. Each cultural group may bring their identities to the workplace, and may want that identity to be acknowledged. At IKEA, for instance, individuals of Swedish origin may want their tolerance for diversity to be upheld. This may be a challenge in a context where diversity is yet to be fully embraced like the U.S. These differences in cultural identity may impose a significant challenge on the organisation. It may be quite difficult for employees from the country of origin to work effectively at the host country.

Human Resources and the Cross-Cultural Organisation

The implications of cultural differences on an organisation tend to be particularly evident within the realm of human resource practice. The human resource function is generally involved in managing the people aspect of an organisation. It is concerned with issues such as recruitment and hiring, training and development, team building, compensation and benefits, employee recognition and empowerment, as well as performance measurement. Organisations that effectively manage these aspects benefit from employee retention, employee engagement, employee loyalty, and employee satisfaction. Managing human resources can, however, be a difficult task in a cross-cultural environment. Due to cultural differences, human resource practices may not be universally applicable to all cultures (Lucas, Lupton & Mathieson, 2006). Indeed, some practices may be appropriate within the Swedish context, but may be inappropriate within the American context. For example, Americans tend to be goal-oriented, while Swedish people tend to be process-oriented. Therefore, human resource practices in each culture would ordinarily reflect the orientation of each culture.

The fact that Americans tend to be goal-oriented and the Swedish process-oriented is a particularly important aspect to dwell on as far as the implications of culture on human resource practice are concerned. In the U.S., individuals tend to be driven by achievement, success, and competition. Accordingly, they would expect human resource practices that compensate and reward them for their accomplishments. They would also expect the organisation to provide training and development opportunities aimed at maximising their potential. On the contrary, individuals in Sweden, a more feminine country, tend to be driven by overall quality of life as opposed to standing out from the crowd. In addition, being more process-driven than goal-driven, the Swedish value consensus, involvement, equality, and solidarity. As a result, employees tend to prefer human resource practices that value diversity. Employees, for instance, would expect to be acknowledged and rewarded for the process of achieving the goal as opposed to achieving the goal itself.

Evidently, cultural differences influence human resource practice in a significant way. It is important for IKEA to understand that the Swedish way of doing things may not necessarily be practical in the U.S. The organisation must adjust its human resource practices in the U.S. to resonate with the overall culture of the country. This would place the organisation in a better position to achieve its goals and objectives, especially within the American market.

Strategies for Overcoming Cultural Barriers

To overcome cultural barriers, it is important for IKEA to design, develop, and implement a cross-cultural education and training program for its employees. Indeed, cross-cultural education and training has increasingly become a common practice for organisations with multinational organisations (Chebium, 2015). The initiatives are generally aimed at enhancing the ability and effectiveness of employees to work in a multicultural environment. Multinational organisations want individuals who can communicate and negotiate effectively irrespective of the underlying cultural differences. Regrettably, most businesses in the U.S. have paid little attention to cross-cultural education and training for employees (Chebium, 2015).

IKEA can overcome cultural barriers by implementing workshops and seminars, especially for individuals assigned international assignments. The seminars and workshops should focus on aspects such as cross-cultural communication, cultural sensitivity, cultural differences (both visible and invisible), as well as leadership and management across cultures. It is important to note that the motive of cultural education and training is not necessarily to assimilate individuals into the foreign culture. Indeed, the focus of a cultural training program should be to teach employees cultural differentiation as opposed to cultural congruence (Chebium, 2015). In other words, individuals should be taught how to maintain their own culture while at the same time acknowledging the value other cultures can bring to the organisation.

It may not be enough to just implement the education and training program. The organisation must also recognise cultural diversity as a core value (Lucas, Lupton & Mathieson, 2006). From the top to the bottom, every member of the organisation must clearly understand why cultural consciousness is important for the success of the organisation. This means that the management of the organisation must play a front-line role in terms of enforcing a climate of diversity at the organisation. When the management is at the forefront, there is likely to be little resistance to education and training programs.