Managing Across Cultures
Internationalization of the economy has influenced companies to operate their business globally. The global operation has impact managers with several challenges. Market, product, and production plans must be coordinated on a worldwide basis. The global operation necessitates organization structure to balance centralized home-office control with adequate local autonomy. As companies have started their business operation on the international front, the number of their employees has increased. Increase in the employee's abroad management is faced with new global challenges. The three broad international business management challenges were identified by the management gurus as follows (Robert, Kossek & Ozeki, 1998):
a) Deployment: To get the right skills where it is required in an organization regardless of the geographical location.
b) Knowledge and creativity distribution: Spreading the knowledge and practices throughout the organization regardless of where they have actually originated.
c) Talent identification and development on global basis: To identify who possess the ability to function effectively in a global organization and working on the development of such abilities.
When confronted with such challenges, organizations have had to reorganize policies and procedures for handling global assignments. It will require organization to go through thorough study of the cultural differences and cross-cultural values and principals, technical and language aspects which might require thorough training program.
Cross-Cultural Management of the organizations
Inter-country differences impact managerial as well as operational processes of the businesses. Pluralism, diversity and collectivism created differences in values, attitudes of the people thus creating its impact on the behaviors and reaction of the people from country to country. Economic factors and labor cost factors help determine whether business emphasis should be on efficiency, commitment building or some other strategy. Industrial relations specifically the relation between worker, the union and the employer manifest themselves to the adoption of global business processes.
Culture Theory and its determining factors
Culture in its broadest sense can be defined as the collectiveness of society's idiosyncratic ideas, beliefs, values and knowledge. It depicts the ways human interacts and correlate with their environments. Cultural theory is related to the branches of social science, political science, sociology and communication. Cultural theory defines the core concepts of culture. Cultural studies often concentrate on the ways that relates to subjects of ideology, nationality, ethnicity, social class and gender (Serrat, 2008). Cultural theory takes all account of business like marketing, production and financial aspect into its dimension. In the global business culture leaves its traces on the policies, new-processes and management strategies.
Application of cultural theories
Wide-ranging cultural differences from country to country require corresponding differences in the management practices among company's foreign subsidiary. The cultural theory intends to examine subject matters of different countries in terms of cultural practices and the power relationships. These theories understand the complex structure of cultural values and analyze the political and social impacts on it. The cultural theories are subjected to political criticisms and ethical standards. They tend to share knowledge within societies and equip people from different nations to be well aware of the norms, values, behavioral pattern and psychological patterns of these societies.
Cultural Variations in different parts of the world
For the purpose of comparing different cultures it's important to analyze operative identities of different dimensions of culture across the nations and identify the similar aspects or dimension which is common to all culture.
A study conducted on the behavioral patterns of the managers from Hong Kong, the People's Republic of China and United States conclude that U.S. managers are mostly concerned with getting the job done whereas Chinese managers were most concerned with maintaining a harmonious environment and the Hong Kong managers fell between these two extremes (Ralston, Elsass, Gustafson, Chenung & Terpstra 1992).
A study conducted by Professor Geert Hofstede had recognized other across-cultural differences in his study. The study has signifies that nations have different set of power needs thus societies power distance differs to the extent that the less powerful members of the institutions accept and expect that power will be distributed unequally (Hofstede, 1992). These inequalities are exhibited to greater degree in country like Mexico as compared to Sweden. Masculinity vs. femininity passes on to the extent to which society values assertiveness-masculinity vs. caring-femininity. Japan and Australia is among those countries that rank high in masculinity as compared to Denmark and Chile that ranked low.
Management studies have found that Mexican workers prefer formal working environment where managers and subordinates prefer to keep certain level of distance...
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