The Importance and Function of Cross-Cultural Management in International Business - Term Paper Example

THE IMPORTANCE AND FUNCTION OF CROSS-CULTURAL MANAGEMENT IN INTERNATIONAL BUSINESS of the of the submission Table of Contents Table of Contents 2 Introduction 3 Literature review 3 Defining culture based on theories 3 Hofstede’s theory 3 Hall’s cultural context 4 The Trompenaar’s five-dimension theory 4 The role of culture in the society 4 Cross-cultural management 5 Case studies 7 Critical analysis and comparison of the Chinese and US cultural values based on Hall and Hofstede and other perspectives 7 MBI Model 10 Bridging the identified differences of the two cultures 11 A simulated businesses environment that for managing mixed group of employees 11 Conclusion 12 Introduction Understanding cultural values of a nation or a society is important phenomenon for successful implementation of business plan in a society with different cultural values because it enables easy intermingle without causing problems associated with misunderstanding. Organisations that fails to understand the differences that exist in cultural values are likely to miscommunication, take for instance, the variation of meanings tied to various gestures from different cultural backgrounds may not go well with other communities where it means a different thing. The essay reviewed literature on culture, its importance and based on models previously described, elaborated how two nations shared cultural similarities and differences Literature review Defining culture based on theories Hofstede’s theory The theory is based on five dimensions (Hofstede, 1991). These include the social orientation, which assess an individual relate with others. The power orientation relates to the being tolerant and respecting other people. The uncertainty orientation relates to habits that are acceptable as well as those that individuals should avoid. The goal orientation relates to norms that require passive or aggressive response, while the time orientation relates to both the long-term and the short term. Hofstede (1994) defined culture as a collective mindset that defines a member of the group and distinguishes that group from another group. One attributes of culture is that they pass down the generation (inherited) through the socialization process (Jameson, 2007; Hall, 1990). A society gets its identity from its cultural values. Culture is the way of life. Culture is either inheritable or gained from self (specific to individual). Hall’s cultural context The theory groups culture in two main categories as either low-context or the high-context cultures. In the low-context, the message transmission is through words while the high-context culture place value on both the words and the interpersonal relationship (Hall, 1998). Considering the two cases used in this essay, the westerners like the USA represent the low-context while the easterners like the Chinese represent the high-context culture. These differences are manifested in interaction and the way people communicate. The Trompenaar’s five-dimension theory Based on Trompenaar’s five-dimension, the case presented depicts that the Chinese adopts a universalism approach as opposed to the USA who are particularism. Universalism signifies that the eastern communities are social and tend to amalgamate with their fellow employees as opposed to the USA who prefer privacy and selective on the individuals to associate with at work place. These attributes make them easy to diffuse at the workplace easily as opposed to their counterparts who are more specific and selective. Besides, they are affective unlike the westerners who exhibit a neutral behaviour. Besides, the USA communities exhibit individualism unlike the Chinese who exhibits communitariasm. The role of culture in the society Cultural orientation defines the personality of the people belonging to that culture. For instance, based on artefacts, which includes features like emotional intensity, dress codes, feel of the people their smell, philosophy, among other phenomenon (Hill et al., 2005). These play important role in unifying the community. Although these features of cultural dimension are easy to access and obtain, there is limited interpretation of their actual meaning because every society has unique cultural dimension that may not reflect similar interpretation to other cultures (Hall, 1990). Culture has influence on the biological process. Acquiring conscious behaviours happens when one interacts with and learns from other neighbouring cultures (Chaney and Martin, 2014). The way people response to biological need largely depend on their culture. For instance, when one considers getting excuse to cough, defecate, or eat will largely depend on their mother culture. Cross-cultural management Studies define intercultural communication as interaction of groups of people from different cultures (Arasaratnam and Banerjee, 2011; Imahori and Lanigan, 1989). The interaction happens mostly in communicative styles. Besides, cross-cultural communication refers to the process of interpreting symbols, transmitting, and producing both nonverbal and verbal channels when the people involved originates from different cultural backgrounds (Lauring, 2012). Studies show that both language and cultural values have major influence on the intercultural communication (Arasaratnam and Banerjee, 2011). Management of cross-cultural perspectives are grounded on language (Imahori and Lanigan, 1989). There are several models previously reported in literature as the most appropriate models for bridging the cultural differences. These areas are of importance because psychologists, managers, people in communication spheres, and other business must ensure means of crossing the bridge between different cultures to improve their practices across the cultural domains (DiStefano et al., 2004). Some of these models include Hofstede (1980) framework that suggested five values of culture for individuals in multinational organisations. However, Maznevski and DiStefano (2000) devised a model and called it Mapping, Bridging, Integration (MBI). The MBI model gives detailed description of tenets of cross-cultural management that made it gain acceptance in most management fields, communication sectors, and businesses across the globe (Kawar, 2011; Froese et al., 2012). Its adaptability and simplicity makes it amenable to any context, no matter how different the situations may appear. (DiStefano and Ekelund, 2002) According to DiStefano and Ekelund (2002), the first item of bridging is the management of the participants by giving them equal chance of participating in the process. The participants must be willing to accommodate varying differences from the different cultural perspectives. The second item involve resolving conflicts and disagreements before becoming dysfunctional. It helps in the detection of areas that may cause conflicts. Besides, it empowers the participants to make personal decisions, and the final item involve building the ideas. The peoples’ ideas should be the basis for commencing a discussion. Perhaps, one should not compromise ideas but enhance decision-making process based on quality decisions. Case studies Critical analysis and comparison of the Chinese and US cultural values based on Hall and Hofstede and other perspectives Societies are defined by their cultural orientation. Cultural values range from roles, diets, dress, customs, norms, values, beliefs, languages, skills and knowledge, attitudes, and other virtues that individuals learn as a way of life in their society, which may be different from another category of individuals (Hofstede, 1980; Matsumoto, 1996). The USA community value economic values, which comes first as opposed to relationships contrary to the Chinese community. When assessing these differences using economic concepts, the society in the USA place more emphasis on jobs and other related means of economic value (Hall and Hall, 1990). The other emerging differences between the USA and Chinese society relates to the virtue of humility. The USA society considers humility as a form of weakness, which signifies the need to remain proud if one is to earn the virtue of being able. From this perspective, the society considers the virtue as a form of fault. Contrary, the Chinese society considers humility as a form of gentleness. Hofstede (1991) asserts that culture plays vital role in understanding the behaviour and the interpretation of values associated with such behaviour. For instance, when a person makes a gesture using a thumb and forefinger it may mean different perspectives depending on the society and their cultural meaning of the ring gesture. Take for instance, arguing from a Canadian, UK, and USA cultural perspective, the gesture may mean accepting a decision, or approving the concept, or just being in agreement with the message conveyed, however, from the perspectives of most Mediterranean countries, the gesture may refer to obscene gesture or an insult. Similarly, different societies will present their cultural orientation using different forms like clothing to signify appropriateness, ostentation, or signs of wealth. The cultural values differ between the USA and China. These differences could be associated with the how the two societies differ in the way people socialise. People from china are more socialistic as opposed to people from the western cultures who are more individualistic (Hall, 1998). The aspect of cross-cultural management is an important phenomenon because it gives guidance to managers to adopt specific strategies when considering ventures like multinational companies from the western cultures entering into Chinese must ensure adoption of strategies in line with the changes in cultural values (MNCs (Maude, 2011). The leadership has a role of nurturing the trust within the employees and their close relatives (Cheng, 1995). This resembles an inner circle with a special form of relationship (guanxi) that aims to build competencies and loyalty among the employees in the circle (Cheng, 1995). The term Guanxi is the special relationship that exists between the subordinates and the leaders the subordinates include fellow townsmen, former classmates in college and other levels of education, family members, and the even trusted colleagues (Yang, 1994). According to Cross et al (2002), the relationship and bonds formed by leaders of organisations in USA and other western context cuts across to include spouses and their mothers. The USA lacks that kind of closeness seen in the Chinese cultural management approach. Development of inner circles within the employment spheres in china is a norm hence organisations from the USA and other western culture would need to put these factors into consideration when opening branches of the MNCs in the Asian nation The Chinese cultural values allow leaders to have a sense of responsibility, mutual feeling, and the connection unlike the westerners who are more individualistic and would not dare develop these feeling even toward their employees (Hall, 1990). However, understanding of the behavioural patterns of a culture may relate to the assessment of their value governing their behaviours (Chang, 1995). Since it is quite difficult to have a direct observation of values, many anthropologist infer the interviewing personnel’s belonging to the cultural organisation as well as examining the artefacts like chapters and related documents. Most cultural values remain unconscious or concealed because the people belonging to that culture may not play a role in unravelling their values. For that reason, it is paramount to avoid taking assumptions for granted because the level of awareness will drop hence leaving out room to lean the value or culture and the role it plays in defining a given society (Farh, et al., 1998). The emerging trends on multinational companies (MNCs), which requires that organisation amalgamate and infuse several cultural values in their organisational framework has drawn attention to study cross-cultural management (Kawar, 2011). The MBI mode by DiStefano and Ekelund (2001) consist of three components that seeks to bridge differences by first understanding the differences, devising the bridge to assist in communication across the identified areas and manage that difference by integration (Kawar, 2011). Mapping helps in selecting features that need mapping, describing the features, and indentifying some of the impacts associated with the characteristics hence laying the ground to comprehend the differences (Hall and Hall, 1990). DiStefano and Maznevski (2000) asserted that Map principle required dedication so that one would comprehend the features that are unique for the members. The bridging item sought to assist in aiding efficient communication across the identified different cultural values (Froese et al., 2012). It brings ideas and the people together thereby circumventing miscommunication. The last element of bridge is recentering, which enables people to adopt alternative approaches of interaction (DiStefano et al., 2004). For individuals to implement this concept, they must a good comprehension of the cultural differences (Hall and Hall, 1990). MBI Model Using the elements of MBI mode devised by DiStefano and Ekelund (2001) in the assessment of cultural values between USA and China will take into consideration how to understand the differences between the two cultural values. When comparing the similarities and the differences of USA and Chinese cultural values in terms of their social/national culture, the interpersonal virtues differs across the two groups (DiStefano and Ekelund, 2002). For instance, from a Chinese perspective, relationships, which forms a tenet of interpersonal comes first. The national cultural value weighs a lot of weight on the relationship at all levels. It means that development of cordial and mutual relationship between people and nurturing the virtue is an important element of interpersonal aspects of both social and national culture. However, the USA seems to take a different perspective on matters of intrapersonal social and cultural values. Socialisation in China and USA is different. For that reason, one cultural dimension has many aspects of life shared by the members belonging to that society. A culture is dominant when the entire society shares most of its virtues and gets down the generation through socialisation process (Matsumoto et al., 2004). The majority of people in that society generally accept the cultural values with least opposition. Analysis of cultural aspects of a community or organisation requires a distinction of fundamental levels manifested by the culture. These levels include the basic assumptions, values, and observable artefacts (Spencer-Oatey, 2012). For instance, in the United Kingdom, perhaps the main cultural aspects are the unequal levels, patriarchal roles, and being white. The males who belong to the white community consider them worthwhile and rated as the most vital compared to the female as well as those in the minority groups. The powerful groups with wealth (male whites) have higher status and regarded more important than other males (Hill, 2004). Other forms of mapping the differences between the two societies involve the items that command the respect in the society. People are respected depending on certain virtues that differ between USA and China. For instance, for anyone to earn respect in the Chinese society, one must be able to respect all the seniors (Park and Luo, 2001; Yang, 1994). However, the USA society demands that wealth, achievements, and other success are the main elements. Bridging the identified differences of the two cultures The bridging model of MBI aids efficient communication across the identified different cultural values (Imahori and Lanigan, 1989). It brings ideas and the people together thereby circumventing miscommunication (DiStefano and Ekelund, 2002). The comparison of the similarities and the differences of USA and Chinese cultural values in terms of their social/national culture, the interpersonal virtues differ across the two groups but offered areas that one can use to strike a bridge. Although the differences in relationship between the two societies were evidence, the most appropriate way of finding the connection between is to follow the views of Hofstede (1991) who asserted that understanding the culture plays a significant role in understanding the behaviour and the interpretation of values associated with the behaviours. A simulated businesses environment that for managing mixed group of employees A work environment is likely to have people from different cultural background. For instance, if the workstation has both the Chinese and the USA national, one would expect some cultural differences that may lower productivity of the employees. Some of these challenges include the language barrier and cultural values. From a mapping perspective (MBI), using technology that facilitates communication may help in the comprehension of the differences between the USA and Chinese cultural values (DiStefano et al., 2004; DiStefano and Ekelund, 2002). The second item of MBI model, which is bridging, the technology helps in bridging the two societies by offering low cost of getting in touch because the distance may be great. The technology also assists in clarifying the intention and purpose through written material, because the china society is better in communications that use written materials (Froese et al., 2012). Methods of managing cross-cultural management may change from one model to another but the MBI is universal, simple, and the most applicable. Conclusion In conclusion, the adoption of effective strategies of cross-cultural management is the most appropriate way of helping managers makes transition. It helps develop a clear comprehension of the existing differences between the societies and their cultures. Understanding of these differences helps identify methods of integrating and bridging the gaps between the two or several cultural values. However, motivation of individuals to come up with ideas through a mutual conversation is the best approach to managing the existing barriers between the cultural diversity. Therefore, involving the people from both divide of the culture when devising strategies to map, bridge, and integrate. References Arasaratnam, L.A. and Banerjee, S.C. (2011) Sensation seeking and intercultural communication competence: A model test, International Journal of Intercultural Relations 35: 226–233 Chaney, L.H. and Martin, J.S. (2014) Intercultural business communication 6th ed. Upper Saddle River, NJ: Pearson Education Cheng, B. S. (1995). Hierarchical structure and Chinese organizational behavior. 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