Cross-Cultural Management - Essay Example

The Writer’s Name] [The Professor’s Name] [The Course Title] [Date] Cross-Cultural Management Introduction Cross-cultural management has become important in today's business environment. From the training employee can gain cross-cultural management skills like development and application of knowledge about cultures in the practice of international management, when the people involved have different culture identities. A manager who is aware of different culture norms is less likely to incorrectly interpret behaviors and prescribe ineffective courses of action when developing people (Estienne, 14-18). Cross-cultural environment has become important in environment in nowadays. An example of a big cross-cultural issue is Canada (Demers 28-30). Cross-cultural awareness is important. Today, cross-cultural issues arise primary in Canada's large cities, since 90% of Canadians who were born abroad live in the 15 largest cities in the country (Demers, 28-30). The need for cross-cultural capabilities has become crucial to international business (Selmer J., Torbiorn I. and Corinna T., 831-40). In Hong Kong and China, there are a high proportion of people from non-Cantonese or non-English speaking backgrounds. A workforce is employed that in many ways reflects this diversity in the community. If such things get done, cross-cultural training is very important. The cross-cultural training is used in business. It aims to develop awareness of group member's own behavior within different cultures, in order to build good business relationships (Hurn B. F. and Fenkins, 128-31). The training includes building and sustaining multicultural teams, the problems of participating in multicultural meetings and developing cultural synergy (Hurn B. F. and Fenkins 128-31). The training is the process of altering employee behavior and attitudes in a way that increases the probability of goal attainment. It is particularly important in preparing employees for overseas assignment. Cross-cultural management training enhanced people's ability to deal with conflicts that arise within multicultural teams. To ensure success in business, many organizations used cross-cultural training to improve their manager's cross- cultural effectiveness and enhance their communication skills. This essay has discussed about how important about cross-cultural awareness and its training strongly affected to business and organizations. Crossing cultures is extremely difficult and requires the right kind of training. Cultural diversity in a work group provides both impunities and difficulties. When manages successfully, it brings economic benefits. For organizations that send managers on foreign assignments. The cost can be high, as those managers need to adjust to their new environment. Cross-cultural training is useful and worthy which can deal with conflicts that arise within multicultural. Marketing Barrier Issues in Cross-Cultural Management Marketers face several barriers in terms of cross-cultural when considering to market internationally. This paper has discussed several of these barriers that need to overcome and thoroughly studied before entering a new market. Every marketing manager must understand and appreciate the culture of the country that intends on penetrating. It must be taken into consideration that the consumers are sometimes reluctant and do not accept foreign products and brands, and there is fierce competition with the local brands. The creativeness of the company while dealing with the different barriers and combining all of them together can decide on the success or failure of the company. Although larger companies may not have the same attitude toward exporting barriers as the smaller firms, it is essential to realize and comprehend these barriers before the entry to the market. New product introduction is one of the most complex decisions that managers of multinational companies face, the cultural differences and the reluctance to globalization adds a significant degree to these decisions. Understanding these effects can help the managers with their future sales. It is necessary to comprehend and acknowledge the differences in the cultures while planning the right time of entry with new products, to cultivate the different negotiation techniques and meanings and to manage the business partners and channels in respect to the cultural barriers. Combining successfully these barriers into new markets internationally is an innovative approaches each and every company, big or small, new or old, should consider and act upon. In all fairness, it should be noted that Americans are not the only nationality guilty of cultural blunders. After the Tengelmann group of West Germany bought A&P, the American supermarket chain, and failed in introducing their European strategy, they commented, "The mistakes we foreigners often make is to judge the U.S. on the basis of what we know about Europe" (Alexander, 66). Japanese firms, also, have had managers guilty of this behavior. Take, for example, the Kanrisha Yosei Management Training Camp set up in Malibu, California. Assuming that Americans would respond like Japanese managers, a rigorous program lasting thirteen days was set up, similar to the way the firm conducted training in Japan. When no clients signed up for the opening session, an attempt was made to Americanize the harshness of the program somewhat (Phalon, 110-112). It is notable that the Japanese manager of the U.S. operations spoke no English. As long as there is the belief that other societies are like one's own, there is little felt need to make a change in behavior. The result is similar to that of ethnocentric managers in many firms. While ethnocentric managers may realize that there is a difference in behavior in the two societies, these managers feel that their practices are superior, and so no effort is made to change. Whether a difference in societal norms is recognized or not, the result in both cases is the same: no effort is made to adapt to the foreign society. Managerial Skill and Cross-Cultural Management While attitude deficiency results in managers with no desire to change, skill deficiencies affect these managers as well as those who want to change. According to a survey of top and middle-level executives, U.S. corporate management is not adequately prepared for global business realities (Ali, 1). A factor contributing to this inadequacy is an inability to deal with cultural diversity. This issue of cultural diversity is relevant to the work force with which the managers must deal, as well as to the products and services the firm seeks to offer (Ali, 274). To be skillful in functioning cross-culturally, there must be a sound knowledge of each culture in which the manager and firm operate. However, as Ricks has stated, acquiring complete knowledge and understanding of any foreign culture is almost impossible (Ricks, 10). Consequently, no matter how hard a manager may try, cross-cultural management attempts are likely to never be totally successful. The following examples illustrate how managers with the best of intentions can commit blunders. In order to cope with the new dimensions encountered in the cultural integration process, selection and training alone can no longer be considered adequate. Managers must begin to think of cultural integration as a new, distinct, and significant organizational function. When considered as a separate function, it can no longer be left as the domain solely of general or other functional managers. (Lee, 139-42) In the past, general managers or functional operating managers, such as marketing or production managers of either parent or subsidiary operations, were responsible for considering the cross-cultural ramifications of their decisions. This responsibility should now also be the primary responsibility of a newly designated functional manager. Use of the cultural integrator position in the subsidiary allows a greater degree of freedom in making staffing decisions. The firm, when using this position, is not required to use a host country national in the top position in order to assure that the cultural factor is being appropriately treated. This is not to say that many (or even most) subsidiaries will not be headed by host country nationals if this position is used. It is just to say that the firm is free to select managers based on other criteria. (Adler, 295-318) There should be two direct results of this increased staffing freedom. First, companies should be able to assure a greater transference of technical skills to the subsidiaries. The need to transfer these skills will not have to be compromised by the requisite need to have cultural compatibility in all decisions. (Hodgetts, 15-23) This compatibility will be assured by the cultural integrator. The same can be said for decisions to use this position to enhance management development and to maintain home office control of the local operations. A second result should be a reduction in the number of cross-cultural blunders by the firm's managers. In all cases, whether the manager heading the operation is a home country, third country, or host country national, culture will be factored into the decision-making process. Cultural Integration and Cross-Cultural Management It might reasonably be asked why the cultural integration function would even be needed if the subsidiary were to be headed by a host country national. The reason for this is clear when one considers the comprehensive nature of the function. The cultural integrator or members of the cultural integration team are concerned with policies and operations at all levels. They are observing, analyzing, and making recommendations to lower level as well as upper level managers. Such a comprehensive performance of this function is both specialized and time-consuming. To expect the head of the subsidiary to attempt to perform these duties in addition to the general management duties is to expect the impossible. Culture is something that can drive a business to success, when diverse, non-biased and properly managed. Yes, at times is can act as a barrier, but more often than not it is the bridge that crosses over those boundaries. (Blassingame, 31-32) There is no doubt after researching the arguments for cultural diversity that organizations should invest in a highly motivated and skilled diversified workforce, which will give them a powerful competitive advantage. Unfortunately, those who have not recognized these unique situations are scrambling for talent, stuck maybe, with a workforce of soon to be retired employees with little experience ready to back them up. However companies that have recognized this are educating their workforce, offering programs that help develop talent that can work together, sharing knowledge learned from experience and past mistakes, to helping all share the new technology that our younger workforce brings with them. Culture is a progressing set of shared values, notions, attitudes, and a logical process which provides cognitive maps for people within a societal group to perceive, think, reason, act, react, and interact. This definition implies that culture is dynamic. In order to understand better this definition we would like to give an example of two American companies where two of us did an internship. Organizational or corporate culture can be reinforced through a strong organizational mission, commitment to organizational goals, and other visible symbols such as company lapel pins, and company songs, in the case of many Japanese organizations. Corporations such as IBM and Hewlett-Packard are reported to have strong corporate cultures where employees worldwide identify themselves closely with the organizational goals of the company. Strong corporate cultures can have a homogenizing effect on cross-national culture. Thus, there may be more observed similarities among IBM employees in the United States and in Japan as compared to Japanese employees at IBM and Matsushita, for instance. Finally many businesses benefit enormously from the diversity and variety of their workforce. The richer the mix of people skills and cultures in a company, the greater is the range of inputs, viewpoints and experiences. These inputs in turn generate more ideas, more challenges to traditional thinking, and more angles from which to approach any problem. High power distance culture is usually found in some oriental countries, especially in Japan, Korea and China. Superiors seem to be entitled to more privileges. They are the centre of the whole company, their status (based on age, experience, or position) gives them the right to tell others what to do, and subordinates always esteem the managers. On the other hand, in western countries, an employee can have different opinions to his/her boss and can discuss problems with their manager face-to-face. Actually, deference of power in low power distance is based on knowledge and experience, rather than status or position alone (Gallois, 28). Because of the different realization of power distance, conflict and misunderstanding must emerge when two or more who come from different power distance cultures work together. In this situation, managers of multinational companies must pay attention to the clashes and be aware of the difference of cultures. The manager should know how to let those employees work together harmoniously and cooperatively. Conclusion The distance between a manager and subordinate can be considered as to extent to which employees can agree with their bosses or managers. It has two different styles: high distance and low distance. High power distance culture is usually found in some oriental countries, especially in Japan, Korea and China. Superiors seem to be entitled to more privileges. They are the centre of the whole company, their status (based on age, experience, or position) gives them the right to tell others what to do, and subordinates always esteem the managers. On the other hand, in western countries, an employee can have different opinions to his/her boss and can discuss problems with their manager face-to-face. Actually, deference of power in low power distance is based on knowledge and experience, rather than status or position alone. Because of the different realization of power distance, conflict and misunderstanding must emerge when two or more who come from different power distance cultures work together. In this situation, managers of multinational companies must pay attention to the clashes and be aware of the difference of cultures. The manager should know how to let those employees work together harmoniously and cooperatively. As the medium of information, language is used to express ideas, thoughts, and beliefs. Different nations use different languages, so there will be loss or misunderstanding during communication. For instance, in some countries, people like using implicit words, which are hard for foreigners to understand. It will cause big problems in cross-cultural negotiations. Language-based misunderstandings will happen, even with two native speakers of the same language, but from different dialect groups or social classes, communicating, because of accent, slang or technical terms. The non-verbal channel is another contributor of misunderstanding. For example, an Indian shaking his/her head means "yes" instead of "no"! In order to reduce language-based misunderstanding, overseas sellers should follow the "customer orientation" principle and do business in the customer's language and communication style. In other words, it is essential to pay extra attention to the communication process, even if it takes more time. Social rules are defined as shared expectations about the behavior that should and should not occur in specific social situations. But the rules are different from one situation to another. In a word, to keep an open mind about other people's social rules and respect for those rules is very necessary. "When in Rome, do as the Romans do". From what has been discussed before, cultural conflicts are inevitable during cross-cultural business, due to differences in company management, language, attitude toward times, social behavior, etc... People are not all the same under the skin. As a professional business person, he/she should be willing to learn other nations' cultures and keep an open mind, and adapt himself/herself to fit into the business environment in order to get the best achievement in business. Works Cited Adler Nancy J., Robert Doktor, and S. Gordon Redding. 1986. "From the Atlantic to the Pacific Century: Cross-Cultural Management Reviewed". Journal of Management, Summer, pp. 295-318. Alexander Charles. 1981. "Golden Touches Turned to Lead". Time, November 30, p. 66. Ali Abbas J. 1992. How to Manage for International Competitiveness. New York: International Business Press. 1, 274 Blassingame K. M., 2002, 'Strangers in strange lands', Employee Benefits News, pp. 31-32 Demers J. 2002, 'Crossing the cultural divides', Volume of CMA Management, pp.28-30 Estienne M., 1997, 'The art of cross-cultural management: "an alternative approach to training and development", European Industrial Training, vol 21, no. 1, pp14-18 Gallois,C and V.Callan (1997) Communication and Culture. JOHN WILEY&SONS Hodgetts R. M. and Luthans F., 2000, International Management: Culture, Strategy and Behavior, McGraw-Hill Higher Education, USA 15-23 Hurn B.F. & Fenkins M. 2000, 'International peer group development', Industrial and Commercial Training, vol.32, no.4, pp. 128-131 Lee G. & Rowe A. 2001, 'Cross-cultural awareness', HR Magazine, pp.139-142 Phalon Richard. 1987. "Hell Camp, Malibu-Style". Forbes, December 28, pp. 110-112. Ricks David A. 1983. Big Business Blunders: Mistakes in Multinational Marketing. Homewood, Ill.: Dow Jones-Irwin. Selmer J., Torbiorn I. and Corinna T 1998, 'Sequential cross-cultural training for expatriate business manager: pre-departure and post-arrival', The International Journal of Human Resource Management, vol.9, no.5, pp 831-840 Read More