American Corporate Culture and Communism - Essay Example

Full title topic Managing in a global society is the umbrella of today’s challenges in international management. Generally Multinationals have the benefit of cheap labor from most countries in Asia where Japan is critically different in many ways. Tesco is a British-based grocery and a general merchandizing retail chain, planning to establish itself in the U.S.A and Japan. One of the main and first few challenges that are inevitable is cultural adaptation. The most important way to adapt is to have prior knowledge about the culture of the country. If these are not understood, establishing a business in these countries will not only get difficult but may force the company to wrap up and depart. Possible Problems American companies although encourage a diverse workforce, the liberal nature of such companies are often a culture shock to non Americans. U.S.A is a country that is based on individualistic values, therefore they expect people to learn to adjust on their own with time. Foreigners generally take over a year to understand and adjust to the U.S. environment; however, this is why culture training is done. Geert Hofstedes Theory of Cultural Dimensions and Trompenaars Cultural Dimensions Theory will help to assess how these different cultures will pose as new challenges for Tesco. Some common challenges expected: Language: There should be no language problem to communicate with people in U.S.A. In Japan however, Managers will have to be trained enough to communicate on business terms. Cost of Expat Managers: It is important to study how cost of living varies between U.S.A and U.K., and Japan and U.K. Japan is known to have a high cost of living, thU.S. managers who are being sent abroad will have to be paid additionally than they were before. Operational Differences: Japanese retail trade has an elaborate hierarchy. There are many middle-men involved when moving goods from producer to consumer. This can raise costs, and also there can be various. complexities dealing to each distributor. Learning about how these trade channels works will be highly important if Tesco will need to compete with other retailers. Since modern trade is already a popular concept in the U.S., like Walmart, there should not be much trouble managing trade channels and also knowing particular middlemen for a good supply chain. Also, Japan has much higher land value than U.S.A, it is densely populated and businesses generally tend to operate in smaller sizes to save costs. Hofstede’s Cultural Dimensions Power Distance: Japan has very little power distance in its organizational hierarchy. They do not appreciate long and fancy designations, because workers see being ‘humble’ as paramount. Most Japanese organizations have flat organizational hierarchies, and commonly they ensure that all workers, regardless of their job descriptions they wear a uniform to further neutralize level of respect for everyone. Japanese workers see seniority of age as a reason for high level of respect, and they also are more liable to stay in a job than younger Japanese workers. Secondly, job descriptions are vaguer in Japanese culture. A worker is expected to do a variety of jobs. The U.S. is entirely different in Power Distance; workers are promoted and respected on basis of merit of experience. Employees regardless of age are expected to work bet in their own capacity, strictly within their job descriptions, and they also have specific job designations. Tesco will have to especially either set a uniform for all workers or flatten their organizational structure; the otherwise will less likely be tolerated with local employees. Uncertainty Avoidance: U.K. employees generally have low uncertainty avoidance, which means them although have less written rules, they tend to be more risk taking and able to accept ambiguous. results from decision making. U.S. employees also have low uncertainty avoidance, they have a culture that encourages junior workers to criticize their bosses and provoke riskier, but profitable, decision-making. Japanese companies are nearly the opposite in uncertainty avoidance. They have more written rules, and wish to rely more on their expert’s decision-making. Therefore they are also less risk-taking when making opportunistic decisions. Tesco will have to be careful and gradual when dealing with business partners, before introducing their way of management. Individualism: U.K. and the U.S.A have highly individualistic cultures. U.S. employees tend to take responsibilities on their own and are also more self-centered in their goals. Each individual seeks to his own opportunities, and do not believe in staying in the same company for long term. Japanese culture is more collectivist culture. Employees wish to work for their ‘group’ or ‘company’ than for themselves. This is because they already expect that the company will be watching their families in return. Japanese employees expect to stay longer in a company and wish to maintain long term relationship with that company. They also have a very low turnover rate consequently, employees either retire or they are transferred, but they are rarely fired. This is why there are also much greater chances that Tesco will be facing labor unions within the organization. This is a complexity which cannot be legally challenged; instead these unions dictate their own rules. Even foreign workers are expected to join a union, and follow their creed. It will be important for Tesco to hire Japanese managers who understand these social factors within the organization. Masculinity: U.S. and Japanese employees both have a high masculinity index in their job attitudes in different ways. U.S. employees place great importance on earnings, recognition, advancement and challenge, being an individualistic culture. Japanese masculinity index is already molded from schooling, to encourage high performance and not accept being failures. They tend to appreciate large scare enterprises and economic growth. In these cases, there is high stress, fewer women employees and tougher targets. Tesco will have to define strong goals, proper guidelines which help Japanese employees to perform better. Long-term vs. Short-term orientation: Japanese employees do not switch companies unless situations force them. Thus they are more long-term oriented than their U.S. counterparts. They make long-term goals and are more careful in their decision making. U.S. managers not only expect to stay in a company for shorter periods but their decisions are also more short-term oriented. They tend to be more opportunistic in terms of making objectives and goals. U.S. managers are not expected to remain long in the same company unless they are very content with the challenge their company offers. Also they retire at an early age than Japanese employees do, at a reasonable retirement budget. Fons Trompenaar’s Cultural Dimensions Universalism vs. Particularism: U.S. and U.K. employees have more idealistic opinions about rules and the law, indifferent with most people. Therefore they are high on universalism, that rules and practices can be applied anywhere. Japanese culture is a collectivist culture, where people generally look after one another even at workplace, so they are high on particularism. Japanese employers see it as their duty to look after their employees social needs as well, and so they may even tend to defend their employees in difficult conflicts. \Individualism vs. Communitarianism: Japanese are highly communitarianists; they see the pride of their ‘group’ as their recognition. Even when it comes to tackling problems, it becomes the responsibility for the entire group. U.S. employees are purely individualistic in nature, and see their own merits as source of their recognition. Neutral vs. Emotional: U.K. and Japan are some of those countries that are known to have high-neutral cultures. They hold their emotions in check, careful about expressing them to their co-workers. U.S. employees are a mix in this case, they tend to be more emotional, but their own studies and training teach them various. ways to tackle with emotions. Specific vs. Diffuse: U.K. and U.S. corporate cultures are very particular about their personal buffer zones. Employees although have large public spaces but they closely guard their personal and private space, only left for friends and close known people. Japanese culture is readily different in the sense; their employers know more about their personal situation than most people. Japanese employee has a more collective approach, and an attitude to look after each other, so they are a more diffused culture. Achievement vs. Ascription: U.K. and U.S. work culture highly appreciates those on the tasks they have performed. People are respected on their merits and achievements than their own personality. These cultures are more achievement oriented cultures, where respect is defined from achievement. Japanese workplaces have high ascription culture; employees judge other employees on the basis on who or what the person is. Japanese employees respect people from their seniority in age and experience also at times. Tesco will have to be careful when dealing with senior employees, because they command a lot of respect from other employees. Opportunities Given these cultural differences, problems also come with various. opportunities. Each culture has a strong quality that can be banked upon. The biggest opportunity is to have managers who are more flexible and will have more opportunity to learn from vast cultures. This will not only teach them positive insight from these cultures but will set benchmarks. Diversity brings a quality that Multinational Corporations generally attain. Tesco can benefit from these cultures in many more ways: Japan and the U.S.A are one of the largest and wealthiest economies in the world. There is obvious. opportunity of greater sales turnover. Partnering with any of Japanese companies will help cover most difficulties that Tesco might face when launching their own outlets. There is need for a Japanese partner company because they are already well-experienced about the workings supply chain, labor unions, and human resource management. Japanese consumers perceive high-priced products as good quality products; this gives a good incentive to sell those products that are of good quality, hence greater profit margins. Being operational in Japan and U.S.A means, more access to better technology and emerging marketing techniques. Campaigns and technologies should be picked up from these countries rather than imposed from the U.K. Training from particular consulting companies that can teach about foreign cultures before venturing into these countries. Tesco can award U.S. employees individually, in terms of a fancier job designation or a greater pay. For Japanese employees, recognition of their department, or group, its celebration would be more rewarding for them, apart from increase in pay, for all. References 1. "Case Study: Solving the Labor Dilemma in a Joint Venture in Japan." Ivancevich, John M. Human Resource Management 10th ed. Mc Graw Hill, n.d. 2. "Case Study: Walmart’s Japan Strategy." Luthans, Hodgets, DOH. International Management 6th edition. Tata Mc Graw Hill, n.d. 3. Zabelin, Jillian. "American Corporate Culture and Communism." 07 June 2008. Associated Content. 3 March 2009 . Read More