Cross cultural management refers to involvement of work teams in a way that considers the differences in cultures, practices and consumer preferences in a global or international business context. The present essay will focus on cross culture management by critically reviewing of article “From cross-cultural management to global leadership: Evolution and adaptation”. The analysis of article will be made in this essay in succinct manner so that in depth understanding of what researchers described can be formulated. By reviewing articles and journals proposed by different authors, a robust and effective understanding will be constructed in this essay.
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According to Bird and Mendenhall, (2016) cross cultural management refers to the process where organisations involve workers from different countries or culture to work within organisation. The motive of cross cultural management is to enhance the diversity within the corporations and to expand the level of talent possessed in the organisation. In the quasi historical review, researchers analysed the field of global leadership evolved. Researchers further discuss nature of cross cultural management in the article. Researchers trace evolutionary trends in the field of cross cultural management from 1960 to present and explore the effect of these trends on global leadership. The field of cross cultural management from 1960 to 1980 primarily focused on study of organisational behaviour and systems of management with views of countries other than United States. After World War II, many American firms began to look out for overseas market in order to enhance their profits and revenues (Gelfand, Aycan, Erez and Leung, 2017).
In this process, they have faced challenges and obstructions such as legal and international policies, laws and cultural challenges. Researchers in their articles discussed that after the end of World War II, European markets finally recovered and Japanese manufacturing firms began to thrive. Japan not only established as a major exporter, but also a developing market all around the world (Luo, 2016). This was because of the two factors. The first factor was that American firms became uncompetitive in foreign markets and thus, other foreign firms lost their confidence in American manufacturing techniques and strategies. Apparently, foreign investors and organisations considered Japanese manufacturing and management techniques to be more efficient and appropriate.
According to Lokkesmoe, Kuchinke and Ardichvili, (2016) kaizen, quality control circles and total quality management became popular management techniques which help organisations to thrive efficiently in competitive markets. Secondly the rise of computers and telecommunication technologies provide multinational corporations an opportunity through which they could establish subsidiaries in overseas market and remain intact with headquarters. This facilitated greater interdependence and development of culture moved from front to centre.
According to Ramsey and Lorenz, (2016) from 1980 to 2000, the foci of scholars transferred in tandem as the evolution of multi domestic, matrix and regional organisational structures emerged in multinational corporations. Through this enhancement, management found a need to expatriate managers in order to raise their skills, capabilities, competencies and knowledge in order to develop social relations in host country nationals. Manager’s focus shifts from managerial control to expand shared values due to transformation in organisational structure in the 1990s. Management begins to understand the necessity of shared values and cultures in order to expand their level of knowledge and enrich the corporate culture. Managers need to adapt global leadership in order to fulfil the requirement for organisations in order to sustain in the competitive global environment (Adler and Aycan, 2018).
In the present era, leaders now find themselves leading a global team, operations and projects often from their parent countries. Researchers contend that they might not be expatriate but they are considered as global leaders as they can lead anyone and at any time from any place. This is due to evolution of digital technologies and internet technologies. According to Furusawa and Brewster, (2015) digital technologies indeed transform the perception of global as well as multinational organisations as these technologies provide assistance in communication, interaction, sharing of database and many more things. Global leaders play a prominent role in enhancing cross cultural management within an organisation. It is important for the leaders to have necessary skills and competencies so that they can influence diversified workforce working within an organisation in an effective and efficient way.
In further discussion, researcher analyses the impact of cross cultural management on leadership related issues. For this they explore three areas of study which were unicultural research where researcher focused on organisational management of single country, comparative research where researcher explore the organisational management of two or more countries and delineated comparison between them and lastly intercultural research where researcher focused on interaction between members of organisation of two or more countries (Tung, 2016). Through thorough analysis of articles, researchers identified that unicultural studies were found on anthropological and sociological paradigmatic lenses. The unicultural articles provided deep insights of leadership and motivation approaches used by the organisation in order to boost up the cultural and diversity management. Researchers elucidated that the articles they analysed greatly benefited to expatriate managers by enhancing their level of knowledge and understanding of managing team at global context.
In comparative research, researchers contend that the studies were based on sociological and psychological perspectives. Lisak and Erez, (2015) argued that involving multiple cultures within framework creates a variation in the behaviour of managers. In the similar manner Groves, Feyerherm and Gu, (2015) elucidated that creation of cross cultural management framework within organisation affects employees and management greatly. There are various factors that contribute to the negative impact such as inadequate knowledge of cultural dimension of employees. Researchers in comparative research generates a massive amount of journal publications published since 1980s which help researchers in enhancing their level of knowledge and understanding in the field of global leadership and cross cultural management. Intercultural research focused on nature and behaviour of people who are successful or unsuccessfully able to bridge cultural differences associated with management and leaders. Intercultural research has been influenced by theories from inter cultural communication, social psychology and cross cultural psychology.
Wood and St. Peters, (2014) stated that cross cultural management enhances the corporation’s level of knowledge and increase talent within organisation. People come from different countries in order to seek employment in other countries which enable diversity within the corporations.
Researcher in their articles discuss the origin global leadership approach. They have classified it into four steams which were expatriation, intercultural communication and comparative leadership. According to Bird and Mendenhall, (2016) expatriation refers to the process where employees have been departed from their home countries to host country where organisation had established branch or subsidiary. Employees are send in order to fulfil certain tasks which can help the organisation to enhance their profitability and productivity. The process of expatriation is complex as management has to go through several steps before expatriation. The first decision management has to make is to deciding precise candidate who is capable of visiting foreign country. Every company has different process of selection of candidate. Historically companies have focused their selection process on technical competency, past performance and willingness to accept the certain task. Gelfand, Aycan, Erez and Leung, (2017) said that it is important for the organisation to know whether the candidate is willing to accept the particular assignment or not. This can influence the whole decision making process of selection. As per Luo, (2016) the experience of expatriate has also perceived as having powerful transformative potential. Expatriate must have effective psychological and behavioural skills which could help him or her in surviving in foreign cultural environment. The expatriate must have adequate knowledge and attitude to behave appropriately in foreign cultural environment so that uncertainties can be avoided. In order to sustain in foreign environment it is important for the expatriate to have adaptable skills. According to Lokkesmoe, Kuchinke and Ardichvili, (2016) an expatriate has to face different conditions in foreign cultural environment. This can affects his or her journey effectively. Thus, in order to manage in foreign cultural environment and to accomplish the aim and objectives of the task efficiently it is important for expatriate to adapt in the foreign cultural environment. In second stream researcher concentrates on intercultural communications. Global leadership is greatly influenced by the communication and interaction techniques used by managers. Intercultural communication refers to the ability to communicate effectively and appropriately which negotiate each other's cultural identity in culturally diverse environment. Ramsey and Lorenz, (2016) argued that communication skills are very necessary and essential for the managers in order to sustain in the foreign cultural environment.
The expatriates have been selected on the basis of their communication skills and their attitudes. The attitude of expatriate can affects the organisation as well as country's reputation. Thus, it is essential for the management of organisations to select precise candidate who have efficient communication and behavioural skills. In third stream, researchers discussed about comparative leadership which involves two or more cultures. Since the rise of cultural centred research done by Hofstede, comparative studies of leadership invoking cultural value dimensions increase significantly (Adler and Aycan, 2018). Comparative leadership is the leadership theory through which leadership styles across different cross cultural management have been explored. Global leaders needs to posses with specific skills and abilities which helps them to sustain in the foreign cultural environment. To influence the employees at host country subsidiary it is essential for the global leader to possess effective skills such as communication, interaction, direction, motivation, etc. so that they can influence the workforce on the right path and in the right directions so that goals and objectives can be accomplish (Furusawa and Brewster, 2015). In fourth stream researcher discussed about global management. It involves cross border responsibility. Expatriate has been assigned with ample of responsibility which he or she has to fulfilled in order to accomplish the task in most effective and efficient manner. To survive in the global foreign culture it is essential for global leaders to have adequate skills and competencies so that they can accomplish the organisational tasks effectively and efficiently.
Cross cultural management and communication is considered as an important area of concern especially in present globalisation era. Increase in trade liberalisation and agile trade policies affects the organisations greatly. Now diversity within the organisations increased rapidly which maximises the productivity and profitability of the companies. In order to enhance diversity within the corporations, management has devised ample of strategies, using variety of cross cultural theories so that organisation can drive towards growth and development (Tung, 2016). Cross cultural management and communication strategies are very essential especially for multinational organisations. The article proposed by researchers focused on global leadership which got affected by cross cultural management. Researchers in the articles studied how the managers tackles the consequences while sustaining in foreign cultural environment. The article further concentrates on the cross cultural management and managerial strategies relating to it after world war II i.e. from 1960 to present. Thus, the article depicts in depth insight of how an expatriate manager have to behave while living in foreign country. Researcher in their articles discuss the origin global leadership approach. They have classified it into four steams which were expatriation, intercultural communication and comparative leadership. Researchers in the comparative research generates massive amount of journal publications published since 1980s which helps researchers in enhancing their level of knowledge and understanding in the field of global leadership and cross cultural management.
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From the above essay, it can be understood that cross cultural management plays significant role in the organisation. The present essay focused on cross culture management by critically reviewing of article “From cross-cultural management to global leadership: Evolution and adaptation”. Researchers trace evolutionary trends in the field of cross cultural management from 1960 to present and explore the affect of these trends on global leadership. For this they explore three areas of study which were unicultural research where researcher focused on organisational management of single country, comparative research where researcher explore the organisational management of two or more countries and delineated comparison between them and lastly intercultural research where researcher focused on interaction between members of organisation of two or more countries. Eventually, researcher contends that cross cultural management was previously focused more on management and little on leadership but as the period change, cross cultural management focused on both the aspects equally.
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- Adler, N.J. and Aycan, Z., 2018. Cross-Cultural Interaction: What We Know and What We Need to Know.Annual Review of Organizational Psychology and Organizational Behavior,5(1).
- Bird, A. and Mendenhall, M.E., 2016. From cross-cultural management to global leadership: Evolution and adaptation.Journal of World Business,51(1), pp.115-126.
- Furusawa, M. and Brewster, C., 2015. The bi-cultural option for global talent management: The Japanese/Brazilian Nikkeijin example.Journal of World Business,50(1), pp.133-143.
- Gelfand, M.J., Aycan, Z., Erez, M. and Leung, K., 2017. Cross-cultural industrial organizational psychology and organizational behavior: A hundred-year journey.Journal of Applied Psychology,102(3), p.514.
- Groves, K.S., Feyerherm, A. and Gu, M., 2015. Examining cultural intelligence and cross-cultural negotiation effectiveness.Journal of Management Education,39(2), pp.209-243.
- Lisak, A. and Erez, M., 2015. Leadership emergence in multicultural teams: The power of global characteristics.Journal of World Business,50(1), pp.3-14.
- Lokkesmoe, K.J., Kuchinke, K.P. and Ardichvili, A., 2016. Developing cross-cultural awareness through foreign immersion programs: Implications of university study abroad research for global competency development.European Journal of Training and Development,40(3), pp.155-170.
- Luo, Y., 2016. Toward a reverse adaptation view in cross-cultural management.Cross Cultural & Strategic Management,23(1), pp.29-41.
- Ramsey, J.R. and Lorenz, M.P., 2016. Exploring the impact of cross-cultural management education on cultural intelligence, student satisfaction, and commitment.Academy of Management Learning & Education,15(1), pp.79-99.