How Cultural Factors Affects Global Business | Cross Culture Management
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Cross-Cultural management refers to establishes a relationship between two states of peoples so that they can work together. It means to easily understands each other feelings and messages. The main aims of cross culture management, is to develops an understanding that how cultural factors affects the organisational; performance (Thomas and Peterson, 2014).It also puts an impacts of decision making process of the management and as well as their skills and attitude of the employees. It is also helpful in distinguishing that when culture is an determinant in any one event or when not. Along with this culture of the management also impact on culture values of the organisation, in that managers consider as a change could be normal, positive and may be a source of opportunity. Comparative models of culture are assertiveness their values to managers and they can be easily implement and design a culture management system (Primecz, Romani and Sackmann, 2011).
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Using an appropriate model of cultural values, contrast two cultures then discuss what potential problems might arise for people
Model of cultural values :- Cultures introduces is strongly related to the way in which peoples of organisation are connected with each other. It offers an incorporated conceptual structure for perceptive the potential extent of values that might be existing within a landscape. Culture value model impact on potential dynamics and emerged out of research that is based on community. In an organisation, cultural is the agglomerate planning in mind that identifies the differences between category of different people. There are the two levels of culture :-
- National culture :- National culture is all about the value and differences of group of peoples and their religion in an nation (Brunet-Thornton and Bures, 2012).
- Organisational culture :- Organisational Culture is all about fluctuation in pattern among organisations and parts inside the same organization.
Dimension of cross culture model in a business organisation:-
- Power distance:- This magnitude explains the values by which staff members expects the power of distribution that takes place of inequality, it is for those employees who are less powerful in business organisation. It involves some factors such are as :- a number of hierarchy levels, authority in leadership and that is centralized, and a lot of superordinate staff.
- Uncertainty avoidance:- Uncertainty avoidance is the point by which the employees that consist from a community are being able to cope with forthcoming uncertainty without going through emphasis. It describes the extent for the people in society people are not at reduces with uncertainty and ambiguity (Bian and Forsythe, 2012).
- Individualism v/s collectivism:- In this dimension it is explains that an employees wants to prefer to work alone or wants to be works in a team. It means to give preference this feelings so that more output can be gained.
- Masculine v/s feminism:- Maleness implies a society’s preference for heroism, achievements, assertiveness, and material reward for accomplish success, an d feminism represents a predilection of cooperation, quality of work life and caring and modesty for the weak.
- Long term v/s short term :- Long-term orientation refers the tendency of a society that is searching for moral excellence. Short-term orientation concern to those communities that are fully committed to the establishment of absolute truth (Emmerling and Boyatzis, 2012).
- Indiscipline v/s. Control:- This resolves and maintain the decorum of the organisation, and around the level by which these communities restrain their desires and impulses.
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These are the problems that are faced by an organisation when it work different culture of peoples. It is natural that when two or more cultures are merged into one environment causing interruption and ambitious synchronous traditions. Such problems are faced by an business organisation are such as follows:-
- Cultural diversity:- Cultural diversities describes the differences between the living standard and languages of the employees. Although many industries have seek the problem of cultural diversity (Okpara and Kabongo, 2011). It brings problems with itself and for the organisational environment also. When two peoples and countries are met together, it is common that they argued and misunderstanding with each other, so organisation must have to ease up the chances of cultural diversity. It have to tries to give proper training sessions so that they can capable to understand each other feelings and messages. Cultural differences can restraint the consciousness of togetherness or belonging after that many business organisations desire to prepare a consciously development of culture identity for employees. Cultural diversity is the potential diversity of inability that create a effective communication with workers that are belongs from different cultures.
- Religion:- Another problem that can arises is a religion, because in an organisation, there are so , many peoples whom are working together. The problem can be arises in more than one way, for example, any worker, who does not prefer to wear such kind of dress code, cause that is again his religion or beliefs, this can create a problem for organisation. It is very difficult for an organisation to implement such kind of rules and regulation because everyone is not accept it. Divergence in religious ideas can also become reasons of division, specially if those ideas are obstinate freely during times when workers are bone-idle (Minkov and Hofstede, 2011). Sometimes it is also happened that a person, who belong from certain religion and don't want to work with a person who belongs from another religion cause it hurts their vales and beliefs toward its religion and faith. So organisation have to trying reduces all that things from employees minds, so they can work freely and it is also develops their thinking. Many times religion and faiths become the cause of conflicts and disputes among employees and its directly impacts of organisational; output and its performance, if an employees is distract with its aims,he cannot work well being and his performance is not so good, that effects organisation image and its market shape (Aycan, 2011).
- Conflict resolution:- Cultural diversities also creates a problem of cultural conflict. Different culture peoples works in different way, sometimes its is become the cause of disputes and changes into big conflicts. Mangers must have to identifies the causes of conflicts and trying to ease up by a agreement on which both sided parties are ready. To cut down conflicts managers have to find out why people behaves differently than expected, for that mangers have to conduct a survey for culture diversity teams. But the most important task for mangers is to develops a understanding among cultural diversify teams Manages have to achieved the desire level of efficiency, with they can easily sort out misunderstandings and setting expectations so that a desired level of efficiency can be achieved (Yu and Ko, 2012). Conflicts ca e happened when there is lack of proper training that is given by the mangers to cultural teams. In other words, Conflict resolution is like that companies can deal with efficaciously with those polices and procedures that they are established for major misunderstandings and disputes arise among employees in the organisational environment. In an organisation, it is commonly happens that workers are not able to understands each other feelings and languages, so that take there messages in wrong way, it it develops conflicts, so mangers have to circulate lessons that become easier their languages. Conflicts resolution also establishes a relationship and strong bond among employees. So that they can performed in a healthy and good working environment (Caligiuri and Tarique, 2012).
- Cultural awareness :- Cultural awareness is another problem that is generated in multicultural environment. When employees are not aware of each other background and their culture so they cannot working together. Culture awareness refers the understanding of distinguishing between organisation and their employees, it involves background, attitude and values. It is a skill that can be developed in professional as well as personal levels to make an overseas assignments. On the other hand, the lack of cultural awareness among people can be generated major miscommunication by host-culture association, acquaintances, clients and neighbours (Vecchi and Brennan, 2011). An organisation have to providing opportunities to the employees so that they can participate in across culture training programmes. This will increases their culture awareness which will helps in deflect the hazard of leading miscommunication and international failure. Managers have to makes plans for educated workers and supports them in understanding of those plan, in which all employees have a great knowledge of culture. To increases culture knowledge managers and employees and reading books and after that they easily understood each other feelings and emotions, and it become easier to established a multicultural organisation (Cordano and et. al., 2011).
There are the cultural problems that is faced by the multi cultured organisational, the main objectives of such kind of organisation, is to bring together all over the world. Globalisation develops the growth of every nation. Cross culture management gives a shape of culture of the organisation, along with this workers are able to work together, it develops the decision making process of the team members and established flexibility in overall employees. Cross-Cultural management also manages the criteria of workplace where all employees will be work in collaboration with a particular goal or objectives of the organisation.
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Critically discuss what the barriers and challenges facing multinational groups or teams and do they outweigh the opportunities
In multicultural organisations it is common that no one is understands each other feelings and messages, and that things could become the cause to disputes and conflicts. Everyday these organisations have to faces many problems regarding cultural and miscommunication. Along with this it impacts the overall performance of the company. So that company is not able to take long term decisions (Osei Akoto, 2014). There are some barriers and challenges facing by multinational groups, Such are as follows:-
- Linguistic Issues:- the most important challenges faced by managers are, communication issues. According to this, there are different culture peoples are working in an organisational environment, so that they are not communicate exact message and information. After that ano0ther ones take it negative manners, it makes the cause of conflicts and disputes. Sometimes it can changes into strikes and battles. Fluency issues and multiple languages or difficulty in apprehension, that come from different accents and local terminologies, it can create barrier to understanding as well as miscommunication. Such issues are develops the negative impact of employees and organisation in market place. Organisation is continuously trying to resolve all those issues and challenges but due to culture background and past environment of the employees it also effects the organisation environment also (Rehg, Gundlach and Grigorian, 2012). To reduce all those issues, manages have to regulate some plans and polices so that chances of misunderstanding can be reduces. For example, in an business there is a issue of different languages, managers are using various languages, cannot properly understand each other. So there team leader must have to implement the use of a common language, such as English, Because English is well known by the all areas of peoples. Along with is everyone is able to communicate with each other easily.
- Forms of communication:- Different culture follows different forms of communication. For example in Asia, peoples prefer indirect communication and found rude in directness, and even the west is known for directness. A manager must take this into account when dealing with an international team. A manager from the West side must have to investigation about the cultural norms of his team members, and be consenting to find some other, there are less direct ways of handling with situations, especially for those which would be seen as critical appraisal (Jackson, 2011). After that the manager of Asia needs to force through her own cultural standards and directly addressing these issues with her western team-members, or risk having all the evasive clues of indirect communication lost or misunderstood by her western team. These problems creates chances of resistance, cause If manges wants to talks directly and employees prefer indirect communication or in a written document any conversation (Primecz, Romani and Sackmann, 2011). Along with this, manager is felling irritate with such kind of communication, and it develops miscommunication between manager and employees. To reduces all those problems and established healthy work environment.
- Management structural differences :- In an business organisation there are so many structural differences, that is faced by these multinational groups or teams. Because there is so many cultural teams are working in organisation environment, and all of them wants manages their organisation structure according to their choices and needs. Global virtue teams understand the purpose , role and directions of the team members and anticipation of management. In many organisation, there is a structure of hierarchy level in that employees cannot communicate directly from the top level managers, in order to resolution of a problem. For that it becomes the cause of conflicts and miscommunication, cause any message goes to the managers in another shape. To reduces such issues manager to create a open communication policy, along with right messages will be delivered to the right person (Matsumoto and Hwang, 2013). And right information can be delivered to the employees, so that chances of misunderstanding and confidants will ease up.
- Decision making process :- The decision making procedure and activities also effects the organisational environment. Employees makes a mistakes in decision making activities, they thought it is the same cross culturally. Here, adaptability is the key factor. Employees expects mangers that they can changes their decisions in one night, but it is not possible for big organisations. Managers makes decisions for all over the organisation, and few ones who are from different culture, creates a problem. For that managers must have to take all decisions with take care of all cultural peoples. It means a single decision will not affects the performance of the employee (Okpara and Kabongo, 2011). Because the performance of the employee directly impact on output and turnover of the company. Being flexible with another decision-making methodologies is the responsibility of the manager. He must have to importune on the acceptance of a particular methodology, it take some time to analyse exactly how this new methodology and decisions are impact on environment of the company.
But these Multi national groups and teams can easily outweigh from barriers and challenges by implementing these elements. Such are as follows:-
- Different perspective :- An multi cultural organisational can reduces all those barriers by knowing their views and ideas. It will help organisation by knowing their employees needs and wants , along with this if workers can get the working environment as they can perform better for the organisation . Managers have to makes strategies and policies to take care of all employees perception on particular topic because different culture peoples have different thinking. This will makes the communication process flexible and establishes a healthy and good working environment (Minkov and Hofstede, 2011). Employees are belongs from different background and experiences have their own and unique views on a particular situation re they facing in organisation, this will gives them a better solutions to reduces all that factors.
- Broader coverage:- Employees with various backgrounds can also providing the company broader coverage in a global marketplace. Company can attracts many customer with the helps of these employees, it gives a company to a international market place, in which different cultures peoples are connected with the company it is beneficial for its growth and development. Due to this, company have to regulates some training programmes so that every employees get a chance to know each other (Jiang, Gollan, and Brooks, 2015). If employees are well being in knowing each other , so the problem of miscommunication and misunderstanding is can be ease up.
- Internal communication :- To reduce all above issues, managers have to work to make internal communication flexible. According to it, employees and managers, both can right messages from each other. Diversity management will help companies with a multicultural manpower have more obstruction to overcome from all those barriers and challenges. Internal communication can ease up the chances of miscommunication and misunderstanding from employee to employees, with that employees will be work together in healthy working environment.
- Trust:- Trust is the most important thing when employees are engaged with each other and working together. Sometimes it may be happens, the messages a employee wants to convey, is delivered in different way to the other employees (Rehg, Gundlach and Grigorian, 2012). After that chances of battle among both employees are develops, sometime it changes into a big war. So in an organisation employees have to build trust on each other do not believes in rumours. They have to maintain their relationship with each others so that all of them will be support to another ones at the time of needed. Trust and believes make their bond strong.
In the above mentioned report it has been concluded that cross culture management system is helpful in developing to reach a organisation in global market. But there many culture dimensions by which organisation environment is effected such are as:- cultural awareness religion, cultural diversity and conflict resolution. All these factors generate the chances of conflicts and dispute. All those things happened by the miscommunications and misunderstanding creates in organisation because different cultural peoples have their own beliefs and values. It is common that miscommunication will be happened but it is not good for organisation image that miscommunication changes into a battle or conflict. For that managers have to makes some plans and polices to ease up all issues and challenges. Such are as :- know the different perspective of the peoples, broader coverage, makes internal communication flexible, and keep trust on each other.
Along with this, healthy and good working environment is created, employees are also happy to such kind of environment. On the other hand, there are many cultural dimensions , such are as :- power distance, uncertainty avoidance, individualism v/s collectivism, masculinism v/s feminism. These dimensions affects organisational performance and as well as employees performance. For that manager have to develops their decision making process and then regulates such kind of strategics that is beneficial all types of cultural peoples. To reduces miscommunication and misunderstanding mangers have to develop their trust and believes on each other, don't focused on rumours. Along with this, cross cultural management system helps in organisation growth and development.
Books and Journal
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- Aycan, Z., 2011. Cross-Cultural Approaches to Work—Family. Handbook of work-family integration: Research, theory, and best practices.p.353.
- Bian, Q. and Forsythe, S., 2012. Purchase intention for luxury brands: A cross cultural comparison. Journal of Business Research. 65(10). pp.1443-1451.
- Brunet-Thornton, R. and Bures, V., 2012. Cross-cultural management: establishing a Czech benchmark. E+ M Ekonomie a management. (3). p.46.
- Caligiuri, P. and Tarique, I., 2012. Dynamic cross-cultural competencies and global leadership effectiveness. Journal of World Business.47(4). pp.612-622.
- Cordano, M., and et. al., 2011. A cross-cultural assessment of three theories of pro-environmental behavior: A comparison between business students of Chile and the United States. Environment and Behavior. 43(5). pp.634-657.
- Emmerling, R.J. and Boyatzis, R.E., 2012. Emotional and social intelligence competencies: cross cultural implications. Cross Cultural Management: An International Journal. 19(1). pp.4-18.
- Jackson, T., 2011. From cultural values to cross-cultural interfaces: Hofstede goes to Africa. Journal of Organizational Change Management. 24(4). pp.532-558.
- Jiang, Z., Gollan, P.J. and Brooks, G., 2015. Moderation of Doing and Mastery orientations in relationships among justice, commitment, and trust: A cross-cultural perspective. Cross Cultural Management. 22(1). pp.42-67.