An Analyze of Cross Cultural Management

1.0Executive summary

 

In recent years , practices and values of multi-cultural have become significantly and obviously conspicuous in corporate businesses. When corporations cross boundaries , cultural management and cultural values have become more and more important. In order to perform a set task smoothly and successfully, to work effectively with diverse people , multicultural corporation members should be familiar with the cultures with which they are coping with. Having a good command of culture management is imperative for companies. The major objectives of this study were to : (1) explore what strategies are available to managements of large multi-site , multi-national tourism/events/hospitality organizations for managing across cultures; (2) examine whether these strategies be consistent across the organization or left to individual managers to decide ; (3) to identify whether there is a relationship between service delivery to customers from different cultural backgrounds and the issues arising from cross cultural management .(4) Theoretical back ground to CCM .can national culture be analyse and ,if so,how?(5) What frameworks can be used for this purpose . What are the strengths and weakness of these approaches? What drives cultural change. eg: globalization dose it lead to cultural convergence or dose it re-inforce traditional cultures.(6) what strategic or tactical approaches are available for CCM.eg: perlmutter . what are their relative advantages and weakness?(7) are customer’s perceptions of service quality culturally determined? if so how does this make CCM more complex. How can organizations in the service sector manage this complexity?

Design / methodology / approach : in this paper, the approach adopted is based on a critical review and discussion of some relevant literature focusing on the effect of cross-culture on business activities in multi-cultural companies’ environment .

Findings : this paper illustrate some critical information of cross cultural management and put forward some advices for the management of multi-cultural companies .

 

2.0Introduction

 

A major trend in these years is that global economy has become more and more prosperous, and there more and more organizations breaking down the national geographical boundaries ,hiring employees of different cultural backgrounds ,opening new markets. The concept that culture is important to understand the organizational behaviors and to find the way to solve some conflicts in the organization has gained common recognition among scholars and professionals. The multicultural organizations are task oriented groups consisting of people of different national cultures (Marquardt and Horvath , 2001). In order to compete in a global business environment , a lot of companies extended to foreign countries to expand their markets .employing multicultural teams can bring a lot of benefits to the company, for example , multi-cultural teams make the company much more creative and come up more ways for solving problems and challenges .managers from different cultural backgrounds tend to interpret and respond in a different  way to the same tasks or problems. And at the same time , employees may have different perceptions of the same managers’ orders .And the neglecting of cross culture management generally leads to failure and conflicts, mismatches between management practices and local culture is generally considered to reduce the organization’s performance. So, it is important to understand the importance of culture management and make sure that management practices effective in hometown should always be congruent with the host country .and for managers , always remember to appreciate their team members’ personalities , behaviors and values.#p#分页标题#e#

 

The major objectives of this study were to : (1) explore what strategies are available to managements of large multi-site , multi-national tourism/events/hospitality organizations for managing across cultures; (2) examine whether these strategies be consistent across the organization or left to individual managers to decide ; (3) to identify whether there is a relationship between service delivery to customers from different cultural backgrounds and the issues arising from cross cultural management (4) Theoretical back ground to CCM .can national culture be analyse and ,if so,how?(5) What frameworks can be used for this purpose . What are the strengths and weakness of these approaches? What drives cultural change. eg: globalization dose it lead to cultural convergence or dose it re-inforce traditional cultures.(6) what strategic or tactical approaches are available for CCM.eg: perlmutter . what are their relative advantages and weakness?(7) are customer’s perceptions of service quality culturally determined? if so how does this make CCM more complex. How can organizations in the service sector manage this complexity?

 

3.0Discussion and analysis

 

3.1Strategies available to the managements across cultures of large multi-site organizations

 

Strategy comes from the Greek word strategos, it generally refers to a grand design behind a war or battle .many scholars believe that in today’s competitive market, organizations must engage in strategic planning to survive and prosper. Strategic management is a process, and it is also an approach to addressing the competitive challenges which an organization faces . it can be thought of as managing the “ pattern or plan that integrates an organization’s major goals, action sequences , and policies into a cohesive whole .” these strategies can be either the generic approach to competing or the specific adjustments and actions taken to deal with a particular situation. The goal of strategic management in a company, especially for large multi-site organizations is to deploy and allocate resources in a way which give a company competitive advantage.

 

In order to reach the destination and obtain work objectives, managers often need to direct subordinates and influence their superiors over whom they don’t the formal power (Organ and Bateman, 1990).so , in order to take advantage of these kinds of influence, managers must develop and utilize a set of informal influence strategies (Tandon et al., 1991). Some researchers made comparisons between Asian and Western cultures finding out that whereas the use of all kinds of strategies available , national culture often seems to play an very important role in determining preference for some particular influence strategies (Ralston et al., 1995).  Since the style of influence is some part of the overall superior–subordinate  relationship , and more over ,whether the superiors and subordinates have the capability to work and function together effectively obviously affects the performance of the organizations, take tourism for example , tourism company need tourism guide cooperate to provide considerate service to customers, so it is a wise choice to choose local tourism guide who have the basic knowledge of local interests and have a good command of native language .thus can provide consumers better service and increase word of mouth behaviors . #p#分页标题#e#

 

3.2Should these strategies be consistent across the organization or left to individual managers to decide?

 

As everybody knows, people in different cultures respond and act in different ways , share different value systems ,strategies for culture comes from the worldwide interaction and responsiveness from local environment , types of governance , strategic choices ,structures , technological input and output , relevant marketing mix , structure of profits and human resource management (Tayeb,M.H.(1984)) . Tayeb (1984) identified significant English characteristics and he argued that culture has great influences in the climate or social environment of English business .these characteristics include individualism , deference and inequality , self-control and reverse , conservatism , honesty and trust , liberty and class-consciousness . however , it is not exactly the case for Trans-Atlantic countries , the rich mix of their culture does not create barriers or obstacles but pave the way for doing business and create a wonderful business environment .for Americans , they show distinct cultural dimensions in business , like ethno-centralism , for example , they tend to do things at one time , keeping distance or space with other people ,regarding higher education as a method moving to higher social index . Americans also like direct communication , encourage individual promotion through one’s own effort . whereas French business culture is quite different from all the above , they think in very complicated ways , always focus on business processes , share strong reservations , pay much attention to economic prosperities , they prefer to flexible and don’t like being attached to any specific business  , sometimes very polite but sometimes very rude . but Asian business culture is different from all the above , take China for example ,Chinese people make decisions mostly based on collectivism rather than individualism .and the Chinese are always self-sufficient , focusing more on theory rather than empirical methods .

 

(Ling Deng & Paul Gibson, 2009) developed a illuminating model finding the underlying factors that enable effective cross-cultural leadership. they developed an extensive qualitative interviews with some expatriate practitioners , results showed that three kinds of transformational leadership (TL) made great cross cultural leadership competencies .these TL include :emotional intelligence (EQ), cultural intelligence (CQ), and cultural intelligence (CQ).and they believed that TL have four influence components,that means :(1)idealized influence; (2)inspirational motivation; (3)intellectual stimulation;（4）individualized consideration. Of these the third one :intellectual stimulation means that the leader of the company should help his employees become more and more innovative and creative ,always encourage employees to self-actualize. So ,in a cross cultural setting, expatriate leaders’ self-awareness and self-management reflect their realization of the importance of cultural adaptation. And at the same time, these expatriate leaders who are willing and enthusiastic to work in a foreign country are always easy to adapt to and enjoy the local culture . they broaden their eyes and open their minds by learning and accepting local culture. All these made individual managers self-motivated and regard local culture as enjoyable things rather than troubles and frustrations .(Ling &Paul,2009) proved that expatriate leaders who spends time on studying Chinese history have more knowledge of what makes China what it is today , and understand better why people behave in a certain way and why Chinese people regard some certain events in a particular way .#p#分页标题#e#

In a dynamic and competitive environment , managers across the organizations are facing these kinds of problems:(1)understanding and managing cultural differences , conflicts, and diversity. (2) developing and keeping cohesiveness. (3 )managing daily operations. If all kinds things left to the managers across the organizations to decide  ,it is not only a waste of time but also not good for managing the changes of the market . If strategiesbe left to each individual managers to decide, individual managers can better control the company and respond more quickly to changes and take quick actions to solve problems , and individual managers  adjust their behaviors and understanding to enhance the organization’s adaptation , each cultural competency makes unique contribution to the effectiveness across the whole organization. Since they are independent and interdependent .thus can make great cross cultural competencies .

 3.3  Relationship between service delivery and some cross cultural management issues

 

The findings of Kee Fu,Nelson’s (2007) study made people believe that the the perception of service culture of  frontline service employees has been proved to be positively and negatively affect attitudinal and behavioral responses .it is because that the frontline service employees stretched the boundary between the company and the customers outside of the company, so it is widely accepted that frontline service employees are of great importance to the road of success of service organizations in the area of tourism industry. And moreover, frontline service employees have the responsibility of building their own organization’s image and keeping good relationship with its customers, what is more, whether the customers’ service experiences are good or not mostly rely on the frontline employees .

 

( J. Zhang et al. ,2008) Made a review about cross cultural management from a different perspective ,they made a framework as showed below:

 

Cultural

 

dimensions

 

Service expectations

 

Reactions to service

 

Evaluations of service

 

Figure 1. the framework of the role of culture in consumers’ service experiences.

 

National culture has been considered as patterns of thinking , feeling, and acting which are rooted in common set of values and societal conventions . The figure showed above potentially indicates that culture has some impaction on each stage of the service experience . The framework clearly represents that culture has great influence on important dimensions of customers’ service experiences :customers’ service expectations ,customers’ subsequent evaluations of the service experiences and their finally feedbacks of  the service experiences .in the first stage , beforing consuming ,individuals have different service expectations , and in the second stage ,individuals evaluate the service performance, and these kinds of evaluation often betray their expectations, each individual will confirm or disconfirm aspects of service performance based on expectations ,which influences their following satisfaction or dissatisfaction with the service experience . and in the third stage , individuals will have different reactions to the service provided .if customers received poor service , they may take some actions, like complaining or switching ,  and also ,  they could have different reactions to the service providers’ efforts trying to apologize and getting customers back . On the other hand, a satisfying service or service recovery may lead to the formation of an long-term relationship between the service providers and customers .#p#分页标题#e#

 

In formulating service expectation , both individualists and collectivists depended more on external information sources .For individuals who have lower power distance , and those who are short term oriented may higher overall service quality expectations. While in cultures with greater power distance , weaker respondents were more likely to tolerate bad services and have lower service quality expectation.

Customers from developed countries and developing countries differed in perception of service quality dimension. developed countries  preferred to better established reliability , more emphasis on so called “breakthrough service ”,emotional security and credibility based on performance standards ,communication geared to individuals, continuous improvement of service quality and higher levels of relationship marketing . In terms of fast food restaurant services , For  customers from the United States ,they prefer low prices of food , while for Korean customers, reliability and empathy are more important (Malhotra et al. ,2005).

 

3.4 Theoretical back ground and frameworks used to analyse CCM( cross culture management ) .

 

What is culture ? according to Hofstede (2001) Culture is a phenomenon collectively generated by people who share the same social environment and are mentally programmed in a way that distinguishes them from other social groups.

 

People from different cultural backgrounds respond in different ways , and share different value systems .According to Kroeber (1985), There are more than 160 definitions of the culture, in almost all the cases the characteristics of culture are basically identical. Hofstede （2001）and some other schololars believed that the culture is based on languages, economy, religion,  policies,  social institutions, class, value, status, attitudes, mananners, customers,  material items, aesthetics ,education, all these have influences on managerial values . cross cultural means different aspects : communication, negotiation when faced with conflict , performance compensation systems. Many items can gave good reasons to the ethical issues and how to appraise individuals .

 

In analyzing the cross cultural differences, Ronen and Shenkar’s (1985) made an analysis of nine cross cultural studies, these studies identified eight country clusters and an independent group .based on the common legal , political, and social environments within certain national boundaries ,the clustering of nation units were  justified .in addition ,there were another three dimensions identifies,these three dimensions include :language, geography, and religion. In their research, the United States and Canada are located with the Anglo country cluster , but Mexico is located in the Latin American cluster. However Canadian Francophones were not included in their analysis. Considering the fact that French have great influence in this group ,C.P. Egri et al (2000 ) made France a part of their research. All these  research consistent with Hofstede and Bond (1988).#p#分页标题#e#

 

In order to analyse national culture, we use multicultural as a comparison, a table shows below:

 

National culture Multi-culture

context Clear destinations , roles and standards

Power distance Participatory leadership

individualism collectilism

Performance orientation Cooperative process focus

Figure 1framework of national culture and multicultural

 

Hofstede developed four dimensions of culture on the basis of an extensive survey conducted among the managers of IBM in more than 50 countries ,they made comparisons between work values and subsequently developed these dimensions culture compatible .his model illustrates people’s acceptance and tolerance to integrate some others’ value and cultures .these four dimensions include :power distance , individualism or collectivism, Masculinity/femininity , Uncertainty avoidance , Long/short term orientation.

 

3.4.1 Power distance

 

according to Hofstede (1980), power distance refers to the extent to which the less powerful members of institutions within a country expect and accept that power is distributed unequally, and he pointed out that small power distance cultures focus on interdependence and less hierarchical organizational , and the emotional distance between employer and employee is quite small. the United States and Anglophone Canada has small power distance. While in large power distance countries, such as Mexico , and France (in a lesser degree ), these countries are highly hierarchical , and obedience and deference are shown to those in a powerful position .large power distance cultures emphasize autocratic ,directive, and centralized decision making styles. And these organizations often have hierarchical organizational structures .

3.4.2 Individualism/collectivism

 

Hofstede (2001) states that the fundamental dimension on which societies differ the most is between the individual and the collective .Individualism stands for a society in which ties between individuals are loose; everyone is expected to look after themselves and their immediate family only;Collectivism stands for a society in which people from birth onwards are integrated into strong, cohesive in-groups, which throughout their lifetime continue to protect them in exchange for unquestioning loyalty.

 

In countries value high individualism, such as the United States, Anglophone Canada, and France (to a lesser degree ), these kinds of cultures often value self-orientation ,individual autonomy ,initiative, security, pleasure and decision making. while those groups with low individualism ,Mexico for instance ,  embrace a collective orientation that focuses on the importance of expertise , order , and group decision making to the support of  the interests of  people’s familial ingroup , nuclear family ,extended family or clan for example .in a collectivistic society , people  value kinship based ties ,and these kinds of  relationships takes precedence over other kinds of social , economic , and institutional relationships .  so in cultures which value high individualism , the relationships tend to be more  numerous , segmented, transitory, and subordinate to a person’s needs and goals rather than to a stable ingroup, so ingroups may be better described as like-groups (C.P. Egri et al.,2000) .#p#分页标题#e#

 

3.4.3 Masculinity/femininity

 

Members of feminine cultures are motivated by a desire to blend in whereas those from masculine cultures such as the UK or the US will try to make themselves visible and will compete openly with each other (Hofstede 2001). This is because people in masculine cultures value assertiveness, ambition and competitiveness (Hofstede 2001).In feminine cultures, people value nurturance and modesty (Gudykunst 1998), and assertive behaviour and attempts at excelling are ridiculed (Hofstede and Hofstede 2005).

 

3.4.4 Uncertainty avoidance

 

Uncertainty avoidance is defined as the extent to which members of a culture feel threatened by uncertain or unknown situations (Hofstede 2001). People from countries which are high in UA shun ambiguous situations and show a need for structure in organisations, institutions and relationships to make events interpretable and predictable.

 

People from countries low in UA display an openness to change, risk and diversity. similarly, for countries like the United States and Anglophone Canada, they appeared to have less resistance to change, and they have a willingness to take risks, people in these countries do not like rules and regulations, they regard conflict as natural and inevitable .so ,France and Mexico are often characterized as having strong uncertainty avoidance, they pay more attention to conservatism , risk avoidance, security , law and order ,rules and regulations .

 

3.4.5 Long/short term orientation

 

Long term – thrift and perseverance, open to change (new ideas), long term orientation (LTO) focuses on the level of acceptance of uncertainty and ambiguity within the society , the United States and the United Kingdom for example.

 

Short term – respect for traditions, fulfilling social obligations, and saving one’s ‘face’, China for example.

 

Table 1

Scores on Hofstede’s power distance , individualism and collectivism ,uncertainty avoidance, and masculinity dimensions for the United States, Canada, France, and Mexico.

 

country Power distance Individualism - collectivism Uncertainty avoidance Masculinity

United States 40 91 46 62

Camada #p#分页标题#e#39 80 48 52

Framce 68 71 86 43

Mexico 81 30 82 69

Source: adapted from Hofstede , G. ,Bond, M.H.,1988. The Confucius connection :from cultural roots to economic growth . Organ Dynamics 16 (4),12-13

 

3.5  increasing cultural diversity

 

Hofstede’s approaches are based on quantitative research into cultural differences. And they are regularly updated and regularly cited. Hofstede’s framework is of great validity and relevance and is reflected in its extensive use by scholars and researchers . However his rigid framework doesn’t take global changes into account .

 

Over decades , organizations have devoted ingenuous effort to address the issue about bridging unattainable culture and practical schism. In some individual countries , changes are unavoidable, but cultural divergence will remain , and differences may in fact be increasing. Individuals of different backgrounds and of mixed ethnicities carry with themselves not only racial variation but also mixed cultural sensibilities .specific managerial values are losing their meaning and companies are becoming global neighbors . organizations all around the world are showing greater global openness and transparency of countries ,a greater acceptance of new ideas and products ,the blurring of cross culture presents a great space to tolerate and accept differences and make it into practice in businesses . so the racial demographics are relatively simple to track , account for and describe , so it is less obvious ,less relatively undocumented to accompany mixed cultural sensibilities . with more and more organizations cross verging with different cultures , new kinds of cultural communities are continually emerging and increasing in global businesses , And instead of diminishing power distance , the process of globalization is acting to widen the power gap.

 

 

3.6 Customers’ perceptions of service quality are culturally determined.

 

Rama Prasad Kanungo (2006) indentified that :Cross cultures rely more on its surrounding environments and interactive factors .organizational cultures shape management practices in different ways .and this trend leave a homogeneous mosaic of global set-up implying a greater combination of different cultural entities in this set-up . and apparently , managerial value is a major constituent of management practices , a dimensional sub-set of culture . Managerial values show collective directives , responding to the global communities’ acceptance and preference, and how they want to work , study ,behave , think and manage the businesses. Different cultural backgrounds share different values , these values communicate and interact in a reciprocal way . in 1997 , Perlmutter states that in business context , with the emerging of global civillisation mindset  ,leadership will involve developing two kinds of major management capabilities . one is the understanding of the interaction and emerge of derivatives of global political , social ,economical and cultural factors .the other is  global cross cultural competencies , for example, new kinds of alliances involving cultural hybridization in global real time with vendors , distributors , competitors , customers and third party organizations to meet their needs. These kinds of factors revolve around managerial value and effectiveness to resolve and accept cross cultural patterns.#p#分页标题#e#

 

3.7  How can organizations manage complexity of CCM

 

Because the workforce is predicted to become more and more diverse in relation to age , ethnicity , and racial background , it is unlikely that one set of values will characterize all employees .managing cultural diversity involves many different activities, including building an organizational culture which values diversity , making sure that human resource management are promoting knowledge and acceptance of the differences of culture ,coping with employees’ resistance to diversity .in order to successfully manage a diverse workforce and the complexity of an organization, managers are advised to develop some certain skills, including:

Communicating effectively and frankly with employees form all kinds of cultural backgrounds .

Developing and coaching employees of different educational backgrounds , different ages , ethnicity , race and even different physical ability .

Always remembering to give performance feedback that is based on objective outcomes rather than values and stereotypes which is not fair with women , minorities, and persons who have disabilities by prejudging their abilities and talents .

Creating a work environment which ensures employees from different backgrounds feel comfortable and creative and innovative.

 

PricewaterhouseCoopers , the largest accounting firm in the world , has found that diversity is of great importance for marketing and gaining new business opportunities . customers demanded that the company’s employees and partners be involved in gaining new businesses . companies should take advantage of the power of the diverse workforce in order to gain a competitive advantage in the next decades .all the methods discussed above are needed not only to meet employee needs but also to reduce turnover costs and ensure that consumers receive the best possible services. The HRM practices of managing cross cultural employees should always be highlighted, for on a selecting staffs perspective , managers should make sure that tests that used to select employees are not biased against women , disabilities or some others. On designing work perspective ,employees need flexible working schedules that allow them to meet family needs . on a compensation perspective ,benefits such as elder care and day care should be contained in reward systems to accommodate the needs of different cultures .
 

4.0 Recommendations

 

Considering the fact that an ongoing increase in the cultural diversity of the labor force, in order to improve productivity and enhance performance of the team ,  managers in multi-cultural companies must have a good command of managing cross culture , Effective management of cross culture can help a company reduce costs in international environment , avoiding the risks of global venture failures ,achieving success. Communicating effectively with employees from different backgrounds .having effective interpersonal skills and cultural empathy .#p#分页标题#e#

For companies that want to survive they must compete in international markets as well as fend off foreign corpporations’ attempt to take grounds in the native country . to meet these challenges , every business must be prepared to deal with the global economy .globalization has brought out many changes ,  Companies without international operations may buy or use goods that have been produced in other countries , hire employees with diverse backgrounds . in order to succeed in the global competition the challenge for all organizations is to understand cultural differences and invest in human resource management . cross cultural training is a important way to prepare employees and managers to understand the culture and norms of the other countries and help managers develop skills in many areas including strategic thinking , global networking  , coaching and understanding personality differences .
 

5.0 Conclusion

 

Based on literature review, this paper illustrate some critical information of cross cultural management , tried to explore some strategies available to the management of cross cultural management ,using Hofstede’s four dimensions ,this paper analyzing cross culture from Hofstede’s  four dimensions include :power distance , individualism or collectivism, Masculinity/femininity , Uncertainty avoidance , Long/short term orientation.Then the author identified the relationship between service delivery to customers from different cultural backgrounds and introduce the theoretical background to CCM, and found that customers’ perceptions of service quality are culturally determined . with more and more organizations cross verging with different cultures , new kinds of cultural communities are continually emerging and increasing in global businesses , And instead of diminishing power distance , the process of globalization is acting to widen the power gap. then the paper propose some advice on the management of cross cultural complexity ,advising that managers develop some basic skills in order to successfully manage a diverse workforce . at last ,the paper gave some recommendations and made a conclusion.
 

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