Cross-Cultural Theories: Companies in Different Countries - Assignment Example

A company operating from its home country needs to keep into consideration the factors, which have significant influence in the countries where the company has branches (Feingold, Jean, 2006). These factors make the cross-cultural theories relevant in managing companies over a span of countries.

         One of the main reasons for hosting companies over a range of countries is the utilization of the local workforce (HRMagazine, 2008). This, in itself, puts the workforce and the management in a multicultural stance. Universalism as a general theory might help ‘blend the culture’ and improve performance, while on the other hand, it does not take into account the essential differences in cultures and particularism has to be followed (Alexandria, VA, 2008). It is pertinent to understand that while setting up a global mindset is productive, not all human resource strategies will fit every culture and situation, hence the need for adaptability (HRMagazine, 2008).

           Sensitive factors like religion and gender often define whether the host culture is neutral or emotional. Recognizing this has a significant advantage in terms of control over the business and workforce itself. For example, ignoring a religious taboo might result in a strong setback for the company if the relevance of cultural differences is ignored (Himmelberg, Michele, 1998).

           The language barrier, the most common issue, is crucial and requires new communication skills to be dealt with (Carter, L, 2005). When a lingua franca does not already exist, it might be useful to train the local workforce in an international language (Feingold, Jean, 2006) but training the management in the vernacular has its key advantages including the elimination of redundancy, direct management, and easy understanding of the culture (Carter, L, 2005).

            These key theories are relevant most of the time even in the internet age, but when companies approach different cultures not only to utilize the workforce but also for marketing, the cultural dimensions take a more significant role. Cultural dimensions such as perceptions of justice, power distance, and individualism define the employee behavior resulting indirect influence on turnover and other outcomes directly affecting the company’s ability in the competitive market (Kim et al, 2007, p. 104, 83-95). According to opposing studies, the cultural dimensions are not to be generalized. Even though the perception of justice might have a different effect on employees from different cultures, it does not mean that workplace injustice and its outcomes will differ in the same way. It is equally important to maintain good management in this aspect for a culturally diverse workforce (Lam et al, 2002, p. 23, 1-18).

             Companies with cultural diversities often challenge the management with decisions to generalize or to keep in account, the cross-cultural theories. With the availability of the internet; long-distance management and automated translation tools, these theories can often be disregarded at discretion.