The Problem Faced While Working in an International Team - Research Paper Example

Introduction Company Profile Lindt, a Swiss chocolate manufacturer is a leader in the chocolate market and offers a large variety of products. The company was established in 1845 and in 1986 the shares of the company were listed in the Swiss stock exchange. Where the Company is going? The company has total control over every step in its supply chain and production. They take care to ensure the best quality products to their customers. The company is planning to increase its existing market share and enhance global presence. What the Company Plans to Do in Future? The company is already an established chocolate brand in the West especially in Europe. It is trying to increase its market share in the Far East and Asia. The company wants to carry out its manufacturing operations in China. China has large number of competent workforce who can work at competitive prices. The company wants to achieve cost reduction in its manufacturing process. By setting up the manufacturing operations in China the company has the opportunity to also tap the Chinese market by offering its various assortments of products (Lindt, 2010). Culture In the words of Hofstede, “Culture is the collective programming of the human mind that distinguishes the members of one human group from those of another”. Culture has several layers. The base layer is national culture and it provides the framework for other cultures. National culture influences the business culture. Companies within a particular industry have a certain industry culture. Company culture is the third layer and it is shaped by the behaviour and values of individuals in the company (Wagner, 2009). Cross cultural issues in China are very different from the issues faced by the developed nations. China has been considered as a lucrative place for foreign investors. China is surging ahead in its path to becoming a superpower. In 1978 China introduced the ‘Open Door’ policy to establish interdependence with respect to the economy, with the rest of the world. Special Economic Zones were established in 1986 across various Chinese cities to attract foreign investors. This has enabled the country to achieve enormous growth and it is today one of the fastest growing economy in the world. Several European companies who have gone for joint ventures with Chinese companies have faced conflicts due to their cultural differences (Selmer, 1998). Change in Customer Culture The company is planning to enter the market of the East. The customers in the East are very different from the people in the West. Customers in the European market are individualistic whereas in China they believe in mass collectivism. They provide more importance to their family rather than self. The Chinese people are traditional and conservative. Unlike the people in the West, Chinese people are not adventurous and keen on trying out new things. Lindt has to offer their products in the Chinese market keeping these things in mind. Pricing has to be done carefully keeping in mind the affordability of the people in China. Change in Culture of Employees In China the employees have low individualism. They consider themselves to be responsible for their fellow team member. The workers are more tolerant. Chinese workers have a very high long term orientation which means that they are very traditional. Objective for Making the Geographical Move into China Lindt has decided to make a geographical move to China to get certain manufacturing benefits. The main objective is to lower costs. The cost saving is achieved through competitive labour costs in China and through economies of scale in manufacturing. The capital costs are also much lower in China. The company can also hope to take the benefit of Chinese technology, science and research. The company is also quickly acquiring managerial and technical skills (New Zealand Trade and Enterprise, 2010). Corporate Culture at Lindt Corporate culture of an organisation is reflected through its people and is embedded within the organisation. The corporate culture of an organisation is determined by certain factors like the values, believes, the management style, norms and artefacts. It is not necessary that an organisation should have a single culture. It may have multiple cultures (Recklies, 2001). An organisation generally has a dominant culture and a subculture. The core values of the majority of the members are expressed as dominant culture. The subculture reflects the experiences and situations faced by the members of the organisation. An organisation’s culture develops over a period of several years and is deeply embedded in the organisation (Judge, 2007). The corporate culture at Lindt is of innovativeness, drive and commitment. The work environment is dynamic at Lindt and employees are given full support in bringing out their potential (Judge, 2007). National Culture of the Country to Which Lindt Belongs The organisational culture of a company is related to the national culture of the nation in which it operates. Switzerland does not have a homogenous national culture. There are four different official languages. This linguistic aspect creates different cultures. In Switzerland, people respect authority. The sense of responsibility and loyalty is very strong in the country. They believe in autonomy but also believe in teamwork. Nation’s identity is also not very clear in Switzerland (Schein, 2009). National and Business Culture of China National Culture National culture is shared by all the members of a social group. This culture is passed on from the older to the younger people. National culture influences the behaviour and perception of the people. In the words of Hofstede “National culture explained more of the differences in employees than did professional role, age, gender or race” (ITIM, 2003). Hofstede believed that people within a nation share a common national character that moulds their values, behaviour, perception, attitudes and competencies. There are two types of models of national culture. The single dimensional model carries out cultural classification of countries on the basis of a single variable. The first single dimensional model deals with the context dimension. Context refers to how people get knowledge from the society. The people who belong to high context culture get their information from their network and people from low context culture get knowledge through research although they may listen to the viewpoints of all. Chinese people are said to be the second highest context culture. Monochronic and polychromic cultures are dealt with in the second single dimensional model. Individuals who belong to monochronic culture concentrate on a single matter at a time whereas individuals of polychronic culture handle multiple matters at a time. The Chinese are ranked 12th amongst countries with monochronic culture. The last model deals with high and low trust societies. Low trust societies are bureaucratic and have strong bonding with the family. They do not trust others. On the other hand high trust societies are flexible and delegate duties to lower level workers as well. There are three multidimensional models namely Hofstede (1980, 1991 and 2001), Trompenaars (1993), Trompenaars and Hampden-Turner (1997). Trompenaars and Hampden-Turner model deals with seven dimensions. Five dimensions are known as value orientation and they deal with relationships. The other two are ‘orientation in time’ and ‘attitude to the environment’. The value orientations are the following: Individualism versus Collectivism Neutral versus Emotional Specific versus Diffuse Achievement versus Ascription Universalism versus Particularism Hofstede’s variables were power distance, individualism, uncertainty avoidance and masculinity/feminity. Power distance is the degree to which society accepts the difference between the highest and the lowest. China has high power distance because they have inequality to a large extent between people. Masculinity refers to the extent a society classifies roles according to gender. Individuality refers to the extent to which individual achievements are provided prominence over collective achievement. China provides importance to group achievements. Uncertainty avoidance refers to the extent to which people are intimidated by unpredictable situations. China has low uncertainty avoidance and they have more tolerance towards changing situations. The ideal of Chinese business is to avoid conflict and maintain harmony. Chinese are termed as collectivists and provide a lot of importance to family. The Chinese people are generally shy, submissive, cautious and conservative (Ball & Et. Al., 2007). Five Dimensions of Culture (Hofstede, 2010). Business Culture The perception of China’s culture has been vague. China is bureaucratic and has the oldest culture. Confucian values are deeply embedded among the Chinese people. Culturally China is diverse. China is a vast country and thus culture varies across the country. People throughout the country speak different dialects and have different accents. Culture varies from North to South in China. Northerners are more bureaucratic. In Beijing the bureaucracy is dominant and the major employer is the government. Southerners have a better understanding of international business. In Shanghai people have entrepreneurial skills. The city is the hub of finance and commerce in the country. Cultural diversity exists between the coast and the inland. There is cultural difference between the rural and urban people. A great divide exists between the rich and the poor (Chee & West, 2004). The Chinese people provide a lot of importance to seniority. They expect to be addressed by their designation rather than as Ms. or Mr. They also stress on providing adequate respect to the senior people. The seating arrangements during a meeting should be made according to their rank. While establishing initial contacts in a business association with the Chinese the best gift should be provided to the person of highest rank. Chinese people enjoy receiving gifts in their business relations. Chinese people take their business decision over lunch or dinner in a grand restaurant. It is considered rude if one does not drink with them during such dinners. If the Chinese are the host then they will pay all bills and it is considered improper to offer to pay the bills (Chinese Culture, 2010). The Chinese society is a society where a lot of importance is provided to relationships and every one takes responsibility for their fellow members. There is inequality in the Chinese society in terms of distribution of wealth and power. This is accepted by the Chinese people as a part of their cultural heritage. The society has great tolerance level with an attitude of overcoming problems with time. The main characteristics of the Chinese society are of collectivism, high power distance and long term orientation. What Do Customers in China Want? In China there is a great divide between the rich and the poor. A company like Lindt will have to price its products according to the disposable income of customers in China. The customers in China would expect good quality from Lindt because it is a very well known brand. The tastes of the people in China are very different from that of the people in the East. Lindt has to take this fact into consideration. What Is The Expectation Of Employees In China From The Management? Their expectation will be high from a big company like Lindt. The employees in China will expect a decent pay from such a high stature company. They will hope for safe and healthy working conditions. They will also hope that language does not become a barrier for them in communicating their problems to the management. They will expect efficiency from the management. How do Employees in China expect to be managed? In China seniority is provided importance. The employees in China will look for directions from the higher authority. They will expect clear instruction from their seniors. They will expect that opportunity is provided to them for skill enhancement. They will expect the management to understand their preferences and establish efficient performance management system. They expect the management to be impartial in their wage structure. The older workers will expect directions whereas the young ones will prefer freedom in their job (Knowledge@Australian School of Business, 2010). Local Management The functioning of the local management in China is very different. They have fewer rules and since they are aware of their culture their rules are set in accordance with those cultures. They clearly provide instructions to their workers and expect full compliance. Reporting Structure The reporting structure should be very clear. The workers will report to their supervisors. They in turn will report to lower level managers. The lower level managers will report to the higher level managers. Accountability has to be established with the aim that it is clear that who reports to whom. Issues and Problems That Are Likely To Be Encountered In China Issues Related to Employees The major barrier is language. The Chinese people converse in Mandarin and are not very familiar with the English language. The manufacturing operations of Lindt will involve the local workers. If the local language is not known then it will be a difficult task to communicate with them. The human resource development is a major challenge in China. Forming a management team of local people is another great challenge (Orfield, 2005). Issues Related to Management The management structure should be formed very carefully. The workers may not be able to communicate with their supervisors and manager since they belong to a different country. They may not be clear about the reporting structure. Bureaucracy plays a major role in the business in China thus Lindt has to develop an understanding of all regulatory, monetary and legal issues involved. Issues Related to Customers The customers in China have different tastes and Lindt has to customise its products according to the customer’s preferences. A major cross cultural barrier is the difference in religion. Chinese people are followers of Buddhism whereas the Swiss are followers of Christianity. Religion is a sensitive issue and Lindt must take care to ensure that they do not hurt their feelings or sentiments on the issue of religion (Bhattacharyya, n.d.). Solutions to the Issues and Their Implementation (Fontaine, 2007). Torbiorn (1988) has defined cultural barriers as ‘Psychological limitations in the ability or willingness to understand, accept, or adopt the norms of a foreign culture’. The barriers are often psychological. Thus having a negative notion about the foreign culture will further aggravate the problem of cross cultural barriers (Selmer, 2004). Solution to the Management Issue Lindt needs to understand the diverse Chinese culture and gather all information related to it. Keeping this in mind Lindt has to study the culture of the specific area in which they are planning to start their manufacturing operations. The managers and supervisors of the manufacturing unit have to be provided proper training and have to be imparted knowledge pertaining to the local culture. An understanding of the local language is essential. Otherwise the managers will not be able to communicate clearly with the workers. (Berrell & Et. Al., 2002). Solution to the Workers Issue The supervisors and the workers should be recruited from China itself. The local managers will be able to deal with the workers in a better manner. A formal reporting structure should be established. It should be clear that who reports to whom (Orfield, 2005). Solution to the Customer’s Issue The management should try to gather all information related to Chinese culture. Training should be imparted to the managers. This will help them to serve the customers better. The management structure has to be changed. These changes have to be implemented gradually. Conclusion Lindt has a great challenge ahead. The company has to establish a manufacturing unit in China. It will certainly face certain cross cultural issues. The main barrier is of language. The cultural values, working style, management structure is very different in China. They have to tackle these issues carefully. They have to ensure that employees are satisfied and if conflicts do arise, they have to be resolved amicably. Personal Reflection I feel that working in a multi-cultural team has been a great challenge for me. A team that consists of people of diverse culture, opinion, values and outlook is bound to face certain conflicts. These conflicts are absolutely normal unless they are disrupting the efficient functioning of our team. The experience has been enriching. This kind of exposure helps one to develop one’s interpersonal skills. It is very important that one should have the sensitivity of not hurting the sentiments related to culture, of the fellow team members. I also felt that it is extremely important to communicate in a very simple language. This is because in a multi-cultural international team of people, who might not have much knowledge of the English language, may face difficulty in understanding what is being conveyed. Cross cultural issues can be avoided while working in international teams in the following ways: One should ensure that clear and easy language is used. Ambiguity should be avoided It is better to communicate via emails and letters rather than verbal communication. This is because many people have problem in understanding the accent of a particular nation Documentation of all procedure should be carried out to ensure clarity while functioning An understanding of the mindset of the different people should be developed or acquired through a study of different cultures Any kind of cultural bias should not be nurtured. A positive outlook and tolerance should be maintained towards every culture The problem faced while working in an international team was mainly related to language. It was difficult to articulate things. At times there was miscommunication as well. Initially there was a problem in gaining the trust of fellow members. It is a common tendency among people to be apprehensive while mingling with people from other countries. Another issue was that the team members belonged to different religions. The working style of the team members was different. The motivation of every team member was not the same. There was an issue on the leadership as well. The team leader had to be decided on certain very important criteria. The person needed to be someone who could motivate the entire team despite the cultural differences and bind all with the aim that they could work towards a common objective. We decided to tackle these issues by identifying the cultural dimensions. We made special efforts to mingle with our team members. We tried to improve our communication with them. We held discussions and shared each others cultural values. We made an effort to change our perspective and tried to develop a positive outlook. The management style was adjusted with the intention that it would suit the working style of every culture. The group leader made special efforts to bind the team. Mutual adjustment could be established by bringing certain changes in our behaviour, attitude and outlook. We tried to think as a team and not as an individual. A common goal made us forget our cultural differences and we worked diligently towards the fulfilment of that goal. The experience made us learn that working in a cross cultural team may be considered as extremely difficult but there are certain advantages as well. A cross cultural team has the knowledge of various nations. This improves the performance of the team as a whole. The skills of a diverse workforce can be utilised to get the maximum benefit. Thus cross cultural issues may arise in international teams but if they are tackled properly then maximum benefit can be obtained. References Ball, S. & Et. Al., 2007. Contemporary Hospitality and Tourism Management Issues in China and India: Today's Dragons and Tigers. Butterworth-Heinemann. Bhattacharyya, G., No Date. Cross-Cultural Management: Text and Cases. PHI Learning Pvt. Ltd. Berrell, M. & Et. Al., 2002. Organisational Learning in International Joint Ventures: Implications for Management Development. Emerald Group Publishing Limited. 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