Choice of the Managing Director - Essay Example

? Choice of the Managing Director of the Management of the Concerned 26 August In a pragmatic context, every individual and hence every member affiliated to a national or ethnic group tends to be different as to how one tends to share information, how one communicates and how one operates in a group scenario. Sometimes, such differences get accentuated when one is required to manage and lead in a diverse group, much owing to the variations in the cultural dimensions of the specific group members. Hence, the answer to the question under consideration to a great extent depends upon whether the cultural dimensions of the managing director to be selected are compatible with the Vietnamese cultural dimensions. Introduction In case of the expatriate operations, the functions of management and leadership are to a large extent dependent on a much broader concept called ‘diversity’ (Kirton & Greene 2005, p. 127). Diversity is a very expansive concept that includes within its ambit a little more than an individual’s looks, colour, traits, attitudes and status (Kirton & Greene 2005). In the given scenario the managing director to be selected will be required to manage, function and lead in an environment that will carry a quintessentially Vietnamese flavour. As the commonsense suggest, it will be much easier for a Vietnamese managing director to manage the manufacturing operations being undertaken in Vietnam. However, in an academic context, the choice to be made is necessarily required to be explained in a rational and factual manner. As per Geert Hofstede, the salient values in any organization are to a large extent determined by the predominant culture of that place. Hofstede grouped the cultural values of varied countries and regions into four main groups that are called the Hofstede cultural dimensions (Baptiste, Dodor & Rana 2007). Whether one chooses an Australian or a Vietnamese managing director to lead the organization’s manufacturing operations in Vietnam will definitely depend on the level of compatibility between the Australian and Vietnamese cultural dimensions. Vietnam- Cultural Dimensions Power distance pertains to the extent to which the less powerful members in a society tend to be comfortable with an unequal distribution of power. Vietnam has a Power Distance Index of 70, which means that in the Vietnamese society, people do readily accept a hierarchical system, without registering any objections or problems (Hofstede 1996). Individualism is a cultural attribute that determines as to the extent to which the members in a society tend to remain independent. On this dimensions, Vietnam has a score of 20 that means that in Vietnam it is the group affiliations that stand to dominate over individual aspirations and ambition (Tuan & Napier 2000). Masculinity is a cultural dimension that explains whether a society values success and ambition or whether it gives priority to the overall quality of life over success, achievement and ambition (Hofstede 1996). Vietnam has a score of 40 on this dimension which means that Vietnam is particularly a feminine society where solidarity and quality of life holds a sway over success and achievement (Reynolds 2000). Hofstede also propounded one more cultural dimension that is Uncertainty Avoidance. The Uncertainty Avoidance Index of a culture states as to what extent the people in a culture are comfortable with the anxiety and stress associated with the ambiguity inherent in the future (Hofstede 1996). Vietnam has a low Uncertainty Avoidance Index of 30 which means that the Vietnamese hate uncertainty and are mostly willing to do away with strict norms and principles in favour of ease and certainty (Tuan & Napier 2000). It will be really interesting to see as how the Australian culture scores on the four Hofstede cultural dimensions. Australia- Cultural Dimensions Australia has a Power Distance Index of 36, very low as compared to Vietnam. Translated practically it means that in the Australian work culture, hierarchies are contrived for convenience sake and the managers do many a times rely on the capabilities of their juniors to accomplish organizational goals (Casimir et al. 2006). This is very unlike Vietnam. On the individualism dimension Australia scores 90 as compared to Vietnam’s 20 (Hofstede 1996). This means that the Australian managers tend to be very individualistic and do mostly expect their employees to evince initiative and independence (Casimir et al. 2006). Hence, practically speaking, if Australian senior manager proceeds with a larger Vietnamese work force in this manner, it may create problems. On the masculinity dimension, Australia scores 61. This means that the Australian culture is essentially masculine which prefers competition, success and achievement over group solidarity and quality of life (Hofstede 1996). Certainly, if an Australian manager managing a Vietnamese work force solicits such aspirations from them, it will certainly not go well, because Vietnamese culture happens to be a feminine culture. When it comes to uncertainty avoidance, Australia has a score of 51 that means that the Australians tend to have a very tolerant and pragmatic attitude towards uncertainty and are not hesitant when it comes to taking risks and accepting new ideas (Baker & Carson 2011). Again this stands totally contrary to the Vietnamese ethos and culture. Recommendation It will be thoroughly pragmatic to recommend that a Vietnamese national ought to be selected to serve as a managing director at the proposed managing operations in Vietnam. This recommendation is based on a strong academic background and rational. The Australian and the Vietnamese culture tend to differ a lot from each other. While the Australians tend to be egalitarian, the Vietnamese prefer a hierarchical setup. Also, Vietnam stands to be a collective society contrary to the individualist norms in Australia. Vietnamese tend to prefer group solidarity, group affiliations and group loyalty over individual aspirations, success and ambition, which is quiet in contrast to the Australian ethos. Hence, an Australian manager director may turn out to be a total misfit in a Vietnamese work setup. On the contrary, a local managing director being at home with the Vietnamese culture and cultural values and expectations will have a higher probability of turning out to be a success. Conclusion In an organizational scenario, the success of a leader to a large extent depends on the cultural literacy evinced by one and the magnitude to which a leader is conversant with the cultural mindset of the workforce he or she is leading. Hence, in the given case, considering the immense disparity between the Vietnamese and the Australian culture, a Vietnamese managing director will be more suitable. Reference List Baker, David S & Carson, Kerry D 2011. ‘The Tow Faces of Uncertainty Avoidance: Attachment and Adaptation, General of Behavioural and Applied Management, Vol. 12, no. 2, pp. 134-142. Baptiste, K, Dodor, Jean & Rana, Dharam S 2007, ‘Culture & Economic Development: An Investigation using Hofstede Cultural Dimensions’, International Journal of Business Research, Vol. 7, no. 2, pp. 65-69. Casimir, Gian, Waldam, David A, Bartram, Timothy & Yang, Sarah 2006, Journal of Leadership and Organizational Studies, Vol. 12, no. 3, pp. 85-94. Hofstede, Geert 1996, Culture and Organizations, Software of the Mind, McGraw-Hill, New York. Kirton, Gill & Greene, Anne-Marie 2005, The Dynamics of Managing Diversity, Elsevier Butterworth-Heinemann, Oxford. Reynolds, Paul 2000, ‘Profit & Principles: Business Ethics in Hotel Management Companies in Asia”, Australian Journal of Hospitality Management, Vol. 7, no. 1, pp. 102-109. Tuan, Vu Van & Napier, Nancy K 2000, ‘Paradoxes in Vietnam and America “Lessons Learned”’, Human Resource Planning, Vol. 23, no. 2, pp. 74-77. Read More