Cross-culture management Table of Contents Introduction 3 Usefulness of the academic literature on national culture for helping a MNC devise its strategy 4 Team working and functioning 4 Knowledge Transfer 5 Cross cultural activity and firm internationalization 8 Human Resource Management across cross cultures 9 Conclusion 10 Reference 12 Bibliography 14 Introduction Globalization and the advancement of technology have brought about interrelatedness and mutual dependency in the corporate world…
Some of the major economic indicators of internationalization such as FDIs, international sales and overseas profits have been showing steady rise over the years. Enhanced multinational operations have led to increased multiculturalism in the organization. This has subsequently led to greater interaction and cohesiveness among employees and managers coming from different cultures and backgrounds. The study of cross cultural management necessarily focuses on studying behavioural aspects of individuals in the organizations located in different cultures and nations in the world. These studies essentially focus on the description and comparison of organizational behaviours across nations and cultures. More importantly it focuses on the interaction between people coming from different cultures and working in the same organization. These studies are found to be extremely useful for organizations while devising their strategies. Multinational organizations pay particular attention to the study of these literatures as it helps them devise international strategies. These literatures depicts past circumstances and puts forth evidence of different multi-cultural situations and their implications at the workplace which essentially contributes relevant and crucial factors based on which organizations devise international strategies and policies (Adler, 1983 p.1). The project seeks to bring forth usefulness of these academic literatures on national cultures which help MNCs devise their strategies. In this context, it brings forth the major cultural differences between the developed, underdeveloped and developing nations and also the typical differences existing between the western and eastern cultures of nations. Those aspects are essentially focused on which influences international strategies of organizations. Usefulness of the academic literature on national culture for helping a MNC devise its strategy Team working and functioning Multinational organizations are commonly characterized for conducting transnational projects. They are also conducted with the purpose of saving the cost of double parallel works in subsidiaries and making the maximum use of complementary resources. For more than 20 years, researchers have focused and shown that management practices necessarily remain embedded in national cultures and they have also regarded that the search for an effective and universal management style is meaningless. According to the views of Alderfer & Smith, (1982) individuals embedded in a particular culture tend to have and share certain common world views (Chevrier, 2003, p.142). These include particular ways of cooperating, conflict management, authority acceptance, or simple communication techniques. According to d’Iribarne, Henry, Segal, Chevrier, & Globokar, 1998; Triandis, (1994) researchers conducted on cross cultures depicts that national cultures can explain variations in attitude between 25% and 50%. However, there has not been any clear establishment of the fact that variety of world views affects team functioning positively or negatively. The conclusion derived from empirical research brings forth mixed views on the subject (Chevrier, 2003, p.142). On one hand it is advocated that the diversity of worldviews ...
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This means that the culture of India is such that there are immense issues happening within its fore. What is important however is an understanding that the culture of India is a mixture of many different manifestations, elements and segments of the Indian society, all of which mean one thing or the other.
According to Blomqvist (2005), “International business transactions are emerging from multi-functional, multi-disciplines, and multi-contacts among home and host nations”(Blomqvist, 2005, p.6). Dubai is widely regarded as the business hub of Middle East.
Culture is critical aspect that broadly defines the value system and beliefs of the people that is carried over generations. It therefore gives a distinct characteristic to one’s nationality, ethnicity and behavior. The culture of Middle East countries is predominantly conservative and heavily relies on Muslim traditions and values.
This made the former a suitable place for the multinational companies to establish their businesses in. Though, the competitive advantage of conducting business in the CEE countries decreased as the wage rate increased and more workers migrated to the richer countries like UK and Germany.
He might have come to his current 'global managerial' position from a 'distinguished' career at the home head-office of his company. If so, he might be carrying with him the baggage both of his 'national culture' and his 'corporate culture', and he would come into contact, in his new job, with the 'national culture' of the country in which the foreign branch of his company is located.
This is followed by a discussion of some facets for cross-cultural adjustment for managing multi-cultural teams, coaching for repatriation, building teams in international contexts, predeparture expatriation training programmes, sponsorship programmes and social activities, and building high-performing global teams.
For instance, Chinese have a very strong concept of collectivism while giving significant worth to the group and team efforts. In contrast to this Americans believe in individualism, freedom and self promotion (Some General Difference Between Chinese and