Here are some of the factors that can undermine the operations of any international firm.
As we all know that communication is as important for any business as finance or profit returns. Miscommunication can devastate any firm slowly but surely. Here are few communication problems in a global firm.
This problem arises when managers see things differently (according to his own thinking and upbringing) and things are quite different in reality. So, it can push managers to act little wrongly in international environment to which they are unaware of. This whole set up of looking at things differently or if we can put it correctly through his own perception can make things haywire.
In this problem, managers assume things relying on the information which they have beforehand or which they learn in their own business environment. For example, Americans generally think or assume that British are generally bull-headed people. This is their general perception. But, working in an international environment, these kinds of set assumptions can create great grievances. You have to deal with every set of people after meeting them, not just by your own stereotype assumptions. It is utterly wrong and unhealthy for an organization.
Ethnocentrism refers to the sense of superiority that members of a particular culture have. The Russians generally claims that Americans consider themselves 'always right' kind of people. This behavior can shut down all possible communicative avenues and even create hostility and grudge against each other. In international environment, managers need to work more in an open manner.
Role of power distance:
This problem lies in the sphere of motivation. All cultures have different opinions about role of power in certain cultures. In some cultures, people like to be ordered, whereas, few cultures consider it very odd to behave like a boss. It can create hell of a problem for managers, because if manager works in a little authoritarian style and that consider very ineffective in that particular region, then manager needs to bring a change in his style of operating with his colleagues. For example, people in United States, Britain, and Scandinavian find it very tough to adjust with manager who works like a typical boss. Whereas, people in Indians, Mexicans, Japanese and South Koreans find it quite normal to work in this of environment.
Leadership expert Warren Bennis stated somewhere that," Given the nature and constancy of change and the transnational challenges facing American business leadership, the key to making the right choices will come from understanding and embodying the leadership qualities necessary to succeed in the volatile and mercurial global economy". The role of leadership in an international environment is extremely important in more of the pronounced terms. Across cultures, managers need to change some sound differences in their behavior to make it more effective and feasible. Managers in alien atmosphere need to be more liberal and more open for all kind of options.
Managers need to inculcate few major changes in their personal values to