The UK Manager in the USA Management Culture - Case Study Example

Cross-Cultural Management Cross-Cultural Management: UK Manager in USA Management Culture Introduction Globalisation has changed the way international business is conducted across the world. Generally, globalisation is said to be responsible for the increased removal of barriers to trade witnessed in the past. This situation has in turn encouraged cross-national business to take place more easily (Bartlett, Doz and Hedlund, 1990). At the same time, globalisation is responsible for the increased movement of companies and human capital across countries, where managers from different cultures are required or appointed to manage business and people from other cultures. As a result, the concept of cross-cultural management is gaining popularity in the modern world. Managing across cultures is a product of globalisation (Dierks, 2001) such that, an expatriate from a foreign culture moves to a totally new culture and is required to manage people from diverse cultural backgrounds. Many people who have moved to new cultures or societies have experienced challenges. Although majority has succeeded, some have found it difficult and failed in their international duties. Managing across cultures requires those involved to adjust to numerous conflicting or competing cultural needs, while at the same time maintaining their culture. In this regard, one has to increase efforts of understanding other people’s cultures, their way of doing things, their way of management, and also how such people do things in general (Magala, 2005). Understanding culture has become important to international companies and managers operating in different countries. This report looks at the management journey of an international manager from United Kingdom, who is sent on an international mission in USA and has to carry out international duties in one of the multinational companies in the country. The report will explore and discuss management problems and challenges likely to be experienced by the manager as reflected in the cultures of the two countries. Furthermore, there would be discussion on the best ways through which the manager can ensure he or she fits well in the new environment and culture. Nation’s Cultures Different nations around the world have different cultures. The differences in cultures have influenced different nations to manifest little similarities and huge dissimilarities. Cultures of different societies have played important roles, which may include cultures acting as mechanisms in societies that allow maintenance of stability across many generations (Hofstede, 2001). Culture is seen as the value system of a given society where majority of people in that society share or identify with. Culture in general affects both physical and social environment; thus, predominant societal norms have led to development and pattern maintenance of institutions in societies with particular structures and ways of functioning (Hofstede, 2001). In understanding different cultures, it has become important to study cultural history of different societies. For example, Hofstede (2001) notes that, “culture as mental programming is also the crystallisation of history in the minds, hearts, and hands of the present generation and origins of cultural differences when they get explained presume a comparative study of history” (p.11). Hofstede once stated that, culture is a source of conflict and sometimes, cultural differences can act as sources of disaster (Hofstede, 2001). This statement by Hofstede can be associated to some of the challenges that international managers are likely to experience in foreign cultures. For example, Hofstede observes that, managing in international environment with different cultures involves operating and working within competing and conflicting cultures (Hofstede, 2001). In this regard, numerous research works have been conducted on cultures of different nations and how such cultures are likely to influence the behaviour and functions of international managers. Subsequently, cultures of different nations can be summarised into three main groups: task-oriented, highly organised planners, and people-oriented (Lewis, 2000). This categorization makes it possible to understand culture in many ways. As a result, the understanding of culture is fundamental to understanding many differences that are manifested in managing businesses across the world (Ahlstrom and Bruton, 2009). To this end, culture can be said to constitute acquired knowledge that people utilise in interpreting experience and actions in their daily lives. The knowledge acquired in turn influences values, attitudes, and behaviours of those people. Hence, culture is seen to be connected to knowledge, beliefs, customs, and habits acquired by members of a society (Hofstede, 2001; Ahlstrom and Bruton, 2009). In reality, managing in a cross-cultural environment is not an easy task; however, the manager should be strategic enough to facilitate some level of uniformity with regard to cultural differences. Hofstede cultural dimensions Geert Hofstede is a social scientist from Netherlands who is associated with the five cultural dimensions that have revolutionalised the field of international management. Hofstede identified five cultural elements, which he used to study and describe different cultures. The five cultural differences include power distance (PDI), the level of individualism (IDV), the degree of masculinity (MAS), the uncertainty avoidance index (UAI) and long-term orientation (LTO) (Hofstede, N.d). Power distance factor expressly posits that, power inequality exists in different societies, with some societies having higher power distance than others (Hofstede, 2001). Individualism-collectivism aspect posits that, different societies are either individualistic or collectivistic. For example, individualistic societies have self-centred people who are only concerned with their own welfare. Collectivistic societies tend to have strong in-group feeling; here, achievement is meaningful when group participation is observed (Aswathappa and Dash, 2007). Masculinity–feminism factor indicates how societies are different in terms of distribution of gender roles (Hofstede, 2001). Uncertainty avoidance has to do with how different societies tolerate anxiety about time and future. Generally, some societies demonstrate high uncertainty avoidance index while other societies show low index. Lastly, long-term orientation explains how some societies tend to be short-term oriented while others are long-term oriented. Hofstede dimensions for UK and USA Source: Hofstede, N.d http://www.geert-hofstede.com/ The above figure gives insight on how UK and USA are different in terms of Hofstede’s five cultural elements. Generally, USA exhibits high PDI, IDV, UAI, and LTO, while UK only exhibits higher MAS as than USA (Hofstede, N.d). High PDI for USA indicates a society that exhibits equality in different social structures, while high IDV shows USA as a more individualistic society than UK. On other hand, higher UAI for USA than for UK exhibits a society that does little to control future outcomes, while high LTO shows that USA, unlike UK, has less regard for cultural traditions, and the society expresses high belief in meeting its obligations. On its part, UK demonstrates high level of MAS, which indicates UK has higher gender role differentiation than USA. Differences between UK and USA business management styles UK and USA are two different countries that exhibit relative differences as far as management styles and human management issues are concerned. USA and UK exhibit different cultural aspects, and this has been captured in earlier research works of Geert Hofstede. Culture is important in explaining different management styles of different societies. Differences in cultural orientation and management styles between UK and USA managers are reflected in aspects of business structures, business management styles, conduct of meetings, and negotiation styles, team working, and perception of work teams, communication styles, and even business dress code. The business structure in USA is characterised by scientific approach to organisation management. According to this principle, the US business environment is oriented towards looking for the best and more effective methods of management. Workforce in most organisations is in constant flux, and people leave, are sacked, or are made redundant frequently (World Business Culture, N.d). Employee-employer relationship is largely transactional in nature, and CEOs hold immense powers in organisation. Unlike in other societies, senior managers in USA exhibit less collegiate approach to management. The Board of Directors in US companies does not participate in daily running of the business; however, the CEO assumes most roles in the company (World Business Culture, N.d). Management style in USA is largely influenced by individualism, and managers remain accountable for decisions in the organisation. Consensus is rarely achieved or encouraged, as CEO assumes all powers. Therefore, consensus or compromise- oriented culture is rare in most USA organisations (World Business Culture, N.d). Meetings in USA organisations are confrontational, while diplomacy and harmony are rarely manifested. Furthermore, meetings are always formal in presentation; however, adequate preparedness and research work are required. Teamwork in most USA organisations is fluid and short-lived, where it is only geared towards accomplishment of set goals. Moreover, business communication style in USA organisation is direct and open with regard to issues at hand. Coded speech is rare, since it is perceived to be time-wasting. Nevertheless, unlike other cultures, Americans are interested in personal information matters (World Business Culture, N.d). UK managers on the other hand are likely to be different from those in USA in many ways. In the UK business environment, Board of Directors wields immense powers in organisation’s decision-making process. Generalisation (not specialisation) is what characterises work in UK, where less merit is considered, as emphasis is put on experience, skills, and job orientation. Organisations in UK are largely flatter and adopt less bureaucratic approach in organisations (World Business Culture, N.d). Management style in UK organisations tends to emphasise on man-management skills, and managers always cultivate interpersonal skills for teamwork. Close relationships are established between managers and employees, with much humour and soft relationships taking place among managers and employees (World Business Culture, N.d). Communication style is largely indirect, and coded language messages are preferred. Meetings in the UK organisations are frequent, and little preparation is required. Agenda is loosely followed, employees and managers contribute freely, and the resolutions become the basis of decision-making process. Teamwork is the basis of business environment in UK and members of the team establish a close, cordial, and supportive interpersonal relationship. What will make UK manager succeed in USA? Different problems are likely to rise with regard to cross-management. For instance, the problem is likely to be witnessed in a situation where different people from different cultures are likely to approach a similar problem in different ways. This may be contributed by differences in orientation because of different value systems (Bhattacharyya, 2010). An international manager from UK is likely to face numerous challenges in the USA business environment due to differences identified in the cultures of the two countries. However, there are diverse strategies which the manager from UK can undertake in order to succeed in the new environment. Adler has observed that, in order to succeed in managing in a cross-cultural environment, managers should not ignore their cultural background, but have to manage it (cited in Hamilton, 2007). Here, Adler gives the following strategies to succeed in cross-cultural environment. First, managers have the responsibility of recognizing the existence of cultural difference when electing or selecting members to work with. In this regard, members have to be selected for their task-related abilities, where they need to be ‘homogenous’ in terms of ability and heterogeneous in attitudes. In addition, there should be a common purpose, vision, or goal that goes beyond individual differences. Moreover, there should be avoidance of cultural dominance. Further, there should be initiatives that encourage respect to everyone. Lastly, managers should search for high level feedback (Hamilton, 2007). London and Sessa (1999) see successful cross-cultural management when the following aspects are fulfilled. First, ability to facilitate work in diverse settings; secondly, ability to generate and motivate perception of shared culture; thirdly, sustenance and ability to successfully facilitate cross-cultural teams; fourthly, fostering productive relationship between different business units of the organisation having different cultures; and lastly, ability to successful select and carry out evaluation of staff from different cultural backgrounds (London and Sessa, 1999). Moreover, success is likely to come when cross-cultural managers recognise cultural differences in the organisation, respond to local issues, make smooth transitions between tasks and jobs that involve and include different people from different cultures, and adapt to the environment. These are in addition to successfully managing between extremes by collaborating and negotiating with people who possess different values and beliefs about goals and overall business behaviour s (London and Sessa, 1999). The primary factor is for the cross-cultural managers to observe cultural sensitivity and promote communication and decision-making as the key strategies to success (London and Sessa, 1999). Furthermore, international managers should have ability to employ cultural sensitivity and diplomacy, as well as have the ability and capacity to foster relationships that create strong and meaningful respect for all parties involved in the organisation (Steers, Sanchez-Runde, and Nardon, 2010). The managers should communicate in the most concise way so that everyone involved is satisfied. In addition, they should have the ability and talent to solve cultural problems synergistically and have strong negotiation skills (London and Sessa, 1999). Merode (1997) on the other hand notes that, international managers should be able to motivate cross-cultural teams, have the capacity and ability to conduct cross-cultural negotiations, and have the ability to recognise the influence of culture on organisations’ business practices (London and Sessa, 1999). Similarly, such managers should have the ability and skills to select and evaluate staff in different cultural settings, be trained in managing information across multiple time zones, and be able to integrate local and global information for multi-site decision-making. In addition, they should have knowledge on how different cultures work, how they develop cross-cultural communication skills, identify successful leadership processes across cultures, and their ability to stimulate information sharing within the organisation (London and Sessa, 1999). Recommendations Cross-cultural training has been identified as the key and vital element in ensuring that majority of cross-cultural needs and requirements are fulfilled. International managers have been found to be effective in their assignment, especially managing diverse workforce after undergoing systematic cross-cultural training (Bhattacharyya, 2010). Cross-cultural training can be facilitated in numerous ways such as, regular briefings through circulation of reading materials, training delivered through structured lectures, and showing of films, role-plays, field trips, sensitivity training, and simulation exercises. Further, the training is enriched through departure orientation, in-country socialisation, and country exit debriefing (Bhattacharyya, 2010). Conclusion The report has established how different countries have different cultures, in what is termed as national culture. The national culture of each country tends to explain and describe how people in that country are oriented, socialised, and mentally programmed into doing things. Therefore, international managers from UK are likely to find it different on how things are done or conducted in USA as far as issues of management are concerned. Without proper training, orientation, and learning, the manager is likely to find it hard going about business, and this may affect his or her international assignment. Therefore, the report has looked at how international management challenges can be overcome. Nevertheless, the recommendations indicate what an international manager ought to do in order to succeed in the new environment. Reference List Ahlstrom, D., & Bruton, G. D., 2009. International Management: Strategy and Culture in the Emerging World. OH, Cengage Learning. (Online). 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Bhattacharyya, D. K., 2010. Cross-Cultural Management. New Delhi: PHI Learning Private Limited. (Online). Available from: http://books.google.co.uk/books?id=ETuzeheuLi8C&pg=PA104&dq=managing+across+culture:+importance+of+training&hl=en&ei=nH8HTbTPKMfGswa7-pzxDQ&sa=X&oi=book_result&ct=result&resnum=2&ved=0CC8Q6AEwAQ#v=onepage&q=managing%20across%20culture%3A%20importance%20of%20training&f=true (Accessed 11 March 2012). Dierks, R. G., 2001. Introduction to Globalisation: Political and Economic Perspectives for the New Century. IL: Rowman and Littlefield. (Online). Available from: http://books.google.co.uk/books?id=NstIVIjwc_0C&pg=PA120&dq=globalisation+and+MNCs+MANAGEMENT&hl=en&ei=7Vj7TLKuGN6I4gaO7NzoBg&sa=X&oi=book_result&ct=result&resnum=6&ved=0CEQQ6AEwBQ#v=onepage&q=globalisation%20and%20MNCs%20MANAGEMENT&f=true (Accessed 11 March 2012). Hamilton, C., 2007. Communicating for Results: A Guide for Business and the Professionals. OH: Cengage Learning. (Online). 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NY: Center for Creative Leadership. (Online). Available from: http://books.google.co.uk/books?id=xjD0fJ2xQooC&pg=PA34&dq=how+to+manage+cross-cultural+teams+successful&hl=en&ei=_e36TOSjFoS38QOP5NCEDA&sa=X&oi=book_result&ct=result&resnum=5&ved=0CDgQ6AEwBA#v=onepage&q=how%20to%20manage%20cross-cultural%20teams%20successful&f=false (Accessed 11 March 2012). Magala, S., 2005. Cross-Cultural Competence. NY: Routledge. (Online). Available from: http://books.google.co.uk/books?id=aBEAnty9ALUC&pg=PR1&dq=CROSS+CULTURAL+MANAGEMENT+AS+A+CHALLENGE&hl=en&ei=RFv7TKKZB4GF5Aay3dCzBw&sa=X&oi=book_result&ct=result&resnum=5&ved=0CDgQ6AEwBA#v=onepage&q=CROSS%20CULTURAL%20MANAGEMENT%20AS%20A%20CHALLENGE&f=true (Accessed 11 March 2012). Steers, R. M., Sanchez-Runde, C. J., & Nardon, L., 2010. Management across Cultures: Challenges and Strategies. Cambridge: Cambridge University Press. (Online). Available from: http://books.google.co.uk/books?id=Qr12zT0syf4C&pg=PA20&dq=managing+across+culture:+key+strategies&hl=en&ei=Y_r6TJa2KsGk8QPJwaDvCw&sa=X&oi=book_result&ct=result&resnum=5&ved=0CDwQ6AEwBA#v=onepage&q&f=false (Accessed 11 March 2012). World Business Culture N.d. ‘Global Business Culture: UK and USA. (Online). Available from: http://www.worldbusinessculture.com/Business-Meetings-in-Britain.html (Accessed 11 March 2012). Read More