Cross cultural management in organizations - Myassignmenthelp.Com

Question: Discuss about the Cross cultural management in organizations. Answer: Introduction Cross-cultural management can be understood as the study of management in respect with the cross cultural context. It comprises of the study of the impact of social culture on the management practices and the organisational managers. It also includes the study if cultural orientation of the organisational members and the individual managers. At the individual level the experience of individuals, reactions of individuals, cognitive structures and the values are analysed in an effective manner. The various contributing disciplines comprises of cross cultural anthropology, sociology and psychology. The importance of cross cultural management is increasing continuously in the global business operations. A number of researchers have paid huge emphasis on the study of cross cultural management (Pudelko, Tenzer and Harzing, 2014). The report will present the significance of cross cultural management, the role of cross cultural management in the improvement of the business idea; potential be nefits of cross cultural management and the manner in which the potential challenges of cross cultural management are addresses. Improvement of the business idea through better consideration of crosses cultural management In the international businesses and global expansion of the businesses, there are a number of challenges and difficulties take place in respect with the cross cultural diversity. The importance of cross cultural management is increasing and the several business organisations are taking use of effective cross cultural management. The culture can be understood as a particular set of anticipations which demonstrates how a business will run or any set of knowledge which is possessed by a person and creates a perception of the various cultures (Kersiene and Savaneviciene, 2015). The cross cultural management can offer huge level of improvement in the business idea as when the companies globalize there is a need to have effective and robust cross cultural management. There are a number of models and frameworks which are available with the organisations for cross cultural analysis and have successful business operations (Shiraev and Levy, 2014). The most robust and highly used model or framework is the Hofstedes cultural dimension framework. There are five dimensions on the basis of which cultural diversity is analysed and cross cultural management takes place. The first dimension is power distance which reflects the distribution of authority and power. There takes pace cultural diversity when few nations have equal distribution of power and other has unequal distribution of power (Tjosvold, 2017). The second dimension is uncertainty avoidance where it reflects the ability of the individuals to manage the uncertainties or risks. In some countries there is an avoidance approach whereas in few nations there is a positive approach. thus, cultural diversity exists. The third dimension is individualism versus collectivism which shows the work nature of the individuals. If people work in team there is a collective approach otherwise if people focus on their personal achievements then it is individualism (Hofstede, 2011). The fourt h dimension is masculinity index versus feminism where there is analysed that whether the higher and authoritative powers are with females or males if the society. The last and the fifth dimension is long term orientation which explains the approach of the people towards the tasks. In few nations people have long term orientations and in some nation individual do not have long term orientations. Thus, there exists huge cultural diversity among the countries and with the help of this framework the dissimilarities are identified (Tung and Verbeke, 2010). The organisations try to build the gap as well as select that country which is more similar in respect with these dimensions (Thomas and Peterson, 2017). Thus, robust cross-cultural management takes place which help the businesses to internationalise and gain huge benefits of international business and cross-cultural diversity. Internal and external contextual factors affecting business structures and strategy Size of the organisation It is one of the key internal factors that affect the business strategy and business structure as when an organisation is small there is a direct business structure and few strategies. Life Cycle The life cycle of eth business is one of the key factors which show whether the company should use growth, maturity or declining based strategy. Business Environment It is the external factor which reflects which business strategy must be used by the business such as if the business environment is opportunistic then opportunity based strategy or if the business environment is uncertain then risk assessment strategy (Thomas and Peterson, 2017). Potential benefit of cross cultural management Cross cultural management offers a number of benefits to the business organisations which not only enhances the organisational efficiencies but also increases the sustainability and revenue of the businesses. The key benefit of cross cultural management is increases work group efficiencies as when culturally diverse group of individuals work together in a team there is exchange of innovative ideas and opinions which leads to work group efficiencies. The second key benefit of cross cultural management is enhanced organisational performance such as with the help of cross cultural management the companies can employee competent and skilled individuals which offers higher competitive benefits to the business organisations which leads to improved organisational performances (French, 2015). Other benefits of cross cultural management comprises of skill development of the workforce, increase motivation and moral support among the workforce, development of global business, successful global expansion and improved community association (Adekunle and Jude, 2014). When an organisation or business have sound cross cultural management and there are given equal importance to all the culturally diverse group of people then it result in enhanced motivation and boosted morale of the employees. In present scenario, the companies go global and perform international business but in the global business operations there are number of issues faced by the companies but with the help of the cross cultural management there is development of global business which inturns results in successful global expansion (Eringa, et al., 2015). When there are cultural disparities in the nations and in the organisational workforces, there are several issue took place and thus it becomes difficult to have strong community association but with the help of the sound cross cultural management there can be reduced cultural disparity issues and therefore there took place improved community association (Has lberger, et al., 2016). Addressing of the potential challenges of cross cultural management There are several potential challenges or issues that took place while the business indulges in cross cultural management and these issues are the barricades in the success of the businesses. But to have successful cross cultural management, there is a need to address these potential challenges. There are number of challenges such as understanding the communication style of various cultures (Ferraro and Briody, 2017). The individuals from diverse cultures communicate in a different manner which results in language and understanding issue due to high or low context culture. Therefore such issues create a number of challenges for successful business operation (French, 2015). To address this issue there is a need to understand the differences and the individuals must temper their communication style in an adequate manner so that there can be developed more effective cross-cultural teams and successful cross cultural management. Another major potential challenge of cross cultural managem ent is the difference in the cultural values (De Cieri, 2017). Every culture possess some different values and these cultural perspectives can be better understand with the Hofstedes cultural dimension theory where the cultural of a country is displayed through six cultural dimensions i.e. power distance, long term orientation, uncertainty avoidance, individualism versus collectivism and masculinity index (Eringa, et al., 2015). Therefore, due to difference in these cultural dimensions, it becomes difficult for the businesses to operate in the overseas regions. To address such challenge of cross cultural management, there is a need for the businesses to first analyse these cultural dimensions and develop strategies to bridge the gap which exists among the regions. By analysing and bridging the gap, there can be achieved successful global expansion of the business and efficient cross cultural management (Koch, et al., 2016). The next major potential challenge or issue in the cross cultural management is the ineffective and inadequate cross cultural training in managing the culturally diverse teams and cross cultural management (Moran, 2014). When the businesses enter into the global business and there are cultural disparities the companies are required to provide the organisational employees and the managers to offer with adequate cross cultural training so that there can reduced cultural issues. But the lack of proper training leads to business failure and unsuccessful global expansion (Deresky, 2017). To address this issue, there is a need that the managers must take adequate tools for managing and leading the cross cultural diverse teams. It is essential that there must be offer a complete cross cultural training to the employees so that there can be successful and sustainable business operations (Adekola and Sergi, 2016). Conclusion Cross cultural management does not only help the businesses in going global or successfully internationalise but also support in enhancing the motivation of the employees and have access and lead competent cross cultural teams. In present scenario, there is a wide need of sound cross cultural management to have successful globalised business operations. From this report it can be concluded that to have improvement in the business idea and to have long term sustainability, there is a much need to have cross cultural management in the business organisations. The report has also concluded that there is increased number of benefits attained by the businesses of cross cultural management as well as there are also some potential challenges associated. To address these challenges, the businesses must use appropriate strategies and have a better and robust cross cultural management in the business organisations. Recommendations Following are the recommendations to manage and address the potential challenges of cross cultural management so that the business organisations can achieved sustainability and success in the global business operations: There must be offer a complete cross cultural training to the employees so that there can be successful and sustainable business operations. There must be understanding of the cultural differences and the individuals must temper their communication style in an adequate manner for developing effective cross-cultural teams and successful cross cultural management. Take use of Hofstedes cultural dimension framework to analyse the cultural dimensions of various regions so that there can be effective strategic planning in respect with bridging the gap (Primecz, Romani and Sackmann, 2009). References Adekola, A., Sergi, B. S. (2016).Global business management: A cross-cultural perspective. Routledge. Adekunle, A. S., Jude, A. I. (2014). 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