1.1 Introduction to Cross Cultural Management
In today’s global village, companies increasingly hire employees who are located in different countries. And immigration has made it more common for employees to work side by side with people from other parts of the world. As a result, many workplaces are comprised of a multitude of cultures, which also means they are filled with different traditions, languages and mannerisms. In order for a multicultural workplace to succeed, it requires management that understands how to effectively guide and relate to people from around the globe.
1.2 DEFINATION Of Cross Cultural Management
Cross cultural management involves managing work teams in ways that considers the differences in cultures, practices and preferences of consumers in a global or international business context.
1.3 The importance of cross cultural management
The importance of cross cultural management to organization
The ethnic or national contexts has been conversion and open the vision by cross cultural. It can provide an opportunity for an organization to learn a new way of social interaction. This helps an organization to become more effective and efficient in multicultural business environments (Deeks, 2004). Thus, it helps increase the organization’s global fluency. Global fluency could establish a good business relationship and creating a competitive advantage in the global marketplace for the organization.
The importance of Cross Cultural Management to Employees
It is an opportunity when working with people from different country and background as employees can get a specify knowledge which cannot obtain in home environment (Deeks, 2004. Furthermore, work in team that across national boundaries will increase employees’ interpersonal skill and enhance their perspective. Working as part of an international team can also acquire a valuable experience that may useful in the future roles.
1.4 Dimension of cross cultural management
Language can be viewed as being done and perform emotional. In this angle, it is commonly assumed that people at least on occasions, have emotions, and that being emotional gains its own agency, impacting in a variety of ways on the communicative situation (Bamberg, 2000). Besides, according to Budwig (2000), language commonly differentiates between two functions of language. On the other hand, language is used to socially connect with others, to communicate and to engage in relational practices. Furthermore, according to Dennett (1994), language is the expression of emotions and the act of expressing affect in communication. In this view, language and emotion are concurrent and parallel system in use. So, both of them share functionality in the communicative process between people.
According to Munter& Mary 1993, body language describe notions of appropriate posture, gestures, eye contact, facial expression, touching, pitch, volume, and rate differ across cultures. Furthermore, according to Salacuse (1998), in cultures that rely on indirect communication, such as the Japanese, reaction to proposals may be gained by interpreting seemly indefinite comments, gestures, and other signs.
Individualism vs. collectivism
According to Hofstede (1980), individualism is defined as lies in one’s moral right to pursue one’s own happiness. This pursuit requires a large amount of independence, initiative, and self-responsibility that is the degree to which individuals are integrated into groups. Besides that, individualism carried out not just on the level of goods but on the level of knowledge and friendship. Trade is essential for life; it provides one with many of the goods and values one needs. Creating an environment where trade flourishes is of great importance and great interest for the individualist. According to Klein (2001), individualism means recognize that one has right to his or her own life and happiness. It also means uniting with other people to preserve and defend that right. According to Zapletalová (2003), individualism dimension show more confidence in status purchases, individual motivation, and success.
According to Hofstede (1980), collectivism is defined as the theory and practice that makes some sort of group rather than the individual the fundamental unit of political, social, and economic concern. Besides, collectivists insist that the claims of groups, associations, or the state must normally supersede the claims of individuals. According to Zapletalová (2003), collectivism culture dimension is recognized value mutual cooperation, stimulation and group-orientated motivation, whose complex progress takes priority over an individual. Furthermore, collectivism is the principle that the social collective is called society, the people, the state and other has rights, needs, or moral authority above and apart from the individuals who comprise it (Hofstede, 1980). According to Wollstein (2001), people are take precedence over the rights of individual, production for people, and the common good to fulfil their group needs.
According to Ahearn (2009), cooperation is the core of element of preferential treatment and building on partnerships. Furthermore, cooperation is now being seen as a priority in many business round tables and dialogues Allio¼ˆ2008¼‰.Besides that, cooperation is an umbrella concept that incorporates a broad range of activities. Furthermore, according to Brown, Rugman and Verbeke (1989) cooperation is an information exchanges and dialogues among people that are designed to build trust and confidence. At the other end of the activities designed to harmonize regulatory approaches through acceptance of common principles and standards.
According to Hofstede (1980), uncertainty avoidance refers to the society’s preference for risk-free, unambiguous situations and implies a number of things, from aggressiveness to a need for absolute truth that people do not usually consider as belonging together. Besides that, it measures how much members of a society are anxious about the unknown, and as a consequence, attempt to cope with anxiety by minimizing uncertainty. According to Kogut and Singh (1988), in cultures with strong uncertainty avoidance, people prefer explicit rules (e.g. about religion and food) and formally structured activities, and employees tend to remain longer with their present employer. In cultures with weak uncertainty avoidance, people prefer implicit or flexible rules or guidelines and informal activities. Employees tend to change employers more frequently. According to Zapletalová (2003), this dimension describes society’s attitude to and the treatment of the uncertainties and ambiguities of everyday life.
According to Hofstede (1980), power distance as a cultural characteristic defines the extent to which inequality in power is accepted and considered as normal by less powerful people in a society. Power distance describes also the extent to which employees accept that superiors have more power than they have. Furthermore, according to Zapletalová (2003), this dimension expresses the extent to which less powerful members of a society accept and agree that power is not distributed equally.
1.5 Advantages of cross cultural management
Advantages of cross cultural management to organization
First of all, the advantage of the cross cultural management in the organization is can optimize the business relationships in global business environment (Tosti, 2002). This is due to when the employees are become knowledgeable about cross-cultural communication in term of their own cultural values and behaviors with those other cultures can promote people to work effectively in the multicultural business environment (Martin & Chaney, 2006). As for example, in Asian countries, silence indicates thoughtfulness in decision making but for Western countries, they are uncomfortable with silence. Hence, employees or even executives will be aware of this culture and can avoid it in order to build good relationship with Western or Asian business partners.
Advantages of cross cultural management to employees
Besides, cross-cultural management brings advantages for employees in the organisation for instance they can develop their interpersonal skills. Through the cross cultural training, employees can develop great ‘people skills’ that can be applied in all walks of life by learning about the influence of culture, belief, and values (Cardon & Bartlett, 2006). For the employee who undertake cross cultural training begin to deal with people with a sensitivity and understanding that may have previously been lacking. The contribution of the employees in this area can improves the organization overall performance.
1.6 Disadvantages of cross cultural management
Disadvantages of cross cultural management to organization
Oppositely, the cross-cultural management comes with some disadvantages also. As for organization, there is hardly to recruit good cross-cultural training program mentors. When the organization implements cross-cultural training program for their employees and this program doesn’t going to be effective if there are no good mentors. (Tyler, 2007) Besides that, there is shortage of mentors that make the program doesn’t go smoothly.
Moreover, although the entire executives’ line of the organization team participates in this program, they may not enough to meet the demand for the program.
Disadvantages of cross cultural management to employees
Another disadvantage faced by employees in cross-cultural management is there are many companies have diversity cross-cultural program. When talk about cultural differences, people are afraid of stereotyping (Tyler, 2007). For example, white male mentor with an Asian participant, the mentor may give the advice of “you just going to have to toot your own horn”. This advice may work for the white male but this against the cultural norm for many Asian. This may brings confuse for the employees in participate the cross-cultural program, because the difference in race and gender of the mentors can results in difference perceptions which can affect the goal of cross cultural training.