Overview
Due to the globalization and
diversity, managers need to lead employees from different cultural backgrounds,
values and beliefs that are different to themselves (Maxwell et al., 2000). As a result of these
differences, it might be difficult for leaders to maintain relationships with
employees and improve employee performance (Testa, 2009).
This post aims to find the
differences of various cultures, implications of managing different cultures
and solutions to mitigate culture clashes.
Hofestede’s cultural
dimensions
Hofstede (2011) asserts that
a culture has certain dimensions which are based on how the majority of the
people in the countries behave. Table 1 states the dimensions on which a
culture can be assessed.
Figure
1: Hofstede’s cultural dimensions
(Source:
Hofstede, 2011)
Applying Hofstede’s
dimensions to Sri Lankan Organizations
Power Distance
Based on graph 1, Sri Lanka
has a power distance of 80 which means it has a high power distance and a
hierarchical society in which operations are centralized and such organizations
mostly follow an autocratic leadership style where employees are given orders
(Irfan, 2016).
Individualism
According to graph 1, Sri
Lanka has obtained a low score of 35 which demonstrates that there is less
independence and more interdependence between each other therefore it is
categorized as a collectivist culture. In organizations, employees have strong
connections with each other, family and community and try to achieve group
goals instead of individual goals (Jayatilleke and Gunawardena, 2016).
Masculinity
Sri Lanka demonstrates a low
score of 10 based on graph 1 which means that it displays a feminine culture
where quality of life is focused and employees work in order to live rather
than success or status (Hofstede, 2021).
Uncertainty Avoidance
An intermediate score of 45
based on graph 1 suggests that the organizations in Sri Lanka are much more
tolerant to uncertainty and change their strategies based on risks rather than
avoiding it (Hofstede, 2021).
Long term Orientation
Based on graph 1, with an
intermediary score of 45, Sri Lankan organizations tend to have close ties with
traditions and customs and doesn’t like change (Hofstede, 2021).
Graph
1: Hofstede’s cultural dimensions of Sri Lanka
(Source:
Hofstede, 2021)
Cross-cultural Management
Lassere (2012) asserts that
culture in a management perspective consists of various dimensions which
includes Organizational culture, industry culture, professional culture and
national culture out of which the main complexity arises from organizational
culture and national culture.
Cross cultural management is
defined as ‘procedures and policies relating to the management of workforces
with different cultural backgrounds and moderating the impact of cultural
differences on the execution of management tasks’ (Soderberg and Holden, 2002,
p. 103).
Graph 2 illustrates the
Hofstede’s cultural differences between several countries. Due to the
differences between certain countries, it is important for managers to adapt
methods to manage each individual accordingly.
Graph
2: Differences in culture of Australia, South Africa, United Kingdom and USA
(Source:
Hofstede, 2021)
Video 1 describes the reasons why Starbucks which is a renowned coffee brand in USA failed to attract the Australian market due to differences in culture where the Australians thought of coffee as a meeting place to share it with friends and family so they had an emotional attachment to it but Starbucks was introduced to the Australian market merely as a product like in the USA. Whereas USA based Gloria Jean’s coffee was successful as it adapted its menu and strategies based on the coffee culture of Australians.
Video 1: The reasons Starbucks failed and Gloria Jean’s strived in Australia
(Source:
CNBC, 2018)
Strategies for
successful cross cultural management
Organizations should be sensitive to the national culture
Organizational culture often reflects national culture, therefore before a business spreads to other countries, it is important for organizations to analyze the national culture, their traditions, values and beliefs (Robbins and Judge, 2013).
Should develop the skill of ‘listening to understand’
Leaders
should listen to others because they can gain a lot of knowledge from other
individuals and listening conveys a sign of respect for others (Moran et al., 2011).
Proper cross-cultural training should be conducted
Holistic
trainings which includes lectures, simulation and behavioral methods should be
conducted to transfer knowledge and to increase sensitivity of managers to the differences
in communication, marketing, Silent language, business etiquette, negotiation
and business practices in different countries (Goldstein and Ford, 2002).
It
is a challenge to communicate and build trusting relationships among each
other, especially in other countries (Schumann et al., 2010). Nevertheless, if an interactionist approach which
focuses on analysis of different levels is adapted managing cross cultural
relationships would be far easier (Dupuis, 2013).
References
CNBC.
(2018). Why Starbucks Failed In Australia. Available at: https://www.youtube.com/watch?v=_FGUkxn5kZQ
(Accessed: 12th May 2021).
Dupuis,
J. (2014). New approaches in cross-cultural management research: The importance
of context and meaning in the perception of management styles. International Journal of Cross Cultural
Management. 14(1). pp. 67–84. doi: 10.1177/1470595813501476.
Goldstein,
I. and Ford, K. (2002). Training in
Organizations: Needs Assessment, Development, and Evaluation. 4th
edn. Belmont: Wadsworth Thomson Learning.
Hofstede,
G. (2021). What about Sri Lanka?
Hofstede Insights. Available at: https://www.hofstede-insights.com/country/sri-lanka/
(Accessed: 12th May 2021).
Hofstede,
G. (2011). Dimensionalizing Cultures: The Hofstede Model in Context. Online Readings in Psychology and Culture.
2(1). pp. 1-26. Available at: http://scholarworks.gvsu.edu/orpc/vol2/iss1/8
(Accessed: 12th May 2021).
Irfan,
M. (2016). Cultural Dimensions of Hofstede and Their Impact on Organizational
Performance in Sri Lanka. 2(10).pp. 1160-1169. Available at: https://www.researchgate.net/publication/308335168_Cultural_Dimensions_of_Hofstede_and_Their_Impact_on_Organizational_Performance_in_Sri_Lanka
(Accessed: 12th May 2021).
Jayatilleke,
G. and Gunawardena, C. (2016). Cultural perceptions of online learning:
transnational faculty perspectives. Asian
Association of Open University Journals. 11(1). pp. 50-63. doi:
10.1108/AAOUJ-07-2016-0019.
Lassere,
P. (2012).Global Strategic Management.
3rd edn. London: Palgrave Macmillan.
Maxwell, G., McDougall, M. and
Blair, S. (2009). Managing diversity in
the hotel sector: the emergence of a service quality opportunity. Journal of Service Theory and Practice. 10 (6).
pp. 367-373. doi: 10.1108/09604520010351176.
Moran, R., Harris, P. and Moran, S. (2011). Managing Cultural Differences:
Global Leadership Strategies for Cross-cultural Business Success. 8th edn.
Oxford: Elsevier Inc.
Robbins, S. and Judge, T. (2013). Organizational Behavior. 15th
edn. United States: Pearson Education.
Schumann, J., Wangenheim, F., Stringfellow,
A., Yang, Z., Praxmarer, S., Jiménez, F., Blazevic, V., Shannon, R. and Komor,
M. (2010). Drivers of Trust in Relational Service Exchange: Understanding the
Importance of Cross-Cultural Differences. Journal
of Service Research. 13(4). pp. 453–468. doi: 10.1177/1094670510368425.
Soderberg, A. and Holden, N. (2002).
Rethinking Cross Cultural Management in a Globalizing Business World.
International Journal of Cross Cultural Management. 2(1). pp. 103-121. doi: 10.1177/147059580221007.
Testa,
M. (2009). National culture, leadership and citizenship: Implications for
cross-cultural management. International Journal of Hospitality Management.
28(1). pp. 78-85. doi: 10.1016/j.ijhm.2008.04.002.
20 Comments
Beer, Finnstrom, and Schrader (2016) suggest that a psychologically secured culture always supports the employees regardless of how robust the company's establishment is. The capacity to express their views up and common esteem is the most special attachment to an effective culture.
ReplyDeleteYes Harshan, an effective organizational culture empowers the employees as the organizational culture is the medium through which behaviors can be changed (Sigler and Pearson, 2000).
DeleteMore to your point Arjun, Ely and Thomas(2001) identified three perspectives on workforce 1.diversity that people embrace, each with different implications for a workarounds ability to realize the benefits of its cultural diversity.
ReplyDelete2.More generally, the impact of national cultures on the functioning of international work team depends on management processes.
3.Only if well managed can culturally diverse groups hope to achieve their potential productivity.
Thank you for you input Duminda, Yes, Hofstede (2001) asserts that cross cultural management is affected by the national culture and it is therefore advisable for managers to be sensitive to the national culture and adopt those management practices in order to survive in a country.
DeleteIn addition to what you have mentioned, organizations may face cross cultural problems related to different standards and practices, ethics, laws, cultural differences, customs, management and socioeconomic system. Greblikaite and Daugeliene (2010), in their study explains that by facilitating knowledge transfer and dissemination, implementing “virtual teams” to overcome distance and communicate directly, ensuring effective management of human resources and acquiring bicultural skills can mitigate problems associated with cross culture.
ReplyDeleteIndeed Oshadee, thank you for your input. Cross-culture management should focus on contingent approaches where the management techniques should be developed based on interactions and context of the issues faced (Chevrier, 2003).
DeleteAgreed. Adding to your views, Cross-cultural communication practices were explored across a variety of project teams, organizations, project environments, behavioral, culture and socio-cultural environments. Adopting a semi-structured questionnaire with rather than questions provided a high degree of flexibility during the interviews (Ochieng,E.G. & Price,A.D.F., 2009)
ReplyDeleteYes Wasantha, cross cultural communication methods differ based on different dimensions of the culture so each aspect of the dimensions should be carefully analyzed when determining the communication medium of a particular country (Gudykunst and Lee, 2003).
DeleteYes Arjun agreed with your points, adding to it (Luthans, 2005) stated that The cross-cultural diversity within the organization workforce is one of the important factors that may have negative or positive impact on the global business operations according to the environmental circumstances and the strategy adopted by the organization. The cross-cultural management became a significant important for multinational organizations and comes in the constant increase of the overseas business operations and the global ventures in different countries while there are different hinders and challenges arise from the cultural diversity that impact the organization businesses (Hofstede, 2001)
ReplyDeleteAgree with you Hashanika, cross cultural expansion has widen the contacts between people and organizations but it has also created conflicts among each other in different situations (Yu and Cheng, 2008). Therefore, organizations must give proper training to not only be cultural sensitive but also provide proper conflict management and negotiation skills training to managers because the way in which conflicts are handled in each culture differ from each other (Ting-Toomey, 2006).
DeleteAnd also there are two types of dimensions that managers has to understand The primary dimensions
ReplyDeleteare more visible and distinguish a group of people from other groups and these dimensions primary impact on personal identities such as gender, sex, age, race and physical characteristics. The primary dimensions of diversity have the most influence on workgroups and shape their basic self-image (Loden, and Rosener, 2001).
The secondary dimensions are less visible but have more impact on identities such as language, religion, geographical location, social class, education level, experience, position and work style. The secondary dimensions of diversity have influence on self-definition and self-esteem (Loden, and Rosener, 2010)
Yes Hashanika, I have elaborated further on surface level and deep level diversity in my earlier post “Managing Workforce Diversity in Organzational Culture”.
DeleteThere are different strategies for managing the organizations cultural diversity (Adler, 1997) and the organization can adopt the relevant strategy that supports its global business operations:
ReplyDeleteIgnorant of Cultural Diversity - This strategy may be suitable for a parochial type of organizations where managers and employees alike believe that for managing and organizing. Minimizing Cultural Diversity -
for managing and organizing while they consider the other ways as inferior ways for managing and organizing (Neal, 2016). Managing Cultural Diversity - This strategy is the relevant strategic option as it is suitable for synergistic organization where managers believe that way and their way of behaving and managing differ, but neither is superior to the others (Luthans, 2009).
Yes, out of the strategies you mentioned above, Managing cultural diversity is the strategy that needs to be followed by organizations if they want to achieve a sustainable competitive advantage in a ever-growing dynamic environment as managing diversity is continuous process which is spread through all processes of the organization including 'Group management, recruiting, hiring, retention and development' (Robbins and Judge, 2013/ p.60).
DeleteAn effective cross-cultural management in global business became an important source of a competitive advantage and paramount in management responsibilities that include:
ReplyDelete•Product development.
•Service enhancement.
•Interaction and communication with international businesses.
•Assessment and selection of overseas distributors.
•Interaction with potential overseas clients.
•Screening and selecting foreign distributors and other partners.
•Preparation of advertisement campaign.
•negotiation for international business(Cavusgil et al., 2007)
Yes Hashanika, proper cross-cultural management often leads businesses to a competitive advantage together with 'better decision making, greater creativity and innovation, greater success in international marketing activities and with local minority ethnic communities, a better distribution of economic opportunities' (Cox, 1991 as cited in Sultana et al., 2013, p.135).
DeleteCross cultural communication competency on the collective efficiency of the team in order to show how cross cultural communication impacts on specific dimensions of collective efficacy, In business, clear communication between employer and employees have been highlighted as critical to the achievement of organizational success(Bell & Riol,2017).
ReplyDeleteYes Sandun, cross cultural communication includes non-verbal, written and graphics which is different from one culture to another. In addition to that, culture clashes mainly occur as there is no universal language to communicate so to avoid that the best thing for managers is develop tolerance which provides introduction to the other culture, language training and specialized cultural training (Tarasenko and Kulykova, 2018).
DeleteAgreed with you Arjun and, multicultural environment business enterprises act more complicated that only in national markets. Concept “cross-cultural” is any of various forms of interactivity between members of disparate cultural groups; taking into account the interaction between people of different cultures when making arrangements, mixes between various cultural contributions to overcome differences that may be an impediment to communication (Thomas, 2008).
ReplyDeleteAbsolutely Eranda, cross cultural management should focus on an interactionist perspective where local, regional and national factors are taken in to consideration (Dupius, 2013).
Delete