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
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I. and Ford, K. (2002). Training in
Organizations: Needs Assessment, Development, and Evaluation. 4th
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Hofstede,
G. (2021). What about Sri Lanka?
Hofstede Insights. Available at: https://www.hofstede-insights.com/country/sri-lanka/
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(Accessed: 12th May 2021).
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Schumann, J., Wangenheim, F., Stringfellow,
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