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[Date]

Cross Culture
Management
Assignment

Baskar M
ICHE-UGPA 13-16

Subject Name
.

: Cross Culture
Management

Student Name

: Baskar M

Session

: 2013-2016

Batch

: Fall winter UG-A

Contact Number

: 96261-99981,

Mail

: baskar180@gmail.com

Submission Date

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Question 1:
What challenges do mergers create for managing national &
organizational cultures?
Answer:
It may sound obvious but language differences can cause huge
misunderstandings and frustrations for organisations integrating two
nationalities into one workforce. English speaking managers often make
the mistake of assuming their new colleagues will adapt easily to
operating in English. However good their language skills are it can be
stressful to work in another language, particularly at times of
uncertainty when important decisions are being made. Non-native
English speakers can risk feeling disadvantaged and misunderstandings
and frustrations can all too easily occur.
Even if both parties share the same language communication styles and
expectations can differ enormously. When there is a mismatch in terms
of levels of directness, formality, displays of emotion, amount of detail
shared, frequency and method of communication all come into play, the
new management structure can risk being perceived as aggressive,
untrustworthy, casual, secretive or worse. Senior leadership teams need
to prioritise communicating quickly and transparently via different
channels and methods to ensure that they engage with the maximum
number of employees.
INTEGRATION OF NATIONAL AND ORGANISATIONAL CULTURES
When two companies merge they each bring with them their own
organisational and national cultures that include core values, business
practices and working preferences. Decision making processes,
hierarchical structures, reward and recognition schemes and meeting
etiquette are shaped by the organisational and national cultures of each

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company. These differences need to be recognised, understood and


embraced to ensure a successful integration.
Once the leadership team has identified where the differences lie, they
can work towards building a new organisation culture and determining a
new set of structures, processes and protocols. Focus groups and
training workshops can help to agree and share best practice. It is also
important to agree which procedures need to be consistent across all
locations and which can be adapted according to the local
culture. Failure to recognise and adapt business processes and working
practices can result in major cultural clash and misunderstanding which
can have negative long-term implications on the new organisation. A
uniform might work well in the US for example but might not transfer
well to the French arm of the organisation where individuality is highly
prized. Or an employee of the month scheme might need to be adapted
to team of the month for it to work well in certain Asian cultures where
society tends to be more collectivist.
ENGAGING WITH NEW CUSTOMERS
A core objective of many international M&As is to increase revenues by
expanding the existing customer base. Again, this is not always as simple
as one might assume and it is vital to understand the values and buying
habits of these new customers in order to meet their expectations and
understand what drives them to buy. It is not only a question of
adapting the service or product itself, but in steering the associated
marketing to fit in with local cultural norms. There are countless
examples of cross-cultural marketing gaffes where slogans have been
mistranslated, unlucky numbers used or religious or cultural taboos
broken.
PREPARING FOR THE UNEXPECTED
Organisations embarking on an international merger or acquisition
would do well to consider these intercultural challenges as a crucial part
of their due diligence and planning and addressing the people issues
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early in the integration process will help to make your international


M&A a success.

Culture shock happens when we apply our own personal cultural values
to a new cultural context: the clash of mismatched assumptions and
expectations can have a psychological and sometimes a physical
impact. Some people assume that the more a culture diverges from our
own, the more dramatic or traumatic the culture shock will be. There
are many ways to deal with culture shock being prepared for it and
recognising its symptoms is key to overcoming the inevitable highs and
lows you will experience. If your company offers you cultural training
grab it with both hands!
Expatriates moving from the US to the UK is an obvious example where
culture shock can happen as we might assume that sharing a common
language and other surface level cultural traits would make the
transition smoother. However, in many cases a move to a culturally
close country may be harder because the differences are much less
noticeable at a surface level, so the clash is more unexpected. Or
perhaps the newcomer had done less to prepare themselves and learn
about the new culture before their departure assuming that it would be
the same.

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Question 2:
Analyze the management of multicultural issues in a specific firm. Discuss
how it is being carried out in your organization or an organization you are
familiar with. Briefly describe the organization you are referring with?
Answer:
Diversity management is the recognition and valorization of individual
differences. "The concept of diversity encompasses acceptance and
respect. It means understanding that each individual is unique, and
recognizing our individual differences. These can be along the dimensions
of race, ethnicity, gender, sexual orientation, socioeconomic status, age,
physical abilities, religious beliefs, political beliefs, or other ideologies. It
is the exploration of these differences in a safe, positive, and nurturing
environment.
Moreover, it is about understanding each other and moving beyond
simple tolerance to embracing and celebrating the rich dimensions of
diversity in each individual"(Patrick and Kumar, 2012). As seen from a US
perspective, Diversity management is supposed to represent a break
from equality concepts such as equal opportunity and affirmative action
(Thomas, 1990 ; Thomas and Ely, 1996).
However, this distinction and implicit sequencing between diversity
management and supposedly earlier equality and affirmative action laws
may not hold in all countries around the globe. For instance, in the
European Union, notions of diversity management and equality seem to
be growing in parallel, and diversity management is sometimes seen as a
vehicle towards the institutionalization of equality and/or positive action
legislations (Klarsfeld, 2010 ; Klarsfeld et al., 2014).

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As an example, in France, debates about diversity management and


discrimination grew simultaneously rather than in succession to one
another, contrary to what happened in the USA
There are many benefits to promoting diversity in the workplace. Higher
innovation levels can be achieved with including workers from different
backgrounds with different perspectives. Another key advantage is
relationships with customers; customers are all diverse in their own way,
more diversity creates a staff base that can relate with and serve all
different types of customers.
Appreciating diverse individuals will open up new avenues for talent to
be unlocked and for the firm to really take advantage of all talent from
different generations, ages, genders and backgrounds. Diversity
management is becoming more common in the overall strategy of many
successful companies today. If diversity is not managed the business may
experience dysfunctional turnover; when a talented employee leaves
because they feel as though they do not fit and are not being supported.
Businesses can also experience many legal complaints if diversity is not
managed properly, as well as a lack in innovation and creativity in their
new products and ideas. Ethnocentrism is common among managers who
generally hire those who are similar to them. Bias is also common among
people who have a traditional outlook on society. These perceptions and
bias can be overcome by teaching managers and employees about the
benefits of diversity and learn about the myths, stereotypes and stigmas
attached to different groups in society.
If diversity is to be managed properly in order to foster better
organizational performance, it is important for managers to understand
and value cognitive diversity. One of the reasons is that the problems of
today's business activities are complex to a higher extent than multiple
years ago. Understanding the concept of cognitive diversity therefore is
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highly desirable for good management. Moreover, research projects are


larger and more expensive, partly due to the economic hard times.
Another result of the economic downfall is the greater need
for innovation. Since competition increased significantly, companies
have to diversify and innovate on fields other than their direct and
indirect opponents. A last point of attention would include the essence
of predicting the future becoming more important in the years that lay
ahead of us.
Beyond cognitive diversity, group-based diversity (i.e., diversity along
ethnic, religious, gender, age, socio-economic status lines) is also
important to understand, value and manage.
Implications of managers on the work level are can be seen as more
practical than the concepts described above. This can be said to be a
hand-on approach. To realize the potential of employees in businesses,
managers should be open for individual differences. In several cases
managers would like to see employees to behave in a different way,
while this is not method that employees are used to and in which they
are most efficient.
To realize the potential of the employees, it often is helpful to build
teams capable of solving complex problems and making better
predictions. Since people think and act differently and moreover have
different backgrounds, a broad range of ideas will be gathered. In this
way the best possible solution can be reached easily.
One can say that in this way, you tap into a diversity of
perspectives, heuristics, interpretations and predictive models to create
innovating organizations capable of sustaining competitive advantage.
Some critical managing diversity issues are summarized below:

Creating an inclusive organization


Working to change the corporate culture towards valuing diversity
Demonstrating commitment through flexibility
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Creating awareness and skills learning and training


Measuring and creating incentives
Linking valuing diversity to strategic objectives
Assuring top management support
Clear and credible communication

Diverse organizations are characterized by a focus on employment


profiles (i.e. workforce composition) and fair treatment. On the other
hand, inclusive diverse organizations have policies and practices that
facilitate the full utilization of human resources and enhance employees'
abilities to contribute to their maximum potential.
An organization however could go one step further, and become a truly
inclusive organization. A truly inclusive organizations uses the diversity of
knowledge and perspectives to shape their strategy, work, management
and operating systems as well as its core values and norms of success.

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Question 3:
Globalization and Cross-Cultural Issues in Project Management Discuss
Answer:
In a global environment the ability to communicate effectively can be a
challenge. Even when both parties speak the same language there can still
be misunderstandings due to ethic and cultural differences. Over the last
decade, there have been countless examples from the business sector
that demonstrate how poor communication can lead to poor
organizational performance.
Understanding the impact of globalization on cross-culture
communication is imperative for organizations seeking to create a
competitive advantage in the global market. Recent economic challenges
further highlight the need for organizations to develop the internal
communication capacity necessary to control and monitor external
threats.
As society becomes more globally connected the ability to communicate
across cultural boundaries has gained increasing prominence. Global
businesses must understand how to communicate with employees and
customers from different cultures in order to fulfill the organizations
mission and build value for stakeholders.
The use of technology has had a profound impact on how businesses
communicate globally and market their products and services. However,
with the advancements in technology organizations must still be
cognoscente of the culture nuisances that can potentially present
obstacles in trying to increase profits and market share. According to
Genevieve Hilton, cultural proficiency doesn't mean memorizing every
cultural nuance of every market. It's knowing when to listen, when to ask
for help, and whenfinallyto speak
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For companies involved in global business operations the relationship of


managers and subordinates in multinational firms is important. In
research conducted by Thomas and Ravlin it was found that participants
to whom nationality was more important indicated lower perceptions of
similarity with the manager, lower intentions to associate, and lower
perceptions of managerial effectiveness.
The results of the study strongly indicate that teaching members of
different cultures to behave like each other is an ineffective approach to
improving intercultural interactions in business settings. Focus should be
placed on using individual differences to create innovation. Training and
development of individuals involved in intercultural interactions should
involve more than simply promoting cultural adaptation
Communication is vital for businesses to effectively explain how their
products and services differ from their competitors.
Companies that are successfully able to communicate cross-culturally
have a competitive advantage because they can devote more time and
resources to conducting business and less time on internal and external
communication issues. Communication is necessary for individuals to
express themselves and to fulfill basic needs. The same holds true for
businesses, governments, and countries.
Without the ability to communicate and understand each other, there
would be chaos. Communication that is based on cultural understanding
is more apt to prevent misunderstandings caused by personal biases and
prejudices.
To illustrate the importance of communication on building relationships
globally consider the example of the United States and South Korea. The
relationship between these two countries is one built upon a rich
history. In 1884, the United States government became the first foreign
entity to purchase property in Korea. Before this time no foreigner was
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permitted to live inside Seoul. Despite significant cultural differences,


South Korea and the United States have been able to develop a
communication process that other countries seek to replicate.
The American Chamber of Commerce in Korea was established in 1953
with the chief purpose to promote the advancement of trade and
commerce between Korea and the United States. Article II of the
Chambers constitution outlines the following six objectives:
1. To promote the development of commerce between the United
States of America and Korea;
2. To promote measure calculated to benefit and protect the interests
in Korea of member companies and citizens of the United States;
3. To represent, express, and give effect to the opinions of the
Chamber business community of the United States regarding trade,
commerce, finance, industry, and related questions;
4. To collect, evaluate, and disseminate among its members statistical
and other information concerning commerce or other undertakings
of interest to them;
5. To associate and cooperate with other organizations sharing mutual
interests;
6. To do any and all other things incidental or related to the attainment
of the above objectives.
When countries are able to exchange ideas and communicate in an open
society everyone benefits. Kathleen Stephens, U.S. Ambassador to the
Republic of Korea, summed it up by saying, we must use our shared
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interests and values to compliment and transform each others growth.


The main purpose of this study is to develop a cross-cultural
communication model that can be applied by companies that
communicate with employees from different cultures.
The aim is to identify the steps that leaders of organizations competing
in a global environment should consider when communicating to
different cultures. This study uses a group a college students
participating in the 2nd Korea America Student Conference (KASC) as the
main research source for creating the model. KASC is supported by the
International Student Conferences, a non-profit organization located in
Washington, D.C., which sponsors student-run educational and cultural
exchange programs for university students from the United States,
Japan, and Korea.
The researchers used a mix of qualitative and quantitative research
methodologies to generate the model. A comparative literature review
is conducted and organizational examples of Samsung and Hyundai are
considered to demonstrate the impact of globalization on cross-culture
communication practices.
The study also highlights the action research methodology that was
employed to design the cross-culture communication model. In
conclusion, the 4 Cs Global Leadership Model is introduced to
demonstrate how organizational leaders can create innovation in a
global environment by managing conflict, communication, creativity,
and connectivity.

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Question 4:
Identify, describe and explain key models used for comparing cultures,
critically assessing the practical value of these in the context of crosscultural management decision-making?
Answer:
Decision-making is a mental activity which is an integral part of planning
and action taking in a variety of contexts and at a vast range of levels,
including, but not limited to, budget planning, education planning, policy
making, and climbing the career ladder. People all over the world engage
in these activities. The underlying cross-cultural differences in decisionmaking can be a great contributing factor to efficiency in cross-cultural
communications, negotiations, and conflict resolution.
Occidental philosophies are known for the extensive use of analytical
thinking a methodical approach to solving complex problems by
breaking them into their constituent parts, and identifying the cause and
effect patterns of the constituent parts, while Oriental philosophies are
well known for their emphasis on holism the idea that the properties
of a given system cannot be determined or explained by its components'
parts alone, but the system as a whole determines how the parts
behave. This discrepancy brings about further differences in values and
beliefs that can be practically displayed in how different cultures
manage their public institutions. For example, culturally determined
attitudes towards age, gender roles, and the end result are well
reflected in the way these cultures build and run their health-care
systems. Oriental cultures hold that age is a proxy to experience and
hence to wisdom, that the individual should mind their duty without
focusing on the final results of the activity, and that women are best
suited to play certain roles. On the other hand, Occidental cultures hold
that age is not correlated to wisdom, the individual should focus on the
end and drive to achieve it, and women are equal to men in all
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respects. These differences become obvious when health-care systems


of an Oriental and Occidental cultures are compared. In Indian healthcare setting customers are much less likely to sue their physicians, who
is usually a representative of an older generation even when having
enough evidence of malpractice, due to the fact that their age is treated
as a proxy to experience and knowledge. Hence, the decision to sue a
physician for deficiencies doesn't occur as a choice or option to most
Indian patients, who are representatives of the Oriental culture. In the
Indian setting physicians are, however, normally accountable for the
care given, even though rarely blamed for unfavorable results, which can
be explained by the fact they hold in high regard the means of an action,
and not the end. Another distinguishing feature of Indian hospitals is
that women are mostly employed as receptionists, billing clerks, and
admission assistants. This trend in hiring policy can be explained against
gender and role expectation dimension, and by the inculcated in
Oriental cultures belief that each element has a predefined place in the
system.
Individuals who come from the Oriental cultures with philosophies
promoting holistic thinking are found to be better than their Occidental
counterparts at noticing the changes in backgrounds, whereas
individuals from Occidental cultures who use analytic reasoning tend to
be better at recognizing changes in focal objects . The differences in
perception might be the result of different standpoints in the
corresponding philosophies. It can be taken into consideration when
explaining profound divergences in how willing the Westerners and the
Easterners are to compromise when they make consumer choices. Just
as much as the low-context Westerners are more likely to notice the
changes in the salient objects, they are more likely to believe in a single
right answer and pursue even the slightest indication that one option is
better than all others, whereas the high-context Easterners begin the
decision making process already favoring the compromise option.

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The individuals from high- and low-context cultures also differ in their
communication styles. The former prefer the less direct style, and
thereby they are less explicit in stating their feelings, desires, and
intentions when communicating verbally. The latter, on the contrary, are
less likely to camouflage their message and conceal their intentions. The
culturally normative communication style also enhances people's
responsiveness to the transmitted message and influences the
perception of the communicator. It influences hiring decisions. HR
agents in low-context cultures are more likely to hire direct, assertive,
and somewhat aggressive candidates, whereas the reverse pattern is
observed in high-context cultures.
Individuals from different cultures tend to have different views of the
self, which affects individuals' cognition, goals in social interactions, and
consequently influences their behavior and goals in decision
making. Individuals from individualist's cultures tend to have
independent self-construal and thus experience happiness as a socially
disengaging emotion (e.g., pride), and those from collectivist's cultures
tend to have interdependent self-construal and experience happiness as
a socially engaging emotion (e.g., peace and harmony). The former are
more likely to make decisions to fulfill personal accomplishment,
whereas the latter are more likely to make decisions that promote social
connectedness. This is reflected in their differences in the teamwork
styles. A group composed of members with low independent selfconstrual prefer the cooperative strategy to the competitive one,
whereas a group composed of members with high independent self
construal preferred the competitive strategy to the cooperative one.
Individuals from cultures with interdependent social orientation believe
that public good overrides individual benefit, whereas individuals from
cultures with independent social orientation believe that every
individual should strive to achieve their best. Thereby, when engaging in
the decision-making process the former are more likely to take into
consideration the injunctive norms, guarding stability within the society,
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while the former are more likely to follow their introjected goals. For
instance, Indians are found to accommodate to authority figures and
significant others and respond to others' expectations when choosing
what clothes to wear for a party, and what advanced training courses to
take. In each corresponding case, Americans were more likely to act with
accordance with their own beliefs of what will be beneficial to them and
didn't demonstrate the 'deference syndrome'.
There is a difference in the decision making patterns between cultures
with independent and interdependent social orientations in the
situations when risk-taking is involved, namely the members of cultural
groups with high independency show more risk-aversive behavior. It is
interesting to note that this pattern is observed only when risk is
material in its nature, and not observed when risk is of the social nature.
The cushion hypothesis attempts to explain this difference. It suggests
that members of a collectivist society are more prone to risk-taking in
the financial domain, because they know they will more likely receive
help from their friends or extended family when they "fall", as
collectivism endorses social relatedness and interdependence. Social
networks in such societies can serve as potent material-risk insurance
and correspond to the notion "social capital". Risk-aversion tendency
among members of individualist societies are observed even in the
contexts that involve financial risks only indirectly, for instance in
decision-making contexts that involve estimating the risk of revealing
private information to gain access to mobile banking.
Affect forecasts play an important role in driving decisions. The
members of independent and interdependent societies differ in the
degree they rely on the expected enjoyment when making choices.
Euro-Canadians, who are representatives of the independent social
orientation, place more weight on expected enjoyment, whereas East
Asians, who are representatives of the interdependent social
orientation, warn against excessive hedonism, as their concern with
social obligations precludes the uncompromising pursuit of positive
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affect. This pattern can be observed in the higher education setting,


when Euro-Canadian and East Asian students' choices of what courses to
enroll in are compared. Euro-Canadian students show a short-term
orientation and tend to enroll in the courses which promise to be fun,
whereas East Asian students enroll in the courses which they think will
be beneficial for their careers and thus show long-term orientation.
The high degree of tolerance for power distance in interdependent
societies reflects the tendency to shun arrogance and consider humility
as a virtue at all times in collectivist societies. The tolerance for power
distance also has practical implication, for instance, in the tourist
decision-making styles. Members of individualist societies with lower
levels of tolerance for power distance are less likely to exhibit brand
consciousness when making choices concerning their travelling
arrangements, compared with their collectivist counterparts.

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