Title: Cultural influences on Management Author: Dr Vishen RamkissonDate: 20 October 2011

Contents

Abstract Page 1

Introduction Page 1

Procedure Page 2

Findings Page 2

Conclusions Page 4

References Page 4

Abstract

Modern business is conducted across all geographical barriers, time zones and incorporates people from different cultural backgrounds. Cross cultural training and management has become an important facet of business looking to enhance their business in tough economic times with increased international competition.

This report looks at different management methods and the importance of the cross-cultural management theory.

Introduction

The modern workforce is diverse and multicultural across multiple geographical locations as well as under one roof. It has become increasingly important for managers to understand this diversity to ensure maximum productivity whilst maintaining high levels of job satisfaction.

Purpose: The purpose of this report is to discuss the main issues surrounding cross-cultural training to improve management skills.

Scope: This report will investigate whether “culture specific” training is useful in diverse workforce management.

Limitations: The report was limited by lack of time and research limitations.

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Procedure

6 articles were reviewed and 2 were selected to be discussed in this report. The articles were chosen based on reliability of the information provided;1 of which was a published research paper whilst the other was an article in a reputable publication.

Findings

The Chartered Institute of Personal Development states on their website "High quality diversity management leads to higher productivity, better quality service, less absenteeism, lower staff turnover and lower recruitment and training costs."

Vecchi (2009) Quality management: a cross cultural perspective, pages 158,159 concluded “although quality practices can easily be changed, the fundamental values that underlie those practices are very difficult to change. This would suggest a strong need for global firms to adapt their quality practices to local national culture”

A lot of research has been completed and 3 main theories of quality management have been put forward. These are:

1). Convergence hypothesis (Form,1979); this theory states that managers from different places for trained to follow a central style of working, which was deemed to be the most efficient way of getting things done.

2). Divergence hypothesis (Child and Kieser, 1979); this theory questions that one size fits all approach of the convergence theory, and looks at ways of maximising effectiveness by adapting national context to business.

3). Culture specific hypothesis (Hofstede, 1980); this asserts that there are 4 main cultural dimensions which need to be considered by managers in trying to achieve higher performance working across multicultural employees.

These dimensions are power distance, individualism, uncertainty avoidance and masculinity. The author goes onto to describe the influences of these dimensions in putting forward the argument for Hofstede’s theory.

In trying to incorporate Hofstede’s theory, managers should also be trained to recognise the beneficial effort that this will have in employees and in turn productivity when they are asked to use this approach.

This theory is a more specific method of integrating the divergent theory, to incorporate local cultural practices in day to day business. Various examples of cultural variances effecting business operations can be quoted from the archives

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however trying to break this down to find true cause is not something that comes easily, and a greater understanding can be achieved by training and regular updates as well.

Each new business market, whether around the corner or around the world is unique, and working at a local level will certainly have a positive impact on facets of business.

Murray (2005) Cross-cultural training: Learning to make the most of increasing internationalism, Financial Times, May 11, 2005 tells of how “Accenture, a firm with over 110 000 employees in 48 countries has developed a computer based cross-cultural awareness tool that discusses issues such as working in different time zones and how to communicate in ways that are clear and leave little room for misunderstanding”

Cross cultural management is basically looking at ways to maximise productivity, generate new ideas and ways of working by embracing different cultures and their uniqueness which ultimately benefits the company as a whole.

In today’s faster, electronically networked business arena, where deals are completed at lightening speed, any organisation, which understands their employees, business partners and customers individual needs, will definitely have an edge over their competition.

Cross cultural training and development can be tailored to suit all kinds of business organisations depending on their size, the markets they operate in and importantly the nature of their business activity. This can be achieved either via an online package of training or face-2-face training sessions with online updates.

Such a tool, if developed in the global context would be inexpensive to develop and update, and the financial rewards would be hard to ignore.

Cross cultural management training has become an important facet to all business irrelevant of size or nature of business. The world is smaller and things happen faster – keeping ahead of the competition is very important in tough financial times; effective management through improved cultural awareness can assist to achieve this.

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Conclusions

Cross-cultural management training is a way to enhance a companies business, whether it’s with dealing with clients, business partners or with its own workforce. It is increasingly important for firms to invest in this to meet the demands of the modern business arena.

References

Vecchi (2009) Quality management: a cross cultural perspective, Cross Cultural Management: An International Journal, Vol 16, Issue 2, (P149-164)

Murray (2005) Cross-cultural training: Learning to make the most of increasing internationalism, Financial Times, May 11, 2005

Chartered Institute of Personal Development; www.cipd.co.uk

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