Cross Cultural Management: Global Managers Essay

Question:

Write about the Cross Cultural Management for Global Managers.

Answer:

Introduction

The following assignment is about a article review. The topic of the articles is about the cross cultural management in the organizations. The organizations especially that are multinational organizations or MNCs have to operate across different countries and they have their branches in most countries and their developed cities.

Meaning of Cross Cultural Management

The cross cultural management has become an international phenomenon now (Thomas and Peterson 2014). People want to assess their products and market development in the global market so they need to expand their business (Ferraro and Brody 2014).

Article Review and the Role of Global Managers

One article has to be chosen so that the main topics of the article can be evaluated. The article chosen for reviewing is the one titled ‘A Model for Addressing Cross-Cultural Ethical Conflicts’.

The dynamic business opportunities expose their credibility in the different macro-environmental contexts (Ashill and Jobber 2014). International business is going through rise of the ethical conflicts in making business decisions that the decision makers have to cope up with (Wild, Wild and Han 2014).

The need to establish some kind of these ethics is crucial because the ethical conflicts between employees are on the rise (Moran, Abramson and Moran 2014).The invention of Caux round Table introduced some code of ethics for the organizations so that it could stop in the conflict situations between the employees on grounds of ethics (Table 2014).

The decision makers must possess the power of taking the control over the situations where the very important in this context because they possess the authoritative power to impose any decision on their subordinates. The global managers should take appropriate actions whenever any cases of misjudgment come in their notice. The managers should be large hearted enough so that he cannot be partial to any particular social or ethnic group. They should not keep themselves separated from other employees only because of their designation. They should mix with the employees and always encourage all the employees belonging from different cultures and religions. There should be no discrimination between them. .The idea of individualism and collectivism has to be considered because it has a huge role to play in the character building of the employees (Gorodnichenko and Roland 2012). An example can be given in this context that many years ago, the CEO of the multinational company IBM declared that it was their duty to present jobs to the deserved ones. The persons who had skills, stamina and determination were all welcome to IBM, irrespective of their color, race or creed. The bi-annual employee survey of IBM in the year 2001, disclosed that many people from different ethnicities co-existed in the organization despite of their cultural differences and the managers did an impressive job to keep them intact despite facing troubles at the initial phase (HR Online 2017)

Business Case Examples

1> ABC Company will solve its problems that will require three hours work each week. The Administrative assistants will look to share and update the files on regular basis. There are some errors are if these errors are omitted, it will save an amount of $3000 per year in labor costs.

ABC Company purchase price-$15000

Estimated life cycle-three years

Installation fee-$300

Annual maintenance cost-$400

ABC company’s discount rate as of April 1, 2017 is 0.06

Return on Investment (ROI) - 200% (Rackley 2015).

Net present value (NPV) - $ 14570

Internal rate of return (IRR)- 65% (Magni 2013).

Payback period- 2 years.

Assumptions- The volume of shared files will remain same or increase over the next three years.

Significant changes will not occur in the way most shared files are distributed, used and updated.

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2> XYZ company will solve its problems that will require five hours work each week. The Administrative assistants and financial experts will update and share the files on regular basis. Serious errors will be omitted that will save up to $5000 per year in labor costs.

XYZ Company purchase price- $12000

Estimated life cycle- five years

Installation fee- $350

Annual maintenance fee- $500

XYZ Company’s discount rate as of April, 2017 is 0.05

Return on Investment (ROI)- 150%.(Rackley 2015).

Net present value (NPV) - $15000

Internal rate of return (IRR) – 70% (Magni 2013).

Payback period – 1.5 years

Assumptions- The volume of shared files will remain same or increase over the next three years.

Significant changes will not occur in the way most shared files are distributed, used and updated.

Recommended Strategies

Some strategies should be recommended to tackle the differences because of cross-cultural management. These are going to be described in the following section:-

Firstly, the managers must have proper concepts about the difference of cultures. He must be able to respect all the cultures and evaluate all the complex situations with the background of the concerned cultures.

Secondly, the managers should not opt for judging any culture and should never say that one culture is better than another. This will create biasness in him and the employees will not respect him. He must learn to take all the cultures in same manners.

Thirdly, all the complicated problems should be treated in the way that it can be simplified, and a common solution can be found for all the problems. Mutual understanding between the employees should be developed so that the cultural differences should be kept aside.

Fourthly, the managers and the employees have learnt to respect the different cultures and have a mutual understanding. In this condition, naturally, they put aside the cultural differences and behave in a friendly way.

Fifthly, this strategy is applied by the ethnocentric organizations where the managers are able to recognize the cultural differences as only some problems. They try to remove the cultural diversity and cease to think to about the advantages of diversity.

Sixthly, in the synergistic organizations, managers try to reduce the potential problems that exist between their cultures and the employees’ cultures; they do not minimize their differences though. They also maximize the advantages of the impacts of the cultural differences.

By applying these recommended strategies, the cross-cultural differences can be solved in the multinational business organizations.

Conclusion and Recommendation

It can be concluded that the cross cultural conflict has grown so much in the past years and some steps should be taken to resolve them. The implication of the Caux Round table must be done in a strict manner. The decision maker should personally access the facts that are behind these conflicting situations.

The impacts of the cultural differences have to be taken into account while clearing the misunderstandings, trying to resolve the issues sensitively and taking assistance of the people if required. The selected article can thus be related with the recommended strategies in a way that the topic of business ethics has received much importance in the business industry that operates across countries. The global managers have to abide by some rules that are applicable for all the employees. They should simplify all the problems and solve it by the mutual understanding of the problems and not breaking the walls of business ethics. Responsible business behavior should be shown by both the employees and the managers. He must respect all the cultures and treat all the employees in the same way so that parity can be maintained.

References

Ashill, N.J. and Jobber, D., 2014. The effects of the external environment on marketing decision-maker uncertainty. Journal of Marketing Management, 30(3-4), pp.268-294.

Chhokar, J.S., Brodbeck, F.C. and House, R.J. eds., 2013. Culture and leadership across the world: The GLOBE book of in-depth studies of 25 societies. Routledge.

Ferraro, G. and Brody, E.K., 2015. Cultural Dimension of Global Business. Routledge.

Gorodnichenko, Y. and Roland, G., 2012. Understanding the individualism-collectivism cleavage and its effects: Lessons from cultural psychology. In Institutions and comparative economic development (pp. 213-236). Palgrave Macmillan UK..

Moran, R.T., Abramson, N.R. and Moran, S.V., 2014. Managing cultural differences. Routledge.

Table, C.R., 2014. About Caux round table. Caux Round Table.

Thomas, D.C. and Peterson, M.F., 2014. Cross-cultural management: Essential concepts. Sage Publications.

Wild, J., Wild, K.L. and Han, J.C., 2014. International business. Pearson Education Limited.

Rackley, J., 2015. Return on Investment. In Marketing Analytics Roadmap (pp. 71-85). Apress.

Magni, C.A., 2013. The internal rate of return approach and the AIRR paradigm: A refutation and a corroboration. The Engineering Economist, 58(2), pp.73-111.

HR Online. (2017). Cultural diversity, IBM style. [online] Available at: [Accessed 9 May 2017].

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