Cross Cultural management Essay Example | Topics and Well Written Essays - 1750 words

Cross Cultural management - Essay Example It is important to understand CCM In the management of global operations, particularly in the case of MNEs. All aspects of international business – understanding the customers, motivating employees, controlling operational processes, and strategically planning for shareholders – necessitate an understanding of the dynamics between the cultures of home country and host country nationals. CCM remains the central theme in MNE literature on this subject, and will be further examined in this brief study. Culture impacts the behaviour, morale and productivity of individuals at work, and because of this values and patterns of behaviour reflect upon company attitudes and actions. This poses no problems for companies operating domestically, but for globalized business problems are created when people from different cultural backgrounds are required to work together (Ching-Hsiang & Hung-Wen, 2008). For MNEs and even for domestic corporations, there are advantages in having a meas ure of cultural diversity in the workforce. A workforce is culturally diverse ‘if it is composed of individuals who differ on a characteristic on which they base their own social identity’ (Mazur, 2010, p. 6). A diverse workforce is vital in the present global environment because it currently reflects the changing world and marketplace (p.14). If a company is to grow significantly and prosper into the future, it cannot remain monocultural because doing so would render it irrelevant in an increasing multicultural environment. Furthermore, diversity in an organization enhances the adaptability of its workforce, and organizations characterized by high adaptability have a significant relationship to high performance (Taylor, et al., 2008). CCM is vital to a firm in both the marketing and operational functions. When a firm serves a foreign market, then its products for that market should be compatible with the culture of that country while maintaining the identity of the par ent company’s brand. In such cases, workforce diversity provides the firm with the necessary human resources (skills, tastes, and knowledge) needed to design, construct and market the product. Diversity among operations personnel, particularly in the provision of services, will enable the firm to connect more closely with the intended market (Lindholm, 2000). Literature Review There are six perspectives identified by Fontaine after his seven-year study on CCM in Malaysia, based on comparisons made between Britain, a relatively homogeneous culture, and Malaysia, a heterogeneous culture. The first perspective typifies the classical approach which is based on Hofstede’s theory that national cultures are defined by commonly shared values. Fontaine found issue with Hofstede’s discussion of Malaysian culture, which he described as sharing the same cultural values. Fontaine contends to the contrary, and found that Malaysians tended to mould their values and viewpoints according to their ethnicity, and a number of ethnical groups comprised Malaysian society. CCM uses Hofstede as its classical foundation and from thence diverge into the other perspectives. The