Examining the Growing Importance of Cross-Cultural Management Essay

1. Introduction

Cross cultural direction is the survey of the behavior of people in organisations located in civilizations and states around the universe ( Nancy 1983, p.226 ) . Cross Cultural direction is progressively gaining importance. Expanding international trade and continued in-migration flows has resulted in the work topographic point filled with people from diverse cultural backgrounds ( Tjosvold and Leung 2003, p.1 ) . Companies from different parts of the universe are runing across many states, organizing amalgamations, organizing joint ventures and strategic confederations to take part in the planetary market place ( ibid ) . Cross cultural direction is a necessity for many organisations as they become more globalized. There are assorted theoretical accounts and models available for transverse cultural analysis which the organisations can utilize for efficaciously working across different civilizations. This paper would measure two theoretical accounts of transverse civilization viz. Hoffstede and Trompenaars with mention to two states: United Kingdom and India. The paper would besides place the strengths and failings of the theoretical accounts and exemplify it by sing the civilizations of UK and India. The treatment in the paper would be limited to merely two theoretical accounts with mention to the civilizations of merely two states.

2. Hofstede Cultural Dimensions

Geert Hofstede in 1980 published civilization ‘s effects which was really influential and became a major beginning of citing about cultural differences in the universe ( Luger p.12 ) . Geert Hofstede defines national civilization as a set of corporate beliefs and values that distinguish people between different nationalities ( Vance et al 2010, p.50 ) . Hofstede conducted a survey of more than 100,000 persons from 50 different states and three parts while he was working as a psychologist at IBM ( ibid ) . Hofstede ab initio identified and validated four cultural dimensions and subsequently identified 5th cultural dimension for which he presented the possible beginnings, forecasters and effects of direction behavior ( Rosenhauer 2007, p.20 ) . The five cultural dimensions that were identfied by Hofstede are:

Power Distance

Individuality Bolshevism

Uncertainity Avoidance

Masculinity versus Femininity

Long term versus Short term Orientation

( Bode 2007, p.10 )

1. Power Distance: Power Distance is the manner the society addresses inequalities among people when they occur ( Falkenreck 2009, p.59 ) . This dimension describes the extent to which the less powerful members of the organisations and establishments accept and expect the power to be distributed unevenly ( ibid ) . Power distance norms are reflected in the economic and cultural lives of worlds as in parent-child dealingss, husband-wife dealingss, political relations, faith and economic sciences ( Tian 2004, p.19 ) .

2. Individualism-Collectivism

Individualism-Collectivism describes the grade to which persons are integrated into groups. It is used to mensurate the extent to which a civilization values single accomplishment compared to the accomplishments of a group. This dimension stresses as of import work ends in which person is an active agent and independent of the organisation, instead than those in which the person is dependent on the organisation. ( Tian 2009, p.20 )

3. Uncertainity Avoidance

The uncertainity turning away dimension reflects the extent to which people in a society feel threatened by ambiquity and hence attempts to avoid equivocal state of affairss by supplying greater certainity and predictability ( Adler and Gundersen 2008, p.57 ) . Organizations cut down uncertainity by set uping more formal regulations, rejecting aberrant thoughts and behavior, accepting the possibility of placing absolute truths and achieving unquestionable expertness, and supplying employees with greater calling stableness ( ibid ) .

4. Masculinity versus Femininity

A masculine civilization is fundamentally a public presentation goaded civilization where wagess and acknowledgments are the primary motivational factors for accomplishment. In masculine societies persons are supposed to be ambitious, self-asserting, competitory and willing to take hazards in order to accomplish their ends. On contrary, in feminine civilization people tend to stress the quality of whole life instead than money, success and societal position. ( Vance 2010, p.53 )

5. Long term versus Short term Orientation

This dimension refers to the extent to which a society exhibits a matter-of-fact hereafter oriented position instead than a conventional historic or short term point of position ( Have et Al 2002, p.100 ) This dimension is besides referred to as Confucian Dynamism vowing to its observation preponderantly in eastern states. It measures employees devotedness to the work ethic and their regard for tradition ( Adler and Gundersen 2008, p.60 ) .

2.1 Hofstede theoretical account applied to United Kingdom

The Geert Hofstede analysis for United Kingdom illustrates that there are strong feelings towards individuality and maleness in United Kingdom. The power distance and uncertainness turning away are ranked well lower. Long-run orientation ranks the lowest, bespeaking that alteration in England can be achieved more quickly than in many other states. ( Cyborlink 2007, United Kingdom )

Fig-1: Hofstede Model: Cultural Dimensions score for UK

( ITIM International 2009, United Kingdom )

2.2 Hofstede theoretical account applied to India.

The Geert Hofstede analysis for India shows a big power distance society and all other steps are comparatively moderate. This would be declarative of the fact that India is in the thick of alteration. The traditional caste systems has been outlawed, nevertheless the big power distance mark indicates that the attitudes still remain. ( Cyborlink 2007, India )

India ‘s Long Term Orientation ( LTO ) Dimension rank is 61, with the universe norm at 48. A higher LTO mark can be declarative of a civilization that is perseverant and penurious. ( ibid )

India has Masculinity as the 3rd highest ranking Hofstede Dimension at 56, with the universe norm merely somewhat lower at 51. The higher the state ranks in this Dimension, the greater the spread between values of work forces and adult females. It may besides bring forth a more competitory and self-asserting female population, although still less than the male population. ( ibid )

Fig-2: Hofstede Model: Cultural Dimensions score for India

( ITIM International 2009, India )

2.3 Criticisms of Hofstede theoretical account

There has been a great trade of unfavorable judgment on Hofstede ‘s five dimension theoretical account. A major unfavorable judgment arises on the research methodological analysis that Hofstede has employed ( Gooderham and Nordhaug 2003, p.139 ) . Hofstede ‘s research is wholly based on on attitude-survey questionnaire, which is non the most appropriate manner of analyzing civilization ( ibid ) . Hofstede ‘s informations aggregation was pursued non with the intent of analyzing civilization but the theoretical account was developed as an reconsideration after informations aggregation ( Silverthorne 2005, p.15 ) .

Hofstede in his research has used explorative factor analysis as a statistical technique to develop the cultural dimensions ( Silverthorne 2005, p.15 ) . This appraoch is non considered statistically valid as it is based on seeking a assortment of options until one appears to suit instead than the more strict statistical attack of proving a specific set of parametric quantities based on specfic hypothesis ( ibid ) . Hofstede studied merely one company i.e, IBM which is a major company with strong corporate civilization and was preponderantly male populated at the clip of informations aggregation. It is non certain if the research is now conducted in the same company itself would give similar consequences ( ibid ) . Hompstede ‘s research has besides been criticised as out-of-date ( Gooderham and Nordhaug 2003, p.140 ) . It is argued that the younger coevals from the development states are meeting at a common set of values due to globalisation and therefore the cultural dimensions may go less important ( ibid ) . Hofstede, nevertheless has been doubting of this position and argues that the cultural alterations happen easy ( ibid ) .

3. Trompenaars Cultural Dimension

Trompenaars, an European research worker conducted an extended research with 15,000 directors from 28 states stand foring 47 national civilizations ( Aswathappa 2008, p.186 ) . Trompenaars describes the cultural differences utilizing seven dimensions viz.

1. Universalism vs. particularism

The grade of importance a civilization assigns to either the jurisprudence or to personal relationships. In a universalistic civilization, people portion the belief that general regulations, codifications, values and criterions take precedency over the demands and claims of friends and other relationships. In a pluralistic civilization, people see civilization in footings of human friendly relationship and intimate relationships. While regulations do be in a pluralistic civilization, they simply codify how people relate to one another. ( Proven Models 2010 )

Harmonizing to Trompenaar ‘s determination UK is more universalist and India is more of a particularist ( Rugman and Collinson 2009, p.138 ) .

2. Individualism vs. Bolshevism

This dimension centres on whether the single rights and values are dominant or low-level to those of corporate society. ( Rugman and Collinson 2009, p.138 )

The findings indicate that United Kingdom is more individualistic and India is more of a leftist ( ibid ) .

3. Impersonal vs. emotional

This dimension deals with the strength of emotions expressed at workplace. It indicates whether emotional or subjective signifiers of assesment are thought to be the footing for good determination devising in organisations. ( Rugman and Collinson 2009, p.138-139 )

4. Specific vs. diffuse

This dimension centres on whether the work relationships exist merely in the work topographic point ( specific ) or extends beyond the work topographic point in societal context ( diffuse ) . ( Rugman and Collinson 2009, p.139 )

5. Achievement vs. attribution

This cultural dimension refers to an persons position in organisations where credibleness, authorization, power tend to be based on accomplishments or based on category, gender, instruction or age. ( Rugman and Collinson 2009, p.139 )

In this facet in United Kingdom regard is earned more by accomplishments ( Nardon and Steers 2009, p.6 ) .

6. Consecutive vs. Synchronic

This dimension deals with the grade to which persons do things one at a clip versus several things at one time. Time orientation has two facets: the comparative importance civilizations assign to the yesteryear, present and future, and their attack to structuring clip. In a consecutive civilization, people construction clip consecutive and make things one at a clip. In a synchronous clip civilization, people do several things at one time, believing clip is flexible and intangible. ( Proven Models 2010 )

The findings suggest that people in United Kingdom follow consecutive form for clip whereas Indians follow Synchronic form of clip ( Rugman and Collinson 2009, p.139 ) .

7. Internal vs. external control ( ibid )

In this dimension accent is placed on people ‘s relationship with nature and the natural environment. Some civilization stress control and subjection of environmental forces while others emphasize the demand to work with nature in harmoniousness with the environment. Religious and philosphical differences across the universe greatly influences this dimension ( Rugman and Collinson 2009, p.139 ) .

It has been observed that United Kingdom is more interior directed whereas India is more Outer directed ( Nardon and Steers 2009, p.6 ) .

3.1 Criticisms of Trompenaars theoretical account

The Trompenaars theoretical account and Hofstede model portion many similarities but still Trompenaar and Hofstede disagree on assorted facets ( Rosenhauer 2007, p.22 ) . Hofstede argues that the dimensions identified by Trompenaar are really classs as the dimensions should be statistically independent ( Hostede 2001, p.223 ) . Hofstede besides points out that Trompenaar ‘s extended questionnaire measured merely intercorrelated spirits of individuality ( Hofstede 2001, p.223 ) .

The application of Trompenaars theoretical account indicates that former communist states such as Czech Republic, Hungary and Russia are comparatively individualistic in contrast to their Communist history which does non look to be a plausible explaination of cultural difference ( Gooderham and Nordhaug 2003, p.145 ) .

4. Decisions