Future of Management
Principles of Management
Table of Contents
iii. Executive Summary
iv. Introduction
iv. The Contemporary Perspective
v. Issues and Challenges
vii. Recommendations based on Management Perspective
vii. Summary
viii. Bibliography
Executive Summary
This paper is a report on cross-cultural management, with the issues related to cross-cultural management being discussed in the paper. Additionally, the report has produced the future way of cross-cultural management, including how it can be improved in offices relying much on this strategic approach.
Diversity of Cross-Cultural Management
Introduction
In the beginning of globalization, organizations have started redefining their approaches of management. It is because of the fast, continual, and uninterrupted change being experienced by organizations in the contemporary period. Organizations have taken into account strategic approaches, which have not only developed their competencies but also prolonged the competitive survival of their businesses. Cross-cultural management is one of such approaches, which organizations, in the recent times have tried. Organizations have tried these approaches and have found proven results for their long-term business sustenance.
This paper encompasses issues of cross-cultural management, which is the most significant and essential approach taken by international organizations in the recent history. The purpose of the report is to discuss and highlight issues of cross-cultural management in order to find effective and apprehensive solutions on it. After discussing issues, the objective is to provide recommendations on how cross-cultural management can be improved in organizations awaiting to see their fut...
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Bibliography
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Constant technological and global changes create challenges that forces leaders to manage different cultures in different countries. People, goods, services, and ideas are moving today at greater speeds which mean our labor force is becoming more diverse and multicultural by the day. Effective leaders need to understand such global dynamics in order to successfully manage organizational cultures. The cultures of leaders and their core assumptions might be different from the values and assumptions of employees in a different country. Two managers working for the same global company might see things differently due to their backgrounds and cultural values. The different countries, in which the organization operates, will have different cultures depending on the social, economic, and political history of the country. Managing and understanding these differences need an effective cross-cultural thinking leader (Yukl, 2013). Some research questions that Yukl, 2013 suggests are: 1) how behavior differs across cultural values and for different countries? 2) How values and behaviors are influenced by personality across company and country? 3) What types of traits, skills, and experience are most useful to prepare a leader being assigned to a new country? 4) How does the fast-changing culture in developing countries affect and relate to
Moorhouse, A. (2005, November). International Management Organizational Behavior. Retrieved October 16, 2008, from University of California Berkley: http://www.ocf.berkeley.edu/~matran/Files/proKarenLeary.doc
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Cross-cultural aspect is considered as a vital issue in this global economy and people from various cultural backgrounds are working together and bringing different values, viewpoints and business practices. This seminar on “leading in a cross-cultural context” was an eye-opener for me, as the Cross-Cultural Adaptability Inventory (CCAI) assessment questions were relative to knowing your own cultural values and how you bring forward your attitude and behavior when you are introduced to a new culture and people. It reflects your ability to be open and understand people with cultural differences.
To expand the enterprise internationally, the human resource department have study the national cultures of those countries and the impact of culture on the way of doing business because different areas has different ways of doing things. The enterprise has decided to move to this countries in differen...
The journal article is titled “Creating Hybrid Team Cultures: An Empirical Test of Transnational Team Functioning” authored by, P. Christopher Earley and Elaine Mosakowski from Indiana and Purdue University respectively. The journal provides information on a study that was carried out to measure the impact of heterogeneity and performance of an international organization. The journal tests the relationship between heterogeneity of a team specifically on the issues of cultural differences and the effectiveness of such a team. The main argument is that transnational teams once they have successfully overcome the challenges of heterogeneity will create a certain culture that is unique to them through which effective evaluation and performance is achieved. This type of a culture that the team attains is referred to as a hybrid culture (Earley & Masokwoski, 2000). The journal therefore contains three studies that test the relationship between team heterogeneity and effectiveness.
In the article, Cultural constraints in management theories, Geert Hofstede examines business management around the globe from a cultural perspective. He explains how he believes there are no universal practices when it comes to management and offers examples from the US, Germany, France, Japan, Holland, China and Russia. He demonstrates how business management theories and practices are very much subject to cultural norms and values and by understanding these differences, it can give managers an advantage in global business practices.
In the last century, globalization has become a very tangible part of how business is conducted. Technological advancement allows international trade and commerce to happen rapidly and easily while the advancement in how goods are transported and how people communicate have had a drastic effect on the globalization of business. Management practices and culture also has a bearing on how international enterprise has is conducted. Managers have to adapt to different management practices, adjust to a new culture, and sometimes face ethical issues in a foreign field. Management is an important role in finance and enterprise that has far reaching consequences on the globalization of business.
In recent decades, the process of globalization has accelerated and the world economy has become increasingly interdependent. The rise in the number of businesses that extensively operate in more than one foreign country, which is known as multinational corporations, plays an important role in the ongoing procedure of globalization. The United Nations has reported that multinational corporations hold one-third of world’s productive assets and control 70 percent of world trade (Schermerhorn et al., 2014). As there is a considerable growth in international businesses, worldwide economy is becoming more highly competitive. The global economy not only offers great opportunities for multinational enterprises but also on the other hand, creates many difficulties for them. Therefore, success in the large-scale economy requires a number of elements. One of the major determinants is dependent on global managers. In the operation of organizations, managers may encounter different international management challenges that restrict their business development. These challenges often include issues associated with the host countries, the global workforce diversity management, management across cultures, difficulties in competitive global business environment as well as in the process of global planning and controlling. This essay is going to discuss the above international management challenges in a broad sense and giving illustration in aspects of each challenge.
The international management structure and an appropriate organizational design for managing people in a cross-cultural environment are made up of an effective scheme. During these activities, companies face the technical, political, economic, linguistic, and cultural differences have to go through practice. For a small business to go after any international activities, even if a couple of these international challenges, or simply to show up in the competition, while active in the local community in their own private market to cooperate with a foreign company.
Svensson, G., 2001. 'Globalization' of Business Activities: A 'Global Strategy' Approach, Management Decision, 39(1), pp.6-18.
A well-managed bi-cultural team is proven to be a success because when people from different backgrounds bring their own unique cultural experiences to the situations they face in their companies and this broader perspective of viewpoints tends to allow for a better ultimate resolution, however if those teams are not managed properly, and if the size of those teams are not managed, and the individuals are not catered to, the cons may outweigh the
“Today, we do not live in a civilization, we live in a ‘globalisation’ – with a globalisation of resources, a globalisation of business activity and a globalisation of humanity” (Schermerhorn et al., 2014, p. 151). This large scale societal evolution of the global economy of late has resulted in the need for managers to possess a transnational outlook, be competent in working with other cultures, be more informed of international developments (Schermerhorn et al., 2014, p. 90), as well as be able to successfully manage the expansion of their firm into international territories by respecting the culture of the host country, and through the use of expatriates. These are employees who live and work in foreign countries on short-term or long-term assignments and, as a result, gain valuable international and corporate experience (Chew & Debowski, 2008, p. 4). Globalisation signifies the “interdependence of resource flows, product markets and business competition” (Schermerhorn et al., 2014, p. 89) on a global scale. The expansion of international corporations into uncharted competitive territories has brought managers of these MNCs to face a vast number of greater challenges than before, such as problems that arise from managing expatriates and repatriates, management across cultures, managing cultural diversity, the transference of knowledge across cultures, and the need for alterations to the existing management practices. This essay will further examine the aforementioned challenges that managers are required to surmount to succeed in today’s global economy.
Sonderberg, A-M & N Holden. (2002), Rethinking cross cultural management in a globalizing business world' International Journal of Cross Culture Management 2(1): 103-121