Essay: Global Business and Managing Across Cultures

Pages: 10 (3211 words)  ·  Style: Harvard  ·  Bibliography Sources: 10  ·  Level: Master's  ·  Topic: Business - Management  ·  Buy This Paper

SAMPLE EXCERPT:

[. . .] In the communication conflict is one party drops in the defensive behavior the other party is likely to respond in the same way and the real essence of communication is then achieved. In this way mutual communication is created and problem is then defined in the more realistic terms. Thus, the solution to the problem then can be achieved through understanding, using creative alternatives and producing intelligent results. No matter how much complex is the problem and situation if it's well communicated and understood among the parties involved it can be solved in the best possible time with minimum possible resources being waste.

Expatriate management

Organizations dealing in global businesses have to make up the management policies especially the Human resource policy for skill development and human capital management. The process of expatriate management is itself very complex. Organizations need to decide who to deploy to an overseas assignment and how to pay that person. In this regard following issues needs to be addressed (Fadel & Petti, 1997):

a) Expatriate identification, assessment and selection: Besides the technical and business skills required, fundamental qualities necessary to consider for global assignments include for instance, cultural sensitivity, interpersonal skills and flexibility.

b) Cost estimations: the average cost of sending an employee and family on an overseas assignment is reportedly between three to five times the employees current salary. Consequently, quantifying total cost for a global assignment and deciding whether to use expatriate or local employees are important considerations in the employee budgeting process.

c) Assignment letters: The assignee's specific job requirements and associated pay will have to be documented and formally communicated in an assignment letter.

d) Compensation, benefits and tax programs: Employees are compensated in variety of ways by including various forms of perks with their salary and the relocation allowance as well. The widely used approach to international pay include home-based plus a supplement and destination-based pay.

e) Relocation assistance: The assignee in many of the organizations will be assisted with matters like maintenance of person's home and automobiles, shipment and storage of household goods.

f) Family support: Cultural orientation, language training, education assistance and emergency provisions are just some of the matters to be addressed before the family is moved abroad.

In such cases cross-cultural, technical and language training programs will be required. The complex and differentiated strategy of labor laws and rules from country to country and provisions for assembling the expatriates when they are done with the international assignment and returns to their home town will be addressed by the companies. Sending expatriates on the international assignment doesn't end the story. It is organization's responsibility to settle them back with their work in the home town when they return. Career development of expatriate is thus more complex and expensive as compared to local employees but it has to be well managed also in consent with the labor laws and regulations.

Building new organization in across-culture management

When organizations are spreading far and wide beyond boundaries to the remotest geographical location, the only survival factor for the organization is to transform itself to information-based organizations (Drucker, 1988). The pulling force in the employment is moving fast from manual and clerical workforce to knowledge societies where workers exhibit information sharing, creativity management, exhibiting learning abilities and improving on their skills and capabilities. They discourage the command and control model that have been evolved from the military times some 100 years ago and was being practiced in the organization as a managerial policy and procedure.

To have technological advancement is not necessary for the information based-societies. The transformation process involves innovation and rebuilding the structure of the organization from top to the bottom. The aspects which would be involved in the cross-culture transformation of the business environment will be:

a) Physical existence of the departments not required: The information-based organization will require more specialist as compared to the traditional organization. These specialists will be trained to function in the operational areas of the business irrespective of their headquarters location or their primary department locations. So it will not be necessary that the physical location of the department is where the work is being performed. Such organization will be an organization of specialist of various kinds. In the traditional organizations where majority of the strategic work was done on the top level and the bottom were suppose to follow the instruction of the top without giving their own contribution. In the information-based organization the real work will be done on the bottom level through specialist who will differentiate their work and direct themselves.

b) Information dissemination across the organization justly: The main requirement of information-based organization that structures organization across cultures is that everyone in the organization takes up information responsibility. This means that everyone in the organization will be contributing their thoughts for what information he or she needs to get the job done and to what extend he or she contributes for the process of information sharing and disseminating. Executives and specialist will be analyzing what information is available to them for their use and what information they will be producing for the application of their team mates. In this process knowledge about the job, business processes and cross cultural variation is very critical.

c) Professionalism in the cross-culture information-based organization: To foster professionalism in the cross-culture information-based organization, task forces are being assigned. These task forces are working as work-teams assigned with roles and responsibility, provided with special training to do the job and given the strategic policy and procedure to adhere to it. This created standardization within the organization functioning across-culture. In this way organization's goals are achieved and outcomes can be measures more accurately (Tayeb, 1998).Workforce has well set network of communication with proper channels and levels of management defined. Work-teams are leaded by the team leader who is then responsible to senior executives and is answerable when any issue arises. The specialists are part of these work-teams functioning on the specialized assignments of the organization. (Tayeb, 1998)

CONCLUSION

The modern business enterprises are functioning in various parts of the world. In the global competitive business environment it has become extremely important for managers to be work specialist. These specialist exhibits high level of managerial and leadership skills. They need to chase their staff to preferred goals, which should motivate them to work effectively and timely. To ensure that teams are well motivated is essentially a matter of using the right kind of leadership skills and appropriate management style. At the same time, an understanding of the motivation process will greatly enhance the chances of their success. Organization's value system is entrenched in its corporate strategies that reflect the company's growth prospects and future survival. If the value system of the organization is weak its foundation is shattered and the pillars of goals, objectives and strategies will no longer be able to hold the company for a longer period of time. Cultures are not easily changed, so if company is faced with divergent cultures due to any reason, it has to prepare itself to manage across cultures by creating a new culture for supporting the new organization policies and strategies.

The exposure of cross-culture in the organization brings diversity in the system. Diversity is to be considered as strength of the organization rather than a threat. (MacCaskill, 2010). Pluralistic learning, knowledge sharing, information sharing, capacity building and skill development all these results from the proper application of diversity in an organization by thorough study of the cultural value system and encouraging cross culture communication. Building strong cross cultural communication system in an organization is primary to the success of any business operating in the global environment. The role of manager in such organization is to develop mutual communication system that foster understanding between the workforce and build strong relationship between them. In doing so leaders must realize different motivational factors across culture and their set of needs.

In the international business environment expatriate management is vital to the management process. This system required the management of the selection process, preparing them for the international assignments, giving them training, compensating them and managing repatriation. Expatriate brings with them wealth of knowledge, skills and experience in an organization but if this is not well managed it will not produce desired outcomes. There are many examples when it is seen that international assignments have failed. It has been due to poor selection of the candidate who doesn't possess right type of skills that was required for the job, the candidate couldn't adjust himself/herself to the international culture, the economic factor didn't permit him/her to work well or the legal issues created barrier. Therefore for any international assignments it's important for the organization to train the employee, collect all possible information about the international country of operation and having the consideration of the labor laws and employee issues.

References

Drucker, P. (1988)… [END OF PREVIEW]

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