As more and more organization cross national borders, people will need to broaden their views on competition and, more importantly other national behaviors. If the world is to survive and flourish, we all need to know more about the differences rather than concentrating on the similarities. Culture and subcultures are probably the most important aspect in this change to global behaviors(Tung, 2000).
There are hundreds of cultures and subculture of consequences that are relevant to the subject of cross-cultural management. The task of integrating all of this into an integrated whole is almost impossible. Not only may the domain vary from the small group, to a department, to an organization, but one must consider the nation state, the region and possible the globe(see Ohmae,1990: Warner, 2000). The cultural focus may also vary from those factors that are above the water in an ‘iceberg’ metaphor, such as behaviors and abilities, to those facts that are hidden, such as values, attitudes, beliefs and identity(Hofstede, 1980).
Cultures may have a powerful impact on management and organization behavior. The challenge for management scholars is to determine what practices will work where and how much cultural adaption is necessary, if any. Frank Heller(1985) suggests, for instance, the culture should be approached in the same way one would approach an aggressive patient- without prejudice but with a resolute intention to be bowled over or hoodwinked into prescribing either a placebo or the patient’s on medicine. Awareness of culture helps as to understand each other better and understanding its often the essence of successful management.(Warner, 2000).
Strategies for international expansion
· Re-balancing the managerial relationships within companies.
· Investing in a strong brand and consistency in their delivery on their brand promise, in their products, services and actions.
· Closing the least efficient local plants and converting the best into International Production Centers.
· Innovation delivery through investing in world class strength in consumer insights, technological prowess and superior market networks.
· Increased matrix simplification by replacing both the dual commercial and technical leadership with single management at both the corporate and national organizational levels.
· Its commitment to sustainability and moreover focus on making the difference in efficient and effective energy use.
· Developing people’s leadership in talent engagement and aligning them to benchmarking of their performance.
· Investment in profitable and fast growing business in different geographical regions hence achieving market leadership position.
· Worked in teams and hence getting opportunity of learning from the best practices of others in the company.
· Supported technology-sharing agreements and entered alliances in offshore manufacturing.
· Reducing its size, bringing on directors with strong operating experience, and creating subcommittees to deal with difficult issues.
Negotiation and decision across cultures.
The business should consider a variety of factors/cultures,for instance the issue of selection of what to buy and sell and what not to. Something may be in high demand for example dogfish or palm oil, but these are commodities whose long term survival and existence be endangered, therefore the firm has to weigh the cost of future business losses against today’s meager profits. No matter how attractive venture/project may seem, the firm has to consider the effects of its acceptance or rejection of the environment, the impact it shall have created on other environmental variables and such like matters. If the environment is jeopardized, definitely the future profitability will also be badly affected and therefore this becomes an issue in retail business as it relates to sustainability.
The other issues that are also very vital concern the firm’s approach to matters concerning respect and interest of all partners, customers, suppliers and the wider community. This is very vital as respect and concern are what makes people feel appreciated.
Monitoring and controlling
The two major variables force organizations should consider while monitoring and controlling its business activities are: the first one is the one is the laws and regulations that have been put in place to monitor business operations and the way organizations utilize the resources available. Secondly, the business world is very dynamic and every business is trying to gain a competitive edge by being more socially responsible. Thus many firms have to look into the issue of sustainability of whatever they think if socially significant in order to attract and maintain customers. Monitoring and controlling of a corporate body or any business firm entails reviewing the policies and way that it has been relating with the relevant stakeholders to a more responsible and ethical and acceptable level.
Corporate social responsibility.
It is the idea that has been deeply taken by many individuals as well as organizations that a company should take into account the social, ethical and environmental effects of its activities on its staff and the wider community around it.
Whatever a company does these days is viewed from the social responsibility point of view. Although this is a concept that was developed not long time ago, it has taken roots and everybody these days talks about it. Social corporate responsibility cuts across all the operations of any organization may it be public, private, governmental, non-governmental, profit making, or non-profit making et cetera. It starts with the way the business relates with the suppliers, how it relates with the other businesses above it, those that it are at the same level with, that is the competitors, it also touches hoe it relates with legal institutions as it regard the payment of taxes and other levies. Last but not least it touches the issues to do with the way the organization deals with the customer, which are those who buy from the organization, the employees of the organization (works) and finally the other stakeholders who are not directly involved with the dealings of the organization(Kaysen, 2005).
Forming strategic alliances
Foreign business has changed the image of Chinese business and managing. The Republic of China has received an enormous overflow of private investment since 1980. In early 1991s China had accepted over 316, 000 foreign investments of which in relation to a half of these businesses had been undertaken. Currently state firms which had always contributed to three-quarters of China’s economy and Industrial production now account for less than a quarter (Lardy 1999). The key feature of the internationalization of China’s enterprises reforms has been the improvement of equity joint ventures, even though majority of the foreign funded business enterprises have been established. Some of the joint ventures have involved taking over the already existing state owned enterprises’ plants, whereas others have been established from the scratch. China has progressively developed its doors to overseas funds and continues to do so in the current, though this was basically in manufacturing sector.
International human resource management
By focusing on foreign direct investment, this is seen to have a positive impact on human resource management practices in Chinese enterprises. The size of the firm is expected to have a bearing on organizational inertia influencing the speed and extent of change(Warner, 2000). Moreover the location of some international firms is seen to have effect on the pattern of human resource of those particular firms in those regions. Move towards a market oriented economy has also continued to bring both the hardware (the production facilities) and the software human resource management and systems). More market oriented management practices should be encouraged.( Yip, 1996) This is the channel of absorbing foreign technology. This is the only way achieving the economic growth and development since the new technology tends to ease things and make the industry to be competitive in its production activities. Revitalizing state owned enterprises, for instance China’s effort to revitalize these enterprises in the recent years has provided a momentum for human resource management reforms in the state sector.
Leadership and motivation
Leadership involves influencing people to achieve objectives important to them and the organization. While management is the act of getting things done through and with people in formally organized groups. Both leadership and management go hand in hand because the two tend to create an environment in which people can perform as individuals and cooperate towards attainment of good goals. Leadership process is seen as part of management, because management is at a wide perspective.
motivation is the individual force directing or sustaining behaviors. Motivation may come from within a person or is it a result of the situation. In case it comes from a person, its a personal force that calls one to have a particular way(Drucker, 2006).
People will strive to occupy or attain higher status in societies to satisfy their self esteem needs. In work place, its the process by which behavior is mobilized and sustained for the interest of the organization, hence this may be termed as motivation being a result of the situation.
Its necessary for the management to allow workers to learn the set goals, by allowing them to internalize the set goals the workers are able to develop competence and acquire new skills relevant to the situation. Effective ways to apply all theories of motivation is for the manager to set short term goals and encourage employees to use them to support long term goals.
· Warner, M. (2000) Comparative Management: A Reader, 4 volumes, London: Routledge.
· Hofstede, G. (1980) Cultures Consequences, Beverly Hills, CA, and London: Sage.
· Drucker, peter F. (2006), Management Challenges for the 21st Century. New York: Harper Collins.
· Kaysen M. and David, G. (2005), Social Corporate Responsibility: Western Countries Approach. London: Oxford University Press.
· Yip, G.K.B. (1996) Labor management in domestic and foreign investment enterprises, Hong Kong: THC Press.
· Warner, M. (2000) Economic Reforms and Industrial relation in the People’s Republic of China: an overview, Industrial relation Journal 26(4): 16180.