Cross Cultural Management

Introduction

Cross cultural management is concerned about training human capital in the local and international business on the variations attached to the practices, cultures and on the changing needs and wants of the target customers. Twenty first century is characterized by diversity in business practices, cultures and changes in performances among diverse stakeholders. Cross cultural management has been critical in bridging the communication gap in different cultures.

Question One

It has been noted that a number of organizations perceive cultural diversity management as a model of developing competitive edges, such organizations hold on and recruit employees perceived as good as a way of promoting innovation and creativity in diversified markets. It has been argued that such organizations spend substantial time managing ethics minorities and gender. There are a number of reasons behind organizations carrying out training, recruitments and developing communication policies of the human capital within the organization.

It is worth noting that most organizations spend more than forty five percent of the earnings on human capital, although few organizations quantify the figures. The percent of the revenue consumed by the human capital is so large that it cannot be ignored, hence proving the importance of human capital in organizations (Browaeys & Price, 2011 p. 214). Diverse organizations have developed human capital strategies integrating leadership, talents, organizational models and culture in making sure that the organization has the capability of meeting the preset vision and mission.

Recruiting, selecting and training employees are critical to organizations in making sure that the organization has the right people to do the job (Arthur, 2001 p. 300). Recruitment is part of critically assessing the needs of an organization and aligning to the capability of employees, it has been noted that recruitment process takes place after an organization has application forms ready with them from prospective employees.

The selection process is characterized with choosing the right candidate to fit in the specified job category. Training involves a number of processes in making sure that the human capital is motivated, display the right skills, display the right attitudes and that employees are armed with critical knowledge to propel the organization in meeting the set vision and mission.

Recruiting of employees can be carried out within the organization which is termed as internal recruitment or by outsourcing talents from outside the organization (Arthur, 2001 p. 139). There are merits and demerits attached from sourcing employees from within the organization from outside the organization. Merits of internal recruitment identify with savings in costs of aligning the employee to the existing organizational culture since the employee already has the knowledge of how an organization works. Internally sourced employees need short training time and also are fast in fitting in the new job category. An organization faces minimal disruptions from sourcing employees within since all the employees are already accustomed to the current organizational culture (Pritchard, 2006 p. 119).

An internal promotion of employees is a way of motivating employees, and that the organization is capable of retaining talents and developing talents to new levels as a way of promoting innovation, creativity and in meeting the changing needs of the markets (Browaeys & Price, 2011 p. 220). The demerits of promoting employees within the organisation are that the older post must be replaced, an insider employee may transfer problems from one department to another department and that internal promotion may cultivate bureaucracy.

External recruitment taps at talents and new capabilities in bringing new ideas and experience to the organization. External recruitment is expensive and takes time in selecting the right individual to perform the desired tasks. Job analysis is characterized with examining jobs in making sure that each job is comprehensively represented. Common issues considered in job analysis identify with title accustomed to the job, flow of power and on the duties and roles of the employee (Arthur, 2001 p. 252).

Job analysis in organizations is useful in choosing employees from other ranks within the organization or from outsourcing employees. It has been noted that training requirements defined by the job analysis in engaged making sure that the employee has the skills in doing necessary work. Job analysis is used in providing the necessary information to be involved in the decision making processes on the materials and the type of equipments to be engaged in the job.

Job analysis also profiles and identifies the experiences attached to the employees particularly in work tasks, which are useful in setting aside critical information useful in promotions and staff development. Job analysis is also used in identifying areas of danger and high risks in the workplaces and in setting the pay rates for the employees depending on the category (Pritchard, 2006 p. 67). There are a number of ways engaged in carrying out job analysis, some of the common models identify with direct observation, interviewing stakeholders and referring to records or engaging professionals known as job analysts. Training and personnel officers in the human resources department in some organizations have the mandates of carrying out job analysis.

A job description defines how specific employees fit with the needs of the organization, job description relates to the title attached the job, the flow of power within the organization and on the duties and the roles of the employee. In most cases, a job description defines job applications within the organization (Arthur, 2001 p. 265). A job description is also used as a guideline in the department as pertaining to the responsibilities and roles of the individuals within the organization. A job specification defines the physical and mental attributes required for the job.

In overall, job analysis, job specification and job description are critical to organizations as part of recruiting and training employees, an exercise that influence the overall organizational culture. Staff appraisals are used in monitoring the performance of the employees and used in promoting employees, which is part of motivating employees. Job analysis, job specification and job description are also used in improving the weak points within the organization as managers and employees foster open communication (Branham, 2005 p. 100).

In so doing, the organization has high chances of fostering dialogue, solving disputes, setting new targets, selecting highly skilled and talented employees, motivating employees, retaining employees and in managing scaling costs down used in recruiting and training of employees. The induction program involves training new workers in the basic skills needed in order to be productive within the organization. Initial days are characterized with observation, in job training through a training scheme; attend college courses and gaining qualification for advanced jobs (Browaeys & Price, 2011 p. 219).

Communication policies in organizations are critical in the business environments that are experiencing high paced competition. Marketing has been influenced by communication and media explosion that has influencing the purchasing patterns of the target market. The market is characterized with multicultural societies, hence critical developing products and services that fit with the needs and wants of the multicultural societies (Branham, 2005 p. 47). Cultural awareness in organizations is critical as all employees and customers want to be included, ignoring employees and customers lead to lost business.

Cultural awareness in organizations is facilitated by recruiting, training and developing sound communication policies. People from different ethnic minorities and gender want to be included in the running of organizations in developing competitive edges. Cultural awareness in organizations develops insights that facilitate interaction and value differences in developing cooperation and mutual understanding. People in the workplaces value diverse sensibilities and beliefs of people from other cultures; which is critical in building trust and respect in organizations (Arthur, 2001 p. 287).

Question Two

International business is influenced by a number of variables; there are international organizations after professional codes of behaviours while a number of organizations value cultural diversity in doing international business. This paper supports incorporating cultural differences in international business since it calls for adaptation to the host market.

Different cultures influence the international business environment that must be put into consideration in developing international relations that has a positive impact on the running of organisations. Developing an effective international business plan must incorporate cultural diversity in meeting the needs and the wants of the target market (Browaeys & Price, 2011 p. 99). Organizations have the responsibility of expanding and presenting their products and services to new horizons that are diversifying. Understanding culture helps international organizations develop effective marketing plans. Twenty first century is characterized with international business; hence an increased need for cross cultural communication. Understanding foreign culture is critical in developing conclusive strategies for comprehension, assimilation and integration in the new international markets.

Understanding culture in the new markets is critical, host people believe that it is a show of respect and initiates high acceptance levels in the entry of the new market (Thomas, 2008 p. 97). An example of cultural diversity that can influence the performance of the business is a grasshopper, reflecting on a multinational hotel operating both in the United States and has branches in China. In the United States, a grasshopper is considered as a useless insect and also as a plague. In china, a grasshopper is considered to be a source of food and as a pet. Neighbouring Thailand is known for snacks made of grasshopper sandwiches. A grasshopper has diverse meanings depending on the context of cultures.

Doing business in new cultures calls for learning the new culture before entry, business negotiations are highly influenced by the diversity in cultures (Browaeys & Price, 2011 p. 102). One culture may consider a particular practice in good state, while other cultures may consider the practice offensive, which influence the performance of businesses and organizations (Thomas, 2008 p. 301). In the United States, doing business is characterized with a direct communication and face to face or virtual protocols. This is different in Russia that calls for indirect communication and approval of business deals by communities. Japan on the other hand engage silence as a tool in business negotiations, a model that makes Americans and European people are uncomfortable with.

It has been noted that different cultures of the world have personalized social structures which are either closed or more defined. Setting a business is influenced by the diversity of cultures in different parts of the world (Salacuse, 2005). Organizations are encouraged to consider local language, local expressions and literal translations to minimize cases of misunderstandings. This is critical in naming and promoting products. An example of failed business due to cultural influence is the General Motors with the NOVA brand. The brand was successful in the United States, but the word ‘no va’ in Spanish signalled ‘it does not go’, which led to the failure of the brand in Spanish markets. Another example is the powergen company that dwelt with energetic products, the website www.powergenitalia.com in Italy received high traffic, and people thought that the company offered sexual impotence solutions depending on the name of the website.

Culture influence international negotiations in a number of ways, cultural diversity influence how people communicate, think and behave; which in return influence the types of negotiations involved in business deals. Negotiators in an international business environment must comprehend the power hidden in cultures in determining the success of the business deals (Browaeys & Price, 2011 p. 97).

Business deals in international markets are encouraged to start from a formal posture, and then diversify to informal posture depending on context. It is wise adapting to the host culture in realizing the desired goals and objectives (Salacuse, 2005). Culture influence the negotiating altitudes where it creates a win-win situation or a win-lose situation. Some cultures offer formal or informal personal style, it is worth reflecting on both personal styles depending on the context. Some cultures offers indirect communications while others offer direct communications, international organizations must understand the type of communication in the host culture (Gannon & Pillai, 2012 p. 400).

Some cultures are characterized by low or high sensitivity to time; it is worth for international organizations to respect the time orientation of the host culture. Some cultures are characterized with low or high emotionalism, specific or general forms of agreements, top down or bottom up model of building agreements, group consensus or one leader type of team organization and relating to low or high risk taking factors among the host culture (Salacuse, 2005).

Conclusion

In overall, job analysis, job specification and job description are critical to organizations as part of recruiting and training employees; an exercise that influence the overall organizational culture. Culture influence international negotiations in a number of ways, cultural diversity influence how people communicate, think and behave; which in return influence the types of negotiations involved in business deals.

List of References

Arthur, D (2001). The Employee Recruitment and Retention Handbook. New York: AMACOM. 129-304.

Branham, L (2005). The 7 Hidden Reasons Employees Leave: How to Recognize the Subtle Signs and Act Before It’s Too Late. New York: AMACOM. 23-177.

Browaeys, M. J. & Price, R (2011). Understanding Cross-Cultural Management, 2nd ed. London: Financial Times Press. 95-110, 211-221.

Gannon, M. & Pillai, R (2012). Understanding Global Cultures: Metaphorical Journeys through 31 Nations, Clusters of Nations, Continents, and Diversity. 5th ed. Thousand Oaks, California: Sage Publications. 234-599.

Pritchard, C (2006). 101 Strategies for Recruiting Success: Where, When, and How to Find the Right People Every Time. New York: AMACOM. 45-122.

Salacuse, J. (2005). The Top Ten Ways That Culture Can Affect International Negotiations. Available: http://iveybusinessjournal.com/topics/global-business/the-top-ten-ways-that-culture-can-affect-international-negotiations#.Up2Zw9KBlzY. Last accessed 03 December 2013.

Thomas, D (2008). Cross-Cultural Management: Essential Concepts. 2nd ed. Thousand Oaks, California: SAGE Publications, Inc. 23-339.