BUS5001_Managing across cultures-

Cross cultural management 3 Contents 1. Discuss a range of cultural issues that impact internationalisation ................................... 4 2. Analyse the main differences between the cultures in US and India ................................. 8 a. Power distance Index (PDI) .............................................................................................................. 8 b. Individualism vs collectivism ............................................................................................................ 9 c. Masculinity vs. femininity ................................................................................................................ 9 d. Uncertainty avoidance Index ......................................................................................................... 10 e. Long-term orientation vs. short-term orientation (LTO) ................................................................. 10 f. Indulgence vs. restraint .................................................................................................................. 11 3. Compare and contrast two relevant cultural models ........................................................ 12 1. Hofstede’s 6 dimensions ............................................................................................................... 12 Merits and demerits of Hofstede’s model ......................................................................................... 13 2. Trompenaars 7 cultural dimensions .............................................................................................. 14 a. Universalism versus particularism .............................................................................................. 14 b. Individualism versus communitarianism .................................................................................... 14 c. Neutral versus emotional ........................................................................................................... 14 d. Specific versus diffuse ................................................................................................................ 15 e. Achievement versus ascription .................................................................................................. 15 f. Sequential time versus synchronous time orientation ............................................................... 16 g. Internal direction versus outer direction ................................................................................... 16 h. Merits and demerits of the Trompenaars model ........................................................................... 16 4. Evaluate how Tech-Gig could effectively manage the diverse workforce ....................... 17 5. Reference list .......................................................................................................................... 21

Cross cultural management 6 Motivation is another cultural issue that creates hurdles for companies operating in a global context. As Tech-Gig strives to enter the Indian market, it cannot solely rely on its American employees. It will be necessary to employ and integrate Indian employees into its workforce. To be resourceful to the company, these Indian employees must be adequately motivated and inspired to give their best to the company. Rask, Korsgaard & Lauring (2010) note that there does not exist any universal way for multinational companies to motivate all their employees and thus the management at Tech Gig has to consider employing different motivation strategies for different workforce groups. Tech-Gig for example has to carefully select the motivation strategies that will be used with the Indian employees. Herzberg’s two-factor theory outlines hygiene factors including working conditions, quality of leadership, employee relations and compensation as common for employees globally (Kurt, 2021). However, corporations operating both in the East and West must find the right balance when it comes to motivator factors including personal growth, responsibility, achievement, autonomy and recognition to get peak performance from their employees (Kurt, 2021). There exists a demarcation between the Eastern and Western cultures when it comes to motivation. Tech-Gig’s management needs to take time and research what motivational factors are most appropriate for its Indian teams if this management is to succeed in motivating these teams. Menoth (2018) notes that in India, the ability to create wealth one of the most important hygiene factor and thus Tech Gig needs to consider monetary benefits as a major motivator. Indian employees will value bigger houses, better cars, and superior education for their children. These should be part of the motivation package for the employees if they are to give their best. This is unlike in the United States where a sense of achievement of social needs is prioritized

Cross cultural management 9 b. Individualism vs collectivism America and India contrast starkly in this dimension whereby while the US is an individualistic society, India is a collectivist society ( Hofstede Insights, 2023) . While the US is an “I” society, India is a “we” society. Indians value collectivism for this sense of belonging to the society brings about comfort which translates to psychological security for a person (Rana, 2018). Non-conformity to the societal way of life leads to rejection. The United States society on the other hand promotes individualism through a hierarchy. Individualism in the United States is associated with convenience. As Tech-Gig ventures into the Indian market, it needs to learn the collectivist inclinations of Indian society. American expatriates moving into India have to find ways of integrating into the more communal and cooperative way of doing things as opposed to the more Individualised American way they are used to. Managers have to strive to give employees more say in matters affecting them. c. Masculinity vs. femininity India and the United States seem to tie in this dimension. Both societies have moderate masculine scores although America is a more masculine society when compared to India ( Hofstede Insights, 2023). Hofstede (2011) defines masculinity as the level of a society’s preference for heroism, assertiveness, material rewards and achievement. Feminism on the other hand is a level of preference for cooperation, caring for the weak and modesty. A high masculinity score shows that managers in the United States and Indian societies tend to be assertive and aggressive (Rana, 2018). A moderately masculine culture shows that both Indians and Americans value achievement, earnings, advancement and challenge. In both societies management roles are dominated by men with strong-willed women with masculine success also leading organisations. American managersand employees moving to India will face little

Cross cultural management 12 3. Compare and contrast two relevant cultural models National cultures comprise different value systems. These value systems are products of previous beliefs, existing means and future expectations. Behaviours, communication and traditions are some of the most common manifestations of cultural values. Cultural differences between nations bring cultural gaps between employees in the workforce and this is a recipe for conflict and disagreements (Gaspar, 2017). International managers need to be well versed with the dynamics of culture to be able to handle cultural differences when they arise. The Geert Hofstede and Fons Trompenaars cultural models are widely used in multi-cultural management studies. These two models will be compared and contrasted as they apply to Tech-Gig 1. Hofstede’s 6 dimensions Hofstede’s research studied IBM employees from 50 different countries to identify cultural differences between these countries and discern cultural patterns that could help maximize productivity in members from diverse cultural differences (Sattorovich, 2020). This study led to the establishment of 6 cultural dimensions that apply to employees from different cultures. The first dimension is the power distance Index where culture can either be high or low in power index. This dimension is a measure of the extent of the inequality that exists between people (Hofstede, 2011). India was established in the previous task to be a high power distance Index culture when compared to the United States. The second dimension is Individualism vs. collectivism which is basically the strength of ties that people have with their community (Hofstede, 2011). India is a collectivist society while the United States was identified to be an individualist community.

Cross cultural management 15 and not let others know what they are feeling. This way reason comes before sentiment. In emotional cultures such as India on the other hand, people are allowed to spontaneously express their feelings at work and let them influence their decisions (Balan & Vreja, 2013). Tech-Gig’s expatriates from the United States are likely to face major challenges in India where they are expected to adapt to an emotional way of life. Managers need to learn how to create a safe space for employees to express their emotions. d. Specific versus diffuse This dimension looks at how to separate personal life from work and consequently whether interpersonal relations are vital to working. In specific cultures such as the US, culture people perceive their lives as a sum total of parts that are best kept separate (Balan & Vreja, 2013). In diffuse cultures such as India on the other hand people believe that their lives are the sum total of different but closely related parts that are part of a whole. In specific cultures, personal and professional relations are kept separate while in diffuse cultures these relations overlap. Tech-Gig’s expatriates moving into India again need to learn and understand a more diffused way of life where personal and professional lives overlap and personal relations are given great value. e. Achievement versus ascription This fifth dimension focuses on the importance that is given to work status. In achievement countries such as the United States worth is evaluated based on a person’s performance and actions (Balan & Vreja, 2013). In ascription cultures such as India on the other hand a person’s worth is ascribed to them based on their gender, age, or wealth. Tech Gig’s employees are moving from an achievement culture to an ascription culture and they thus need to learn to adapt to their worth being based on non-merit elements.

Cross cultural management 18 example, while patting someone on the back might be appropriate in the US culture any form of physical contact may be grossly offensive in India. Finally, there is the challenge of slower decision-making when dealing with diverse workforces. Different perceptions, views and ideas might be great for innovation but they significantly slow down decision-making (Yvanovich, 2020). It is not easy to bring everyone on board or accommodate all ideas. To effectively manage a diverse workforce Tech-Gig needs to consider these challenges and take remedial action. The first recommended action that will enable tech-gig to effectively manage its diverse workforce is prioritising communication. According to Rana (2013) to effectively manage diverse workforces organisations need to ensure that they effectively communicate with their diverse employees. Multiple communication channels and multilingual feedback loops are highly recommended as ways of enhancing employee communication. Also, an organisation needs to ensure that procedures, policies and regulations are designed in a manner that overcomes language barriers by translating all important information into multiple languages that cover all employees. The second action that will support tech-Gig to more effectively manage a diverse workforce is individualisation. This will entail the organization treating each employee as an individual. The assumption that employees are equal is misleading and should be avoided (Sania et al.,2015). Different cultural, religious, social economic and educational backgrounds cultivate glaring differences in tastes, preferences and overall outlook towards life. The managers at Tech- Gig thus need to consider viewing each employee as an individual. The other action that will support Tech-Gig in managing a diverse workforce is encouraging employees to work in diverse teams. Diverse work teams let employees understand

Cross cultural management 21 5. Reference list Adler, M. (2022) Council post: Meeting the challenge of creating and managing diverse product teams , Forbes . Forbes Magazine. Available at: https://www.forbes.com/sites/forbestechcouncil/2021/12/27/meeting-the-challenge-of- creating-and-managing-diverse-product-teams/?sh=c8bc9633ca3d (Accessed: April 5, 2023). Balan, S. and Vreja, L. (2013) “The 7th International Management Conference: New Management for the New Economy,” in The Trompenaars’ Seven-Dimension Cultural Model and Cultural Orientations of Romanian Students in Management . Romania, pp. 95– 107. Gaspar, J.E. (2017) Introduction to global business: Understanding the international environment & global business functions . 2nd edn. Cengage Learning. Gaston, C. (2016) How can a manager motivate diverse workers? , Small Business - Chron.com . Chron.com. Available at: https://smallbusiness.chron.com/can-manager-motivate-diverse- workers-16110.html (Accessed: April 5, 2023). Hofstede, G. (2011). Dimensionalizing Cultures: The Hofstede Model in Context. Online Readings in Psychology and Culture , 2(1). https://doi.org/10.9707/2307-0919.1014 Hofstede Insights (2023). Country comparison: India vs the United States Available at: https://www.hofstede-insights.com/country-comparison/india,the-usa/ (Accessed: April 1,

Cross cultural management 22 2023). Kumar, A., and Murthy, R, (2013). A Conceptual Framework of International Human Resource Management Practices. International Journal of Management & Business Studies Available from: https://pdfs.semanticscholar.org/1a43/8061841fd906282f58595e6e17d2aaf99fe6.pdf [Accessed 2 April 2023]. Kurt, S. (2021). Herzberg’s Motivation-Hygiene Theory: Two-Factor . Available at: https://educationlibrary.org/herzbergs-motivation-hygiene-theory-two-factor/ Menoth, S. (2018) Employee motivation – east, West and the rest . Available at: https://www.linkedin.com/pulse/employee-motivation-east-west-rest-sreekanth-menoth (Accessed: April 2, 2023). Rana, M. (2018). Cultural Variations in Organisations of India and United States: A Comparative Study. International Journal of Arts and Commerce ,7(1), pp 16-28 Rana, R.(2013). Effective Communication in a Diverse Workplace . International journal of enhanced research in management & computer applications, 2(2), pp 1-5 Rask, M., Korsgaard, S., and Lauring, J. (2010).When International Management Meets Diversity Management: The case of IKEA. European J. of International Managemen t,4(4), pp396- 416. Rosales, R., León, I.A. and León-Fuentes, A.L. (2022) “Recommendations for recruitment and retention of a diverse workforce: A report from the field,” Behavior Analysis in Practice , 16(1), pp. 346–361. Available at: https://doi.org/10.1007/s40617-022-00747-z.

Cross cultural management 23 Sania, U., Kalpina, K. and Javed, H. (2015) “Diversity, employee morale and customer satisfaction: The Three musketeers,” Journal of Economics, Business and Management , 3(1), pp. 11–18. Available at: https://doi.org/10.7763/joebm.2015.v3.147. Samovar, L. A., Porter, R. E., McDaniel, E. R., and Roy, C. S. (2014). Intercultural communication: A reader. Cengage Learning. Sattorovich, J.U., (2020). Intercultural difference parameters: Hofstede and Trompenaars theories. European Journal of Research and Reflection in Educational Sciences , 8(11), pp 115-124 Sun, C. (2021). Communication Differences between Eastern and Western Cultures . Available at: https://chantanasun.medium.com/communication-differences-between-eastern-and- western-cultures-89f79bb0b94b#:~:text=Since%20Western%20cultures%20are %20very,communication%2C%20is%20the%20dominant%20culture( (Accessed: April 2, 2023). . Urbig, D. et al. (2020) “Strategic decision-making in a global context: The comprehension effect of foreign language use on Cooperation,” Management International Review , 60(3), pp. 351–385. Available at: https://doi.org/10.1007/s11575-020-00412-z . Warren, T. (2017). Cross-cultural Communication: Perspectives in theory and practice . Routledge Wang, C. et al. (2022) “Open-mindedness trait affects the development of intercultural communication competence in short-term overseas study programs: A mixed-method exploration,” BMC Medical Education , 22(1). Available at: https://doi.org/10.1186/s12909- 022-03281-2.

Cross cultural management 24 Yvanovich, R. (2023) 5 diversity and inclusion challenges in the workplace and how to overcome them , TRG Blog . TRG International. Available at: https://blog.trginternational.com/challenges-diversity-workplace-how-to-overcome (Accessed: April 01, 2023).