DEALING WITH CULTURAL DIFFERENCES
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Communications
Date
Feb 20, 2024
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DEALING WITH CULTURAL DIFFERENCES
WHEN MAKING AN INTERNATIONAL
ACQUISITION
BY:
BOB TARVER
2/4/2024
Introduction
Padgett-Beale is in the process of acquiring Island Banking Service located on the Island of Fiji. To assist in accomplishing a smooth transition, the Merger & Acquisition team hired consultants to assist by identifying potential cultural issues that could create a roadblock in completing the acquisition. The consultants developed several surveys for the Padgett-Beale executive staff to review.
Comparison of Communication Context between Fiji and
The United States
Context Communication involves the setting in which communication takes place. This will involve understanding the multiple factors that will influence how a message is interpreted and what the message means. Several factors that must be understood by all parties involved are physical surroundings and
cultural and relationship backgrounds.
(Chris, 2023)
According to survey results, Fiji is a high-context culture when engaging in business and social communication. They rely very strongly on implicit communication and non-verbal cues which are often found within the social context. The United States has a low-
context culture in its business communication approach. This means that the USA emphasizes explicit communication, where the meaning is found in the spoken or written word.
(Chris, 2023)
As the merger takes place, Both Padgett-Beale and Island Banking employees are selected along with any new hires, must become acquainted with the cultures of each country and find common ground to incorporate a communication style that is accepted by all employees.
Power Distance and Its Implications within the Merger
The definition of power distance could be stated as how power and status are to be expected and accepted by employees of any business organization. There are two types of power distance. The first is a high-power difference where there is a profound respect for seniority or age/tenure in an organization, not expressing opinions or disagreeing with your immediate superior or even a colleague, all decisions are made by those in charge. The second is a low-power distance where there are open discussions and being able to express one’s opinion and offer a disagreeing opinion to a senior colleague. Decisions might be achieved when business decisions are made by
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consensus as a team. Employees also address their colleagues by
name no matter what position they hold.
(Marta, 2020)
Differences in Communication Context and Power Distance
Contribute to Conflict within the New Organization
There will be a large power difference when the new organization is formed. It is to be assumed that the Fijians would
prefer a high-power distance relation vs the low/medium power distance that the Padgett-Beale currently operates under. There is the potential for a poor working relationship between the employees of Island Banking and the Padgett-Beale organization
if a compromise is not able to be reached. Both sets of employees need to be aware of the potential for a breakdown in communication and distribution of power could cause a poor work environment that could lead to the downfall of the merger.
(Marta, 2020)
Best Practices that Managers and Executives Need to Follow
When Conflicts Come Up Between Padgett-Beale and The
New Company
1) Address the conflict early so it does not escalate into a larger problem.
2) Address the issue directly with the person involved.
3) When communicating with all involved parties, it must be done with mutual respect.
4) All parties need to try and see the other point of view.
5) Make sure that the supervisors understand the interests of everyone that is involved.
6) Always seek to find common ground and get past the differences.
7) Try to maintain focus on the present and the future and put that past behind them.
8) As a supervisor, one must be aware of the power difference and make sure there is no retaliation.
(University of Iowa.edu, 2024)
Handling Uncertainty Regarding Potential Layoffs When
the Merger Occurs
As a leader, one should always lead by example. In many cases with a merger there always seems to be a storm on the horizon.
As a manager, when you project a calm presence, it shows to others that they should remain calm as well. If rumors come up quickly, and they always will when a major event takes place, a manager needs to defuse these rumors quickly by sharing information with your employees. This can be done in several ways, like a town hall meeting, or sending a company-wide e-
mail, the more information that is open and honest will give confidence and the rumor mill is less relied upon. Be Honest and
Emphatic with your employees. Letting them know you understand how they are feeling, by doing so, this can go far. Find the right people to place in leadership positions. Make sure that they are given responsibilities that will make an easier transition happen. Make sure that you give all the details about opportunities within the merger. While there is the possibility of layoffs, there could be new job opportunities, new job titles, and new promotions this could give those employees who are seeking new challenges and to possibly climb the corporate ladder.
(Jones, 2022)
Conclusion
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It will be important for Padgett-Beale in its position as a multinational organization to understand the differences when there are distinct cultural differences. When there is a mutual understanding among the parties involved, there should be shown a major improvement in client communication and inter-
business relationships. The important thing for Padgett-Beale Senior Leadership is to obtain buy-in from employees of both organizations. When that is accomplished, the merger will become successful.
REFERENCES
Chris, D. (2023, September 21). Context in Communications: 10 Important Types With Examples
. Retrieved from HelpfulProfessor.com: https://helpfulprofessor.com/context-in-communication/
Jones, S. (2022, November 9). 8 Ways to Calm Worried Workers Down During
a Merger
. Retrieved from Confie.com:
https://www.confie.com/insights/8-ways-to-calm-
workers-
down-during-a-merger/
Marta, Z. (2020, March 29). How Do Cultural Aspects of Communication Impact Our Virtual Meetings
? Retrieved from LinkedIn.com: https://www.linkedin.com/pulse/how-do-cultural-aspects-
communication-impact-our-marta-zieli%C5%84ska/
University of Iowa.edu. (2024, February 4). Retrieved from conflictmanagement.orguiowa.edu: https://conflictmanagement.org.uiowa.edu/best-practices