MBA April 2010

ASSIGNMENT 1
MISS SHIVANI MALIK
STUDENT ID NO: MAL10311902

CROSS CULTURAL MANAGEMENT

Topic: How might a better understanding of cross cultural

communication assist managers in modern organisations?

CONTENT
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SNO TOPIC PAGE
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1. Abstract 3

2. Introduction 3-5

3. Cross cultural Communication 5-7

4. Cross Cultural Communication and increasing cultural 7-9

diversity at workplace
5. Significance of understanding Cross Cultural communication 9-10

6. Challenges and hurdles in cross cultural communication 11

7. Conclusion 11-12

8. Bibliography 13-14

Abstract:

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The following study aims to analyse and understand the importance of the fact
that it is imperative for the managers to acquire proficiency in developing
cross cultural communication system to achieve success in the constantly
evolving global business environment. Today in this globalised, technologically
advanced world, we are interacting and working together with individuals from
a multi cultural backgrounds and diversity.

Introduction:

Culture: In words of Kroeber and Parsons (1958) “Culture refers to transmitted

and created content and pattern of values, ideas and other symbolic
meaningful systems as factors in shaping of human behaviours and their
artefacts produced through their behaviours.” In words of Hofstede culture
can be defined as "software of the mind that guides us in our daily interactions
and a combined programming of the mind which distinguishes a category of
people from another.” Hofstede identifies six dimensions of national culture
based on research conducted within IBM in 72 countries:

1. Small versus large Power distance

This enables to measure how the co-workers act in response to command and
power. High-power distance prevails in countries like (US, France, Spain, Asia
and Africa), junior employees have a propensity to be scared of their
superiors, and bosses tend to be paternalistic and domineering.

In counties with low-power distance as (US, UK, Europe), juniors are more
expected to confront bosses and the superiors have a propensity to use a
consultative style of managing a team.

2. Collectivism versus Individualism

Counties which are more individualistic in culture like (France, Germany, South
Africa, Canada, etc.), the team workers work together to achieve a common
organisational goal while focussing on personal achievement and growth. In
these countries, the group values individual achievement and contribution as
a path to their success.

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In counties with a collectivist culture like (Greece, Mexico, Japan,) individuals
are bound together through loyalty and strong personal ties to the group
during one’s lifetime. An example is in Asia, sense of belonging to a group and
their devotion is important.

3. Femininity versus Masculinity

As recommended by Hofstede, there are differences between the goals of men
and women and these differences can be articulated on the poles of being
masculine or feminine. In countries (like Indonesia, France, Israel, Denmark,
Sweden), feminine values are more crucial where people value the
significance of maintaining a good work relationship with their supervisors;
working within team through mutual co-operation, are more family oriented,
and believe in job security and long term commitment towards work.

In cultures with a high masculine index (like Japan, India, US, Mexico, UK, Italy,
Hong Kong), people value the significance of prospects for higher earnings,
achieving recognition at work, having opportunities for progression and job
promotion, and having a challenging job to achieve a sense of achievement.

4. Weak versus strong Uncertainty avoidance

In countries with a strong uncertainty avoidance, culture tends to perceive
unidentified situations as threatening which makes them avoid. Examples are
South Korea, Japan, and Latin America. Americans are more risk taking as
compared to Asians. Countries with weak uncertainty avoidance like (the US,
UK, Singapore, Netherlands) people believe that they are less threatened by
unknown situations and are more open to innovation, risks etc.

5. Long-term versus Short-term orientation

The major characteristics of long term orientation are perseverance and
determination, a mutual respect for a status hierarchy, and a feeling of
shame. Countries include China; Hong Kong; Taiwan, Japan and India
Whereas the primary characteristics of short-term orientation are a sense of
security and stability, protection of an individual’s reputation, respect for
tradition, and a reciprocation of greetings; favors and gifts. Countries include:
Britain, Canada, the Philippines; Germany, Australia

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For a better understanding of differences in cultures of various countries, we
can analyse and study differences of cross cultural communication within India
and Japan:

India: With reference to Hofstede analysis, India represents a high power

distance culture with inequality of wealth and power. There is a wide gap
between men and women’s values which leads to masculinity as a rank and
has a lowest levels of uncertainity dimension. In business, men generally wear
formal dresses and women must wear conservative dresses. While
communicating in business, addressing people by titles is important and there
is no scope of saying no in business.

Japan : In terms of Hofstede analysis, masculinity is the highest factor, with

lowest levels of individualism and high uncertainty avoidance. Japanese
culture is collective in nature where people tend to avoid taking risks and
don’t value individual freedom. In business, the customary greeting is a bow
followed by exchanging of business cards called meishi which is done with
both hands. While communicating, it is important to address people by their
last names and Japanese do not use no 4 which represents bad luck.

Cross Cultural Communication:

Cross cultural communication in simple terms can be defined as a process in

which an individual’s cultural dissimilarities and differences are exchanged or
resolved through verbal, non verbal language or actions. An effective
management system of cross cultural management within every organisation
is a crucial aspect of communication. In simple terms, cross cultural
communication refers to a channel of communication between individuals
from different cultures. A strongly developed channel of communication
between the work groups from cross cultural backgrounds enhances the
performance and effectiveness of communication within the organisation.

Hall’s (1976) introduced the concept of low- and high-context cultures as an

important dimension for studying communication strategy. Low context
cultures are more inclined to communicate in a direct manner, where
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information is contained in the communication ( Americans, Europeans)
whereas high-context cultures are more inclined to communicate in an indirect
manner where information is coded and not spoken(Indians, Arabs, East
Asians). There is indeed a close relationship between the use of
communication strategies and intercultural dimensions.

It is imperative to learn and understand about differences in culture in today’s

corporate industry for national cultures vary significantly. Business has today
become more global and communicating across various cultural groups within
an organisation promotes harmony and productivity at work. Communication
process comprises of three major elements which involves a source, an
audience and a channel. In business communication would involve interaction
with customers, suppliers and employees.

Two types of cultural differences have been identified as affecting

communication:

1. Differences in body position and movements. For eg: In America,

maintaining an eye contact is essential in business whereas in counties
like Indonesia, maintaining an eye contact with seniors is considered
disrespectful. Another example can be in businesses Japanese bow to
the group as a greeting whereas Americans greet the group with a
handshake.

2. Differences in individual beliefs, values and practices concerning various

factors of human relationships. Eg: In US, UK people tend to be
monochromic, they adhere to planned schedules and time plans.
Whereas in Arab, Africa, people tend to be polychromic, view time in a
more stress-free manner and are easy-going at making decisions.
Another example is that in American culture, people are expected to
change several jobs in their career whereas in Japanese culture, job
service with an organisation tends to last for a lifetime.

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 LONDON’S FOREIGN WORKERS BY NUMBERS
Official total of foreign employees from various countries
working in London (September 2010)
Afghanistan 7,000 Lithuania 21,000

Australia 37,000 Mauritius 20,000

India 157,000 Sweden 7,000

Bangladesh 37,000 Nepal 13,000

Canada 5,000 Nigeria 68,000

China 15,000 Pakistan 35,000

Congo 5,000 Poland 83,000

France 28,000 Portugal 26,000

Germany 25,000 Romania 27,000

Greece 7,000 Russia 11,000

Hongkong 18,000 Sri Lanka 32,000

Iran 14,000 South Africa 52,000

Iraq 9,000 Zambia 2,000

Ireland 42,000 Turkey 20,000

Italy 20,000 USA 30,000

Jamaica 37,000 Spain 20,000

Cross Cultural Communication and increasing cultural

diversity at workplace:
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With increasing cultural diversity at workplace, due to differences in
individuals on the basis of culture, race, ethnicity, religion etc, it is important
to understand and embrace the cultural diversity at a workplace. A manager
needs to understand that each and every individual’s contribution is important
for the growth of an organisation. A successful manager must recognise and
celebrate cultural differences and realise the importance of the contributions
of the people within a workplace. A corporate manager of today’s globalised
economy must realise that investing in a multi cultural and diverse workforce
creates a pool of talent:

1. Diverse workforce from various cultures and backgrounds tend to me

more innovative and productive and can help an organisation achieve
competitive advantage.

2. A business manager must communicate effectively with individuals from

diverse cultural backgrounds through a desire to connect with others
and be proactive while approaching a new culture and strive to develop
their skills to respect individual’s preferences to create unity and mutual
trust.

3. People from various cultural ethnicities and backgrounds would have

altering experiences and perspective of life and can recommend
creative and distinctive solutions to work problems. These may not be
recommended from groups who think in a similar manner.

4. Businesses at an international level; will present diverse approaches and

philosophies which a multicultural and a diverse workforce can deal with
efficiently and effectively which is an integral component of success in
today’s market place.

"We didn't all come over on the same ship, but we're all in the
same boat."- (Bernard Baruch)

Through the rapid expansion of the business environment, it is true that

workplace today involves workforce from various geographic locations and
numerous cultures. The most difficult task for today’s manager is to
understand effective communication with people from various nationalities

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and cultures and enable them to achieve common organisational goals. A
classic example is London, U.K which has today achieved “super diversity”, a
melting pot of more than 270 nationalities, ethnicities and300 languages. A
diverse workforce has now become essential to the city’s workforce in almost
every industry from banking to restaurants, neuro-surgery to office cleaning,
IT to childcare etc.

Significance of understanding Cross Cultural communication:

Managers must deal effectively with cross cultural communication due to the
following factors:
1. Cross-Cultural Communication – The New model
Through the technological advancements and the internet business can be
promoted across a wider geographic location and across cultures. To work
together as a team in a multi cultural work environment, effective cross
cultural communication is an important tool for managers to succeed. Despite
the fact that English language reaches to people from several cultures, good
cross cultural communication is important to avoid any misunderstandings.
Organisations which understand differences in cultures of various people are
better equipped in decision making and build stronger team relationships at
work.

2. Understanding Cultural Diversity

The cultural diversity should be understood to optimise communication across
people from different cultures. Eg: to communicate effectively we need to
understand that correspondence between US and UK people will have cultural
differences.
It is crucial to study differences in an individual’s culture and language to
communicate effectively. Another example can be in Japan maintaining silence
during conversation is a sign of thoughtfulness whereas in US long silence is
not appreciated in conversations.

3. Developing an Awareness of Individual Cultures

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It is important in business to acquire atleast the crucial understanding of how
to engage in suitable greetings and physical contact, which can be a
complicated area to understand on an inter cultural level. For example a firm
handshake is an acceptable greeting in North America whereas a bow is
customary in Asia. Kissing an associate is an acceptable greeting in Paris, but
not in U.S. As a team manager of a diverse cultural team, one needs to
increase knowledge and understanding of various cultures. In countries like
UK, US humour is an important tool for building rapport whereas in Japan
humour is treated as unprofessional.

4. Demand Tolerance
It is crucial for managers to comprehend employees needs and enable them to
achieve goals through open mindedness, acceptance and tolerance. For eg: In
IBM staff must explain to the team that a part of the team is working in US
office which is on a different time zone and explain them that phone or
electronic communication would be delayed due to this reason. India would
have holidays on Diwali whereas US office would have more holidays on
Christmas.

5. Keep communication Simple

When you communicate, we need to consider the fact that even though
English is treated as the international language of business, we need to make
meticulous efforts to keep the communication clear and straightforward. Cross
cultural communication helps to break barriers in language. Managers must
avoid using slangs, jargons, accents, code words etc even though
communicating in English. For example: in Uk, the word to table means to
discuss straight away whereas in US it means to postpone the discussion.

As a successful manager, one must take responsibility for effective

communication :
When using language: Managers must use simple words, send clear messages
whether oral or written, avoid slangs, idiomatic expressions, be careful with
pronunciation, simplify speech, adapt the voice tone, speaking style and
manners to what is culturally acceptable to the audience. One must observe
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the other person to avoid any miscommunication or misunderstanding and be
ready to provide feedback.

6. Effective non-verbal behaviour:

Cross cultural non verbal communication is also important in business to avoid
barriers in communication. For example: in Budhist culture you should not touch
someone’s head for it is considered sacred, in Muslim culture you should not pass
anything or eat with left hand which is considered unclean. Chinese stick their
tongues out to show feelings of surprise and scratch their ears to show happiness.

6. Impact on Profitability of Business:

In a fast paced globalised economy, it is important to account for and
understand cultural differences to ensure profitability of business. Failure to
do so can lead to expensive mistakes which is evident from example of
Walmart’s failure in Germany. Walmart in an effort to expand in Germany sank
into debt of $1 billion for the task of expansion was handed over to an
American who didn’t even speak German. Walmart failed to account for
cultural differences in communication channels and business practices of US
from Germany and thus failed.

Challenges and hurdles in cross cultural communication:

However, despite the significance of cross cultural communication, the real
challenge for the managers lies in dealing with cultural clashes among the
team or cultural disharmony which may arise in certain work situations no
matter how amiable is the work environment. Lack of sufficient cross cultural
communication training being given to the employees often leads to internal
team conflicts, misunderstanding, stressful situations, lack of unity among
team and loss of customers and business resulting due to decreased
productivity. A highly diverse multi cultural workforce faces challenges from
the differences in values, language, behaviour and work ethics, business

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etiquettes etc which can further negatively impact the productivity and
hamper team cohesion.

Conclusion:
To meet these challenges effectively, there is a dire need for an effective
manager to communicate with diverse workforce in a cohesive and a
productive manner and use their expertise to achieve business success. To
conclude we can say that study of cross cultural communication and
interaction of individuals from various cultures is indeed an important factor in
the current era of globalisation and change. A better and effective
understanding of cross cultural communication will help in improved
interaction among team members, efficient customer relationships, effective
client management and a productive and a united work force working together
to achieve organisational goals of success and profitability.

It is imperative to improve an understanding of cross cultural situations for

effective organisational management. The managers face daily challenges of
dealing with cross cultural differences between various customers and
employees which can be resolved by broadening the inter cultural
competence of the organisation and educating the customers to behave in a
way which is compatible with the expectations of their co – customers from
different cultural backgrounds. There is an urgent need to conduct further
conceptual and empirical research into cross cultural communication
management.

Prepared by:Miss Shivani Malik

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 Bibliography:

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New York, Wandsworth Publishing, pp- 1- 35.

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3) Blodgett, J. Bakir, A. (2008), “A test of the validity of Hofstede’s cultural

framework”, Journal of Consumer Marketing, vol 25, Issue -6, pp-340-
342.

4) Courtland, B. (2005), Business Communication for Today, 9th edition,

Prentice Hall International Inc, pp 63-73.

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in cross cultural management,” Journal of Intercultural Communication,
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 7) Hofstede, G. (2003 ), Comparing Consequences: comparing values,
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