The Cultural Context in Global Management Essay

Introduction

Culture refers the way in which people sense and behave (Harris, Moran and Moran, 2004). A culture is different in different countries, organizations and industries. Through a business viewpoint, it is useful to think of culture as including of four diverse areas. These areas include country, business, organization and industry. Each of these areas of culture refers to and reinforces to grow others. Even though, globalization can show that various cultural features have combined across global boundaries there are still massive differences that can impact the procedures of management as well as consumer behavior (Harris, Moran and Moran, 2004). A globalized policy has to be discovered on an understanding that has both cultural differences and similarities. Culture is important to global businesses in various aspects particularly management. Managing in global environment will inevitably have to consider the disparities of the culture for example, importance of time, the need to have certain regulations in employment and the level of potential against experience (Gesteland, 2012). Moreover, culture has an important impact on the prospect of employment for workers, aspects of motivation, dedication to the organization, individual creativity and group dependence. Whereas the accomplishment in Western businesses is mostly credited to individual innovation and enterprise, the attainment in workplace in Asian countries is more linked to a stable work moral and organizational realism (Gesteland, 2012). This essay aim to explore the concept of cultural diversities in global management. The analysis will be based on reviewing various literatures about culture and global management and a personal understanding and usefulness will also be discussed to highlight the significance of the topic. 

Cultural Context in Global Management

In a global business, the upper management level can consider various procedures to manage cultural disparities. According to Morschett, Klein and Zentes (2015). It is important to focus that cultural diversity need to be perceived as a foundation of future positive strength for a business. Simultaneously, it can be a potential reason for conflict which can also lead towards aggression within teams. However Achinivu (2017) suggested that if cultural differences are managed appropriately it can be an important source of the much needed creativity essential for the business in a highly competitive and dynamic global business context to maintain a competitive edge. A cultural difference is therefore an aspect of global business management which demands a huge amount of administrative and managerial focus. Management will perceive for enabling a culture of a company into a feature that effectively help attaining business aims, strategies and operations (Achinivu, 2017). The reality that culture cannot be explained exactly will be a difficult situation to handle for the management to realize the idea and look after the differences. 

Adekola and Sergi  (2016) stated that there are cultural issues that need focus such as: cultures are combination of values related with each other which means that there are variables which can be equally exclusive. However, Bannon (2003) suggested that this is not the case as culture is extremely intricate and fluid. Another issue that culture disparities likely to rule alterations in managerial style. As an example, a participative style of management may be effective in one cultural setting but a failure in another due to diverse cultural customs. Culture is multifaceted as the cultural profile can be impacted by several aspects thus every person, to some degree, is unique in its culture (Gesteland, 2012). The aspects that impact a person’s cultural aspect include things like geographical area, family background, neighborhood, business culture, education, gender, generation, race and social segment. Moreover, the significance of each such aspect from time to time is likely to shift depending on the context, and facts (Gesteland, 2012).

According to Harris, Moran and Moran (2004), cultures likely to function in dynamic context as the core value basis likely to alter gradually, such as potential behaviors or norms passed from one generation to another through schools or families.  However, Morschett, Klein and Zentes (2015) determined that the broader cultural context including factors like politics, economy, society, technology or demographic shifts are always influencing the culture: therefore, both people and the whole culture might require adapting and accepting the change. Another important issue to be focused that culture is not a concept rather it is a fact. It is an influential human factor that is inevitable segment in the existence of a human being (Morschett, Klein and Zentes, 2015). Individuals cannot deny the fact that their culture is an integral aspect of their lives and it has embedded values and norms in everything they think or perform. It is not merely important that individuals understand their disparities with others to try to accept the changes accordingly, but it is also critical for them to identify their limits. Even though it is crucial to try to carry on open communication with mutual understanding and acceptance, it does not mean that one should assume the value basics of the other individual (Moran, Harris and Moran, 2011). Sometime, there are circumstances in which it is convenient to adapt or even accept a cultural activity of someone that is logical. However, in contrary as stated by Salacuse (2005), there are circumstances in which a person feels there is boundary which cannot be leaped over. Such circumstances likely to show value basis which are nearer to the basis of one’s personality and should not be negotiated. This must also be the situation with the mutual values of a business (Salacuse, 2005). Therefore, it is important for global managers to invest time to interpret on the adaptability before accepting or approving any project in an overseas country. 

Cultural differences can be a source of value for the business. This is because fundamental economics is the major reason to concentrate on cultural disparities in management. An effective global manager invariably need to poses aims related to strategic success of their companies (Thomas, 2003). They need to add value for the stakeholders of the company and to generate and sustain a competitive edge. Both of these are not easy to accomplish. At the juncture where culture and business coincide, the most critical aspect for choosing a method to capitalize a prospect, is not the matter of superiority, rather it should be synergistic procedure that creates value. For the challenging issue of making and sustaining a competitive edge in the industry, culture can either support or impede the effectiveness of the process (Thomas, 2003). Therefore, the potential for global business success merely magnify to the level cultural training and learning throughout a firm is ensured and improved. 

According to John Mole (Bannon, 2003), there are two leadership models: group and individualistic and two approaches of management: organic and systematic. Through these models he conducted the cultural division in Europe (Bannon, 2003). The systematic approach of a management identifies the mechanistic features of a company designed and developed as per the specific requirements, which facilitates to accomplish the objective of the business. Therefore, the basis of a systematic management is integration and precisely elaborated links among the members of the organization. The model is distinctive in Scandinavian nations, specifically. On the contrary, the organic approach is based on the confidence that a firm relates to a living being and is representation of its employees’ demands. The success of an organic management relies on the degree to which its employees are able to coordinate in order to acquire the mutual objective. This approach of a management is typical for Mediterranean regions like Greece, Spain, Italy and Portugal. The individualistic approach of management interprets the autocratic style which is despotic and directive. It is based on the conviction that individuals are different innately and the most intelligent people make choices on behalf of people who cannot make effective choices. As per the Mole’s ideology, powerless beings are supposed to obey to the powerful ones (Bannon, 2003). A distinctive example of a region with the individualistic model of management is Saudi Arabia. On the contrary, the group model is based on the idea that even though people may be unequal in potentials or intelligence, every individual poses the right to be respected, heard and valued with a contribution in decision making related to them. Such an approach is mainly visible in European countries (Yurdakul and Ozturkcan, 2014).  

However in contradiction, Morschett, Klein and Zentes (2015) proposed that in reality it can be witnessed that there are cultures which cannot be determined by such models and they can be described as moderate with a balanced attitude or direction. Even though in few cultures combination also persists, it mostly occurs due to the geographic differentiation of diverse countries. 

Personal Importance of Topic 

The topic has enabled me to understand the various perspectives of cultural aspect in global management and raised personal knowledge regarding the subject. The knowledge of culture in global management is important for managers and must be considered during several managerial functions (Moran, Harris and Moran, 2011). For example, in the US, there is a strong motivational aspect related with the pay or wage, however, in Japan, it is challenging to motivate employees on the basis of salary. 

The significance of cultural realization in effective global companies is interpreted from their managerial practices which are based in the cultures of the intended markets. As an alternative, a firm with little understanding of the overseas market’s culture can cause damaging mistakes in establishing any strategy as there will be a fear of offending people with a different mindset and culture. It also helped in understanding that global businesses who do not entirely understand the cultural aspect of their market mostly create strategies which do not appeal customers and become ineffective from the beginning. Higher cultural distance in global companies can have damaging impacts which deteriorate the business reputation and eventually overall business can get damaged. A cultural mistake can cause loss of clients, create issues for an organization through pressure segments and common public aggression, appealing negative opinions in the process. Losing customers will lead to reduced profits and revenues (Moran, Harris and Moran, 2011). 

The knowledge of cultural aspect particularly interests and holds significance to me since my cultural Saudi Arabian culture is unique and based on individualistic approach of management. After evaluating various perspectives related to the subject, it was apparent that having a flexible business approach with a broad minded viewpoint is important for effectiveness while working in different cultural regions. For example, a manager from Saudi Arabia working in a European country, will have to make sure that he has developed a required level of adaptability and apprehension regarding the other culture which would certainly be a challenge for the Arab manager to do so. 

In Arab countries like Saudi Arabia, the management has a high power distance with a negative opinion on solicitation of contribution as a symbol of flaw. In Arab culture, an unequal distribution of power is more likely to prevail where supervisors are expected to lead, especially those whose power is respected by the employees and they with whom they cannot disagree or hold discontent (Yurdakul and Ozturkcan, 2014). They are less likely to expect or value personal independence or to be consulted for advice. There is a centralized process of decision making with an autocratic management approach. In addition, the Arab culture is inclined towards risk-avoidance and likely to promote people with higher seniority, in place of higher personal performance (Yurdakul and Ozturkcan, 2014). Such diversity in Arab culture as compared to European or US culture, demands high level of understanding for working in a different environment in order to be effective.  

Personal Learning 

In every culture, there are certain values emerging from tradition, educational standards and religion. The topic has helped me to understand that entering into a foreign market as a global manager, I should be able adapt to diverse values, respect the different culture and be able to work effectively to achieve business goals. Conducting business on an international level needs a thorough understanding of diverse cultural contexts. What works in my country might not be working in any other country, and even result in damage (Achinivu, 2017). As a global manager, it is imperative for me to raise the knowledge of cultural challenges within to ascertain success. 

In practice, several companies entering into new markets breach the current system of values unknowingly. There are many examples of mostly larger organizations that globally try to sustain marketing activities in a manner that contradicts with socio-cultural context of a given region. Thus, it also became apparent that emotions also play an important role when managing in a global organization and managers should consider the emotional aspects of the people while conducting business or promotional activities. For example, when carrying out a business deal in Saudi Arabia, a  sign of an effective business association has quite little to do with the text in the agreement since courts in many Middle Eastern countries do not place their trust in legal system to define the verdict of a contradiction (Yurdakul and Ozturkcan, 2014). Therefore, an emotional understanding and personal rapport developed during the entire dealing or negotiation ensures an effective business activity. Failure to realize and nurture this feature of the deal in Saudi Arabia augments the risk of failure up to a higher degree. 

The cultural shades that impact global business management certainly go far beyond the potential to welcome your global partner or select an appropriate gift for them. Challenges related to the culture’s history, whether it is based on collectivist or individualistic approach, space and power distance, verbal and non-verbal interactions all impact the cultural understanding in a global business setting. Getting prepared before stepping into a global management business and considering these issues and importance of culture during the entire the process is highly critical for me as a future global manager. The study of various cultural viewpoints and issues has enabled me to realize how these issues can be resolved and how I can assure to avoid unnecessary mishaps while conducting global business management. It brought me a personal insight that strengthened my understanding of different cultures, thereby supporting acceptance and understanding. Thus, it is important to gain adequate information or at least to be acknowledged of the major situations that might happen in the market in which business is going to take place, particularly these situations emerging from cultural aspects. Since during recent times, it is gaining more and more important to have cultural knowledge that can protect the global business managers to lead several conflicts and eventually gain desired outcomes or goals (Achinivu, 2017). 

Conclusion

The essay highlighted the importance of cultural context knowledge when working at a global level. When culture and business coincide, the most critical standard for choosing an approach to escalate success is to apply a synergistic thinking of creating value. For a challenging issues of developing and sustaining a competitive edge in the global business management, culture can either support the success or it can impede the process altogether. Therefore, the potential for global managers’ success merely increased when a profound cultural knowledge throughout the company is acquired.  The essay also suggested that accepting cultural disparities offers a wide range of professional integrity and gives a prospect for global managers to overcome the barriers while conducting overseas business. For future global managers, it is critical to realize that there is a disparity in the explanation of culture within the context of global business as what one country considers something a professional conduct might be considered opposite in another country. The essay helped in gaining the personal knowledge regarding the local culture in comparison to diverse cultures, as well as the differences that are important to consider while deciding on a career based on global management.