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Key Cultural Concepts

Question: 

Discuss about the Cross-Cultural Management for World Business. 

With globalization, and advancement in technology, the environment of the organizational have changed. More organizations are being expanding their overseas business hence the diversity among the employees are being increased (Melling and Booth 2017). The world is becoming smaller day to day therefore, the entrepreneurs as well as managers of involved in the global businesses are becoming more sensitive to this increasing cultural diversity in their organizations. In this context, the cultural differences of the Chinese and the Australians can be discussed because these two cultures sharply contrast each other and many Australians have started working with the Chinese employees hence face problems. This essay discusses the cultural differences between the Australians and the Chinese and analyses the issues regarding the organizational factors.

key cultural concepts include the concept of diverse culture in the world especially emerged through various models and theories proposed and currently associated with the organizational functions. According to the theorists, culture is the acquired knowledge which people use for anticipating events as well as interpreting experiences to generate acceptable professional and social behaviors (Mackenzie, Golembiewski and Rahim 2018). The knowledge of culture increases values, creates knowledge, attitudes and influences the behaviors of people. Culture is built over many years and learnt through experiences. It is shared by a large population in the society. More importantly, culture is transferred from one generation to other.

The study of culture combines a large variety of critical approaches which are politically drawn in different times and influence the attitude of the employees of any place and organization. For example, the liberal and neo-liberalism, Marxism, feminism, critical race theory, post structuralism and ethnography include popular cultural studies and these theories greatly affect the regulations and organizational culture of different organizations in different countries (Moore 2015). As mentioned before, due to globalization, the companies now a day have become more culturally diverse. Hence various types of cultural theories have become more relevant to understand the currently emerging cultural issues. In this context, the discussion on Hofstede’s cultural dimension, Hall’s theory and Milton Bennett’s cultural index can be discussed.

Hofstede’s cultural dimension is the core components of the cultural studies. According to this theory, there are six factors which vary from culture to culture. First is the power distance index. This particular index indicates that the society accepts hierarchical and unequal distribution of power. For example, the Chinese culture scores high and demote that the people prefer to maintain power distance between the superior authorities of the organization and the common employees (Jiang, Gollan and Brooks 2015). On the contrary, the western countries including Australia believe in more equal distribution of power among the employees. therefore, if a young Australian worker is convinced by his idea and tries to correct an older Chinese worker, conflicts may arise.

Hofstede's Cultural Dimensions

The culture of the society is reflected on the behavior of the employees of an organization. The strength of the ties among the people makes people to follow collectivism or individualism. The culture of Australia like all other western countries is very much individualistic. On the contrary, the society and culture of China is much more collectivist they have a strong-knit society and the people take care of their groups in exchange of loyalty. Therefore, Australians working in China may not follow the concept of teamwork hence the conflict may arise.

In the masculinity index, the cultures are divided on the basis of competition, personal achievements and the quality of life. In highly masculine country, the people are driven by personal success, competition where success is defined by winner. In Australian society the distribution of roles of male and females overlap less so also in the Chinese culture therefore the possibilities of clash in this perspective is much less (Gelfand et al. 2017).

Uncertainty avoidance index focuses on the way through which the people cope with their anxieties. The high scorers of this index like that of Australia, the people tend to control their lives and make them controllable as possible. On the other hand, the low scorers such as of the China are more relaxed and open in their prediction of future. Australia in this index scores 51 which makes it intermediate in its people’s risk taking capabilities (Stahl et al. 2017). The Australian managers aims at reduction of uncertainty avoidance but the chines manager will be treating it as risk hence the problem may occur.

Term orientation denotes how every society has own specific method of dealing with challenges. The pragmatic society of China encourages thrift as well as efforts for preparing for future and the normative culture that Australia has, focuses on establishing absolute truth and achieve quick results. Therefore, difference can create problems.

In the indulgence index, the Australians score high as these people possess positive attitude and have tendency towards optimism. One the contrary the people of restraint societies like China control their desires and impulses (Dalkir 2013). For example, a Chinese manager will not allow his Australian employee to enjoy his leisure avoiding his duty.

Intercultural business interactions undergo various issues such as communication styles, relationships, patterns of work and values. in the current business environment, the businesses are constantly being focused on the cultural competence (Brewster et al. 2016). What is polite for one culture cannot be similar to other. Some culture prefers communicating directly whereas other prefers non-verbal signs to communicate. This is the reason what the mangers of the cross-cultural organizations need to be informed of being offensive with any employee.

Hall's Theory

China is more particular than Australia which means employees focus on specific situation and treat particular situation to come up with solution. Chines culture is more collectivist and maintain seriality but the Australian managers follow parallel style to accomplish tasks which create problem when they work with Chinese employees. The Australian employees do not take professional issues personally hence get less frustrated than the Chinese workers. China has a diffused culture hence the Australian mangers can feel irritated when they come up with same business topics more than once. The Australians as viewed in the Hofstede model of individualism, value individual achievement whereas the Chinese managers put emphasis on the status and background of the employees before hiring.

According to Hall’s model, the most important issues that the managers face are associated with the communication of the employees. The culture of China allows covert and implicit messages with great use of metaphors for which the Australian managers need to read between the lines. This is because Australia has low context culture and China has high context culture. Chinese people prefer non-verbal communication hence remain reserved and reactionless than Australians (Coviello 2015). On the contrary, the in low context culture such as the Australians, the people use overt and explicit message which are simple as well as clear. Their reactions are visible, external and expressive (Bird and Mendenhall 2016). In the affective style, the communication of the Chinese people is more relationship-oriented where the listeners need to engage themselves to understand what the speakers is trying to convey. In the instrumental style like that of the Australians the speaker remains more goal oriented hence do not want to take much time for the listeners to understand them. They use direct language with less non-verbal communications (Coviello 2015). For the high context culture like China, group formation is necessary but for Australians the members should be flexible in relationship hence fit for any type of modification. The Chinese managers may keep description of any product or process short which may be problematic for the Australians.

Conclusion:

Therefore, it can be concluded that the culture is one of the most important factors in running the organizations successfully. The knowledge gap of the management about the expectations and attitudes of the employees can result in waning of business. This is because the culture of an employee decides how he will be responding to the motivation of the managers and cope up with other employees from different cultures. Diversity provides the business scope for viewing from different perspectives but this need to be tackled in a prudent way.

References:

Bird, A. and Mendenhall, M.E., 2016. From cross-cultural management to global leadership: Evolution and adaptation. Journal of World Business, 51(1), pp.115-126.

Brewster, C., Houldsworth, E., Sparrow, P. and Vernon, G., 2016. International human resource management. Kogan Page Publishers.

Coviello, N., 2015. Re-thinking research on born globals. Journal of International Business Studies, 46(1), pp.17-26.

Dalkir, K., 2013. Knowledge management in theory and practice. Routledge.

Gelfand, M.J., Aycan, Z., Erez, M. and Leung, K., 2017. Cross-cultural industrial organizational psychology and organizational behavior: A hundred-year journey. Journal of Applied Psychology, 102(3), p.514.

Jiang, Z., Gollan, P.J. and Brooks, G., 2015. Moderation of doing and mastery orientations in relationships among justice, commitment, and trust: A cross-cultural perspective. Cross Cultural Management, 22(1), pp.42-67.

Mackenzie, K.D., Golembiewski, R.T. and Rahim, M.A., 2018. Introduction. In Current Topics in Management (pp. 9-24). Routledge.

Melling, J. and Booth, A., 2017. Workplace Cultures and Business Performance: British Labour Relations and Industrial Output in Comparative Perspective. In Managing the Modern Workplace (pp. 19-44). Routledge.

Moore, F., 2015. Towards a complex view of culture: cross-cultural management,‘native categories’, and their impact on concepts of management and organisation. In The Routledge Companion to Cross-Cultural Management (pp. 69-77). Routledge.

Stahl, G.K., Miska, C., Lee, H.J. and De Luque, M.S., 2017. The upside of cultural differences: Towards a more balanced treatment of culture in cross-cultural management research. Cross Cultural & Strategic Management, 24(1), pp.2-12.

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My Assignment Help. Cultural Differences Between Australians And Chinese: Challenges And Solutions For Cross-Cultural Organizations [Internet]. My Assignment Help. 2019 [cited 24 July 2024]. Available from: https://myassignmenthelp.com/free-samples/cross-cultural-management-world-business.

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