Cross Cultural Management Changes in Globalizing Business

Question: Discuss about the Cross Cultural Management for Changes in Globalizing Business. Answer: Introduction : This assignment is basically a literature review of the article Managing changes in globalizing business: how to manage cross cultural business partners, written by Graen and Hue. This article has been chosen for further analysis of the management system of Asia. It was originated by Toyota and further improved by some Japanese companies. This part of the assignment introduces the concept cross cultural management. According to Thomas and Peterson (2014) due to globalization, many organizations are now running their business in more than one country. This leads to the multicultural organization where two or more countries are working together. It is generally harder to manage a global business than to operate a local business. Still the companies want to make global competitiveness in order to decrease production cost and to expand market opportunities. Effective knowledge and innovative thinking can play a major role to increase the competitive position of the companies. Moreover, c ultural differences may hamper the companys goals in the multicultural business community. To stay away from such kind of cultural misunderstandings, the directors must be ethnically sensitive and they should promote creativeness and motivation through flexible management system ( Chanlat, Davel and Dupuis 2013 ). The objective of the study: According to Zhu and Bargiela-Chiappini, (2013) Asian countries have a major role to play in implementing the change management system. Every country is different from other countries in terms of their language, cultures. There is a concept called third culture. The main objective of this paper is to see that how third culture is built and how it helps to grow the business. Moreover to study how a partnership is built between different nations and cultures is also the objective of this paper ( Moorcroft et. al. 2012 ). Literature review: This part of the article presents the related papers of the Asian management system. Some relevant papers are mentioned here. Generally, cross cultural management means peoples responsiveness to different cultures. Some papers supported the argument of this article while some papers explain this issue in a different manner. Now a day, the East- West cultural differences have become very significant since there is a shift of commerce from the Atlantic to the Pacific. It can be suggested that the cross-cultural issue will have a major impact on the big organizations (Berry, 2015). Moreover, there are some risks associated with this cross cultural system such as the potential risk, cross cultural risk and political risks. To overcome such risks, some policies are required which will be discussed later (Singh 2014). Analysis : This paper describes the concept called third culture. This is a necessary method to study the cross cultural management system. This third cultural is compared with the other two cultures. Two cultural takes place when the two cross cultural businesses partners are stranger to each other in their business relationship. Sometimes, they may know each other but dont have a quality relationship with each other. It is different from the third concept since it involves in bridging the gap between the two different cultures. ( Emeraldinsight.com, 2016 ). This third culture is featured by people becoming culturally insiders, rather than becoming outsiders. This has a long-run focus in their business purpose that leads to cooperation and accommodation. Some years ago, a Japanese manufacturing company asked Graen to implement a new scheme in the United States ( Fernando 2016 ). According to Rui and Stefanone( 2013) the companys directors were very much worried about the cross cultural partnership ability may be insufficient to implement a successful project in Michigan. Before that, there was a failed project in Australia. Graen and his colleague made the plan according to a book of engineering. This plan was successful. In case of Australia, the relationship between the local managers and the expatriate managers was failed to build a cross-cultural relationship. The failure to gain the cross-cultural partnership between Japan and Australia was a severe issue among the leading manufacturing companies of the world. The company carefully recruited their managers for the compatibility, understanding and guided them in cross-cultural relationships knowledge and skills taking the help of Graen and his friend. The previous fault was not repeated in Michigan since they have developed a new plan for cross-cultural relationship. Another issue in this regard is to id entify the people who will create the third culture, the transcultures. These people can understand different cultures with least biases and create cross-cultural decisions with validity ( Minkov and Hofstede 2012 ). According to Moran, Abramson, and Moran (2014) Graen has explained the five consecutive stages of becoming transculturals. The first step of becoming transcultures requires one to generate an adventures mentality towards other cultures. The first feature of transcultures is that they must be cultural explorers. In the second stage of becoming transcultures, the business partner has to become a cultural sensitizer ( Lefcourt 2013 ). In this stage, one must have to learn the social and behavioral models of the culture. In the third stage of becoming transcultures, one has to become discrepant cultural insiders. It is very important to construct judgments across the cultural necessary knowledge. In the fourth step of becoming transcultures, people have to recognize how to tackle different nations and cultures in an organized way. In the last stage, one has to be socially synthesizers. These are those people who had been socialized into the traditions of interest and may combine both the home and second culture. This is the whole procedure of becoming a transcultures according to the article. Critical analysis of the article : This part of the assignment critically analyzes the article. This cross cultural management issue has been developed in some cities recently. There is a debate among researchers that whether this system has improved the organizations business or not (Binder 2016). On the other hand, there is a research among the feminist researchers about the cross cultural management system. They have critically discussed about the transcultures concept also. Some theoretical problems of the cross cultural management is that there is a inconsistent idea of the interaction between biological and cultural issues. Moreover there are some cultural factors which are misidentified or misconstructed. These factors are also the explanatory factors. Another critical argument in this context is that the influence of the cultural features on the psychological differences is assumed on the basis of the flawed logic. This is the argument or the critical analysis of the cross management system (Veereshshivakumar. blogspot.in, 2016). Another paper can be presented here. According to Kawar 2012, it can be argued that there are some areas where different kinds of attitude, functioning, cultural implications, and behaviors are seen. The cross cultural differences are originated from several backgrounds, each has their own culture which is different from others. The cultural differences may be seen in some factors such as fulfilling deadlines, meeting target sales, budget constraints and so on. These factors may cause some type of divergence. There may be present some of misunderstandings and misconceptions among people who are working in the same company. It may happen due to some factors such as differences in terms of beliefs, values and backgrounds. To execute a project successfully, an employee must be able to work with different people who are coming from different background and different cultures. Many western companies are operating in Middle East. They are running their business successfully. This may be th e result of a good cross cultural management system (Hnard Diamond and Roseveare 2012). Strengths and weaknesses of the system : This part of the assignment describes the major positive and negative side aspects of cross cultural management system. Firstly, the strengths of the cross management system are described. This system increases efficiency in the organizations. There are some aspects such as order management, cash collection, invoicing, fulfilling targets, monetary consolidations and expense approval etc. These issues are better handled by this system. Moreover, this process increases the visibility of the organization. In this system, the workers have every information of the company. This method was successfully implemented in the USA. Every system has some drawbacks. This system also has some drawbacks which have been discussed earlier. Some more weaknesses of this system are discussed here. There may be some cultural factors which are misconceived. This incident is found in the cultural explanation of inferential reasoning by Peng. Sometime the cultural factors are misidentified or they are mislea ding. In Australia, this system was failed due to several reasons. Still it can be suggested that this method is beneficial for the growth of a company. (Lexiophiles, 2016) Conclusion or findings of the article : This part of the assignment sums up the entire thing. This article starts with the idea the cross cultural management. Now a day, many companies are operating their business in two or three countries. This generates the multicultural organization. Though it is generally true that it is difficult to operate in more than one country, still the companies are now focusing on operating their business in more than one country. Then the objective of the study is analyzed. A new concept, called the third culture is introduced. This assignment deals with how the third culture is developed and how it helps to grow the business is also the objective of the paper. The next part of this study describes the main methodologies of this paper. The primary source of the assignment is the article and the secondary sources are all the related paper of this topic, cross cultural management and the third culture. The next part of the assignment describes the five steps of becoming transcultures. This is a very long process of becoming a transcultures. The next part of the assignment presents a critical analysis of the cross cultural management. The researchers have debated on whether this system has improved the business organization or not. Some feminist researchers also have argued in this context. There are some cultural factors which are misleading to this idea. This is a major criticism of this paper. The next part of the assignment describes the strengths and weaknesses of this system. Like other systems, this system also has some positive and negative aspects. These are all discussed. Finally, it can be concluded that though it system has some drawbacks, still it improves the organizational framework. Therefore, the concepts such as the cross cultural management system, the third culture and the transcultural are all helpful for an organizations growth. 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