Brief History of Leadership and Cross Cultural Management

Discuss about the Cross Cultural Management for Literature Review.
 

The present article also shows a brief history about the leadership and cross cultural management. The present literature provides a brief overview of how the field of global leadership and culture evolved in the global market. It is also discussing the nature of its origin in the field of cross cultural management. The present literature review includes the research and opinions regarding to the cross cultural management and impact of the culture on the business activities and operations. Here is the discussion about the relationship between cross cultural management and leadership. In today’s era, the company uses various resources to manage and handle the cross cultural issues within the organization. Here is the discussion about the significance of cross cultural dimensions model. The paper also finds out the effective and dynamic solutions to handle and manage the cultural issues within the organization.

As stated by the Bird and Mendenhall (2016), cross cultural management referred to a accommodating differences in cultural best practices when handling the outside of one’s home country. Thomas and Peterson (2017) stated that cross cultural management arose concurrently to the general field of organizational behavior and field of the management. It is noted that the field of cross cultural primarily monitored on study of organizational actions and management system. According to Bird and Mendenhall (2016), culture is essential for multinational MNC’s in order to expand and explore the skills and knowledge of expatriate managers in the host countries. In today’s globalization world, due to multiplicity, flux, and complexity required managers and leaders to confront the necessity of initiating the new global leadership skills beyond those that were essential to be a dynamic and unique expatriate manager. With this movement in organizational procedure and framework need for leaders to loosen managerial control and more rely on the shared values. This led to an emphasizes on higher cultural awareness. Ang and Van Dyne (2015) stated that culture guides and assists the employees for doing the work effectively and efficiently. Culture can be explained as the acquired knowledge and experience that people use to interpret experience and generate social behavior and actions. It is essential to identify that culture is learned and helps the people in their efforts to interact and communicate with each other in the community (French, 2015). 

According to Bird and Mendenhall (2016), comparative studies are based on the sociological and psychological perspectives that generally use structures and theories of culture to flourish the perspectives. Culture is considered as a group and it refers to a collective phenomenon of shared values, attitudes and meanings. Culture is derived from the social environment. People are not born with a shared set of beliefs and values in the workplace.  According to literature given by Reisinger and Turner (2012) that culture is passed from generation to generation from teachers, mentors, leaders and peers.

Impact of Culture on Business Activities and Operations

In 21^st century global leadership has become an important part of each and every organization. The talent development professionals monitors on enhancing and improving the global leadership skills and talents. It has been stated that leadership styles also affect the culture and values of the firm. Effective and unique leadership styles are used by the organization to handle and reduce the language and communication barriers (Luthans and Doh, 2018). Communication is one of the significant factors that affect the culture aspects in the workplace. It is stated that “no one will talk much in the community if they knew that how often time they misunderstood and misbehave other within the organization. Sometimes, the workers are failed to maintain a heavy and strong communication in the organization as it may influence the results and outcomes of the firm (Nudurupati et al, 2011).  It has been measured that the organization should use verbal communication to handle and control the business actions and operations. Besides sending a clear and unique message, it make sure ensure that receiver get the same information and facts. Baran and Baran (2014) revealed that effective and unique communication system determines and evaluate the organizational structure and efficiency. In this context, it is essential and imperative to draw the basis where communication and company are intercepted by the culture components. Language barriers and issues are also faced and handled by the company when implementing the business actions and plans in the international market. Generally, employees are not able to understand and learn the languages of the other countries due to lack of proper training and coaching as it affects the values and beliefs of the firm (Kraidy, 2017).  Due to language barriers, the company could fail to attain optimum level of outcomes and results. No organization can survive and cope with competitors without identifying the language barriers and obstacles within the organization (Tung and Verbeke, 2010). Discrimination issues also are faced by the company which is rising due to inequality between men and women. There should not be discrimination between men and women on the basis, gender, sex and religion. Many times, employees are unable to focus on the success and sustainability of the market that could affect the success and progress of the firm adversely (Kraidy, 2017). It is stated that following local customs builds and develops the better and unique relationship at the business meetings. It is claimed that some culture and values have strict dress code for the business actions and plans. All these issues are being dealt by the organization while expanding and flourishing the operations and actions in the international market. To overcome and eliminate the language and communication issue, various training and induction programs and campaigns shall be held by the firm to eliminate the culture differences in different the countries. A long with this, effective and unique best practices and strategies shall be used by the firm to inspire and motivate the workers for performing roles, powers and responsibilities within the organization. In this way, the organization can be leader in the global world. Employee engagement shall be promoted and encouraged by the top management, superior and employees in the workplace (Tung and Verbeke, 2010). It is stated that culture has a direct impact on the success and revenue of the organization. Along with cultural diversity also helps in maximizing the outputs with minimizing the cost of the country. 

Relationship between Cross Cultural Management and Leadership

According to the Bird and Mendenhall (2016), there are enormous origins of global leaders that could influence the business operations and activities. The origins of global leadership include expatriate, comparative, leadership, intercultural communication and global management research streams.

As per the Bird and Mendenhall (2016) stated that there are three type of culture including unicultural, comparative and intercultural. The unicultural research is focused on a organizational management within a single country. Comparative culture examined or investigated organizational management in two or more nations and outlined distinguish between them. Lastly, intercultural research is monitored on the interaction among the members from two or more countries. It has been noted that culture may affect such attributes of leadership as power, authorities and roles. The global leadership focuses on the competencies, traits, skills and aspects of leaders. The leadership styles are used by non-profit organizations to increase the revenue and profitability in the global market (Han et al, 2010). Social intelligence, interpersonal skills, decision making, prudence, emotional skills, political skills and conflict management are included in competencies of global leadership. Leadership development plays a fundamental role to handle and manage the cross cultural issues. It has been evaluated that global leaders should be effective and dynamic in aligning workers across the company’s mission, vision, values and collaborating horizontally rather than managing vertically. The organization should also focus on the cultural diversity. It is cleared that no company cam grow and survive in international market without using leadership styles within the organization (Thomas and Peterson, 2017). The leadership styles are significant for understanding the culture and language of the different countries. Various leadership styles including shared leadership theory, complexity leadership theory, relational leadership theory, and collaborative leadership are used by the organizations to maximize the sustainability in the global market (Liñán and Chen, 2009). 

Hofstede cross cultural dimension model is used by the many companies to understand and evaluate the culture of the different countries in the workplace. This model is created by Hofstede to assist and guide in different cultures. There are five dimension of the Hofstede cross cultural model. Power distance is first dimension of the model that helps to measure the employee performance and productivity in how to interact and communicate with their employers, peers and leaders (Briscoe, Tarique and Schuler, 2012). This dimension shows the relationship between employers and employees. When power distance is high, employees choose little communication and collaboration, this action is the consequences of a paternalistic and autocratic management style whereas low power distance indicates that environment where employees take support from other while taking decisions in the workplace (Nudurupati et al, 2011).

Communication, Language Barriers, and Discrimination

After the various researchers, it has been suggested by Hofstede that individualism and collectivism play a vital in Hofstede cultural model. This dimension indicates the community where the ties between individual are loose. The individualism word is used to describe and explain the political, moral and social outlook that creates tension and stress in the life of people (Tarique and Schuler, 2010). The individualism promotes and encourages the unrestricted exercise of desires goals and objectives. On the other hand, collectivism explains that how people are strong and cohesive in groups. This dimension plays a significant role in the society. Masculinity and femininity is the third dimension of the Hofstede cross cultural dimension. It has been noted by Hofstede that femininity working as the opposite pole of masculinity (French, 2015). On the other hand, some countries are discriminated between men and women in terms of sex, gender, religion and caste. It helps in providing competitive advantages in the marketplace. Uncertainty avoidance is another dimension of Hofstede that help to gain rivalries benefits in the global market. This dimension shows the extent to which people will do or not do to ignore or eliminate the risk, challenges and ambiguous future. The employees in their nature may feel comfortable or uncomfortable with stress and anxiety (Stahl et al, 2010). In has been evaluated that the people of uncertainty accepting countries are more relaxed about their upcoming future growth and development (Tung and Verbeke, 2010). Long term orientation is one of the effective dimensions of the cross cultural management that help in fulfilling the long term objectives and targets within the organization (Nudurupati et al, 2011). This force evaluates the commitment and employee engagement to a future. The long term orientation provides satisfaction and morality to the workers. Furthermore, managerial changes can be occurred quickly while initiating the long term orientation plans and programmes. This dimension also helps to satisfy the need, requirement and expectations of the employees and employers as well (Kraidy, 2017). 

Tung and Verbeke (2010) argued that there are various impact of cross cultural management on the efficiency and effectiveness of the workers. This impact is considering measurable to attain the sustainability and progress of the company. It is noted that cross cultural best practices are used by the organization to contribute in effective and dynamic managerial performance and productivity (Reisinger and Turner, 2012).

On the above mentioned study, it is concluded that the field of cross cultural management is focused and monitored on management and leadership. There are few activities involved leadership activities of communicating and creating a vision or leading change. The above mentioned literature review analyses that cross cultural management is key success factors for each and every company to maintain a favorable working environment in the workplace. The above analysis shows that how global leadership may influence the outcomes and sustainability of the organization. To accomplish the organizational objectives and ignore risks and challenges, the managers and leaders should be culturally and encourage creativity and motivation through flexible and unique leadership. In this way, the company has been able to make a dynamic and financial position in the marketplace. 

References  

Ang, S. and Van Dyne, L., 2015. Handbook of cultural intelligence. Routledge.

Baran, S.J. and Baran, S., 2014. Introduction to mass communication: Media literacy and culture, updated edition. McGraw-Hill Education.

Berry, H., Guillén, M.F. and Zhou, N., 2010. An institutional approach to cross-national distance. Journal of International Business Studies, 41(9), pp.1460-1480.

Briscoe, D., Tarique, I. and Schuler, R., 2012. International human resource management: Policies and practices for multinational enterprises. Routledge.

French, R., 2015. Cross-cultural management in work organisations. Kogan Page Publishers.

Han, S., Kang, T., Salter, S. and Yoo, Y.K., 2010. A cross-country study on the effects of national culture on earnings management. Journal of International Business Studies, 41(1), pp.123-141.

Hofstede, G., 2010. Geert hofstede. National cultural dimensions.

Kraidy, M., 2017. Hybridity, or the cultural logic of globalization. Temple University Press.

Liñán, F. and Chen, Y.W., 2009. Development and Cross?Cultural application of a specific instrument to measure entrepreneurial intentions. Entrepreneurship theory and practice, 33(3), pp.593-617.

Luthans, F. and Doh, J.P., 2018. International management: Culture, strategy, and behavior. McGraw-Hill.

Nudurupati, S.S., Bititci, U.S., Kumar, V. and Chan, F.T., 2011. State of the art literature review on performance measurement. Computers & Industrial Engineering, 60(2), pp.279-290.

Reisinger, Y. and Turner, L., 2012. Cross-cultural behaviour in tourism. Routledge.

Stahl, G.K., Maznevski, M.L., Voigt, A. and Jonsen, K., 2010. Unraveling the effects of cultural diversity in teams: A meta-analysis of research on multicultural work groups. Journal of international business studies, 41(4), pp.690-709.

Tarique, I. and Schuler, R.S., 2010. Global talent management: Literature review, integrative framework, and suggestions for further research. Journal of world business, 45(2), pp.122-133.

Thomas, D.C. and Peterson, M.F., 2017. Cross-cultural management: Essential concepts. Sage Publications.

Tung, R.L. and Verbeke, A., 2010. Beyond Hofstede and Globe: Improving the quality of cross-cultural research.

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.