Cultural Management In Work Organizations: Cross-Cultural Differences Between China And Australia

Culture’s role in conducting business activities and operations

Discuss About The Cultural Management In Work Organisations.

The main aim of this task is to outline cross cultural differences between China and Australia. It also explains that how an organization overcomes on these issues and challenges. As the Chinese market is growing rapidly whereas Australia is a sovereign country comprising the mainland of the Australian continent and enormous smaller Islands. Both the countries have their own culture, values and norms which could influence the business operations and activities adversely. The paper explains that how an organization uses Hofstede cross cultural dimension model to analyze the issues and reduce the culture conflicts in both the countries. Further detail of the task has been discussed below.

Culture plays a vital role to conduct business activities and operations successfully. Culture is the social behavior and norms that is found in human societies. It is an idea, custom, social behavior of a specific people or society (Schein, 2010). It is a shared set of perceptions and values. Culture helps to maintain favorable working environment in the workplace. Every country has its own culture, beliefs and culture values in the world. Various issues are raised while conducting business activities and operations in different countries. These issues include rationality, intuition, and political behavior. The cross cultural management issues may influence the success and growth of the company adversely. It also affects the revenue and profitability of the firm in the foreign market (Thomasand Brown, 2011).

Rationality is one of the significant issues that is faced by an organization while conducting business activities in Australia. Rationality is basic about the use of logic and reason and building unique decisions on what make sense to everyone. The different people maintain different behavior, status and values. The nature and behavior influence the decision making process of top management. Due to these political issues, the organization has been unable to make unique decisions. It may also influence the outcomes and returns of the company. On the other hand, language is another big concern for an organization which could affect the brand image and goodwill of the firm in the marketplace. All these issues are faced by China and Australia (Alvesson, 2012).

The Hofstede cross cultural dimensions model will help the company by providing clear and concise information and knowledge about the cultural activities of the countries. The Hofstede cultural model includes six dimensions of culture including power distance, individualism, uncertainty, avoidance, masculinity, long term orientation and lastly indulgence.

Cross-cultural management issues that adversely affect company’s success and growth

Power distance is first dimension of the Hofstede cross cultural dimension that refers to the way and manner in which one person makes other person do some activities. This power does not exist among all the people in the world. Some people have the potentials and abilities to perform such actions while other powers can be initiated to change the management. Power is positive aspect and it is used by people. Relating it to the country China, there are strict and unique hierarchies where the manager states that he is the boss and no decisions would be taken without him. Along with this, Chinese maintain high power distance whereas talking about Australia, it shall be noted that power distance is high and the people do not strive for the organizational rights. In this way, if a company who is currently operating its business in china now the organization has decided to initiate its business in Australia. In power distance, people do not provide all authorities and rights to the managers. As a result, the company cannot take some unique and important decisions and further various issues arise in the organization.

The second dimension is the collectivism versus individualism dimensions which explains the relationship of the employees in the organization. The comparison between two countries has been explained here. In individualism society, people are self oriented and motivated. On the other hand, in collectivism society people are mindful and connected with group members. In Australia, people are self reliable and the country shares their feeling of individualism. The people only care about their family members whereas Chinese are collectivism. These people are monitored on consensus during a decision making process in the trade and business. In contrast, the individual success of Australians is considered quite irrelevant and inappropriate. Therefore, they are unable to meet long term goals and objectives (Hofstede et al, 2010).

The next dimension is masculinity which presents a preference in the community for monetary rewards, heroism and achievement in the society. On the other hand, femininity stands for caring and cooperation in the society. This aspect is related to the tender versus and tough. The masculinity and femininity issues are present in both the countries which could influence the activities and operations in Australia (Chhokar, Brodbeck and House, 2013).

Uncertainty avoidance means the way in which people deal with unknown situations. In China, people are not bothered and worried by unknown conditions and they take few actions to eliminate and identify the unpredictable events. In contrast, Australians get worry and bother by unknown situations and they are failed to face these situations. As a result, the company has to bear loss and risks in Australian market (Ascalon, Schleicher and Born, 2013).

Hofstede cross-cultural dimensions model to reduce culture conflicts

Furthermore, long term orientation defines the degree of thinking of people to act for the future success and growth by keeping in the past experiences in the minds. China scored high in long term orientation. In contrast, Australia scores a little less in long term orientation. It means people focus on the short term goals; they do not focus on the long term goals. In this way, an organization is unable to initiate its activities in Australia (Hofstede and Minkov, 2010).

Indulgence is the final stage of Hofstede cross cultural dimension model. It talks about the people of the country who try to control their emotions and feelings. Australians are more indulgent whereas Chinese are less restraint. They cannot control on their desires and goals. In this way, various issues are faced by both the countries (French, 2015).

• The organization must understand the cultural values of both the countries to start new business in Australia. The company needs to interact with dynamic society in the country. The Hofstede cross cultural dimension provides such kind of information to the people.
• The organization needs to develop and build right and appropriate competencies, skills and talents among the employees to handle and reduce the market risks and challenges of the foreign market.
• Different culture maintains different communication styles. As a result, it could affect the languages of both the countries. For example, Australians speak normally English language. Australia has no official language where as Chinese have their own language they speak Chinese language (Bochner, 2013).

Written communication plays a vital role to manage and reduce cross cultural issues in today’s competitive world. It helps in laying down apparent policies, principles, and rules for reducing cross cultural issues and conflict. It is a peramount means of communication. Hence, it is significant where record maintenance is essential. By using written communication, top management delegate responsibilities and authorities to employees in order to manage and control the cross cultural issues. This communication also helps to develop and enhance the image and goodwill of the firm. Apart from this, legal defenses can depend upon written communication as it provides valid records. The written communication is vital for businesses to effectively explain and understand how their products and services differ from their competitors because written communication serves evidence of proceedings and events (Kraidy, 2017). Along with this, it reduces and eliminates misinterpretation and misunderstanding between two countries. In addition, statistical data can be available through written communication. The written communication includes signs, letters, magazines, books and email. The effective written communication also helps to motivate the workers at the workplace. As a result, it increases productivity and outcomes of the firm in China and Australia. No company can explore and flourish its business activities and operations in foreign country without effective communication. The effective communication help to reduce absenteeism and culture issues within the organization. Also, it improves skills, knowledge and experiences of the workers (Berkenkotter and Huckin, 2016).

Conclusion

On the above mentioned analysis, it can be concluded that various cross cultural management issues are faced by the firm while initiating the operations and activities in foreign countries. Hofstede cross cultural dimension model is used by the companies in order to avert the culture issues in different countries. Furthermore, written and unique communication is used by the organization to overcome the competitors in the international market

References

Alvesson, M., 2012. Understanding organizational culture. Sage.

Ascalon, M.E., Schleicher, D.J. and Born, M.P., 2013. Cross?cultural social intelligence. Cross Cultural Management: An International Journal.

Berkenkotter, C. and Huckin, T.N., 2016. Genre knowledge in disciplinary communication: Cognition/culture/power. Routledge.

Bochner, S. ed., 2013. Cultures in contact: Studies in cross-cultural interaction (Vol. 1). Elsevier.

Chhokar, J.S., Brodbeck, F.C. and House, R.J. eds., 2013. Culture and leadership across the world: The GLOBE book of in-depth studies of 25 societies. Routledge.

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

Hofstede, G. and Minkov, M., 2010. Long-versus short-term orientation: new perspectives. Asia Pacific business review, 16(4), pp.493-504.

Hofstede, G., Garibaldi de Hilal, A.V., Malvezzi, S., Tanure, B. and Vinken, H., 2010. Comparing regional cultures within a country: Lessons from Brazil. Journal of Cross-Cultural Psychology, 41(3), (pp.336-352).

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

Schein, E.H., 2010. Organizational culture and leadership (Vol. 2). John Wiley & Sons.

Thomas, D. and Brown, J.S., 2011. A new culture of learning: Cultivating the imagination for a world of constant change (Vol. 219). Lexington, KY: CreateSpace.