BUSM 3127

Managing Across Cultures

Assignment Two

Managers in global business environment

Student name: XIAOXIA WU

Student number: 3513269

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Table of Contents

1.0 Introduction………………………………………………………………………3
2.0 Traditional views of management……………………………………………….3
3.0 Culture and the managerial roles……………………………………………….4
4.0 Preparing for Global Assignment……………………………………………….5
5.0 Why this topic is important to me if I want to pursue a career as manager
across cultures? ............................................................................................................7
6.0 What have I learned about this topic and how will is use that knowledge in
the future? ....................................................................................................................8
7.0 Conclusion………………………………………………………………………...9
8.0 References……………………………………………………………………….10

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1.0 Introduction

At the beginning of the 21st century, many globalizations and multinational companies
began to cultivate senior management personnel and upper echelons of the
organization as there is an increasingly need for this kind of managing specialist in the
new global business environment. It is true that, organizations today are facing more
challenges to operate on a global scale as well as the integration of business activities
across the world (Galbraith, 2009). This therefore requires businesses to source or
develop global managers who are able to coordinate functional domains globally. The
success of businesses in the global arena is determined by the achievement and
maintenance of competitive edge. To do this, managers need to outperform their
opponents using strategies and knowledge that are available to them. They will have a
better chance of success if they are familiar with the environment in which they work.
In another words, understanding the cultural difference as well as managerial
competent can help them succeed.

The aim of study is to increase my understanding on how managers act and response
in global business environment. Specifically, the study outlines that the requirements
of success for global management. The first part is on the traditional views of
management, this examines the roles and theories that taken by classical managers.
The second part is the relationship between culture and the managerial roles, and how
to prepare for the global assignment. It is also addressing issues why studying this
topic is important to me if I want to pursue a career as manager across and what have
I learned about this topic and the knowledge can be used for future managerial
implementations.

2.0 Traditional views of management

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Traditional views of management are to solve problems from the top level, assign the
tasks to workers and control the quality of production. They are emphasizing on the
organizational structure and focus on the quality of the products after they are
produced. Classical management theory has been developed in the late 19th century
and is considered as one of the fundamentals of traditional management. The theory
was widely adopted by many businesses in the following decades after its
introduction, as they used it to address problems arising from industrial management,
in the areas of, specialization, efficiency and quality improvement, cost reduction and
management-worker relationships (Beissinger 2008). While there have been many
management theories evolved since then, small businesses are still in favor of
classical management theory that helps them build their companies and leading to
success. The three most established classical management theories are, namely,
scientific management theory developed by Taylor; Administrative theory developed
by Fayal and Bureaucracy theory developed by Weber (Alphen, 2010). French
industrialist Fayol (1949) first noticed the importance of management functions in the
early 20th century. He pointed out the 5 essential roles for managers, this involved
planning, organizing, commanding, coordinating and controlling. By contrast, Taylor
was mainly concentrated on the scientific examination of work and organizations
(Alphen, 2010). Fayol (1949) also identified 14 principles which remained to be one
of the earliest and more comprehensive studies in management. On the other hand,
Weber’s theory of bureaucratic is encouraging hierarchy structure into organizations,
and employees are governed by rational legal decision rules. Managers used these
theories in the traditional management for seeking ways to maximize the benefits of
its stakeholders in a consistent level (Lewis et al., 2008). The traditional management
approach was advantages at that time as it was based on a more hierarchical
organizational structure. Therefore, it defines the responsibility and objectives of
management at each level clearly, so that employees are managed in a way to execute
the orders from their superiors, this therefore will increase the organization efficiency
but it also results in the decrease of creativity. On top of that, the traditional
management methods put forward the division of labor, thereby improving the
performance of employing as well as reducing costs.

3.0 Culture and the managerial roles

International managers are increasingly facing the challenges of leading employees

from a variety of cultural background with divergent expectations about hierarchy,
power and interpersonal relations. Understanding the influences of cultural dynamics
on effective management is therefore crucially important for international managers.
Managers in the global business environment need a strong set of cross cultural

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management skills this is because those who have the cross cultural competence will
gain a competitive advantage in multicultural marketplace when dealing with
stakeholders, such as clients, employees (Jokinen, 2010). The first dimension of cross
cultural competence is cultural sensitivity or awareness. Lane and Distefano (2000)
suggest that understanding of different cultures and own cultures are part of the cross
culture competence. Global managers should be aware of the cultural affect on
people’s behaviors in different regions as well as how their own culture shapes the
behavior. Secondly, the knowledge of cultures and countries global managers should
have. Rhinesmith (1996) further suggests that, apart from understanding the cultural-
specific values, norms and behaviors; global managers are also required to understand
cultural symbols, rituals and belief systems. Thirdly, is the efficient use business skill
in managing cultural difference. Global manager with cross-cultural competencies are
able to negotiate across cultural difference, managing cross-cultural conflicts and
building an efficient multi cultural team (Ottewill & Laughton 2000). The fourth
dimension pertains to personal characteristics. Ottewill and Laughton (2000) have
nominated the essential personal traits for global managers, these are, cognitive
complexity, emotional energy and psychological maturity. On top of that, Cui and
Awa (2012) also identified some other traits, such as tolerance, persistence, flexibility
and self-esteem .Overall, cross cultural competencies development is a series stages
of psychological growth for global mangers from self-questioning, to self-awareness,
and ultimately, the process changes their mindset and enables the personal growth
(Rhinesmith 1996).

4.0 Preparing for Global Assignment

Essential challenges for international manager remain in the connection between

knowledge distribution across different regions and the productive use of the
knowledge. More to the point, for relative inexperience managers, it can be quite
challenging for them when they are first assigned to the international business
environment to represent the company’s interests (Harvey et al., 2012).

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Managers are advised to adapt to new cultural and language of the country they are
assigned to, and cultural fluency is a traditional way in the preparation of global
assignment for global managers. They undertake training programs, in both (Home
and host) countries to ensure that they are competent to take on such role and
responsibility (Berret-Koehler et al., 2004). This helps managers understand the way
people interact that are appropriate to that culture, on top of that, learning local
language can improve their communications with local employees from host country.
This program is designed to psychologically prepare managers with all the potential
cultural conflicts they might encounter in the further so they would have less stress
and anxiety when they are immersed in a foreign and unfamiliar culture, as a result to
reduce the impact of cultural shock. Managers will become more comfortable with the
language, life and cultural in the host country over time, the learning process at the
beginning is quite necessary for global managers when they are entering the new
world (Richard & Steers, 2008)

In this global multicultural reality, global managers are advised to develop global
mindset. Current understanding and knowledge of multiple cultures is not enough in
the increasingly diversified business world; managers have to expand their current
knowledge bases in order to interact with people from diverse backgrounds
successfully. Businesses face cross-cultural challenges, due to the lack of scientific
compiled information, businesses are unable to gather sufficient detail and provide
context-specific suggestions on these issues. They therefore shift the focus onto the
development of global mindset in which they consider as a good approach to resolve
deficiency in this area (Richard & Steers, 2008). A global mindset is a cognitive
structure or knowledge structure that uses multiple culture frames to contain
information and managers are selecting the most appropriate approach for every
different situation they may encounter.

While cultural fluency and developing global mindset can be very useful for global
managers, however, today’s global business environment is characterized with

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increasingly intensity, time sensitivity and diversity. It is ideal to develop general
knowledge about one or several cultural and use them effectively and appropriately.
However, achieving an understanding that can enable global managers to conduct
daily operation abroad is somewhat difficult, this is because, learning a foreign culture
from a distance is not comprehensive enough to cover all the aspects and possible
scenarios that they may encounter in the management role. Secondly, most managers
do not have enough time spent on learning new cultures, languages well before they
are assigned to the role abroad. Therefore, a more practical way to study the cultures
of host country is considered (Richard & Steers, 2008), which International managers
are encouraged to develop skills in which they can use to uncover cultural assumption
and learn how to deal with them.

5.0 Why this topic is important to me if I want to pursue a career as manager

across cultures?

The business world is becoming more globalized, interconnected and the managers’
duties are also extended in order to cope with intense competitive pressures. The new
skill set requirement for them is the ability to negotiate across culture, managing
diversity, and coordinate suppliers. The studies in managers in the global environment
are a very important topic to me, especially if I am going to pursue a career as
manager across cultures. Studying this topic, I am able to learn the complexity of
managing business internationally, and the complex flow of knowledge and
information sharing, the location and cultural influences on business strategies in the
host country. It helps me gain a global perspective of how successful global managers
are efficiently managing the business operations abroad. Furthermore, studying in this
area would provide me with knowledge in business strategy and cultural awareness in
which are essential to the vigorous development of this interconnect world. Focus on
a particular region or country by learning a language, and explore the role as a global
actor. See the global flow of goods and money, and the big picture in a particular
region or country.

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It is also beneficial for my international career, as the area of study can help me build
necessary skills and competencies that are required by the interconnected and
multicultural world for a business leader. It is also addressing international
management issues in the areas of the need for cultural and managerial competencies.
The aim of this study is to develop a conceptual and practical understanding of how
managers should act across cultures and the impact of cultural different has on the
international business interactions and how managers can recognize and value of
cultural differences which are considered as critical aspects to the success of
international business environment.

6.0 What have I learned about this topic and how will is use that knowledge in
the future?

This study on managers in global environment is divided into three parts, with each
part representing a critical issue on how global managers should act and regarding
global management. The first part is talking about traditional views of management
by looking at some of the classical management theories and how these theories were
used by manage to achieve their managerial goals back in the day. With some theories
are still applicable and used by many organizations in the modern world. It is
important for me to under these classic theories and how these theories evolved. The
second part is addressing the issues in the culture issues in global management,
cultural issues are also critical to the success of global mangers, this is because,
people in different culture will have different norms, attitudes, and the way of doing
things that are uniquely existed in that environment. What I have learnt is that for a
global manager, they have to adapt to the local culture, and share the similar beliefs,
speak the same language before they can have any influential impacts on the business
organization and managing people more efficiently. The third aspect of this study is
looking at how managers can prepare for the global assignment, this area is
designated to provide newly assigned managers with guidelines on how to become a
qualified manager that can successfully manage the business abroad. It provides me
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with guidelines and strategies that can be used for the successful management abroad.

7.0 Conclusion

Global business is everywhere around us, the only difference is the size of the
organizations, some are small and some are relatively large. It is therefore important
for managers, as they have to concern about the global business environment as which
they are operating. Understanding the shift from traditional management to modern
management is important for a global manager, as the old way may be proven to be
successful in some of today’s firms, but the development in technology and changes
in the industry happens in a blink of an eye. But they might also be assigned to other
environment which they are not familiar with, they therefore need to study the culture
aspects of that specific nation because understanding the influences of cultural
dynamics can help them gain a competitive advantage in multicultural marketplace
when dealing with clients, employees and other stakeholders. It is also recommended
for global manager to prepare for their global assignment to adapt to new cultural and
language of the country they are assigned to and developing a global mindset. This
study has benefited me in several ways, I have learned the areas I am currently
incompetent and require further improvements for the global role, and how I can use
the knowledge in the future to construct a more successful career.

8.0 References

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Alphen, VE 2010, Modern and Traditional Business Management: An Overview of
Two Ideal Types of Management, their Differences and Influences on Performance,
Strategy and Organization, viewed 27 April 2016,
http://www.changeisgood.nl/MasterScriptie-Viola.pdf

Berret-Koehler, P, Earley, C & Ang, S, 2004, Cultural Intelligence: An Analysis of

Individual Interactions across Cultures, Stanford University Press, Palo Alto, CA.

Beissinger, MR 2008, Scientific Management, Socialist Discipline, and Soviet Power,

London, UK: I.B.

Cui, G & Awa, NE 2012, ‘Measuring intercultural effectiveness: An integrative

approach’, Journal of Intercultural Relations, vol. 15, pp. 227-241.

Fayol, H 1949, General and Industrial Management, Trans Storrs, London, Pitman.

Galbraith, JR 2009, Designing the Global Corporation, Jossey-Bass, San Francisco,

CA.

Harvey, M, Buckley, MR, Richey, G, Moeller, M & Novicevic, M 2012, ‘Aligning

expatriate managers’ expectations with complex global assignments’, Journal of
Applied Social Psychology, vol. 42, no. 30, pp. 26–50.

Lane, HW & DiStefano, J 2000, International management: Text and cases, Irwin
McGraw-Hill, Boston.

Lewis, PS, Stephen HG & Patricia MF 2008, Management, 2nd Edn, Cincinnati:
South-Western College Publishing.

Ottewill, R & Laughton, D 2000, ‘East meets west: Using multi-cultural group- work
to develop the cross-cultural capability of tomorrow’s international managers’,
Journal of Teaching in International Business, vol. 12, no. 1, pp. 1-22.

Rhinesmith, SH 1996, A manager’s guide to globalization, 2nd edn, McGraw-Hill

Companies, New York.

Richard, LN & Steers, M 2008, ‘The New Global Manager: Learning Cultures on the
Fly’, Organizational Dynamics, vol. 37, no. 1, pp. 47–59.

Jokinen, T 2010, ‘Development of career capital through international assignments

and its transferability to new contexts’, Thunderbird International Business Review,
vol. 52, no. 4, pp. 325-336.

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