Arden University
BUS5001 Managing Across Cultures
STU95426
4024
Introduction
In the light of real-life effects & understanding a detailed discussion, relating to the different
cultural implications are made in this report. A brief definition on the cross-cultural framework is
done at first in the report in which framework of Trompenaars and Hofstede and its different
mechanisms have been discussed briefly. Later in this report, the significance of understanding
this culture at national level in the framework of management at international level. After that it
deals with evaluating the effects of this understanding in assisting the managers where the global
virtual teams have been managed successfully specifically in the environment at international
level. At the end, the cultural differences among the Worldwide Virtual Team Members in terms
of Communication, decision-Making, Negotiation, Leadership & motivation.
Part A
Defining Cross-Cultural Frameworks and its Various
Components
During a decade of research and testing, Dr Geert Hofstede who is a psychologist has established
a notion of cultural dimensions. Since its introduction, understanding the differences of cultures
is a global standard. There are over 50 countries, which have been examined by Hofstede. The
Power hierarchies and their place among the society is accepted and understood by the high PDI.
It has been shown by the Low PDI that the unfair power distribution is not accepted by the
society members. In this context, the terms individualism and collectivism refer to the degree of
social connection among people in a particular community (Armstrong and Taylor, 2023). The
IDV score, which stands for Individualism vs. Collectivism Dimension, measures this
relationship. In an individualistic society, there is a low IDV score, indicating that people have a
weaker sense of interpersonal connection with those outside of their immediate family. As a
result, individuals tend to prioritize their personal interests over those of the group. On the other
hand, in a collectivist society, the IDV score is higher, and people place a greater emphasis on
their relationships with others. Members of an individual's social unit are expected to support and
protect one another, and everyone is concerned with the well-being of the group as a whole
(Oreg and Berson, 2019).
The societal roles and expectations of individuals based on gender are depicted in the
Masculinity-Femininity Index. This index highlights the differences in how men and women are
perceived and treated in society. It helps in understanding the cultural norms and values that
shape the roles of men and women and how they interact with each other. By studying this index,
we can gain insights into the challenged and opportunities that exist in creating a more equitable
and just society for all genders. It is important to note that while the index may highlight certain
trends, individuals should not be limited by societal expectations and should have the freedom to
pursue their goals and aspirations regardless of gender (Whysall, Owtram and Brittain, 2019).
Men in a masculine culture are expected to be confident and possess positive attributes such as
strength, success, and speed. Meanwhile, feminine cultures often value humility as a virtue. It is
highly important to have strong working relationships with bosses and co-workers in any
working environment in order to maintain harmony and peace. Additionally, people’s anxiety
management skills are assessed through their ability to avoid uncertainty. It is a very crucial
aspect, and one’s skills are judged on this metric. Cultures with a high Uncertainty Avoidance
Index tend to prioritize predictability and control, whereas those with low UAI are more relaxed
and open. Depending on their cultural background, individuals may focus on the long or short-
term. Short-term focused countries like the UK value consistency, truth and realism. Whereas
long-term minded nations prioritize modesty and thriftiness. Finally, people’s inherent needs and
emotions are more likely to be fulfilled in countries with high IVR ratings, while those with low
IVR scores tend to have more strict monitoring of actions and behaviors (Vlados, Deniozos and
Chatzinkolaou, 2019).
The Trompenaars model was developed by Fons Trompenaars, a Dutch culturalist, and Charles
Hampden-Turner, to facilitate cross-cultural commercial and management communication
(Trompenaars & Hampden-Turner, 2018). The model prioritizes getting to know neighbours
over national preconceptions. The neutral/emotional component of the Trompenaars dimension
measures the degree to which sentiments are freely communicated, and the Trompenaars argues
that globalization has led to multinational corporations imposing standardized management
practices on their subsidiaries, resulting in challenges due to cultural variations and the
limitations of certain management practices in a global context. Trompenaars defines culture as
“the way a human community solves problems” (Trompenaars & Hampden-Turner, 2018. P. 7).
He and Hampden-Turner developed seven aspects of cultural differentiation:
Universalism/Particularism, Individualism/Communitarianism, Affective/Neutral,
Specific/Diffuse, Achievement/Ascription, Sequential/Synchronic, and internal/external control,
which have an impact on managerial trends (Trompenaars & Hampden-Turner, 2018). In today’s
globalized world, managers and business leaders must understand how to manage complexity in
a diverse environment to achieve long-term success. Overcoming cultural gaps may provide a
competitive advantage, as Trompenaars demonstrates (Trompenaars & Hampden-Turner, 2019).
Discussing and evaluating the pertinence and significance
of understanding national culture in the context of
international management
In today’s era of globalization, multinational corporations (MNCs) need to adopt a localized
marketing that takes into the cultural characteristics of each region while consolidating their best
practices in human resource management. (Jane, 2021). To successfully implement such a plan,
corporation must pay close attention to the worldwide management of each of their operation,
including the fundamental qualities of each country’s culture (White, 2019).
A good example is McDonald’s, which had to adapt its product line to the cultural norms of
India by introducing the Maharaja burger with a chicken flavor instead of its traditional
hamburger that contained beef (Taylor, 202). To achieve this, MNCs can use the theories of
Hofstede and Trompenaars, which are essential for developing worldwide management strategies
that take into account cultural differences (Jane, 2021). While not all components of these
theories are equally important for every firm or sector, they help identity the critical qualities that
are fundamental to the culture of each country (Banerjee, 2022).
For instance, grocery retail chains like Asda do not require much consideration of the cultural
values of the nations in which they operate since grocery items are low-risk products that are
regularly purchased, irrespective of the country (Jane, 2021). Thus, uncertainty avoidance, one of
the components of Hofstede’s theory, has fewer worldwide management implications for grocery
chains like Asda.
However, corporations such as Tesla, which offer innovative technology-based products, must
give serious consideration to this component since such products may not be acceptable for
nations that do not value (Jane, 2021).
Overall, to succeed in a globalized world, MNCs must balance their best practices in human
resource management with an appreciation of the cultural differences that shape the preferences
and expectations of their customers around the world (Jane, 2021; Taylor, 2020).
Assessing the implications of this understanding in supporting
managers in successfully managing global virtual teams in
particular in the international environment
As per Trompenaars’ cultural paradigm, individualism denotes people who view themselves as
distinct individuals, while communitarianism refers to those who identify themselves as part of a
group. The COVID-19 pandemic has resulted. In even highly individualistic nations, such as the
United States and the United Kingdom, displaying a shift towards communitarianism as people
across the world are impacted by a common crisis (By, 2021).
In response to the pandemic’s global spread, multinational corporations have increasingly
utilized virtual global teams. For instance, Unilever, a leading multinational consumer products
corporation, has leveraged an internal communication network to connect employees, managers
and suppliers worldwide during the pandemic. Unilever’s global management recognizes that the
trend towards communitarianism can be capitalized upon through the use of a globally
networked internal communications platform. This approach enables businesses to enhance their
global synergy across all regions in which they operate while simultaneously accelerating
communication (Weiner, 2020).
Despite the significant threat posed to people’s health during a pandemic, there is a consistent
shift in emotional culture during this time. Coca-Cola, one of the world’s successful beverage
companies, has taken the initiative to create an internal blog page called Coca-Cola Stories on
their internal platform. This allows employees to emotionally connect with Coca-Cola personnel
and managers in other parts of the world during a pandemic outbreak (Hardy et al., 2020).
International recruitment methods
1. Ethnocentric approach
The procedure to select the management level employees for a company’s foreign branches.
Ethnocentric staffing process is one common method where the management personnel is hired
by the parent company who are from the same nationality as the parent company. Usually, the
emigrant employees of the parent company takes the higher-level position. The staff would
represent the interest of the headquarters from the parent company and there is an effective link
among them in the ethnocentric approach. There are four stages in the process of hiring:
Selection by self, development of an applicant-pool, evaluation of technical skills, and producing
a decision. The employee decides about his future action course in the global arena is included in
the self-selection. Databases of employees are prepared in accordance with the global operations
of the company. Then the technical skills assessment includes selecting the best and most
appropriate individual for the international assignments, the database is analyzed. At last, for
foreign assignment & sent to the other country with his consent after identification (Hamza, Ross
and Oandasan, 2020).
2. Polycentric approach
A method used by companies to limit recruitment to locals of the host country is known as the
polycentric approach. This approach aims to reduce the cost of foreign operations over time. In
some cases, even companies that initially adopt an ethnocentric approach may eventually switch
to a polycentric approach. The main objective of this approach is to have locals manage the
company's operations, which allows for a better understanding of local market conditions,
political scenario, cultural and legal requirements (Breese, Park and Vaidyanathan, 2019).
Typically, companies that use this method have a localized HR department, responsible for
managing human resources in that country. This approach is commonly used by international
companies operating in advanced countries such as Britain and Japan, particularly when
recruiting executives to manage their branches. In practice, the polycentric approach involves
using host country natives to manage operations within their country, while parent country
natives manage the home office. For instance, an Australian parent company might employ
Indian natives to manage operations at their Indian subsidiary, while Australian natives handle
management at the home office (Hayes, 2022).
2. Geocentric approach
The Geocentric Approach is a method of international recruitment where multinational
companies seek out the most suitable employee for a job regardless of their nationality. On the
other hand, the egocentric Approach relies on managers from various countries within the
geographic regions of a business. These managers operate relatively independently in their
region and are not usually transferred to the company's headquarters. The Regiocentric approach
is flexible and can adapt to company and product strategies. It involves hiring natives of a region
if regional expertise is required, while parent-country nationals can be brought in if product
knowledge is crucial. However, the egocentric Approach has a disadvantage in that regional
managers may not fully understand the perspectives of headquarters managers. Also, the
headquarters may not employ enough managers with international experience (Beer, 2021).
To illustrate the Regiocentric Approach, a US parent company may use US natives at its
headquarters while natives of European countries are hired to manage its Italian subsidiary. This
approach allows for a blend of local and international perspectives, which can be advantageous
for businesses operating across different regions. Nonetheless, it requires careful consideration of
the company's needs and available talent pool to ensure success (Newton, 2019).
4. Regio centric Approach
The Geocentric Approach is a method of international recruitment where multinational
companies seek out the most suitable employee for a job regardless of their nationality. On the
other hand, the Regiocentric Approach relies on managers from various countries within the
geographic regions of a business. These managers operate relatively independently in their
region and are not usually transferred to the company's headquarters. The Regiocentric Approach
is flexible and can adapt to company and product strategies. It involves hiring natives of a region
if regional expertise is required, while parent-country nationals can be brought in if product
knowledge is crucial. However, the Regiocentric Approach has a disadvantage in that regional
managers may not fully understand the perspectives of headquarters managers. Also, the
headquarters may not employ enough managers with international experience. To illustrate the
Regiocentric Approach, a US parent company may use US natives at its headquarters while
natives of European countries are hired to manage its Italian subsidiary. This approach allows for
a blend of local and international perspectives, which can be advantageous for businesses
operating across different regions. Nonetheless, it requires careful consideration of the
company's needs and available talent pool to ensure success (Tratkowska, 2019).
Part B
Leadership
Different cultures have varying levels of power distance, which affects how leadership is
conducted. For example, in Belarus, power distance is extremely high, with a score of 95 on
Hofstede's cultural dimensions index (Hofstede Insights, 2022). This means that leaders need to
exert a significant amount of effort, and one-way communication systems are common practice.
Leaders have a high level of dominance and power over employees, who only conduct tasks
based on the leader's feedback.
In contrast, in a country like Australia, power distance is lower, and a two-way feedback-based
communication system is designed to assist the entire organizational system. This allows for a
more collaborative and participatory leadership style, where employees can provide feedback
and suggestions, and leaders can incorporate them into decision-making processes (Gigliotti et
al., 2019).
It is crucial for leaders to understand the cultural nuances of the countries they operate in and
adjust their leadership style accordingly. Failure to do so can lead to ineffective communication,
misunderstandings, and decreased productivity. Therefore, leaders should take the time to learn
about the cultural values and beliefs of their employees to develop a leadership style that is
appropriate for the cultural context
In contrast to traditional organizations, global virtual teams comprise individuals from diverse
cultural backgrounds, which complicates leadership and makes it challenging to sustain over
time. In such circumstances, flexible and adaptable leadership styles are attractive choices. While
Hofstede's cultural dimensions continue to be relevant, they can be challenging to apply in some
contexts. For example, in a virtual team meeting comprising individuals from various countries,
a UK-based multinational organization like Unilever cannot practice leadership solely based on
UK culture (Cross Walker, 2020).
As the global workforce becomes more diverse, the effectiveness of cultural-based leadership
styles is being challenged. A different school of thought suggests that the hybrid work culture
that emerged due to COVID-19 is teaching global leaders to adapt to various global teams in
diverse settings, rather than instilling a globally acceptable culture within the workplace.
Therefore, it is essential for global leaders to understand the unique cultural differences of their
team members and adapt their leadership style to suit the situation. This requires an open-minded
and adaptable approach to leadership, which takes into account the unique cultural nuances of
the team members. By doing so, global leaders can build strong relationships with their team
members and create a positive work environment that fosters productivity and innovation
(Gfrerer et al., 2021).
According to CEO Alan Jope, Unilever's leaders must possess transformational and adaptive
leadership styles to identify the core synergy among existing cultures by highlighting both the
similarities and differences in cultures to be part of the global Unilever.
From a different perspective, leaders can influence their own culture while leading global virtual
teams. For example, the UK has a low level of uncertainty avoidance, while Japan has a high
level of uncertainty avoidance, scoring 92 on Hofstede's cultural dimensions. This indicates that
entrepreneurs from the UK are more likely to embrace change and innovation, as they are more
open to new ideas involving uncertainties, while entrepreneurs from Japan are more hesitant to
take significant risks to gain more efficiency (Cameron and Green, 2019).
A leader's risk-avoidant mentality or willingness to embrace change can be influenced by their
national culture. This may affect their leadership style and decision-making when leading a
global virtual team. Therefore, it is important for leaders to be aware of their own cultural biases
and those of their team members in order to effectively manage a culturally diverse team.
Motivation
In order for an organization to effectively manage its human resources, it is crucial to have a
strong focus on motivating employees. This involves implementing various strategies that can
help to direct employees' enthusiasm and initiative towards achieving company goals while
ensuring a high level of productivity and quality of work. However, it is important to recognize
that the ways in which individuals can be motivated can differ depending on the culture they
come from (Ibrahim and Salleh, 2019).
According to Hofstede's cultural dimensions theory, certain factors can influence employee
motivation in different cultures. For example, employees in individualistic cultures may be
motivated by opportunities for personal growth and autonomy, while those in collectivistic
cultures may be more inspired by achieving collective goals and receiving group support.
Additionally, employees with a high power distance from their superiors may be motivated by
collaboration and connections with peers, while those with a low power distance may not require
as much social support. Finally, individuals with a high degree of uncertainty avoidance may be
more concerned about job security than those with a lower degree of uncertainty avoidance
(Martinez, Peattiea nd Vazquez-Brust, 2021).
In summary, when creating a human resource management plan, it is important to consider
cultural differences and tailor motivational strategies to fit the needs of employees from diverse
backgrounds. By doing so, organizations can ensure that their employees are engaged and
motivated to work towards the company's goals, which can ultimately lead to greater success and
productivity.
In various cultures, the acceptance of traditional social and role responsibilities differs between
men and women. However, in more feminine cultures, the lines between roles and
responsibilities are less clear, and flexible role divisions and work networks are more prevalent,
which energizes workers. Studies suggest that employees prioritize their current salary and
treatment conditions over the long-term career path offered by the firm. Failing to consider
cultural components at work may lead to unanticipated repercussions, such as the failure of an
incentive system. For instance, in Unilever Thailand, an individual value reward plan could have
a negative impact due to the country's strong tradition of social cooperation (Muchiri, Shahid and
Ayoko, 2019).
Different cultures also prioritize work differently. For example, Thais tend to spend more time
playing than working during a typical working day, while Chinese workers work hard and take
their employment seriously, even when they are tired. Japanese employees are not as concerned
with the social and professional prestige of their jobs as they are with their family and
community. In Middle Eastern cultures, religious beliefs have a profound impact on every aspect
of life, including work, and Unilever must pay special attention to any element that may
demotivate its employee base for religious reasons.
Improving oneself through labor is a significant aspect of Islamic working philosophy, and
maintaining a good work-life balance is seen as a virtue in Muslim communities. The ability to
participate in social and familial activities is closely correlated with one's occupation in Arab
societies, and a person's contribution to their family is valued. Understanding the relevance of
labor within cultural contexts is crucial when considering the impact of incentives and evaluating
employee productivity (Thakhati, le Roux and Davis, 2019).
Communication
Effective communication is crucial for the success of businesses as it helps in resolving
interpersonal and decisional complexities in an appropriate manner. However, culture can greatly
influence communication. In low-context cultures, such as that of Unilever Germany, the speaker
is responsible for conveying the intended meaning of the message regardless of the situational
context. The significance of the message is defined by its content rather than its delivery method.
Therefore, it is essential to ensure that the information being communicated is clear and precise.
Low-context communicators value professionalism, efficiency, and logical linearity in their
communication, and while they may not require extensive prior knowledge, they expect the
communication to be precise and accurate (Cameron and Green, 2019).
It is evident that effective communication in modern society requires messages that are perceived
as impartial, competent, and effective. In high-context societies, communication relies heavily on
nonverbal signals, and as a result, high-context communicators value everything that occurs in
the context of the explicit message, including interpersonal connections, nonverbal cues, and
social backgrounds. Nonverbal signals, such as gestures, voice tone, and facial expressions, may
convey various meanings and messages across different cultures. Eye contact, which is highly
valued in North America, may have a different interpretation or be deemed impolite in high-
context cultures. The significance of what is said is determined not only by what is said but also
by how it is said and the social environment in which it is expressed (Ibrahim and Salleh, 2019).
In high-context cultures, where the collective is more important than the individual, language
helps to smooth and balance social connections. Being too direct may be perceived as
disrespectful in high-context societies, and as a result, discussions tend to be more subtle rather
than addressing critical issues head-on. When communicating with cultures that place a high
value on context, it is important to use polite strategies that demonstrate concern for the
audience. In a dynamic workplace where a diverse group of individuals collaborates, successful
communication is essential for organizational achievement. However, failing to comprehend low
vs high context may result in organizational conflict and disagreement. Whether it is a global
virtual team or a team working in the same office, understanding the implications of high vs low
context cultures is crucial for effective communication (Gigliotti et al., 2019).
Negotiation
Negotiations can be approached using either distributive or integrative techniques. Distributive
bargaining is characterized by a "win-lose" or "self-gain" mindset where parties seek to
maximize their gains while limiting losses. This approach involves gaining an advantage over the
other party in order to secure as many resources as possible. In contrast, integrative negotiation
aims to achieve mutual benefits and "win-win" outcomes by optimizing the use of existing
resources and balancing both parties' interests. Cultural factors can also influence negotiation
styles, as demonstrated by the findings of Trompenaar’s cultural framework. In affective
cultures, individuals are more likely to express themselves freely and openly display their
feelings, while in neutral cultures, individuals are more likely to conceal their emotions.
Therefore, when negotiating with new suppliers, Unilever's managers should be aware of their
preferred negotiation approach, whether distributive or integrative and take into account any
cultural differences that may impact the negotiation process (Gigliotti et al., 2019).
Unilever's management recognizes the importance of comprehending the cultural background of
their suppliers, as it aids them in making well-informed decisions about their negotiation
strategies. When dealing with culturally neutral suppliers, Unilever is aware that they may
exhibit a win-lose mentality, akin to a distributive bargaining style, but are open to accepting a
win-win outcome if they cannot convince Unilever during the initial negotiation. Unilever can
leverage this knowledge to their advantage by adjusting their negotiation approach, knowing that
culturally neutral suppliers may mask their true motives. This allows Unilever to tailor their
negotiation style to the situation and increase their chances of success (Jane, 2021).
Decision-Making
When it comes to making decisions, culture has a significant impact. In countries with high
collectivism and low power distance, decisions are often made through group discussions. An
example of this is Unilever New Zealand, which permanently shifted to a four-day workweek
after consulting with regional offices throughout the country. Despite New Zealand's national
culture demonstrating a high level of individualism, this workplace decision shows that
organizational culture can sometimes deviate from the national culture. One explanation for this
could be the limitations of Hofstede's cultural framework. The Hofstede model has been
criticized for its flaws, including its reliance on inconclusive research and a limited sample size
from a single organization. As a result, the model's validity and precision are poor, making it
unreliable for accurately describing cultural differences (Cross Walker, 2020).
Conclusion
This article provides an in-depth examination of the cultural implications that have various real-
world effects. To begin with, the study outlines a comprehensive cross-cultural framework,
which includes the Hofstede and Trompenaars framework and its various constituents in a
coherent manner. The research delves into the significance of national culture in the context of
international management and explores how this information can aid managers in better
managing global virtual teams, particularly in an international setting. Additionally, the article
discusses the disparities in leadership, motivation, communication, negotiation, and decision-
making among Global Virtual Team (GVT) members.
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