essay on cross cultural management

116 Cross-Cultural Management Essay Topic Ideas & Examples

🏆 best cross-cultural management topic ideas & essay examples, 👍 good essay topics on cross-cultural management, 🎓 most interesting cross-cultural management topics to write about, 📌 simple & easy cross-cultural management essay titles, ❓ questions on cross cultural management.

• Coca-Cola Company’s Cross-Cultural Management The company also possesses a vision, which is a guiding factor to the units of the business, which is achieved by laying out whatever they need to achieve in order to sustain their progress and […]
• Importance of Cross-Cultural Management in International Business As earlier pointed out, a vital requirement for success in an international business setup is the ability of managers to comprehend and appreciate other cultures across the world. We will write a custom essay specifically for you by our professional experts 808 writers online Learn More
• Managing Cultural Diversity in the Hospitality Industry This is common due to confusion and the inability to interact with others in the society. This refers to the level of integration in the society.
• Cross Cultural Management and International Business In this essay we will focus on the role of culture in international business situations and also the strategies and frameworks that are appropriate in cross-cultural management.
• Multicultural Education Benefits: Functioning in a Pluralistic and Egalitarian Society Students are thus required to acquire knowledge and skills necessary to function effectively in a pluralistic and egalitarian society. The teacher is thus able to enhance socialization and transmission of culture while providing academic skills […]
• Cross-Cultural Management Major Theories The study of different languages helps one in comprehending what people have in common and also assist in comprehending the diversity that underlies languages, methods of creating and organizing knowledge and the several different realities […]
• Cross Cultural Management Strategies: Brazil vs. America The failures in cross-cultural management mainly arise from the weaknesses of managers to consider the impact of cultural differences in their management practices.
• Complexity of Managing Multinational Corporations: MNC Culture The implementation should also be in such a way that it is fashioned to be in line with the organizational culture of the company in context as a whole that has been established over the […]
• Cross-Cultural Management: Decision-Making It is commonly accepted that the decision-making process includes the definition of the problem, the consideration of the decision criteria and their evaluation, and the selection of the most appropriate decision from the variety of […]
• Cross-Cultural Management in Multinational Corporations The Culture is the foundation of a society that assists to build up the attitude and state of mind of the populace of that society and it also directs the intelligence and manipulate the behaviour […]
• Cross-Cultural Management in Emirates Airline The next instance occurred at the facilitation of a workshop; the leader pushed Naziha in front to facilitate the workshop program.
• Cross-Cultural Management: Business With Customers From Different Cultural Backgrounds Managers who are contracted to work in foreign work stations need to be willing to learn new ideas and attitudes which will help them adapt to their new locations.
• Culture and Global Business According to Mohammad Bakhtazmai in the article, “A study of Globalization in International Business” is of the observation that the world is undergoing massive globalization; international trade has facilitated exchange of goods and services across […]
• IKEA’s and Home Depot’s Cross-Cultural Management The CEO of IKEA Jesper Brodin attributes the company’s success to the unity of its team, so IKEA’s management strategy emphasizes the importance of employee satisfaction and a comfortable working environment.
• Cross-Cultural Management of Mott MacDonald Group The differences in the people’s cultural backgrounds in the workplace have advantages and disadvantages to the business and individuals. The majority of the natives work as junior employees as they lack the technical knowhow to […]
• Social and Cultural Diversity and Stereotypes This is the misperception that one is in control of the situation and the clients’ role is just to listen and take instructions.
• The Importance of Cross-Cultural Management In terms of academic value, it can be stated that both studies are grounded on different theoretical frameworks, where Black and Porter selected the differences between the practical and the cross-cultural school of thought as […]
• Cross-Cultural Management and HRM in Walmart Specifically, this study will explore the CCM approach that Walmart has deployed in the U.S.setting and compare it to the CCM framework used in the German context.
• Theories of Managing Cross-Cultural Teams The central problem addressed in the presented study is the use of a particular leadership model to create a corporate culture that would help to align cross-cultural teams’ work and achieve better results.
• Japanese and American Cross-Cultural Management The Sony chief executive has exemplified the benefits of approaching cross-cultural management in a way that the best aspects of both models are incorporated for the results to be effective in terms of organizational processes […]
• Cross-Cultural Management of a Restaurant Team PLI is not limited to China, according to a cross-cultural analysis of Chinese and German teams, even if it is manifested to a greater extent in the Chinese setting.
• The Peculiarities of Cross-Cultural Practices in International Management From the very beginning the author substantiates the choice of the topic and explains the importance of the issue being discussed: he intends to prove that the overall process of globalization observed nowadays in the […]
• Cross-Cultural Management: Globalization and Localization In localisation policy, along with the transplantation of production process in host country, the products are meant to meet the local needs of the community.
• The Importance of Post-Acquisition Cross-Cultural Integration Management In foreign mergers, this lack of attention to the whole strategy may be detrimental to the outcome of the project. The central hypothesis of this analysis is that the results of these organisations’ managing efforts […]
• Hofstede’s Cross-Cultural Management in Workplace According to Onsrud, cultures with a low power distance score are reminiscent of higher cooperative relationships between the superiors and the subordinates.
• Diversity and Cross-Cultural Management The bail-out strategy that the UK administration adopted in the face of the global financial crisis that began off in 2007 underline the change acceptance as well as the resilience that is synonymous with the […]
• Cross-Cultural Communication Management: Copts in Egypt Most of the Copts pursue the doctrines of the “Coptic Orthodox Church”. This paper analyses the interaction between the Copts in Egypt and the Muslim majority.
• Cross-Cultural Management: Providing Motivation and Leadership What are the roles of a manager as a leader in his/her ability to provide motivation and leadership across cultural borders? They also need to consider cultural influences of the decisions that they make.
• Cross-Cultural Approach: Negotiating for Business in China The social-cultural dimension of the Chinese negotiation process is based on the Ping-Pong model developed by Ghauri and has two dimensions; stages of the Chinese business negotiation process, and dimensions of Chinese business culture.
• Concept of International Assignment in Cross-Cultural Management After a year or so, the person is rather used to the new setting and is aware of the local customs and traditions. A manager must adjust to people in a shortest amount of time […]
• GLOBE Initiative: How Cross-Cultural Management Has Affected Airbus? Cultural Dimensions In order to identify the key cross-cultural issues faced by the Airbus consortium and connect it to the GLOBE project’s clusters of business cultures, it is imperative to have an overview of the […]
• Management of Cross-Cultural Diversity in Proxy Restaurant In addition, the management should realize the importance of systems thinking as well as complex theory in effective management of cross-cultural diversity.
• Management and Leadership Across Culture Cross culture management is one of the underlying forces to the achievement of the uniformity of culture in the face of a multiculturally operating environment, thus the foundation of organizational culture.
• Cross-Cultural Management: Japanese Culture and Its Workplace Practices This is one of the strategies that can be adopted. This is one of the pitfalls that should be avoided.
• Working With Multicultural Project Teams The main purpose of the paper is thus to address the question of balancing the two seemingly paradoxical factors in order to tap into the benefits of working with multicultural project teams.
• Understanding Cross-Cultural Management Interaction Strengths The method of research that is used in the paper is quite comprehensive in the sense that it borrows from both literature and a deeper exploration of a theoretical concept to develop a cross-cultural […]
• Analysis of Article: “Where Is Culture in Cross Cultural Research?” Strengths One of the major strengths of the article is that it highlights the importance of HR managers incorporating the Hofstede model in their cross cultural management practices.
• Effective Cross-Cultural Management in Saudi Arabia and China The first and most important factor to consider in implementing strategies, ‘in the Chinese market’, is the organizational structure. This is in contrast to protectionist Chinese culture notorious for seclusion from the rest of the […]
• Cultural Dynamics in Assessing Global Markets However, while domestic marketing poses myriad of challenges to marketers; international marketing is even more challenging owing to the fact that foreign marketers have to override numerous economic, social, legal, political and cultural barriers which […]
• Diversity Training of a Multicultural Workforce Diversity training of a multicultural workforce in the military is one of invaluable ways used to build a strong military workforce.
• Culture and Logistics at the Home Furniture Ltd. There is a need to formulate a strategy to solve these problems and the best way to start is to realise that culture is at the heart of the matter.A.
• Cross Cultural Issues for a New Entrant in a New Market In the country, there is freedom to worship and thus this will not be a great problem to the company. This is likely to act to the disadvantage of the company since marketing in such […]
• Developing the Cultural Diversity at the Workplace The managers have to present clients with a diverse representation in the firm thus the need to ensure sharing of common grounds between the client and the server.
• Multicultural Education: Concepts and Strategies Multicultural education is different from other forms of education in the sense that apart from being based on theoretical concepts also entrenches the use of practical strategies to ensure that students are in a position […]
• Cultural Awareness and Diversity in the Workplace Employees can do research about the culture of their work mates during their free time in order to enhance their cultural knowledge and understanding.
• The Value of Cultural Diversity in Different Social Settings In particular, the brief summaries have given the clear picture of Multiculturalism in the United States in relation to the origin.
• Self Esteem and Culture in a Learning Environment Reflectively, the conceptual idea of this treatise is an in-depth analysis of the aspects of social environment and objective and their influence on quality of learning, self-evaluation, goal setting, decision making, and inclusive education as […]
• Leadership and Cultural Differences For this reason, there is need for the organization to strike a balance between the local customs and cultural attributes and those of the primary culture of the organization’s headquarters, in this case, USA.
• Learning Multicultural Skills on the Corporate World There is therefore the need for everyone to learn and be able to manage multicultural skills that would enable proper understanding and promote healthy relations with all parties involved in a certain field of work.
• Cross-Cultural Implications or Interactions Before starting a joint venture several things run through the minds of the company managers and among them the following are vital to consider: Map the players and the process In any deal it is […]
• Managing Cross-Cultural Staff: Norms for Groups Within the Organization Cultural Miscommunications causes wastage of time in the process of trying to understand what the other person is saying, the end result is low morale on workers hence the business fails to capitalize on the […]
• Between Ambitions and Ambivalences: Cross-Cultural Diversity Management
• Cross-Cultural Management: Introducing Local Food in Foreign Markets
• Cross-Cultural Management: Practices McDonald’s
• Bribery and Gift Giving in Cross-Cultural Management
• The Role of Religion in Cross-Cultural Management
• Six Perspectives in Cross-Cultural Management
• “Dual-Factor Motivation” Theory in Cross-Cultural Management
• Cross-Cultural Management in Pepsi: Struggle Experienced Between the Societal and Organizational Culture
• Dealing with Singapore and Ghana: Cross-Cultural Management
• Communication Styles in Cross-Cultural Management: Direct or Indirect, Contextual or Personal
• Power Distance in Cross-Cultural Management: People Understand “Their Place” in the System
• Cross-Cultural Co-Management: Government and Aboriginal Peoples
• Cross-Cultural Management for Entrepreneurship and Branding
• Role of Time Focus in Cross-Cultural Management: Monochronic and Polychronic
• Cross-Cultural Human Resources Management: Promote Open Communication
• Cross-Cultural Management in NGO Capacity Building
• The Danger of Sophisticated Stereotyping in Cross-Cultural Management: All Women Are Bad Drivers
• Cross-Cultural Management: Solution for Riordan Manufacturing
• The Main Thoughts in “International and Cross-Cultural Management” by Gavin Jack and Robert Westwood
• Cross-Cultural Management in Negotiation: Work to Reach an Agreement of Mutual Benefit
• Four Rules in Cross-Cultural Management Strategy
• Cross-Cultural Management for Tanzania: Conservative and Hierarchical
• The Foundations of Cross-Cultural Management
• Cross-Cultural Management in German: Unfriendly, Reserved, and Unapproachable
• Cultural and Personality Assessment Tools in Cross-Cultural Management
• Cross-Cultural Management in Rakuten: A Global Language Policy
• Socio-Economic Theories of Cross-Cultural Management
• A Blend of the Good Parts of East and West: Cross-Cultural Management in Alibaba
• Cross-Cultural Management in Nike: Corporate Social Responsibility
• Negotiating With Americans in Cross-Cultural Management: Be Tolerate and Remember About Personal Space
• Cross-Cultural Management: Working Effectively Across Different Time Zones
• Cross-Cultural Management between China and Australia
• Organisational Structure and Cross-Cultural Management in Icici Bank
• Cross-Cultural Management in Apple: Apology for Warranty Policies in China
• Business Ethics and Cross-Cultural Management: Propose Mostly Adapted to Situations Decisions of Problems
• Cross-Cultural Management Challenges and How to Face Them
• Western Values in Cross-Cultural Management: The Roots of Freedom, Equality, and Individualism
• Cross-Cultural Management: Top Management’s Transformational Leader Behaviors
• Funakawa About Cross-Cultural Management: Transcending Cultural Differences at a Global Situation
• Cross-Cultural Management in USA and India
• What Are the Strategies for Cross-Cultural Management?
• Is Cross-Cultural Management Important for Business?
• What Are the Dimensions of Cross-Cultural Management?
• How Does Globalization Help Cross-Cultural Management?
• What Is the Goal of Cross-Cultural Management?
• Why Is Cross-Cultural Management So Challenging?
• What Are the Main Challenges of a Cross-Cultural Team Management?
• Does Globalization Impact Cross-Cultural Management?
• What Are the Main Cross-Cultural Management Issues?
• Why Is Cross-Cultural Management Critical in International Business Management?
• Is Culture Important in Global Cross-Cultural Management?
• What Are the Cross-Cultural Management Theories?
• What Are the Different Types of Cross-Cultural Management Approach?
• Are There Most Effective Strategies for a Successful Cross-Cultural Management?
• What Companies Are Involved in Global Cross-Cultural Management?
• What Is the Main Advantage of Cross-Cultural Management?
• How to Improve Cross-Cultural Management Skills?
• Why Is Cross-Cultural Management Important for Managers?
• What Is the Concept of Cross-Cultural Management?
• How Is Cross-Cultural Management Changing in the 21st Century?
• What Is the Importance of Cross-Cultural Management in the Workplace?
• How Does Cross-Cultural Management Affect Negotiations?
• What Are the Key Benefits of Cross-Cultural Management?
• Are There Cross-Cultural Management Tools to Operate the Development of Foreign Economic Activities?
• Which Special Skills Are Most Important for Cross-Cultural Management?
• Chicago (A-D)
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129 Cross-Cultural Management Essay Topic Ideas & Examples

Inside This Article

Cross-cultural management is an essential aspect of today's globalized world. As companies expand their operations internationally, it becomes crucial to understand and address the challenges and opportunities presented by different cultures. Writing an essay on cross-cultural management can be a fascinating exploration of various themes and concepts. To help you get started, here are 129 topic ideas and examples for your cross-cultural management essay.

• The impact of cultural diversity on organizational performance.
• Effective strategies for managing a culturally diverse workforce.
• Cultural dimensions and their influence on management styles.
• The challenges of managing virtual multicultural teams.
• Cultural intelligence as a critical skill for managers in a globalized world.
• The role of language barriers in cross-cultural management.
• Cultural differences in negotiation styles and their implications for international business.
• The influence of national culture on leadership styles.
• The impact of culture on employee motivation and engagement.
• Cultural differences in ethical decision-making.
• Cross-cultural communication challenges in multinational companies.
• The role of cultural intelligence in expatriate success.
• Cultural differences in work-life balance expectations.
• The impact of cultural values on organizational change processes.
• Managing cultural conflicts in a diverse workforce.
• The effect of cultural stereotypes on cross-cultural management.
• Cultural differences in feedback and performance evaluation.
• The role of cultural awareness in international business negotiations.
• The challenges of managing cross-cultural virtual teams during a crisis.
• Cultural differences in time management and punctuality expectations.
• The role of cultural diversity in fostering innovation and creativity.
• The impact of cultural differences on project management success.
• The role of cross-cultural training in preparing managers for international assignments.
• Cultural differences in decision-making processes.
• The influence of culture on conflict resolution strategies.
• Cultural differences in employee motivation and rewards systems.
• The impact of cultural values on organizational structure and hierarchy.
• Cross-cultural leadership challenges in multicultural organizations.
• The role of cultural adaptation in expatriate success.
• Cultural differences in risk-taking behaviors in business.
• The influence of national culture on job satisfaction and employee engagement.
• The challenges of managing cross-cultural mergers and acquisitions.
• Cultural differences in communication styles and their impact on teamwork.
• Cross-cultural management strategies for improving cross-border collaboration.
• The role of culture in shaping organizational values and ethics.
• Cultural differences in decision-making processes in crisis situations.
• The impact of cultural diversity on conflict management in teams.
• Cross-cultural differences in the perception of time and deadlines.
• Cultural considerations in managing global supply chains.
• The role of cultural intelligence in managing diversity and inclusion.
• Cultural differences in negotiation tactics and strategies.
• The impact of cultural values on corporate social responsibility practices.
• Cross-cultural challenges in talent management and recruitment.
• The role of cultural adaptation in international marketing strategies.
• Cultural differences in communication preferences in virtual teams.
• The influence of culture on employee engagement and retention.
• Cross-cultural management challenges in international joint ventures.
• The role of cultural integration in post-merger success.
• Cultural differences in conflict resolution in international business.
• The impact of cultural values on organizational innovation processes.
• Cross-cultural challenges in knowledge sharing and transfer.
• The role of cultural intelligence in managing multicultural customer relationships.
• Cultural differences in decision-making processes in multicultural teams.
• The influence of culture on organizational learning and knowledge management.
• Cross-cultural management strategies for promoting work-life balance.
• The role of cultural diversity in enhancing customer satisfaction.
• Cultural differences in leadership development and succession planning.
• The impact of cultural values on employee well-being and mental health.
• Cross-cultural challenges in cross-border outsourcing and offshoring.
• The role of cultural adaptation in international supply chain management.
• Cultural differences in employee performance appraisal processes.
• The influence of culture on organizational communication strategies.
• Cross-cultural management strategies for promoting diversity and inclusion.
• The role of cultural intelligence in managing multicultural sales teams.
• Cultural differences in decision-making processes in global marketing.
• The impact of cultural values on corporate governance practices.
• Cross-cultural challenges in knowledge creation and innovation.
• The role of cultural adaptation in international advertising campaigns.
• Cultural differences in conflict management in multicultural teams.
• The influence of culture on organizational creativity and problem-solving.
• Cross-cultural management strategies for promoting employee engagement.
• The role of cultural diversity in enhancing organizational performance.
• Cultural differences in leadership styles in multinational companies.
• The impact of cultural values on employee motivation and job satisfaction.
• Cross-cultural challenges in cross-border strategic alliances.
• The role of cultural adaptation in international human resource management.
• Cultural differences in employee training and development practices.
• The influence of culture on organizational decision-making processes.
• Cross-cultural management strategies for promoting cultural exchange and learning.
• The role of cultural intelligence in managing multicultural marketing campaigns.
• Cultural differences in negotiation strategies in international sales.
• The impact of cultural values on corporate branding and identity.
• Cross-cultural challenges in managing global R&D teams.
• The role of cultural adaptation in international customer service.
• Cultural differences in employee performance management processes.
• The influence of culture on organizational communication networks.
• Cross-cultural management strategies for promoting intercultural competence.
• The role of cultural diversity in enhancing organizational creativity.
• Cultural differences in leadership development practices in multinational companies.
• The impact of cultural values on employee engagement and job satisfaction.
• Cross-cultural challenges in cross-border technology transfer.
• The role of cultural adaptation in international talent acquisition.
• Cultural differences in employee feedback and coaching practices.
• The influence of culture on organizational decision-making styles.
• Cross-cultural management strategies for promoting cross-cultural collaboration.
• The role of cultural intelligence in managing multicultural product development.
• Cultural differences in negotiation styles in international business.
• The impact of cultural values on corporate social media strategies.
• Cross-cultural challenges in managing global supply chain logistics.
• The role of cultural adaptation in international organizational behavior.
• Cultural differences in employee performance evaluation processes.
• The influence of culture on organizational communication technologies.
• Cross-cultural management strategies for promoting cultural awareness and sensitivity.
• The role of cultural diversity in enhancing organizational innovation.
• Cultural differences in leadership succession planning in multinational companies.
• The impact of cultural values on employee motivation and organizational commitment.
• Cross-cultural challenges in cross-border intellectual property management.
• The role of cultural adaptation in international performance management.
• Cultural differences in employee career development practices.
• The influence of culture on organizational decision-making structures.
• Cross-cultural management strategies for promoting knowledge sharing and collaboration.
• The role of cultural intelligence in managing multicultural advertising campaigns.
• Cultural differences in negotiation tactics in international business.
• The impact of cultural values on corporate sustainability practices.
• Cross-cultural challenges in managing global innovation networks.
• The role of cultural adaptation in international leadership development.
• Cultural differences in employee talent management practices.
• The influence of culture on organizational communication processes.
• Cross-cultural management strategies for promoting cultural integration and synergy.
• The role of cultural diversity in enhancing organizational learning.
• Cultural differences in leadership styles in multicultural organizations.
• The impact of cultural values on employee motivation and job performance.
• Cross-cultural challenges in cross-border marketing research.
• The role of cultural adaptation in international employee engagement.
• Cultural differences in employee performance feedback processes.
• The influence of culture on organizational decision-making cultures.
• Cross-cultural management strategies for promoting cultural competence and agility.
• The role of cultural intelligence in managing multicultural service delivery.
• Cultural differences in negotiation approaches in international business.

These cross-cultural management essay topic ideas provide a wide range of possibilities for exploration and analysis. Choose a topic that interests you the most and dive into the fascinating world of understanding and managing cultural diversity in today's globalized business environment.

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Essay on Cross Culture Management

Cultures vary from one community to another because of difference in backgrounds and environment . As a leader, one must understand that there are no leaders; therefore, one must be willing to follow those eager to lead them effectively; this develops a culture of understanding between them. This discussion will focus on examining Hofstede’s six dimensions and, as a leader, why it is essential to recognize and understand how the relationship between leaders and followers may be affected by each of these dimensions.

Power distance: This cultural dimension views how people in a society understand the differences in authority and power. High power distance people are likely to assume that inequalities in power are acceptable because of the perception that there are people who are powerful than others and are in charge of leadership. Contrary to the low power distance societies where people are considered equal. For example, most countries have adopted constitutions that treat people with equality whereby every citizen enjoys the privileges of their countries, hence encouraging a close relationship between the leaders and followers.

Individualism versus collectivism: it considers society as divided into social groups ,which the obligations to take and depend on other groups. This dimension aims on attaining personal goals and is recognized and rewarded for their achievements, while collectivism places great importance on the purposes and well-being of the group ( Aparicio et al., 2016). This dimension affects the relationship between leaders and followers because some followers believe that everyone should get the same reward. This brings differences that make them lose interest. For example, employees are recruitment and promotions are based on particular groups which contains the majority especially in low individualism countries.

Uncertainty avoidance: The dimension explains how people in these societies are comfortable with the risk, unpredictable and uncertain situations; this is a culture that results due to work environments in such countries and tries to provide certainty and stability through explicit rules and instructions

Masculinity versus femininity: The dimension considers society’s preference for the achievement attitude towards behavior and sexuality ( Bissessar, 2018). Leaders now have the responsibility to ensure equality between men women and ensure that gender parities are well resolved to chaos in society.

Leaders focus on choosing between long and short-term orientation; the importance of this dimension is that a leader can choose the one that will deliver quick results and the other that will achieve long-term success to their followers.

Indulgence versus restraint, this dimension considers the extent and the ability to fulfill its desires to the members of society. Indulgence allows people in society to have freedom when acquiring their needs in society while restraint controls and regulates the needs of people through norms (Tajaddini &, Gholipour, 2017).

In conclusion, these dimensions explain the impact of culture has influenced and impacted on peoples work and lifestyles, and also shows what leaders show to their followers. It also enables people to understand the cultural aspects, learn and adapt to those cultural conditions.

Aparicio, M., Bacao, F., & Oliveira, T. (2016). Cultural impacts on e-learning systems’ success.  The Internet and Higher Education ,  31 , 58-70.

Bissessar, C. (2018). An application of Hofstede’s cultural dimension among female educational leaders.  Education sciences ,  8 (2), 77.

Tajaddini, R., & Gholipour, H. F. (2017). National culture and default on mortgages.  International Review of Finance ,  17 (1), 107-133.

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Cross Cultural Management

1. introduction.

In the current global economic environment, firms frequently use mergers and acquisitions (M&A) to broaden their reach and increase their competitiveness (Shah, 2019, p.136). In corporate transactions known as mergers and acquisitions (M&A), two or more firms combine their operations to accomplish strategic business objectives. An acquisition happens when one company buys another and takes over its assets, obligations, and activities, whereas a merger happens when two or more businesses combine to form a new entity (Bruner and Rynbrandt, 2017, p.22). M&A can be used to expand into new areas, increase market share, acquire new skills or technology, or gain economies of scale (Appelbaum et al., 2017, p.14). Nevertheless, for mergers and acquisitions to be successful, more factors than just money need to be considered. Understanding the cultural differences between the involved firms is also essential. Cross-cultural management offers a framework for handling and utilizing cultural differences in a corporate context, where it comes into play (Rebner and Yeganeh, 2019, p.12). People’s communication styles, decision-making processes, and perspectives on business possibilities and risks are all influenced by culture. This essay evaluates the academic literature on cross-cultural management and investigates how it may be applied to create successful M&A strategies for businesses with various cultural origins. The final goal of the essay is to offer actionable recommendations that companies can utilize to handle the difficulties of cross-cultural M&A deals.

2. Cross Cultural management

Cross-cultural management involves the study and practice of managing cultural differences between individuals and groups in a business context. It encompasses various aspects of managing cultural diversity, such as communication, negotiation, decision-making, leadership, and organizational culture (Rebner and Yeganeh, 2019, p. 14). Cross-cultural management recognizes that different cultures have different values, beliefs, attitudes, and behaviours that influence how people interact and work together. Cross-cultural management aims to develop strategies that leverage cultural differences to achieve common business goals while minimizing cultural misunderstandings and conflicts (Cao et al., 2019).

2.1 Communication

Communication is critical in any M&A transaction, and cultural differences can cause communication issues that might derail the process. Understanding how cultural differences affect communication styles, preferences, and norms is fundamental to cross-cultural communication (Mikami and Bird, 2022). Hall’s high-context and low-context communication styles are a significant foundation for understanding the influence of cross-cultural communication in M&A. According to Hall & Hall (2001, p.200), nonverbal clues, shared experiences, and social ties are heavily used to transmit meaning in high-context communication. It is widespread in collectivist cultures where connections and social cohesion are valued, according to Hofstede (Li et al., 2018, p.82). Low-context communication, on the other hand, is more widespread in individualistic cultures and depends mainly on words to communicate meaning. Different languages can also lead to misunderstandings and breakdowns in communication (Alizadeh Afrouzi, 2021. p.3). These discrepancies can make it challenging for employees in M&A organizations to collaborate and share knowledge. As a result, the collaboration fails.

Thus, in mergers and acquisitions, it may be necessary to provide language training to key employees to improve communication and facilitate integration. They can also consider the assimilation, separation, and integration strategies to ensure cross-cultural communication (Shah, 2019, p.136). Communication in an assimilation strategy requires a common language and cultural norms that both companies can agree on. In contrast, communication in a separation strategy requires respecting cultural differences and creating channels of communication that allow for effective collaboration (Saleh and Moalla, 2020, p.62). However, one of the most approaches in cross-cultural communication is the integration strategy, which involves finding common ground where both companies can communicate effectively while respecting their cultures (Saleh and Moalla, 2020, p.62).

However, this approach requires significant effort and may be challenging to implement effectively. For example, in 2011, the merger between French carmaker Renault and Japanese automaker Nissan faced challenges due to cultural differences. The companies had different communication styles, with Renault favoring a top-down approach and Nissan preferring a more collaborative approach (Li et al., 2018, p.82). Additionally, Nissan strongly emphasized teamwork and consensus-building, while Renault was more hierarchical. These cultural differences led to conflicts and a lack of trust between the two companies, resulting in difficulties in decision-making and implementation (Mikami and Bird, 2022).

2.2 Organisational Structure

Cross-cultural management of organizational culture is vital for effective mergers and acquisitions. The organisational structure affects how power is distributed, and decisions are made (Williamson, 2000, p.598). One approach after the merger or acquisition is to adopt a hybrid organizational structure that blends the best practices of both companies. For example, when Daimler-Benz acquired Chrysler in the late 1990s, they established a matrix structure that combined elements of both companies’ organizational structures (Begley and Donnelly, 2011). Alternatively, research suggests that a decentralized organizational structure is more effective in cross-cultural mergers and acquisitions than a centralized one (Appelbaum et al., 2017). A decentralized structure allows for greater autonomy and flexibility in decision-making, which is particularly important in cultural differences and power distance (Rodríguez-Sánchez et al., 2019, p.645).

Another approach is implementing a decentralized structure allowing local autonomy while maintaining centralized control over crucial decisions. This can help to balance the competing demands of global standardization and local adaptation (Cuypers et al., 2017). For example, when French oil company Total acquired the American oil company Fina, they established a decentralized structure that gave local managers significant autonomy while maintaining centralized control over critical decisions (Cuypers et al., 2017). However, according to Hofstede, power distance can challenge M&A. For instance, in some cultures, such as those in Asia, power distance is high, and hierarchies are respected. In other cultures, such as those in the United States, power distance is low, and there is a more egalitarian approach to management (Finkelstein and Cooper, eds., 2020, p.12). Thus, using the EPRG model, the new organization must adopt the ethnocentric approach and implement an organisational structure that aligns with the local culture after the merger or acquisition.

2.3 Negotiation

Furthermore, cross-cultural management of negotiation strategies is crucial to ensure successful mergers or acquisitions for firms in varying cultural backgrounds. According to Saleh and Moalla (2020, p.60), in cross-cultural negotiations, the negotiating styles, behaviors, and attitudes of the parties involved can significantly impact the negotiation outcome. Cultural differences often influence these factors, making it challenging to find common ground and reach a mutually beneficial agreement. For instance, different cultures may have different negotiating styles, such as objective, subjective, or axiomatic (Saleh and Moalla, 2020, p.66). The objective style is focused on facts and figures, the subjective style is more relationship-oriented, and the axiomatic style is based on principles and rules (Ahmed et al., 2022).

Moreover, negotiating behaviour can also vary significantly across cultures. Some cultures may prioritize defence, while others may prefer an attacking approach. Similarly, attitudes toward trust, deception, pressure, and concessions vary widely. In addition to verbal and nonverbal behaviour, attitudes toward time and scheduling can also be crucial in cross-cultural negotiations (Lee, 2018, 2996). Some cultures may place a high value on punctuality and strict schedule adherence, while others may be more flexible and prioritize relationships over time management. To ensure successful mergers or acquisitions across different cultural backgrounds, conducting cross-cultural due diligence on negotiation styles is crucial to understanding the cultural differences that may impact the negotiation process and taking steps to address them proactively. For example, building trust, addressing cultural biases, and adapting negotiation strategies to the cultural context can help to overcome these challenges (Finkelstein. and Cooper eds., 2020). However, failing to manage and develop more culturally appropriate negotiation approaches will result in unsuccessful negotiations and, consequently, failed mergers or acquisitions. For instance, the unsuccessful 1998 merger attempt between Daimler-Benz and Chrysler illustrates the necessity of cross-cultural negotiation management. Finding common ground was difficult because the two organizations’ organizational cultures and negotiating techniques were dissimilar (Appelbaum et al., 2017). Language and communication problems made the negotiation process even more complicated, resulting in miscommunications and the dissolution of the merger.

2.4 Organisational cultures

In addition, organisational cultures are very influential in successful mergers or acquisitions for firms from varying cultural backgrounds. According to Schein’s (2009) organizational culture model, culture may be divided into three levels: artifacts and behaviors, values and beliefs, and fundamental presumptions. Each level influences how people feel, think, and act inside a business and can significantly impact how well a merger or acquisition goes (Amenta and Ramsey, 2010, p.21). As a result, businesses must consider how well the various enterprises engaged in the transaction get along culturally. Hence, a thorough grasp of each organization’s culture at all three levels is necessary to successfully integrate various corporate cultures during mergers or acquisitions.

Additionally, the EPRG model provides a framework for firms to devise strategies for mergers or acquisitions with consideration of organizational culture. Firms can use the EPRG model to determine the level of cultural adaptation necessary for a successful transaction (Barmeyer et al., 2021). For example, suppose the organizations involved significantly differ in cultural background. In that case, firms may need to adopt an ethnocentric approach, where the acquiring firm imposes its own culture on the acquired firm (Cao et al., 2019). Alternatively, a geocentric approach may be more appropriate, where the firms work together to develop a new, shared culture that incorporates aspects of both organizations.

However, failing to consider organizational culture in mergers or acquisitions can lead to negative implications such as conflicts, low employee morale, and decreased productivity. Such a failure due to organizational culture was observed in the merger between AOL and Time Warner in 2000 (Kumar and Amboy, 2019). The two companies came from vastly different organizational cultures, with AOL being a relatively young and dynamic tech company and Time Warner being a more traditional media conglomerate. The merger was initially heralded as a significant success, but the two companies struggled to integrate their cultures and work together effectively. AOL employees reportedly found Time Warner’s culture bureaucratic and slow-moving, while Time Warner employees found AOL’s culture chaotic and disorganized. The cultural clashes between the two companies ultimately led to the failure of the merger, with Time Warner spinning off AOL as a separate entity just a few years later (Vedd and Liu, 2017, p.87). This example underscores the importance of considering organizational culture in mergers and acquisitions and highlights the potential negative consequences of failing to do so.

2.5 Leadership

Finally, leadership is a vital aspect of cross-cultural management that can impact effective leadership and management. Effective leadership is vital in such situations to develop a comprehensive understanding of each culture’s values, beliefs, and practices and to devise strategies that promote cooperation and collaboration between the new partnerships between culturally different countries (Khan et al., 2021, p.67). Using Hofstede’s power distance dimension, cross-cultural management principle dictates that for effective mergers or acquisitions, the emergent organization should incorporate a leadership structure and styles that align with the local culture. Thus, the polycentric approach in leadership is considered more appropriate. For instance, in high power distance cultures like many Asian countries, people tend to respect and obey authority figures without question (Khan et al., 2021, p.67). In contrast, people expect to be treated equally regardless of their position in low power distance cultures like the United States. So, leaders must be aware of these cultural differences and modify their leadership style to guarantee the new collaboration is effective. For instance, while managing staff from a high-power distance culture, a leader from a low-power distance culture may need to change their strategy. They may need to be more directive and provide clear instructions, whereas a more collaborative approach may better suit a low power distance culture (Shah, B., 2019, p.13).

However, if cross-cultural considerations in leadership are ignored during mergers or acquisitions, it can have a negative impact on the success of the process. For example, cultural clashes can lead to misunderstandings, lack of trust, and decreased employee motivation. Moreover, the failure to address cultural differences can result in lost opportunities for synergy and collaboration (Mahajan, 2021, p.55).

3.0 Conclusion

In today’s international business environment, mergers and acquisitions (M&A) have emerged as a common strategy for businesses to increase their reach and boost their competitiveness. The success of M&A demands a thorough awareness of the cultural variations between the organizations involved in addition to financial factors. Businesses functioning in a globalized economy must adopt effective cross-cultural management methods to operate in various markets and work settings. Cross-cultural management provides a framework for managing and harnessing cultural differences in a business context. The essay has examined several cross-cultural management issues, including joint ventures, organizational culture, communication, and negotiation.

4.0 Recommendations

To navigate the complexities of cross-cultural M&A transactions, businesses should consider practical recommendations such as providing language training (Khan et al., 2021, p.67). They should also consider implementing a hybrid or decentralized organizational structure and adopting negotiation strategies that respect cultural differences. It is also vital to conduct cultural assessments and establish clear communication protocols to overcome cultural differences and ensure the merger’s success. The companies should also consider adopting a polycentric approach to managing the new firms from the merger or the acquisition to avoid cultural shock (Li et al., 2018, p.89). Businesses that recognize and leverage cultural differences in M&A transactions are more likely to achieve common business goals while minimizing cultural misunderstandings and conflicts (Cao et al., 2019).

Reference list

Ahmed, B., Xie, H., Ali, Z., Ahmad, I., and Guo, M., 2022. Internationalization of emerging economies: Empirical investigation of cross-border mergers & acquisitions and greenfield investment by Chinese firms.  Journal of Innovation & Knowledge ,  7 (3), p.100200. https://www.sciencedirect.com/science/article/pii/S2444569X22000403

Alizadeh Afrouzi, O., 2021. Humanitarian behavior across high-/low-context cultures: a comparative analysis between Switzerland and Colombia.  Journal of International Humanitarian Action ,  6 (1), pp.1-10. https://jhumanitarianaction.springeropen.com/articles/10.1186/s41018-020-00088-y

Amenta, E. and Ramsey, K.M., 2010. Institutional theory.  Handbook of Politics: State and society in global perspective , pp.15-39.

Appelbaum, S.H., Karelis, C., Le Henaff, A. and McLaughlin, B., 2017. Resistance to change in the case of mergers and acquisitions: Part 2.  Industrial and Commercial Training . https://www.emerald.com/insight/content/doi/10.1108/ICT-05-2016-0033/full/html?casa_token=YcB9mA0g53wAAAAA:e45WqUmOgFj1p_99vDD1nWQPMgd_NMQTphkFxsq3EExWzlUkgT9XsS8kTMuDZcjywkdIOFOYUGrS-fCoZPH9mrnz2g0szruykl45JJ_lUgjfgs5SR2yfdQ

Barmeyer, C., Bausch, M. and Mayrhofer, U., 2021.  Constructive intercultural management: Integrating cultural differences successfully . Edward Elgar Publishing. https://books.google.com/books?hl=en&lr=&id=dGIzEAAAQBAJ&oi=fnd&pg=PR1&dq=,+the+EPRG+model+mergers+and+acquisition&ots=Hgc4ztKLlJ&sig=RFWAxCUvKWBTOopKfCt0ePZPgtA

Begley, J. and Donnelly, T., 2011. The DaimlerChrysler Mitsubishi merger: a study in failure.  International journal of automotive technology and management ,  11 (1), pp.36-48. https://www.inderscienceonline.com/doi/abs/10.1504/IJATM.2011.03812

Bruner, R.F. and Rynbrandt, C., 2017. Exercises in the Strategy of Post-Merger Integration. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1279290

Cao, J., Ellis, K.M. and Li, M., 2019. Inside the board room: the influence of nationality and cultural diversity on cross-border merger and acquisition outcomes.  Review of Quantitative Finance and Accounting ,  53 , pp.1031-1068. https://link.springer.com/article/10.1007/s11156-018-0774-x

Cuypers, I.R., Cuypers, Y. and Martin, X., 2017. When the target may know better: Effects of experience and information asymmetries on value from mergers and acquisitions.  Strategic Management Journal ,  38 (3), pp.609-625. https://onlinelibrary.wiley.com/doi/abs/10.1002/smj.2502

Finkelstein, S. and Cooper, C.L. eds., 2020.  Advances in mergers and acquisitions . Emerald Publishing Limited. https://www.emerald.com/insight/content/doi/10.1108/S1479-361X20200000019001/full/html

Hall, E. T., & Hall, M. R. (2001). Key concepts: Underlying structures of culture.  International HRM: Managing diversity in the workplace ,  24 . http://www.csun.edu/~sm60012/Intercultural/Key%20Concepts%20-%20Hall%20and%20Hall%20-%201.pdf

Hills, M.D., 2002. Kluckhohn and Strodtbeck’s values orientation theory.  Online readings in psychology and culture ,  4 (4), pp.2307-0919. https://www.academia.edu/download/53550462/Kluckhohn_and_Strodtbecks_Values_Orientation_Theory_1_.pdf

Khan, Z., Rao-Nicholson, R., Akhtar, P. and He, S., 2021. Cross-border mergers and acquisitions of emerging economies’ multinational enterprises—The mediating role of socialization integration mechanisms for successful integration.  Human Resource Management Review ,  31 (3), p.100578. https://www.sciencedirect.com/science/article/pii/S105348221630095X

Kumar, B.R., Kumar and Amboy, 2019.  Wealth Creation in the World’s Largest Mergers and Acquisitions . Springer International Publishing. https://link.springer.com/content/pdf/10.1007/978-3-030-02363-8.pdf

Lee, K.H., 2018. Cross‐border mergers and acquisitions amid political uncertainty: A bargaining perspective.  Strategic Management Journal ,  39 (11), pp.2992-3005. https://onlinelibrary.wiley.com/doi/abs/10.1002/smj.2944?casa_token=Jx2qt79TIbsAAAAA:e5jveXKf965RZJcigRhUf6xO9J5fHKBghPcy7Tt-mIepiP6PZwl6zbefVJa4hZJbqMocINLEnyplQ6Bz-g

Li, L., Duan, Y., He, Y. and Chan, K.C., 2018. Linguistic distance and mergers and acquisitions: Evidence from China.  Pacific-Basin Finance Journal ,  49 , pp.81-102. https://www.sciencedirect.com/science/article/pii/S0927538X17305139

Mahajan, D., 2021. The Repercussions of Mergers and Acquisitions on Short Term Performance of Acquiring Companies.  Law Essentials J. ,  2 , p.55. https://heinonline.org/hol-cgi-bin/get_pdf.cgi?handle=hein.journals/lwesj2&section=38

Mikami, K. and Bird, A., 2022. Opportunism and trust in cross-national lateral collaboration: the Renault-Nissan Alliance and a theory of equity-trust.  Journal of World Business ,  57 (3), p.101286. https://www.sciencedirect.com/science/article/pii/S1090951621000973

Rebner, S. and Yeganeh, B., 2019. Mindful mergers & acquisitions.  OD Practitioner ,  51 (1), pp.11-16. https://www.everidian.com/s/OD-Review-vol51-no1-Rebner-Yeganeh-fbm3.pdf

Rodríguez-Sánchez, J.L., Ortiz-de-Urbina-Criado, M. and Mora-Valentín, E.M., 2019. Thinking about people in mergers and acquisitions processes.  International Journal of Manpower ,  40 (4), pp.643-657. https://www.emerald.com/insight/content/doi/10.1108/IJM-05-2018-0143

Saleh, Y. and Moalla, E., 2020. Autonomy or Abandonment?: An Analysis of Authority Figures in the Context of International Post-Acquisition Integration. In  Cross-cultural Challenges in International Management  (pp. 60-73). Routledge. https://www.taylorfrancis.com/chapters/edit/10.4324/9781003025337-5/autonomy-abandonment-yasmine-saleh-emna-moalla

Shah, B., 2019. Impact of Culture on Mergers and Acquisitions: A Literature Survey.  Pacific Business Review International ,  11 (7), pp.135-138. http://www.pbr.co.in/2019/2019_month/Jan/13.pdf

Vedd, R. and Liu, D., 2017. The Effect of Cultural Integration on Financial Performance Post-Merger.  Global Journal of Business Research ,  11 (1), pp.71-84. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3025746

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Cross Cultural Management Essay Samples

Type of paper: Essay

Topic: Organization , World , Business , Behavior , Management , Culture , Development , Model

Words: 1900

Published: 02/26/2020

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Introduction

According to Kreiser, Marino, Dickson, & Weaver (2010, p.959), international businesses have existed for centuries and the world is entering into an era of unprecedented global economic activity. Economists predict growing prosperity of economically developing countries. The current business era is about worldwide production and distribution, as well as multinational mergers, acquisitions, and global strategic alliances. Globalization in the business environment is contributed by technological and economic factors, and has led to increase in the number of cross cultural interactions in the workplace (Kalliny, Cruthirds, & Minor 2006, p.123). Culture creates relational patterns. Relational patterns affect international cross cultural management through creating styles of interaction between people, their decision making process, and human relationships in business matters (Jamali & Sidani 2008, p.330). Managers and organizations need to understand the potential of culture in influencing interpersonal interactions in organizational settings to establish effective management (Ulrich, Zenger, & Smallwood 1999, p.74). Cross cultural management explains in the existence of different behavior of people across the world. Cross cultural management is described as an organizational behavior within different countries and cultures. It seeks to improve understanding and interaction between workers, managers, clients, suppliers and alliance partners from different cultures and countries across the world. Researchers, such as Geert Hofstede and Schwartz have made advanced studies on the values of people in different countries and cultures (Hsu, Woodside, & Marshall 2013, p.684). They developed cross cultural management to help managers establish global strategies that can help their organizations survive the new era of increased competition and need for financial diversification. However, cross cultural management remains a challenge for most managers and organizations (Judge 2001, p.64).

Cultural Variations

Fischer and Poortinga (2012, p. 164) identified that the study of human behavior in cultural context has evolved rapidly and led to the inauguration of several influential models enlightening on cultural differences. Different models describe measures of cultural values. An understanding of cultural value systems can help identify similarities and differences between people from different cultures. Research by Hoppe (2004, p.76) shows that a person’s values can impact corporate strategy as they develop to managerial values that have the potential of influencing forms of organizational behavior. This is evident by management practices, such as training and development, employee recruitment and selection processes, policy decisions, and performance review and appraisal. Researchers argue that cultural differences can enhance people and promote organizational productivity. This has made understanding of cultural differences important for management and development of opportunities. Examples of models that focus on cultural differences includes Schwartz value types and Hofstede’s cultural dimension (Pohlman & Gardiner 2000, p.52).

Hofstede’s Model

Hofstede (1993, p.82) restricts culture to national borders. He compared more than 50 national cultures and three regions in his influential and comprehensive study. Such as approach led to the conception of culture in three categories that include language, time, and place. Hofstede developed five dimensions to differentiate cultures. Individualism vs. Collectivism-This dimension explains why people in a culture view themselves as individuals or as members of a group. In an individualistic culture, people are likely to focus on independence, privacy, and individual achievements. On the other hand, in collectivism cultures, people tend to prefer being part of a group to take care and protect each other in exchange for loyalty and devotion (Hoppe 2004, p.77). Masculinity vs. femininity- This dimension describes whether success and the assertive acquisition of money and power are highly valued or whether people do focus on quality of life, such as good relationships with co-workers. Hofstede identifies that in most cultures across the world adopted masculine culture where men are viewed as best suited for power and are ideal for achieving high performance (Jackson 2011, p.548). Power distance- It reflects the extent to which people in a culture can deal with inequalities. Hofstede identifies that some cultures promote unequal distribution of power, prestige, and wealth (Johnson & Golembiewski 1992, p.76). Uncertainty avoidance-It describes the extent to which people in a culture feel vulnerable to uncertain and unknown situations. This feeling is expressed through nervous stress and a high need for predictability, written, and unwritten rules. Long term vs. Short term orientation-This dimension includes such values as thrift, persistence, having a sense of shame, and ordering relationships. It refers to dedicated, motivated, responsible, and educated individuals with a sense of commitment and organizational identity and loyalty.

Schwartz Model of Value Types

According to Schwartz (1994, p.20), values are expressions of different motivational goals. Schwartz postulates the existence of ten types of values namely power, achievements, hedoism, stimulation, self-direction, universalism, benevolence, tradition, conformity, and security. His value model provides a clear idea of how values can be related to each other and their existence in every culture. In a circular structure, values expressing similar motivational goals are positioned close to each other in the circle. Values that are expressions of incompatible motivational goals are positioned at a greater distance from each other (Schwartz & Bilsky 1990, p.879). Schwartz (1994, p.23) further postulates a reduction of the ten types of values to two bipolar dimensions named openness to change vs. conservation and self-enhancement vs. self-transcendence. Openness to change emphasizes on independent thought and action and endorsement of change while conservation emphasizes on security, conformity, and tradition. Self-enhancement emphasizes on power and achievement while self-transcendence emphasizes on universalism and benevolence. Schwartz Model assesses dimensions of the 10 value types across nations and the relations between value types and culture (Schwartz & Bilsky 1987, p.552).

Criticisms of Hofstede’s Model

Hofstede’s model neglects both multicultural territory and cross border cultures. It assumes that, on a given administrative territory, all members of a nation have a shared understanding of values. His models do not grasp the richness of culture hence neglects other cultural dimensions that can be extremely insightful. Hofstede’s model should be used carefully and selectively as its dimensions are not systematic and should only be applied only when pertinent.

Stereotyping

Osland and Bird (2000, p. 65) point out that most of training on cross culture occurs within the framework of bipolar cultural dimensions. Adopting a sophisticated stereotyping is helpful to a certain extent, but this does not convey the complexity found within cultures. People working across cultures are in most cases surprised by cultural paradoxes that do not match what they have learned. People need to be aware of sources of cultural paradoxes and idea of value trumping. Certain cultural values take precedent over others. The context of culture is complex and this means that immense consideration is necessary to understand it fully. A model of cultural sense making can be useful to interpret cultural paradoxes. The model links schemas to contexts (Jacob 2000, p.78).

Implications

Cross cultural management expands the scope of domestic management to encompass international and multicultural dynamics (Gopalan & Stahl 1998, p.30). The evolution of the business environment has developed a new understanding of international organizational behavior and management of global human resource systems. A corporation must develop global strategies to survive in the new economic era (James 1994, p.132). The focus on management approaches and global strategies from the angle of people and culture allows business managers to become aware and understand the influence of national and ethnic cultures on organizational functioning. Global competition requires cross cultural organizations to become highly innovative and productive. Predictors of stress perceptions in an organizational setting have been widespread, and this establishes the need to value organizational justice. This calls for managers and organizations to take cross cultural management seriously (Dbaibo, Harb, & Van Meurs 2010, p.710).

Cultural differences have been found to improve decision making of work groups and top management teams. It appears to provide managers and organizations with alternative views that can challenge assumptions, promote exploration of issues, and create quality decisions through strengthening relationships and commitment. However, Schwartz and Hofstede propose skillful use of cultural differences that can contribute to strong relationships and effective collaboration. Their models help managers and organizations understand the attitude and behavior of employees, partners, suppliers, and clients. This helps create improved performance in a competitive business environment.

List of References

Dbaibo, D, Harb, C, & Van Meurs, N 2010, 'Values and justice as predictors of perceived stress in lebanese organizational settings', Applied Psychology: An International Review, 59, 4, pp. 701-720. Fischer, R, & Poortinga, Y 2012, 'Are cultural values the same as the values of individuals? An examination of similarities in personal, social and cultural value structures', International Journal Of Cross Cultural Management, 12, 2, pp. 157-170. Gopalan, S, & Stahl, A 1998, 'Application of American management theories and practices to the Indian business environment:..', American Business Review, 16, 2, p. 30. Hofstede, G 1993, 'Cultural constraints in management theories', Executive (19389779), 7, 1, pp. 81-94. Hoppe, MH 2004, 'An interview with Geert Hofstede', Academy Of Management Executive, 18, 1, pp. 75-79. Hsu, S, Woodside, A, & Marshall, R 2013, 'Critical tests of multiple theories of cultures’ consequences: comparing the usefulness of models by Hofstede, Inglehart and Baker, Schwartz, Steenkamp, as well as GDP and distance for explaining overseas tourism behavior', Journal Of Travel Research, 52, 6, pp. 679-704. Jackson, T 2011, 'From cultural values to cross-cultural interfaces: Hofstede goes to Africa', Journal Of Organizational Change Management, 24, 4, pp. 532-558. Jacob, M 2000, 'Executive Commentaries', Academy Of Management Executive, 14, 1, pp. 78-79. Jamali, D, & Sidani, Y 2008, 'Classical vs. Modern Managerial CSR Perspectives: Insights from Lebanese Context and Cross-Cultural Implications', Business & Society Review (00453609), 113, 3, pp. 329-346. James, K 1994, 'Social identity, work stress, and minority workers' health', Job stress in a changing workforce: Investigating gender, diversity, and family issues pp. 127-145. Johnson, K, & Golembiewski, R 1992, 'National culture in organization development: a conceptual and empirical analysis', International Journal of Human Resource Management, 3, 1, pp. 71-84. Judge, WQ 2001, 'Is a leader's character culture-bound or culture-free? An empirical comparison of the character traits of American and Taiwanese CEOs',Journal Of Leadership Studies, 8, 2, pp. 63-78. Kalliny, M, Cruthirds, K, & Minor, M 2006, 'Differences between American, Egyptian and Lebanese Humor Styles: Implications for International Management',International Journal Of Cross Cultural Management, 6, 1, pp. 121-134. Kreiser, P, Marino, L, Dickson, P, & Weaver, M 2010, 'Cultural Influences on Entrepreneurial Orientation: The Impact of National Culture on Risk Taking and Proactiveness in SMEs', Entrepreneurship: Theory & Practice, 34, 5, pp. 959-983. Osland, J, & Bird, A 2000, 'Beyond sophisticated stereotyping: Cultural sensemaking in context', Academy Of Management Executive, 14, 1, pp. 65-77. Pohlman, R, & Gardiner, G 2000, Value driven management: how to create and maximize value over time for organizational success, New York: AMACOM. Schwartz, S, & Bilsky, W 1987, 'Toward A Universal Psychological Structure of Human Values', Journal Of Personality & Social Psychology, 53, 3, pp. 550-562. Schwartz, S, & Bilsky, W 1990, 'Toward a theory of the universal content and structure of values: Extensions and cross-cultural replications', Journal Of Personality And Social Psychology, 58, 5, pp. 878-891. Schwartz, SH 1994, 'Are There Universal Aspects in the Structure and Contents of Human Values?', Journal Of Social Issues, 50, 4, pp. 19-45. Ulrich, D, Zenger, J, & Smallwood, W 1999, Results-Based Leadership, Boston: Harvard Business School Press.

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Practice Cross-Cultural Management

Introduction.

Does cross-cultural management require increasing cultural awareness? This question has been repeatedly raised in various fields of management – be it marketing, sales, human resources, or information technology. Culture is a very dynamic concept and therefore, poses serious challenge in terms of understanding and effectively applying management practices. For instance, a salesperson may do his homework on South East Asian culture before a sales meeting however finds that the South East Asian counterparts were flouting a traditional taboo (Neuborne 2003). With increasing presence of multinational companies (MNCs) the challenge to face, cultural differences have become acute (Tjosvold & Leong 2003).

Cultural intelligence has become an important factor for managers to become successful (Earley & Mosakowski 2004). It may be defined as “an outsider’s seemingly natural ability to interpret someone’s unfamiliar and ambiguous gestures the way that person’s compatriots would.” (2004, p. 140) With increasing globalization and inter-cultural interaction in business, the need to develop cultural intelligence has become a necessary factor. Therefore, organizational culture and understanding of the cultures apart from their own is a necessity, which can be developed by individual managers. For instance, the Chinese cultural traits in Chinese organizations have been undergoing a drastic shift due to the influence of globalization (Javidan & Lynton. 2005). Therefore, we see that rapid pace of globalization have had an increasing impact on organizations. This has changed the culture within the organizations. However, has culture become a boon or bane to managers? How understanding culture helps MNCs to manage cross-cultural teams? Are theoretically developed cultural theories of any help to the managers?

The relevance of management theories developed in one culture and their effectiveness in another had been questioned by scholars (Hofstede 1980; Hofstede 1983; Hofstede 1993). Academia has debated ardently that management theories are constraint by culture and its dimensions. Questions related to homogeneity of their theory applied in case of cross-cultural management practices have been raised. Thus, it is argued that management theories are constrained to the culture where it is being applied. Therefore, a relatively reverse question that comes to mind is related to the practicality of the cultural theories in helping cross-cultural management.

Aim and objective

With the growth of MNCs, it has become crucial to operate in different cultural settings. It is widely believed that managers belong to one culture require training in managing people from different cultures (Begley 2009). With increasing number of multinational companies and exchange of employees from different cultures, it has become imperative for managers and management to consider cultural differences. Therefore, the question of effectiveness of the plethora of cultural theories that literature provides has been researched for effectiveness and practicality. The increase in cross-cultural management teams increases the necessity to implement cultural theories. Thus, the necessity arises to see if they are helpful to management teams in cross-cultural settings. This paper undertakes this particular study.

Cultural seasoning of all management practices has become important in today’s global environment (HR Magazine 2008). Therefore, organizational culture has become a highly accepted theory with intuitive appeal for practitioners, academicians, and policy makers. However, there exists little agreement about the conceptualization of culture (Jung et al. 2009). Elements of enigma and mystery mostly preside over the concept of organizational culture.

Previous study of literature related to organizational culture presents more than 100 dimensions of identifying differentiating cultural traits, which range from rituals to structures, satisfaction, warmth, etc. (Jung et al. 2009). Thus, there exist huge differences in the typologies of culture, its dimensions, defining characters, number of occurrences, and varied number of items. Therefore, the need to understand the practicability and effectiveness of these cultural theories for business is imperative.

This paper therefore, analyses cultural theories and the way they help or do not help in cross-cultural management environment. For simplicity we will consider one of the most used and debated cultural theories developed by Hofstede (Hofstede 1980; Hofstede 1981). The paper aims to see the relevance of the theory presented by Hofstede to describe differences in national culture and the way they may be utilised for cross-cultural management practices.

Significance of Research

Understanding the relevance of cultural theories in the field of management is due to the ever-increasing number of foreign direct investment (FDI). The flow of FDI globally has been increasing at an average rate of 7 percent from 2000 to 2008 (FDI.net 2009). The rate of growth of FDI has been increasing constantly since 2004. However, in 2008 there is negative growth owing to global recessions. However, in 2008, the worldwide value of FDI flow has been $1697353 million, which is an increase of 23 percent from the FDI flow in 2000. Therefore, the amount of FDI flow in the world has increased considerably indicating the growing interest of companies to spread their operations in foreign countries.

The evidence of internationalization has been steadily increasing. Increase of number of MNCs indicates increased need to handle multiculturalism within the organization, increased interaction between employee and managers from varying cultures. Thus, there is a need for companies to adopt a new strategy to handle this cross-cultural affair. Academic literature on culture and theories related to culture has been published in abundance in academic and professional journals. However, research in their effectiveness in a cross-cultural setting has been limited (Adler 1983).

Due to increased internationalization, practitioners have been keen to manage organizational culture and looking for ways and means to mould it according to organizations’ need (Jung et al. 2009). Therefore, there has evolved a plethora of instruments, which aimed at measuring culture. Given this huge collection of researches in the area, it is imperative to understand the practical applicability of the cultural theories that has become forth to practitioners. This paper aims to do so. However, due to limited scope, this paper is confined to the understanding of the cultural theory developed by Hofstede – the most used and cited of all cultural theories – and its practicability to managers.

Research Question

Culture is a constraint on business management and operations. With increasing MNCs, the need for cross-cultural management has increased and so has the number of theories to explain the cultural diversity and how to identify the differences. Thus, the obvious question that comes to mind is if these theories are successful in cross-cultural management. In order to know this, we have to understand that if an organizational theory successfully describes the culture of the organization and how are they interpreted by individual employees based on the theory. Therefore, the paper tries to answer and overall question that if the organization surveyed has a specific culture. If so, what can be deduced about the culture from the individual responses to the survey?

In order to understand this, we take two hypotheses:

Then the paper will try to ascertain the nature of the culture that is demonstrated through the results derived from the survey. Here we will see if the dimensions constructed by Hofstede holds true for the organization studies significantly or if there are any contradictory results. Hofstede suggested that by pooling the data derived from all the respondents irrespective of their nationality, it could be argued that certain amount of knowledge could be gained regarding the culture o the organization (Hofstede, Bond & Luk 1993). Statically multivariate technique could be used to understand the structure of the responses of the employees surveyed. Hence, we hypothesize that a general understanding of the organizational culture can be derived from the individual responses of the employees surveyed. Therefore, the question that arises is that if there exists a uniform organizational culture, devoid of any of the external effects on the construction of the same. In other words, is there an organization culture in the organization surveyed? What we can interpret about it from the individual responses we received through the survey? Therefore, the hypothesis that we take is that the individual responses will directly show the culture of the organization.

Hypothesis 1: The individual responses will indicate the organizational culture.

• Hypothesis 2: Nationality affects the perception regarding the four dimensions of culture devised by Hofstede.

Hypothesis 3: Organizational culture is not affected by age, sex, and level of employment of the employee.

Limitations.

The paper is limited in its analysis of the cultural theories. Due to paucity of time and resources, this paper is constrained to the analysis of Hofstede’s cultural theory only. Other theories are not considered in this study. Further, the data is analysed from the point of view of only one model due to paucity of time and resource. Further, the number of employees of surveyed was low too. This resulted in low scores in the reliability test for a few dimensions like power distance and masculinity.

The paper will first relate to the relevant literature related to the cultural theories and cross cultural-management. Then the paper will provide a complete evolution of the research questions identifying the gaps in literature and then the methodology that is followed to conduct the research and justifications for the same. The fourth section will deal with the data presentation and analysis. Then a complete understanding of the research findings will be given. The discussion will show how the research has provided significant or non-significant results and the importance of them to the literature. Then the paper will identify areas where further research on the subject can be done followed by limitations of the research. In the end, a brief summarization of the whole paper is drawn followed by concluding implications.

Literature Review

This section will deal with a literature review of the researches conducted in the area of cross-cultural management and the influence of culture on them. Usually cross-cultural studies have been dominated by the debate of convergence and divergence i.e. whether the management system in such environments should be culture free or culture specific. Given this, we will try to see what literature has to reveal regarding the practical application and helpfulness of cultural theories to cross-cultural management. First, we will conduct a literature review of the management literature, which has dealt with the concept of culture. Second, we will present a complete theoretical background of Hofstede’s cultural theory, and third will review the researches, which were based on the aforementioned theory.

Culture and Management

The question of culture had started erupting in management literature since the seventies. Any discussion of culture should first try to define it. There are numerous definitions of culture. Hofstede defines culture as “A collective programming of the mind which distinguishes one group from another” (1980, p. 25). Therefore, according to Hofstede, culture is a construct of values, ritual, and symbols, which moulds individuals. As constructs these are acquired though birth, then is constructed through the formal training process of the society and environment.

As management theories are mostly made in western countries – namely United States – there has been a growing debate regarding the feasibility of these theories in context of say Japanese culture (Hofstede 1993). The literature explicitly shows that there is a connection between the two (Hofstede 1986): “popular management literature, management theory and organization sociology all contributed to and supported the renewed rise of the ‘culture’ concept.” (Hofstede, p. 254). However, there exists a huge amount of literature related to organizational culture and its implications for organizations (Jung et al. 2009).

Cross-Cultural Research

This section review articles related to cross cultural management and research on organizational culture and its effectiveness. Understanding of culture for cross-cultural management is important, as this will provide the basis for the development of the organizational culture where all the employees, irrespective of their origin, will feel comfortable in. Therefore, various researches in the area have been conducted in this area. Adler (1983) pointed out that cross-cultural management papers developed during the period of 1971 to 1980 in the US were mostly based on single culture. Only 1 percent was done in multi-cultural settings. Further, the decade did not show any rise in cross-cultural studies in the decade. However, this scenario changed drastically for since the 1980s there were plethora of researches done on cross-cultural settings of organizational operating in multiple cultures.

Denison, Haaland and Goelzer (2004) studied the research question if there are any “cross-cultural differences in the relationship between organizational culture and effectiveness?” (p. 103) They therefore inquired into the difference, if any, in the pattern found in North America and in rest of the world i.e. Asia. They derived the sample in steps. First was drawn from the previous research in this topic on North America. The second sample was derived from 2162 employees working in local grocery stores in seven different countries. They mailed out 6736 surveys worldwide, and the response rate was 42%. The countries considered for the survey were Australia, Japan, South Africa, Jamaica, Brazil, and Canada. They used the same item used from the Denison Organizational Survey. In total, it had 60 questions, all measures in 5-point Likert scale. They measured four main cultural traits – i.e. involvement, consistency, adaptability, and mission. It also asked questions about employee perception of store performance in terms of sales, profitability, quality of products, etc. All the measures were aggregated for organizational level analysis. The results were correlated for the nations and the response regarding the different dimensions measured. The result showed that all the countries had deferent scores for the dimensions used for the cross-cultural study.

Hofstede, Neuijen, Ohayv, and Sanders (1990) conducted study of organizational culture in a cross-cultural setting across 20 different cases. Their main hypothesise were:

• that organizational culture were measurable,
• their analysis of the organizational culture will issue a series of dimensions form the research which would be consistent with the various issues covered in organizational literature, and
• the third question is that organizational culture are predetermined by other forces which are predetermined which are nationality, industry, and task, which would be observable in the cultural dimension scores.

The study was conducted in Denmark and Netherlands. They did a questionnaire survey consisting of 135 pre-coded questions. The sampling was done randomly. Hofstede believed that the manifestation of culture is from the core values to superficial practices like rituals, heroes and symbols. There were 22 questions in the survey questionnaire, which measured work-goals, 28 for general belief, 54 contained questions related to perceived practices, and 4 demographic questions like sex, age group, seniority with the employer, and education level of the respondents. Hofstede used ANOVA to test his hypothesis and fund that the first hypothesis was supported i.e. individual responses of employees could describe the organizational culture. ANOVA applied on the various dimensions factored in by demographic questions were found to have no significant difference between cross national and organizational study. Hofstede et al. conducted a multivariate analysis based on correlation while determining the organizational culture in 20 cases studied. A multivariate factor analysis was done of the different dimensions, after deriving mean scores of the different items related to the dimensions. The research showed that individual perception of organizational culture was dependent on nationality. Other factors related to demographics were also related to the perception of culture. In conclusion, they conclude that any feature demonstrated as the dimensions of organizational culture cannot be termed as “good or bad” as they are relative to organizations.

Another study of cross-cultural fit and effectiveness of cultural theories was conducted by Aycan et al. (2000). This was a study of the socio-cultural factors affecting the internal culture of the organization, its work culture and HRM practices. The Model of Cultural Fit was studied on 1954 employees from different business organizational in 10 countries. The questionnaire was designed with 57-items, which measured the perception of managers of the socio-cultural dimensions, internal culture dimensions, and HRM practices. The scale used for the questionnaire was 6-point Likert scale. They conducted a moderate multiple regression at the individual level which demonstrated that managers who through their socio-cultural environment was “fatalistic” perceived their employees to be noncompliant. These managers were found not to be administering any kind of better HRM practices like job enrichment, or employee empowerment. On the other hand, the managers who were found to value loyalty were found to be performing good HRM practices. Thus the research answered the question how culture influenced organizational processes.

From the above study of the literature, it can be deduced that there is a link between the nationalities (Hofstede et al. 1990; Aycan et al. 2000; Denison, Haaland & Goelzer 2004), socio-cultural factors (Aycan et al. 2000), and demographic factors (Hofstede et al. 1990). However, the studies reviewed did not try to ascertain the practical application and the importance of culture to organizations. Is it a helpful concept? Following this review, the paper undertakes a thorough study of Hofstede’s model and the theoretical basis of understanding organizational culture as developed by Hofstede. It will also study the effectiveness of culture to organizational practices. In order to find the effectiveness of the theories to the organization will become a mammoth task. Therefore, the paper restricts itself to the practicability of the theory developed by Hofstede towards organizations. Hofstede’s theory has been selected because it is one of the most used and famous of all the cultural theories.

Hofstede’s Cultural Dimensions

Hofstede’s theories on culture had been used in the past three decades as the bible of organizational cultural studies and were used in various research paradigms like intercultural communications, international management, and organizational psychology in cross-cultural situations. Therefore, the application of the theory developed by Hofstede has been utilized in various organizational paradigms. This literature review will go through the theory presented by Hofstede, and then review other researches done to understand the practicality of the theory in current organizational settings. In the following section, we will discuss the theory of culture as presented by Hofstede.

Hofstede (2001) presented a space for studying international organizations in his books Culture’s Consequences . Hofstede advocated that there were unique features that made a culture distinct from the other such as value, beliefs, religion, language, and social organization (Hofstede 1993). He assumes that due to variation in the aforementioned characteristics, there arises the necessity to take distinct actions for different cultural settings. According to this assumption, culture implies a complex web of different alternatives, wherein one way of acting is better than the other (Kuchinke 1999). Therefore cultural theories, according to Hofstede assumes important role in understanding organizational conduct and human behaviour in different cultural settings.

Hofstede conducted a study through surveying a large multinational organization – IBM – and the data was analysed for forty countries. Hofstede, through the empirical research he conducted, concluded, “organizations are cultural-bounded” (1984, p. 252). Apart from this conclusion, he also found four different cultural dimensions prevalent in organizations viz. power distance, uncertainty avoidance, individualism, and masculinity, which he stressed, could help in analyzing organizational cultural values in different countries.

Hofstede collected his data primarily from a pre-existing database attitude survey of employees in IBM subsidies in 66 different countries from around 1963 to 1973. He analyzed the data collected through these surveys statically and found that there highly independent bi-polar dimensions of national culture and that out of those 66 countries where IBM was situated, 40 countries could be given independent scores on each of the four dimensions found (Hofstede 1983). The definition of these four dimensions has been defined as follows.

Power Distance

Hofstede described his theory of organizational culture through the four dimensions he identified. The first dimension was power distance. It is defined as “the extent to which the less powerful members of organizations and institutions (like the family) expect and accept that power is distributed unequally” (Hofstede 1991, p. 28). This dimension refers to the degree of inequality of power between superiors and subordinates. When the degree of power distance is high, there exists hierarchy in the organizational structure. Inversely, organizations with low power distance have a flatter structure. Therefore, in the case of high power distance, there exists a line demarcating the difference between managers and organizations, which is limited or absent in the case of low power distance. Thus, this deals directly with individual’s belief regarding the unequal distribution of power within the organization (Newman & Nollen 1996).

According to Hofstede (1983) power distance is related to the “degree of centralization of authority and the degree of autocratic leadership” (p. 81). He believes that an individual belonging to a national culture were power is distributed unequally will not be dissatisfied in an organization where there is hierarchy or autocracy. However, if the individual is from a society where power distance is low, then he or she will not be able to accustom to the autocratic organizational culture. Thus in order to lead to satisfaction of the individuals in organizations, the value systems of organizations and the individual’s society must be compatible.

Uncertainty avoidance

Uncertainty avoidance, which was the second dimension according to Hofstede, refers to the degree of tolerance of ambiguity of a culture. He defines uncertainty avoidance as “intolerance for uncertainty and ambiguity” (Hofstede 1991, p. 113). In case of high uncertainty organizations, there exist many written rules, which is a means of reducing uncertainty. In case of low uncertainty organizations, there exist fewer written rules and regulations. In high uncertainty avoidance cultures, changes and ambiguity are stressful.

Some researchers believe that this dimension was a residue of the time when Hofstede conducted the research i.e. 1960s and 1970s (Newman & Nollen 1996). It is said that this time was directly preceded by cold war in Europe, which may have led to a higher uncertainty avoidance scores for the European countries. Newman and Nollen (1996) believe that it may have affected the overall results of Hofstede’s study.

Individualism-Collectivism

The third dimension put forth by Hofstede was individualism and collectivism. It is defined as “the extent to which individuals are integrated into groups” (Hofstede 1991, p. 51). This refers to how individuals value themselves and the organization or the group they work in. In this case, Hofstede wants to determine whether individuals are more concerned about themselves or about the group/organization. Individuals with high individualism have a tendency towards gaining self-actualization and progress in their personal career goals. However, people with low individualism give greater precedence to organization or the group benefits than individual advantage. Individualist people are less likely to be comfortable working in team structures (Bochner & Hesketh 1994).

Masculinity

The fourth dimension is related to traces of masculinity or gender roles in organizations. Masculinity is defined by Hofstede as “assertiveness and competitiveness versus modesty and caring” (Hofstede 1991, pp. 82-3). When the degree of masculinity is high in organizations, gender differences becomes acute. In high masculinity environment, women have less opportunity to attain high positions and better pay. In case of low masculine culture, women get better opportunities to grow within the organization and assume an equitable position. Another way of interpreting it is through the organizational culture’s competitive orientation. Masculine cultures have a highly competitive orientation, while feminine cultures have a non-assertive and caring perspective (Elenkov 1998).

The value of the study according to many researchers is related to its relevance, thoroughness, and relative accurateness. When Hofstede first conducted this study, here were very few studied done in this field. Thus, Hofstede is considered the pioneer in the field of organizational culture study (Søndergaard 1994). Søndergaard (1994) conduct a bibliographical analysis of Hofstede’s study and found 61 replications. He argues that the only dimension, which could not pass the validity test, was individuality and states that Hofstede himself confirmed that cultural shift will occur. Further, the research conducted by Hofstede was conducted through proper theorization of systematically designed data collection.

Critique of Hofstede’s Study

Hofstede’s dimensions have been tested for effectiveness and reliability by researchers. Conceptually a connection was established between Hofstede’s cultural dimensions and variables identified in other cultural studies (Kruger & Roodt 2003). Hofstede and Bond (1984) found that uncertainty avoidance was not adequate to discriminate between cultures. Newman and Nollen (1996) faced the same results when they were studying the fit between management practices and culture. Kuchinke (1999) found that the culture measured by using Hofstede’s dimensions were not adequate to predict other variables. In an international study conducted by Spector, Cooper, and Sparks (2001) showed that the internal consistency of the 6737 respondents across 23 countries was poor and the factors that were derived were particularly different from the results of Hofstede’s results.

McSweeny (2002) provides critique of the model of culture presented by Hofstede. According to the study, crucial assumptions undertaken by Hofstede have been challenged. The article questions the possibility of a causal national culture. He states that Hofstede at times identifies differences between national cultures and sometimes the absolute culture. He believes that the study conducted by Hofstede is based on a number of “flawed assumptions” in measuring the “software of mind”. He also argues that the sampling was flawed with sparse and unevenly distributed sample. He, thus states:

“ Hofstede’s claims are excessive and unbalanced; excessive because they claim far more in terms of identifiable characteristics and consequences than is justified; unbalanced, because there is too great a desire to ‘prove’ his a priori convictions rather than evaluate the adequacy of his ‘findings’.” (McSweeney 2002, p. 112)

Thus, the author refutes Hofstede’s claim that data derived from a single MNC has the power to unravel the truth about national cultures.

Wu (2006) has extended the study of Hofstede’s four dimensions along with the Confucian cultural dimension proposed by him. Wu argues that that Hofstede’s data was collected 30 years back and required re-examination and validation. He studied the dimensions – power distance, uncertainty avoidance, masculinity-femininity, individualism-collectivism, and Confucian work dynamics – on western (USA) and eastern (Taiwan) cultural settings. The study was conducted through a questionnaire survey and used Dorfman and Howell’s (1988) questionnaire based on the theory of Hofstede because the questionnaire developed by Hofstede failed the reliability test during the pilot survey. The study conducted showed that there were differences in the findings of Hofstede’s (1984) study and that conducted by Wu in case of power distance, uncertainty avoidance, masculinity, as well as in collectivism dimension. Thus, Wu concludes that work related cultural values change over time, and are not static. He argues that with changes in political, social, and economic environment change, the cultural values change too.

Kruger and Roodt (2003) conducted a study of validation of the Value Survey Module-94 (VSM-94) developed by Hofstede. The questionnaire was evaluated for test construction purposes. The questionnaire consisted of 20 items. The survey was responded by 231 female managers in a large telecommunication company in South Africa. The result was tested for inter-correlation and factor analysis. The results showed low inter-correlations, which led to poor reliability of the results. The study concluded that VSM-94 was not suitable in South African context. They conclude:

“ The study has pointed out gaps in cross-cultural research and questionnaire construction and enough evidence is provided to oppose the use of the VSM-94 in scientific research. The lack of internal consistency also raises questions regarding the interpretation of existing results. Further research is required to validate the VSM-94 for use in South Africa by improving the existing questionnaire for future use. Careful consideration should be given to the construction of the items, including the item and response format. Caution should also be applied when analysing the research data. All instruments need to be validated by scrutinising the item inter-correlations.” (Kruger & Roodt 2003, p. 81)

The literature review shows that the cultural theory developed by Hofstede has its gaps in various areas like reliability of the items in the questionnaire to test the cultural dimensions, problem with the scale of used, failure to capture the individual perspective of culture within organizations, and too many assumptions which are found to be basically flawed. The arguments that have been posed against Hofstede’s theory are related to the relevance of the survey to measure cultural disparity (Schwartz 1999), the assumption of cultural homogeneity assumed by Hofstede (Jung et al. 2009), nations not being proper unit for measuring culture as there is no validity for the assumption that nations have a distinct culture (McSweeney 2002), absence of validity of dimensions (Newman & Nollen 1996), and one company approach (McSweeney 2002).

Even though there has been a large body of literature criticising the organizational culture theory developed by Hofstede, however, there are again supporters of Hofstede who feel that the theory impeccable. In this study, we will try to understand the implication of Hofstede’s theory to organizational settings where there are a group of employees belonging to different national cultures. However, Hofstede conducted his initial study on IBM and its subsidiaries in different cultures, but the study did not find anything related to organizational culture. However, preceding studies by Hofstede and others did not aim at understanding the effectiveness and practicability of the theory in a multinational company. This study will see if the organizational culture evolves to satisfy the cultural constructs of the individuals and if we can find the culture through the individual responses.

Culture is a constraint on business management and operations. With increasing MNCs, the need for cross-cultural management has increased and so has the number of theories to explain cultural diversity and the means to identify the differences. Thus, the obvious question that comes to mind is if these theories are successful in cross-cultural management.

Then the paper will try to ascertain the nature of the culture that is demonstrated through the results derived from the survey. Here we will see if the dimensions constructed by Hofstede holds true for the organization studies significantly or if there are any contradictory results. Hofstede suggested that by pooling the data derived from all the respondents irrespective of their nationality, it could be argued that certain amount of knowledge could be gained regarding the culture o the organization (Hofstede, Bond & Luk 1993). Statically multivariate technique could be used to understand the structure of the responses of the employees surveyed. Hence, we hypothesize that a general understanding of the organizational culture can be derived from the individual responses of the employees surveyed. Therefore, the question that arises is that if there exist a uniform organizational culture, devoid of any of the external effects on the construction of the same. In other words, is there an organization culture in the organization surveyed? What we can interpret about it from the individual responses we received through the survey? Therefore, the hypothesis that we take is that the individual responses will directly show the culture of the organization.

In case of cross-cultural management, there are different people from different nationalities work together. This creates a heterogeneous body of personal constructs, which dominates the values of the employees. If we assume that, every nation has a distinct culture (Hofstede 1984) then it can be expected that in case of cross-cultural management, people belonging to different nationalities will respond differently to the value-based questionnaire devised in this study. In other words, they will respond differently to the homogeneous culture of their organization and respond differently. This, obviously, will happen if Hofstede’s theory holds. In other words, there will be significant difference in the responses of the employees from different nationalities. Thus we hypothesize that there will be significant difference in the responses of the employees regarding the four dimensions of culture devised by Hofstede.

Hypothesis 2: Nationality shapes the employee perception regarding the four dimensions of culture devised by Hofstede.

The second question that arises is that if cultural theories (in this case Hofstede’s theory) effective in explaining the differences between cultures. In this regard, it must be understood that organizational culture aims at managing the culture, which is means of attaining control over the organization and the organizational units i.e. the employees (Hofstede 1986). Thus, the first research question that we will consider is that if the cultural theories i.e. Hofstede’s theory is applicable in measuring organizational culture through questionnaire survey method to the employees of the organization. Therefore the first question that arises is that if quantitative measurement of organizational culture possible as professed by Hofstede. Now if there exist an organizational culture following Hofstede’s theory it would be a uniform or homogeneous culture throughout the organization. In such a case there should not arise any significant difference in the culture when factored for age, sex, and level of employment. This is our hypothesis.

Research Design

The study was conducted by using a self-administered quantitative survey questionnaire. The theoretical base used for the study is the theory of Hofstede (1984). The questionnaires were based on the theoretical foundation of Hofstede’s dimensions.

The literature review showed that many factors were critiqued in the survey questionnaire designed by Hofstede. The results of some researchers showed that after following the questionnaire designed by Hofstede, a few of the dimensions failed to score adequately in the reliability test. Therefore, instead of the VSM questionnaire, another questionnaire designed by Dorfman and Howell (1988) were used. We use this because Hofstede’s measures were criticised by many due to its inadequacy and failure to provide a valid result using the scale and questionnaire (Dorfman & Howell 1988; Newman & Nollen 1996; Schwartz 1999; McSweeney 2002). For instance, the uncertainty index has been criticised for being contended of holding three varying constructs (Dorfman & Howell 1988). There were also issues related to the level of analysis. There were problems with scale used by Hofstede: “the scale only taps power distance at the national level; it cannot measure individual differences” (Dorfman & Howell 1988, p. 130).

Therefore, the cultural value items in the questionnaire devised by Hofstede were replaced by was replaced by the new measures of Hofstede devised by Dorfman & Howell (1988). This has been used by many cross-cultural studies (Fernandez et al. 1997; Wu 2006). Thus, the theoretical relevance of the two researches has been tried and tested by previous academic researches. Further, it has also been sated that Dorfman and Howell’s scale is psychometrically more reliable than Hofstede’s (Wu 2006).

The survey questionnaire designed thus had five items related to power distance, uncertainty avoidance, and masculinity each. Four items were there for measuring individualism-collectivism. The questions from 1 to 5 were to measure power distance, 6 to 10 were to measure uncertainty avoidance, 11-15 for masculinity, and 16 to 19 for individualism-collectivism (See Appendix for questionnaire). The responses were taken a five-point Likert scale from 1 (strongly disagree) to 5 (strongly agrees). Likert scale has been used by various cross-cultural studies (Søndergaard 1994; Aycan et al. 2000; Denison, Haaland & Goelzer 2004; Wu 2006).

The sample for the research has been done through random sampling in the population of the organization selected, which had been decided by convenience. The self-administered questionnaires were given out to individuals in three different managerial levels: low, middle, and top management. In total 60 questionnaires were distributed out of which 34 were received back which gave a response rate of 56.66%. Of these 34 questionnaires, 4 were incomplete resulting in 30 questionnaires being considered for the study.

Methodology

As there are different areas to be analyzed, there arise different methods, which need to be followed to do the analysis of the study. First, a reliability test is conducted in order to understand the acceptability of the aggregate mean of the different items. In case of power distance, the questionnaire has listed 5 items. This reliability test is run in order to see if the mean aggregate of the five items can be listed to get a reliable score for power distance for each employee. This is done using Cronbach’s alpha.

The study is conducted using bivariate correlation. The level of analysis is fixed at between groups as it is supposed to be correct level of analysis for culture (Hofstede et al. 1990). When data is collected from N individuals, belonging to n different systems or demographics, research of such data can be conducted through detecting the relationship between the variables using some kind of multivariate statistical technique. These techniques may be correlation analysis, factor analysis, multidimensional scaling, cluster analysis, or smallest space analysis (Hofstede, Bond & Luk 1993). In order to understand individual perception of organizational culture, it is important to analyze the structure of the answers given by individuals (Hofstede, Bond & Luk 1993). Here a distinction is made between the techniques utilized for the analysis – pancultural analysis, within-culture analysis, ecological analysis, and individual analysis. Pancultural analysis is done by pooling the data for all N individuals together irrespective of the culture they belong to. Within-culture analysis is done by individuals belonging to each of the n cultures. Ecological analysis is done on the aggregate value of the items belonging to each n culture. An individual level analysis is done after removing the effect of culture. Here the pancultural estimation is considered a close approximation of the ecological analysis. We will consider this ecological analysis by computing the mean aggregate of the items in the questionnaire.

Individual level answer is of interest because it will provide a structure to the idea culture within the surveyed the organization. This data will also provide a comprehensive understanding as to what level correlation is there between the demographic variables and the dimensions presented by the cultural theory. This will also give the insight regarding what managerial style is applicable, depending on the correlation scores of the demographic variables and the dimensions.

In order to test the hypothesis we use one-way ANOVA to see if the hypothesis taken can be accepted or rejected. This is done to find if there exists any significant similarity in the responses provided by employees when they are grouped according to heir demographic variables.

Data Analysis

A description of the data collected according to the age, sex, level, and nationality is presented in the following paragraph. In total, there were 28 valid responses from the survey. The age factor derived from the questionnaire is recoded as ‘less than 35 years’ and ‘more than 35 years’. The frequency of the first factor is 19 and that of the later is 11. There were three management levels, which had been considered – low management, middle management, and top management. Respondents who belonged to low management were 21.3% of the respondents, 42.9% of the middle management level, and 35.7% were from top management level. In terms of sex, there were 64.3% of the respondents who were male, and 35.7% were female.

The nationality of the respondents was also asked. The respondents belonged to 10 nationalities. This was clubbed together into three categories – North America, West Europe, East Europe, and Asia-Africa. This was in order to understand if there was any significant change in attitude towards culture due to his/her origin. According to the data, 10.7% were from Poland, 10.7% from Spain, 14.3% from USA, 39.3% from UK, 7.1% from France, and 3.6% each from India, Turkey, South Africa, Russia, and China. These are recorded in order to get results that are more relevant into three items based on the continent they belong. This gave us three continents – Asia-Africa, Europe, and North America. This division shows that maximum of the respondents are European who constitute 73.3% of the total respondents, 13% are Asian-Africa, 13.3% are North Americans. Here we have combined Africa and Asia because there were very few responses from employees of African nationality.

Therefore, the study has more male respondents than female respondents and maximum of the respondents are Europeans. Maximum of the respondents are from the middle management level while least respondents belong to low management level.

The descriptive statistics are presented in table 3 (see Appendix). Here it must be noted that due to the 5-point Likert scale followed for the study, the maximum range could only be 4 as the data derived from the questionnaire were then coded into scale of 1 to 5 (i.e. strongly disagree to strongly agree). The descriptive statistics for each of the items show that employees’ perception of the organizational culture. Item 1, 2, 3, 4, and 5 measure the items related to power distance within the organization. It takes the employee ratings for high degree of authority, participative management style, etc. these items show a low mean value indicating that the employees do not agree to the fact that there no practice of employee involvement, however, they negate that fact that they agree to all the decisions taken by the management. In the second case, we measure the mean and standard deviation of the items related to the measurement of uncertainty avoidance. Here the mean scores are high with relatively low standard deviation indicating a more homogeneous response from the employees regarding the presence of uncertainty avoidance in the organization, which takes form of high degree of formalization. The response to the items rated to masculinity is not very clear, as the means scores in themselves are not very high. Further, the standard deviation is high indicating a scattered form of response. Collectivism is high in the organization indicating that they are more inclined towards group work. The standard deviation is moderately high.

In total, there were 19 questions asked regarding the perception of the employees working within the same organization regarding the five dimensions of culture as presented by Hofstede and see how effective the employees them to be. The questions related to power distance were aggregated to form a new variable Power Distance. There were five questions inquiring about the degree of power distance in the organization. The questionnaire asked five questions each regarding power distance, uncertainty avoidance, and masculinity and four questions related to collectivism. The coding was done by deriving the aggregate mean of the items related to the four dimensions. This was done because the analysis of the reliability test showed that the responses to each of the items could be aggregated for same meaningful conclusion. The descriptive statistics show that the value of average value of the power distance is given to be 3.7 and a standard deviation of 0.64, the mean uncertainty avoidance is 4.78 which has a standard deviation of 0.41, mean for masculinity is 3.55 with a standard deviation of.644, and collectivism is 4.28 with a standard deviation of 0.69.

Reliability Test

A reliability test for the dimensions studied are conducted in order to sanction the reliability of the multi point questionnaire developed to measure organizational culture using Hofstede’s theory. This is an important measure to understand if the responses yielded for the summated scale will be the same for the items summed together (Santos 1999). In order to understand eh reliability of the different items measuring the dimensions we conduct reliability test using Cronbach’s Alpha, which helps to determine the internal consistency of the different items in the questionnaire to estimate the reliability of the questionnaire.

A reliability test of the dimensions used in the questionnaire has been done in this section. Cronbach’s alpha coefficient is used in measuring the internal consistency for the items presented in the survey. Refer to table 1 (in Appendix) for the Cronbach’s alpha values for this study. After doing a reliability test for alpha for power distance dimensions, we see that the Cronbach’s alpha is 0.521, which is adequate for our study following the cut-off of 0.5 (Schmitt 1996). Hence, their reliability is acceptable for power distance. Rather their reliability is on the lower side. Here it should be noted that the increasing alpha is dependent on the number of items in the scale. Therefore, we may combine them to form a combined scale for measurement. The Cronbach alpha for uncertainty avoidance items are found to be 0.913 which is acceptable in term of internal consistency. The test for masculinity items shows that the Cronbach alpha is 0.67 (>0.5), which too is acceptable in terms of internal consistency. For collectivism, the score is found to be 0.842, which is very close to 1 indicating a high degree of consistency in data. Thus, this dimension too is acceptable in terms of internal consistency. Thus, the reliability test results show that the results are reliable and can be applied to test the cultural dimensions in measuring organizational culture.

Hypothesis Testing

Hypothesis 1.

The hypothesis that is tested here is that individual responses will demonstrate the nature of the organization’s culture. The correlation between power distance and uncertainty avoidance is negative indicating however; the probability of it occurring can be rejected indicating that there exists no significant correlation exit between them. The correlation relation found between uncertainty avoidance and collectivism is found to have significant relationship at significance level 99%. Not all the correlation between the dimensions provides a significant correlation. The correlation between power distance and uncertainty avoidance is -0.029 with a probability 0.88 (>0.05). Correlation between power distance and masculinity is 0.235 with a probability of 0.212 (>0.05). Therefore, this result too is not significant. The correlation between power distance and collectivism is 0.263 with a probability of 0.161 (>0.05). The correlation between uncertainty avoidance and masculinity is 0.39 with a probability of 0.03 (<0.05). Moreover, the correlation between 0.487 and the probability is 0.006(<0.05). The correlation between collectivism and masculinity is 0.274 with a probability of 0.14 (>0.05). Therefore, the correlation is not significant.

The correlation study implies that the correlation results are too low to be significant for meaningfully deducing a cultural format for the organization. However, the reliability test suggests that there exist a higher degree of homogeneity. Therefore, we may conclude that there exists a culture in the organization, which is weak due to weak reliability scores for some dimensions. In another word, it can be stated that the power distance in the organization is low, masculinity is moderately high, uncertainty avoidance and collectivism is high. The F-test values derived for the items related to the four dimensions (see Table 1 (b), (c), (d), and (e)) shows that the F-value for the ANOVA gives a significant value for power distance when F-value is significant at 0.01(<0.05). for uncertainty avoidance the F-value is 2.661 which is significant at 0.036 (<0.05). Masculinity is significant at 0.001(<0.05) with an F-value of 9.035 and a significant collectivism F-value of 4.332 significant at 0.007(<0.05). Hence, we may conclude that all the items for related dimensions are significant and indicate homogeneity (Schmitt 1996). Therefore, the hypothesis that the items individually indicate culture is validated.

Hypothesis 2

To test this hypothesis we use one-way ANOVA. The four variables are tested for the factor region, which has been recorded from nationality variable. The results of the one-way ANOVA are presented in table 4. The F value for Power Distance when factored for nationality is 1.23 at a probability of 0.3 (>0.05). Thus, the F-value is not significant. This indicates that power distance will be different for different regions. Thus, the assumption of same mean for power distance of all the respondents from different regions is rejected. Thus, in actuality, power difference will be different for different regions. The multiple comparison table shows that the for power distance, the mean is more for Asia-Africa, than for Europe and North America. As for North America and Europe, the difference is more for the latter.

The between group F-value is 2.58, however the probability is 0.94(>0.05) indicating a non-significant result. Therefore, the study shows that there is a considerable effect of region on the uncertainty avoidance mean of the respondents. This shows that the means for uncertainty avoidance are affected by nationality. When we check the post-hoc test, it is found to be higher for Asian-African countries than European and North American countries. Further, it is higher in North America and lowest in Europe.

For masculinity the F value is 0.57 which however is not significant at the probability 0.945 (>0.05). The mean difference for the regions show that masculinity is highest for Asia-Africa, second is North America, and third is Europe.

The F-value for collectivism is 0.27 which has a probability of 0.75 (>0.05) indicating that the homogeneous mean for all the regions is rejected. This indicates that there is significant effect on the perception of collectivism in organizations, which is affected by nationality factor of employees. The mean for masculinity for employees from Asia-Africa region is higher than tan of North Americans and North-Americans indicating that they are more of a collectivist region. In case of North America and Europe, collectivism is high in Europe.

This analysis shows that we can reject the second hypothesis, which states that national culture will have an effect on the perception of culture of the employees within organizations. Further, it also shows that nationality alters the perception of the dimensions, indicating a higher masculinity, power distance, uncertainty avoidance, and collectivism for Asia-Africa region.

Hypothesis 3

To test this hypothesis we use a multivariate correlation analysis. The results of the correlation analysis are presented in table 5. Here we will check the correlation between the demographic factors with the four dimensions of culture. First, we will check the correlation of Levels of employment of the employees with the four dimensions of culture. The correlation between level and power distance gives a correlation of 0.493 at a significance level of 0.006 (<0.05). This indicates that the negative relation between power distance and level is statistically significant. Thus, it states that with increase in level of employment, power distance increases. In other words, power distance is higher as employees move higher up the management hierarchy. The correlation between level and uncertainty avoidance (0.189) and masculinity (0.349) are not statistically significant (sig. level 0.3 and 0.05 respectively are greater than 0.05). The correlation between level and collectivism is 0.37 is statistically significant at probability 0.04 (<0.05). Thus, at higher level of management, the practice of collectivism is more prevalent and at the lower levels, employees tend to be more individualistic. Therefore, level of employment has a significant effect on the power distance and collectivism. The correlation between sex and power distance yields a negative correlation indicating that men have higher preference for power distance while women have lower. However, this is not a significant correlation as the probability is 0.064 (>0.05). Sex and uncertainty has a positive correlation value of 0.105 indicating that men are less concerned about uncertainty avoidance than women are. However, this too does not provide a statically significant result as the probability of 0.58 (>0.05). Similarly, sex has a negative correlation with masculinity and collectivism. However, none of the results is statistically significant. Therefore, it can be concluded that sex has no effect on the four dimensions of culture presented by Hofstede.

Age when correlated with power distance gives a positive correlation of 0.412 at probability level of 0.024 (<0.05). Thus, this provides a statistically significant result indicating that higher the age, higher will be power distance. In other words, older employees face a higher power distance than lower employees’ rest of the correlations provide no significant correlation results.

In addition to the analysis of the correlation of the 4 cultural dimensions and the demographic factors, we conduct an ANOVA analysis of the effect of age, level, and sex on the dimensions. First, we consider the effect of age on the dimensions. Level of management seems to have a significant effect on the individuals. The results is significant at a level of 0.002 (<0.05). The F-value of the test is 7.636, indicating that the effect of age on power distance and the between group power distance will be true for 76.36% of the population. The other variable on which Level has an effect is masculinity. The F-value is 5.082 at probability 0.011 (<0.05). The test also shows that age has a significant effect on collectivism at a significance level 0.022 (<0.05).

Age has significant effect on power distance at probability 0.006 (<0.05). The rest of the dimensions are not statistically affected by age. The effect of sex on the dimensions shows that there is a significant effect of sex on power distance at significance level 0.021 (<0.05). However, no other dimensions show any significant results.

The findings of the one-way ANONA present the almost same result as the correlation analysis except for one. Correlation analysis does not show any significant relation between level and masculinity. However, in case of ANOVA analysis we get a significant result.

From the analysis, we may conclude that sex has no effect on organizational culture. Age has positive effect on power distance, but so significant correlation with the other three dimensions. Thus, it too fails to affect organizational culture. Third, level also has significant correlation with power distance and collectivism, but not with masculinity and uncertainty avoidance. Level of employees may affect the perception and formation organizational culture. This indicates that age, sex, and level do not have any significant affect on organizational culture as a whole. Hence, we accept the hypothesis that organizational culture is not affected by age, sex, and level of employment of the employee.

Organizational culture may be derived from the individual responses regarding the perception of culture within the organization. This may be accepted due to the validation of the results of the reliability test of the items related to the four cultural dimensions of Hofstede. This result is supported by the findings of Hofstede and colleagues (Hofstede, Bond & Luk 1993; Hofstede et al. 1990). This result is important for cross-cultural management as it shows that even though employees come from different backgrounds, they are largely influenced by the culture within the organization. Further, the study also reveals that the degree of dimensions of the culture are neither too high nor too low, indicating that the culture within the organization irrespective of the influence of external and intrinsic factors may be significantly homogeneous. In cross-cultural setting, employees come from various backgrounds, and managers are responsible to maintain parity in his/her leadership style. Therefore, the culture that must be inculcated within the organization must be an amalgamation of all the cultural traits that may not give employees a “cultural shock”. The culture that has been observed in the organization does not tend to be too high on terms of power distance and masculinity and high on uncertainty avoidance and collectivism. This indicates that the culture within the organization has low level of hierarchy and moderately high masculinity. However, uncertainty avoidance and collectivism is high indicating that the culture within the organization avoids risk taking and inculcates group or team orientation. Culture within the organization must be immune to external influences in order to make it whole and constant over time. In case of this study, the survey results show that there exist definitive organizational cultures, which may change over time (Hofstede, Bond & Luk 1993).

Further, it is important to understand if the culture in the organization is influenced by intrinsic factors. These factors are the demographic factors, which has been discussed in the study. First, we discuss the case of nationality and its influence of the perception of culture of the employees. As Hofstede stated “The word culture is most commonly reserved…for ethnic or regional groups” (1981, p. 24), therefore, accordingly we clustered the people belonging to same continent into a single region. This allowed us to get meaningful insight into the effect of rationality on the perception of organizational culture. This was hypothesized, as that regional culture will have a significant effect on the cultural perception of the employees. However, the test of the hypothesis using one-way ANOVA factored by regional variable showed that there was no significant effect of region on organizational culture perception of employees. This finding refutes the assumption of Hofstede who believed that national or regional culture would have a partial effect on the perception of culture within the organization (Hofstede et al. 1990; Hofstede, Bond & Luk 1993; Hofstede 1981). However, this assertion cannot be supported by the findings of our survey. These research findings fail to find any significant impact of regional constructs on organizational culture. This finding, however, is useful for managers in cross-cultural settings, as this would mean that the employees are attuned with the organization’s culture and not expected to rely on the regional constructs. Therefore, the theory of culture actually helps mangers to understand the constructs of the employees.

Further applying Hofstede’s dimensions and factoring them for age, sex, and level of employment shows that perception of culture differs with age and level of employment. The results of the analysis show that with increasing age there is a greater inclination for higher power distance. In other words, as there is an employee increase in age, there is a higher tendency of the employee to support power distance. Thus, this result finds support in the findings of Hofstede (Hofstede et al. 1990). Thus, we see that younger employees perceive power distance to be lower than older employee, indicating as employee grow old, their perception of higher degree of power distance in the culture of the organization becomes higher. In case of other dimensions, age was not found to have any other significant effect.

Sex was found to have no strong correlation with the cultural dimension, indicating employees are not influenced about their perception of organizational culture due to gender differences. This result was surprising as male employees are expected to have high degree of masculinity than female employees. The variance analysis showed that sex had a significant effect on power distance i.e. men perceived lower power distance than women. Thus in cross-cultural management segregation of employees on the basis of intrinsic culture due to their gender need not be considered as had been stated by Hofstede (Hofstede et al. 1990).

Level of management is also seen to have a significant positive correlation with power distance and collectivism. This implies that in cross cultural management settings as employees move up in the ladder of hierarchy, he must embrace greater power distance from his subordinates. Further in case of level and collectivism, employees higher in the rank support collectivism more than otherwise. The ANOVA analysis supports these findings and adds another level of covariance i.e. between level and masculinity. The correlation analysis shows that level and masculinity has a positive relation, and he ANOVA analysis shows that result is statistically significant. This implies that as employees grow up in the ladder the preference for masculine traits become higher. This shows that the organizational culture for the employees alter as they move up the hierarchy. As in this survey, we find that employees start valuing power distance more when employees reach higher level of management. Employees employ more masculine traits and value teamwork at higher levels.

The study though shows cultural theories especially Hofstede’s theory of culture has immense implications and benefits for cross-cultural management, fails to indicate if all cultural theories have similar effect. The paper is limited in its analysis of the cultural theories. It considers only one cultural theory (i.e. developed by Hofstede) in understanding the effectiveness and practicability of the research. Due to paucity of time and resources, this paper is constrained to the analysis of Hofstede’s cultural theory only. Other theories are not considered in this study. Further, the data is analysed from the point of view of only one model due to paucity of time and resource. Further, the number of employees of surveyed is not high. Survey questionnaires were sent out to only 60 employees out of whom 34 respondent and 30 were rejected due to incomplete response. This constrained the findings of the research. No multivariate variance analysis was done due to limited number of responses. Further, the study failed to show any measures as to how this cultural theory could be more helpful in cross-cultural management.

Conclusions

Hofstede (1993) mentioned that management theories are constrained by cultural practices of the employees. This finding has become even more important in case of cross-cultural management as there is increasing number of companies who employee people from different culture. In order to manage people from different backgrounds, it is essential to understand the values and practices that dominate their understandings and perception. Hofstede found that culture might affect the perception of individual’s perception. However, this has been refuted by this research. Instead, we have developed a distinct cultural framework of the organization where the survey has been conducted. It shows a culture, which has moderate power distance and masculinity. Collectivism and uncertainty avoidance are high in the organization. This may be due to the cultural immunity that the organization tried to attain. In cross-cultural management, it is imperative to develop a culture, which can be accepted by employee from different cultures so that employees are comfortable working in it. So a culture with too high a power distance or masculinity may not be preferred by an employee from North America or Asia respectively. Therefore, the culture, which is a moderate amalgamation of the different cultures, will help in satisfying the employees. That is why we did not get any significant regional effect on organizational culture perception of employees. Thus, the right way to make cross cultural management work is to make it immune to culture constructed perception of employees.

In terms of benefits derived from the cultural theory it is clear that Hofstede’s theory, provides clear understanding as to the factors that influence employee perception in formation of organizational culture. Further the culture thus formed may again be divided into demographic categories like level and age (sex was not found to be have any significant effect in this research). Thus, cultural theories also help in making and managing sub-cultural groups in order to make cross-cultural management easier.

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Table 1: Reliability Test

Table 2: Means of All Items of Questionnaire

Table 3: Correlation Analysis of the 4 Dimensions

Table 4: One-way ANOVA Factored by Nationality

Table 5: Correlation Analysis for Demographic Factors

Table 6: Anova for effect of Age, Level, and Sex on the 4 Dimensions

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