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Cross Cultural Report

Cross Cultural Report

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Published by Anthony Burns

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Published by: Anthony Burns on Mar 12, 2010
Copyright:Attribution Non-commercial


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Coursework Header Sheet 
CourseBUSI1313: Cross-cultural ManagementCourse School/LevelBU/UGCourseworkCase AnalysisAssessment Weight50.00%TutorU VeersmaSubmission Deadline12/03/2010
Coursework is receipted on the understanding that it is the student's own work and that it has not,in whole or part, been presented elsewhere for assessment. Where material has been used fromother sources it has been properly acknowledged in accordance with the University's Regulationsregarding Cheating and Plagiarism.
Matilda Akinyemi
Tutor's comments
Grade Awarded___________For Office Use Only__________Final Grade_________ Moderation required:
Tutor______________________Date _______________
:Section ‘A’ is expected to provide advice to Monsieur Liataud, on his BusinessObjects, guiding him on the policy he should adopt during his business operations invarious countries; as well as the process of employing people from various cultures.The analysis will apply the principle of Hofstede (1983), theory on culture andworkplace, including other areas of importance such as language, education, andcommunication. Based on the scope of the business, which will cover variouscountries and diverse cultures, the policy will take into consideration Perimutter (1969), Typology of Multi-National Corporations theory to determine choice of policy.It will also apply “SMART” analysis in order to justify actions to be taken.The second choice of question is No. 2 on the list, which deals with advisingMonsieur Liataud on how to form and manage multi-cultural team successfully. Thiswill apply the ‘Motivation Theory, Expectancy Theory, and Goal-Setting Theory.’These theories will examine the importance of the intrinsic and extrinsic rewards andtheir impact on selection and retention of employees.
Section A: Relative Theories :
The analysis will apply the four dimensional study of ‘culture and the workplace’carried out by Hofstede (1983) pages 75-89. Hofstede’s theory has been the mostpopular theory on the relationship of culture and value in workplace over the years.The four dimensional theory approach claimed to have summarised different culturesunder four categories – power distance, individualism versus collectivism,uncertainty avoidance, and masculinity versus femininity. Hofstede’s power distancedimension identified people as unequal on both their physical and intellectualcapabilities. He argued that high power distance cultures are preeminent in suchcountries that allow inequalities to grow over a period of time. While low power distance cultures are common with the societies that play down on the individualinequalities. The second dimension is individualism versus collectivism dimensionwhich focused on the relationship between individuals and other members of thefamily or society. The third dimension is uncertainty avoidance which dealt with theability of different cultures to be able to accept and tolerate uncertainty, especially inthe areas of job security, career patterns, including retirement benefits. The fourthdimension is masculinity versus femininity, which looked at the relationship betweengender and work roles, and this can affect the decision making process in the areasof work value and salaries, especially in such societies that are high on masculinity
table. All these areas of disparities in the cultural behaviour of different societiesshould be considered for the operational success of Multi-National Corporations.Another important areas to take into consideration are ‘Language, Education andCommunication.’ The area of language includes both spoken and unspoken types.There is no doubt that language plays a very important role in any form of businesstransactions including the shaping of the whole world. According to Edward and Lee(1929) pages 207-14, language shapes the way people perceive the world, it alsohelps to define culture. They stated that countries with more than one languageoften have more than one culture. This will impact on the way of business dealingswith such countries by Multi-National Corporations. There is also problem with theunspoken language. Unspoken language serves as nonverbal communication, andit is frequently used in our everyday transactions, perhaps more in some countries.Unspoken language can easily be misinterpreted by different cultural values. Theinability to understand the nonverbal gesture of another culture leads tocommunication failure, and it can affect Multi-National Corporations in their businesstransactions. The act of communication is part of our daily functions. It looks simplebut it is very complicated especially in multi-cultural societies. Another importantarea that can impact on the decision making process of Multi-National Corporationsis education. The educational procedures of different societies can affect HumanResource Management. According to French (2007) page 166, Human ResourceManagement can differ between societies due to distinctive institutional featureswithin individual countries even among the Western nations. Schneider and Barsoux(1997) page 149, identified the sharp difference between the Human ResourceManagement approach in the United States and Europe due to difference indisciplines, psychology and sociology. The difference in disciplines impacts on therelationship between people and organisations. The discipline for Human ResourceManagement in United States is sociology, and its primary concern is on theimprovement of workers motivation. Boxall and Purcell (2003), page 166, advocateda hybrid approach which takes into consideration the Company’s internal strengthsand weaknesses, combined with the external analysis of opportunities and threats.According to Schramm (2006), traditionally, organisations depend on the knowledge,skills and abilities of their workforce for success. Therefore, it is not just beingeducated but the source of the education is of high importance too.
Strategic International Human Resource Management :
This part will examine four categories of Perimutter (1969), theory on ‘Typology of Multi-National Corporations strategies. The analysis of different models of multi-cultural management options will enable Monsieur Liataud to make choice onmanagement style for his companies.
Exportive/Ethnocentric –This is a centralised system. The practice isdominant in style. It simply transfers the home country’s managementpractices to the foreign subsidiaries. It controls and coordinates the wholeaffairs of the Firm from the Head quarters.
Adaptive/Polycentric – This is adaptive and decentralised. In this systemsome elements of international guidelines are being followed. It observessome knowledge transfer between the home and subsidiary countries.
Integrative/Geocentric – This system applies global approach in terms of goals and values. It applies the best Human Resource Management

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