Running head: MGMT 540 1

Decision making in a diverse cultural setting

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Decision Making in Diverse Cultural Organizations

Abstract

As organizations continue to grow beyond borders, accessibility of the market place

becomes increasingly more possible for both the small-scale companies and large organizations.

Globalization gives more opportunities to work together more closely towards achieving a

common goal. When companies expand globally, levels of decision making become very

strategic for managers running those companies since they are the ones responsible for making

those complex decisions that will impact the company. Globalization has benefited many

companies due to the availability of diverse knowledge that helps managers solve business

problems. Despite the high rewards that come due to global expansion, there are effects that

come along with globalization, especially when it comes to culture and international business.

As globalization continues to connect different societies, it is a need for managers to have

the ability to communicate effectively across all the different cultural boundaries. International

businesses must be able to communicate with employees and customers from diverse cultures.

The only way in which international businesses are going to create value for its stakeholders is

by understanding how to communicate with their employees. Technology has come to aid

companies in the way they communicate globally, and market their products and services.

Despite the advancements that have technologically, international companies must take into

consideration the cultural nuisances that may bring obstacles to the organization, thus limiting

their productivity.

The research to find accurate data to verify the hypothesis statement was made possible

by the user both the primary and secondary methods of data collection. Qualitative methods of
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data collection include interviews, field visits, and the use of telephones. Informal discussions

and observations were very important during the collection of data. The research was also

focused on analyzing articles to get opinions of others, books, and accessing data from online

databases. The use of primary and secondary data was incorporated into this study to provide

information about how managers can influence decisions when dealing with diverse cultures.

According to research, it is necessary for managers to set up the organizational hierarchy and

encourage effective communication skills with the company that will encourage employees to

coexist harmoniously.

Introduction

As organizations continue to grow beyond borders, accessibility of the market place

becomes increasingly more possible for both the small-scale companies and large organizations.

Globalization gives more opportunities to work together more closely towards achieving a

common goal (Białostocka, 2010). When companies expand globally, levels of decision making

become very strategic for managers running those companies since they are the ones responsible

for making those complex decisions that will impact the company. Globalization has benefited

many companies due to the availability of diverse knowledge that helps managers solve business

problems. Despite the high rewards that come due to global expansion, there are effects that

come along with globalization, especially when it comes to culture and international business.

There exist a variety of ways through which an individual can explain the culture, but it

can be simply put as the accepted norms that are shared by society. When it comes to the

international company's culture has a different meaning, it is the common and accepted attitude

from a professional in a country. Cultures of an individual in the United States are very different
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from an individual from that of an individual from overseas. Managers are responsible for

recognizing how different cultures in an organization are likely to affect international business

(Białostocka, 2010). The research study is aimed at understanding how global managers can

make decisions for organizations where there are multiple nationalities present. Managers should

be in a position to explain how cultural difference and intercultural competences impact

corporate success.

When it comes to global companies, the most difficult thing for managers is

communication. Even in scenarios where both parties speak the same language, there are usually

misunderstandings brought about by cultural differences. A lot of organizations have failed due

to poor communication strategies that were put in place by their managers. Companies that have

understood what impacts globalization can have on their companies have a competitive in the

market over other companies that are struggling to understand the impacts of globalization.

Economic challenges being experienced in the global market highlight the need for organizations

to be strategic when it comes to decision making relating to communication.

As globalization continues to connect different societies, it is needed for managers to

have the ability to communicate effectively across all the different cultural boundaries.

International businesses must be able to communicate with employees and customers from

diverse cultures. The only way in which international businesses are going to create value for its

stakeholders is by understanding how to communicate with their employees (Al-Jenaibi, 2011).

Technology has come to aid companies in the way they communicate globally, and market their

products and services (Al-Jenaibi, 2011). Despite the advancements that have technologically,

international companies must take into consideration the cultural nuisances that may bring
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obstacles to the organization, thus limiting their productivity. Genevieve Hilton states the art to

mastering cultural diversity is to understand when to speak, when to listen and when to ask for

help. An individual does not need to memorize every cultural nuance for every market.

When it comes to business that is concerned with international businesses, there is a need

to have a good relationship between the managers and the subordinates. Research carried out by

experts shows that cross-cultural communication mostly focusses on trying to understand how

individuals from different cultures can interact together without affecting the harmony existing in

the organization. It is true that when individuals are introduced to different cultures, their

abilities to communicate with others will be affected. Due to the inevitable changes and

exposures from globalization, researchers should carry out extensive research on the

understanding of interrelations between cultural dimensions and personality traits. Increased

awareness will guide an individual on how to manage and deal with their own cultural behaviors.

Research findings

Research methodology

The aim of the research study was to collect data that will help understand the role that

managers need to play when it comes to making decisions. There is a need for leaders to

maintain a state of balance between the objectives of the company and at the same, ensuring that

employees are motivated to work for the organization. Leaders can only see the company prosper

when they can easily navigate between the cultural nuances within the organization.

Several techniques were incorporated into this research study. Both qualitative and

quantitative data was used in the verification of the hypothesis statement. Qualitative data
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analysis was done through the use of interviews, visitations and phone calls. Additionally, the

use of non-formalized observations and analyses of the available variables were also deemed

useful. Useful and relevant information from peer-reviewed articles, newspapers and the internet

was also utilized.

Findings and Discussion

Communication efficacy

Needless to say, communication is a rather effective tool which contributes to the

maximum organizational performance of any given company. Numerous multinational

organizations have adopted the use of English as the main language to be used in conducting

business operations within their jurisdiction. It is key to note that the manner in which an

individual conveys their message brings about a humongous impact on subsequent actions of the

receiver of the message being conveyed (Van Dyne et al, 46). Fluency in any given language, for

this case, English, provides a company with the essentials to building a company profile and

other related variables. Nonetheless, having an utter comprehension of diverse cultural languages

allows for the development of a foundation for a good relationship between the management and

their employees. In so doing, the levels of productivity within the company are bound to improve

remarkably, thus increasing overall organizational performance.

Another key role of communication comes in where their id needs to establish a basis for

comparing the services and commodities produced by a certain company and its rivals. In this

case, it is only trivial that companies which have adopted effective communication skills and

techniques-and, especially in multicultural languages have a higher potential of maintaining the

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=ir competitive advantage over its competitors. This is because the time taken to conduct

numerous and bulky business operations is less. Additionally, the use of available resources can

be managed effectively without encountering multiple hick-ups. (Al-Jenaibi, 2011). On another

perspective of the same subject, it is critical to note that the essence of effective communication

cannot be overlooked with regards to its contribution towards the allowing individuals to

articulate their ideas, opinions and grievances. Lack of communication would certainly result in

a lot of negative implications, such as the occurrences of conflicts and misunderstandings within

the organization. This deters the smooth running of business operations. In this case, therefore, a

company which incorporates an organizational culture based on mutual understanding is bound

to achieve good results with respect to overall company performance.

For instance, the essence of effective communication can best be illustrated by taking into

account the existing relationship between South Korea and the United States. With this example,

we can gain further insight into the essence of communication in the development of

international relations. More than a hundred years ago, the United States made purchases of the

property from Korea. Prior to this particular period, Koreans did not allow for any foreigner to

make their way into Seoul. (Al-Jenaibi, 2011). This greatly perpetrated numerous conflicts

between the two nation-states, a situation which went on for numerous decades. However, a

number of years later, the U.S. and South Korea finally managed to develop the ground for

which they could communicate, discuss and assess the current situation with the aim of resolving

the issues they had. In the long run, after lengthy discussions, the two countries were able to

reach a consensus, and they rebuild a relationship which had been non-existent for more than ten

decades. The binding factor for this agreement was the building of the American Chamber of

Commerce, whose sole purpose was to coerce trading activities between the two nations.
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From the above-stated example, we can denote that it is useful for a country to ensure

that people are able to share their thoughts without imposing any restrictions. Such a scenario

would most certainly lead to several advantages. This is also applicable to business

organizations. This research paper is aimed at developing a basis for which a suitable cross-

cultural framework which can be used by organizations in communicating with multicultural

employees. The sole purpose is to comprehend the various steps which are deemed essential for

members of the management department within a globally competitive company in the quest to

effect apt communication strategies, especially when employees are cross-cultural. (Al-Jenaibi,

2011). This study uses a group of college students who took part in a conference which involved

students from both the United States and Korea. The conference was referred to as the Korea

America Student Conference (KASC).

This exercise was offered support by a variety of global student conferences including

one based in Washington, D.C., whose sole purpose is to fund such programs which are mostly

educational and focus on ensuring that cross-cultural programs are upheld to foster the sharing of

ideas among university students. The research was conducted using diverse methodologies

(Thomas, 3). Both qualitative and statistical data was incorporated to ensure that this study

became successful. Previously collected data which was sampled and documented in literature

reviews was used for comparison purposes. The two key companies which were taken into

consideration throughout this study are Samsung and Hyundai as they are fit for demonstrating

the implications of globalization on multicultural practices. This study also helps in providing us

with an insight into the model which has been used in explaining the subject matter being

discussed in this research paper. A framework known as the 4 C's Global Leadership Model is

also taken into account to help show how leaders within any given organization can perpetuate
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innovative practices and high levels of creativity through the effective management of conflicts

through the use of appropriate communication practices.

Organizational Hierarchy

The hierarchy of any company alongside various attitudes towards diverse

accountabilities of the management department are different based on individual cultures.

Cultural attributes, therefore, define the ability of an employee to speak up and air their views in

meetings. In most cases, such attitudes would reflect on the kinds of values that exist within the

society within which that particular individual comes from. (Kamal & Ferdousi, 2009). For

example, Japan is known for its values on respect for elderly persons, social hierarchy, and

people's statuses (Barak et al., 813). A company which hires employees from such a country is

most likely to register maximum employee performance because they are bound to have instilled

such values within themselves. Such a hierarchy helps in the definition of people's

responsibilities and roles within the organization. This implies that senior managers demand

junior employees to respect them as required, along with being formal in how they present

themselves.

Due to the growth of cultural diversity in organizations, managers need to ensure that it is

a hierarchy that has been in place so that employees easily understand their roles. Cultural

diversity in organizations is brought about by cultural globalization. It is the diverse cultures in

the workplace that has enhanced creativity when it comes to executing duties (Kamal &

Ferdousi, 2009). Diversity based on the culture within any company is associated with several

negativities. For one, it undermines the amount of peacefulness and stability that should exist

within an organization. In this case, the probability of the occurrences of conflicts within such an

organization is too high. This is because of the varying opinions and workers within the company
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due to their dissimilar beliefs, values and religions. Such differences cannot be noted instantly.

Rather, it takes time for employees to relate with each other before they identify how distinct

their personalities and perceptions are towards certain issues that affect them. Whenever a certain

group of individuals or a single person feels biased, they tend to negatively react as they feel hurt

by the actions of the other party. The existence of the organizational hierarchy is thus essential in

order to minimize the frequent occurrences of such conflicting situations.

Conclusion and Limitations

In conclusion, as globalization continues to connect different societies, there is a need for

managers to have the ability to communicate effectively across all the different cultural

boundaries. It is imperative that global business devise effective means through which they can

effectively communicate with employees from distinct cultures. The only way in which

international businesses are going to create value for its stakeholders is by understanding how to

communicate with their employees. Globalization presents a different kind of challenges to

managers, and they must be quick when adjusting to changes and adopting new leadership

strategies.

It goes without saying that cultural diversity brings about a variety of implications for an

organization. The negative consequences of this concept include frequent conflicts, productivity

redundancy, and failure of achieving the desired objectives within the teams. Positive effects

include a strong knowledge base created by a variety of cultural experiences, an in-house

resource of cultural trainers and informers, and a greater tendency to expand the business in

foreign cultures. In general, the effects of cultural diversity within a company are dependent on
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the competence of the management department. Strategized planning by leaders enhances their

skills on how well they conduct their duties, especially managing their employees.

The research carried out on trying to understand how managers can make their decisions

in situations where diverse cultures are involved had several limitations. For instance, the sample

size which was used in conducting interviews was relatively small. This posed a challenge in the

attempt to utilize the results in analyzing the relationships between the several sets of data.

Furthermore, the problem of language barrier brought about complications during the process of

conducting interviews. A lot of lime was wasted trying to look for translators and this was

completely frustrating and cumbersome.

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