CULTURE: is the characteristics and knowledge of a particular group of people,

encompassing language, religion, cuisine, social habits, music, and arts. Culture is acquired
knowledge that people use to interpret experience and generate social behavior. This
knowledge forms values, creates attitudes, and influences behavior.

CHARACTERISTICS OF CULTURE

1. Learned: Culture is not inherited or biologically based; it is acquired by learning and

experience.
2. Shared: People as members of a group, organization, or society share culture; it is not
specific to single individuals.
3. Transgenerational: Culture is cumulative, passed down from one generation to the
next.
4. Symbolic: Culture is based on the human capacity to symbolize or use one thing to
represent another.
5. Patterned: Culture has structure and is integrated; a change in one part will bring
changes in another.
6. Adaptive: Culture is based on the human capacity to change or adapt, as opposed to
the more genetically driven adaptive process of animals.

In overall terms, the cultural impact on international management is reflected by basic beliefs
and behaviors. Here are some specific examples where the culture of a society can directly
affect management approaches:

Centralized vs. decentralized decision making: In some societies, top managers make all
important organizational decisions. In others, these decisions are diffused throughout the
enterprise, and middle- and lower-level managers actively participate in, and make, key
decisions.

Safety vs. risk: In some societies, organizational decision makers are risk-averse and have
great difficulty with conditions of uncertainty. In others, risk taking is encouraged and
decision making under uncertainty is common.
Individual vs. group rewards. In some countries, personnel who do outstanding work are
given individual rewards in the form of bonuses and commissions. In others, cultural norms
require group rewards, and individual rewards are frowned on.

Informal vs. formal procedures: In some societies, much is accomplished through informal
means. In others, formal procedures are set forth and followed rigidly.

High vs. low organizational loyalty: In some societies, people identify very strongly with
their organization or employer. In others, people identify with their occupational group, such
as engineer or mechanic.

Cooperation vs. competition: Some societies encourage cooperation between their people.
Others encourage competition between their people.

Short-term vs. long-term horizons: Some cultures focus most heavily on short-term
horizons, such as short-range goals of profit and efficiency. Others are more interested in
long-range goals, such as market share and technological development.

Stability vs. innovation: The culture of some countries encourages stability and resistance to
change. The culture of others puts high value on innovation.
Organizational culture has been defined in several different ways. In its most basic form,
organizational culture can be defined as the shared values and beliefs that enable members to
understand their roles in and the norms of the organization.

CHARACTERISTICS OF ORG. CULTURE

1. Observed behavioral regularities, as typified by common language, terminology, and

rituals.
2. Norms, as reflected by things such as the amount of work to be done and the degree
of cooperation between management and employees.
3. Dominant values that the organization advocates and expects participants to share,
such as high product and service quality, low absenteeism, and high efficiency.
4. Philosophy that is set forth in the MNC’s beliefs regarding how employees and
customers should be treated.
5. Rules that dictate the dos and don’ts of employee behavior relating to areas such as
productivity, customer relations, and intergroup cooperation.
6. Organizational climate, or the overall atmosphere of the enterprise, as reflected by
the way that participants interact with each other, conduct themselves with customers,
and feel about the way they are treated by higher-level management.

TYPES OF ORG. CULTURE

Family culture is characterized by a strong emphasis on hierarchy, power orientation and

headed by a leader.

Guided missile culture is characterized by strong emphasis on equality in the workplace and
orientation to the task.

Incubator culture is based heavily on the existential idea that organizations per se are
secondary to the fulfillment of the individuals within them.

Eiffel Tower culture is characterized by strong emphasis on hierarchy and orientation to the
task. Under this organizational culture, jobs are well defined, employees know what they are
supposed to do, and everything is coordinated from the top.
COMPANY PROFILE

AirAsia Group Berhad is a Malaysia-based investment holding company, which manages

AirAsia Group operating in the airline industry. The Group is principally engaged in the
operation of AirAsia, a low-cost airline with major business in Malaysia, Thailand, Indonesia,
the Philippines, India, and Japan, among others.

The Company's subsidiaries include.

 AirAsia Investment Ltd Norms

 Koolred Sdn Bhd
 AirAsia Go Holiday Sdn Bhd
 Asia Aviation Capital Limited
 TPaay Asia Sdn Bhd
 Rokki Sdn Bhd
 T & Co Coffee Sdn Bhd

The Group's entire business model centers around a low-cost philosophy which requires its
operations to be lean, simple, and efficient. Several key strategies have been employed
towards this effect, including:

High Aircraft Utilizations: AirAsia focuses on high frequency and high turnaround of
flights, both of which add to customer convenience and greater cost efficiencies. Its
turnaround of 25 minutes is the fastest in the region.

Low Fare, No Frills: This means no frequent flyer miles or airport lounges in exchange
for lower fares. Guests have the choice of paying for in-flight meals, snacks, and drinks.

Point to Point Network: All short-haul AirAsia flights (four-hour flight radius or less)
and medium- to long haul AirAsia X flights are non-stop, doing away with the need for
human resources, physical infrastructure, and facilities at transit locations.
ORGANIZATIONAL CULTURE AT AIRASIA

Artifacts

The people of AirAsia are their assets, and their dedication, determination and patience have
made AirAsia a success story. They have built conducive and positive AirAsia culture that
permeates all the line operation.

Belief’s & Values

These values provide a frame of reference for AirAsia experience and a corporate culture in
which they live and deliver peak performance.

SMS: This commitment is extended to ensure the full integration of a safety culture, safety
policy and safety objectives in a proactive approach to aviation safety. In short, the Safety
Management System is not just an add-on but a core part of AirAsia’s business process.

Underlying Assumptions

There is a great sense of empowerment of AirAsia enhanced by an open office layout which
encourages easy interaction between everyone and flat hierarchy that breaks down
psychological and cultural barriers. All staff (All Star) can approach any member of the
management team to voice out an opinion or share an idea. Good ideas, proposed by anyone,
can be implemented quickly because there is little bureaucracy. At the same time, bad ideas
can be scrapped just as fast. The AirAsia staff members understand that generating ideas is
not limited to the directors and executives of the company and that everyone can contribute
ideas regardless of their rank in the company.

AirAsia fits best in the Market Culture and Clan culture. It can be seen from their vision and
mission. They believed in the vision that everyone should have equal opportunity, whether to
fly or to dream of a new career.

At AirAsia, they do not just look at skills or experience. They also look for people who can
live and breathe our values with passion. Race, religion, gender, and age do not matter to
them. Their culture is also about having and believing in a clear mission. “Now Everyone
Can Fly” is what inspires them, and it is what they do.
At AirAsia, they address their employees Allstar because they want them to feel much more
special and unique working in AirAsia because each of them plays a unique role in the
company.

According to AirAsia, there can be no strong culture without a set of clear values. AirAsia do
have 6 core values that they practice, and these core values will determine success of an
individual on becoming a successful AirAsia Allstar. Followings are the 6 core values that
AirAsia’s Allstars practice:

1. Make it happen.
2. Do it right.
3. More with less.
4. Put people first.
5. All for one.
6. Now everyone can fly.

All employees should train themselves by using the 6 core values above as a guide. Though the 6 core
values created by AirAsia as a reminder for their Allstars to be an impressive individual, they can be
applied to almost every organization or person. The core value literally means start doing the things
that have been on your mind.

HOFSTEDE’S THEORY APPLICATION

1. Power Distance Index: Low power distance index

2. Collectivism vs. Individualism: Practice collectivism
3. Uncertainty Avoidance Index: Low Uncertainty Avoidance
4. Masculinity vs. Femininity: More on femininity
5. Long-Term Orientation vs. Short-Term Orientation: More on Long-Term Orientation
6. Indulgence vs. Restraint: High in Indulgence
Hofstede’s Cultural Dimension (AirAsia): Detailed Analysis

Power Distance

 Organizational hierarchy: AirAsia has a flatter organizational hierarchy which

allows more visibility and easier access to management. This promotes a sense of
trust and belonging in the employees and increases their motivation towards optimal
performance.
 Organizational decision making is more decentralized. This means that regional
teams have the authority, for example, to localize a global strategy to meet the needs
and demands of local culture. Similarly, teams within a regional district or office have
the authority to make decisions pertaining to meeting a goal – while staying within the
prescribed values and norms of the organization.
 Compensation bands: The compensation bands are not placed at a distance from each
other. Rather, the pay scales and bands overlap as per job roles and descriptions. The
compensation is largely based on a pay-band system that considers flatter hierarchies
and provides more options to individuals for improved compensation opportunities.
 Power delegation: as a low power distance in its organizational culture, the company
sees managers and leaders delegating power without any restraint and concerns. The
delegation of power increases responsibility and accountability, enhances work
performance, and increases loyalty and organizational commitment for the employees.
Moreover, the delegation of power creates a sense of ownership in employees.
 Leadership: Tony has a Charismatic leadership style. The leader is visionary and
motivates employees by instilling in them a sense of self-belief and self-appreciation.
Leadership style is visible and accessible, which makes it easier for employees to
walk the talk.
 Supervisory staff: With a low power distance organizational culture, there is a lower
need for supervisory staff. Employees are trusted with responsibilities and are often
allowed to determine their own goals and targets within their job needs and tasks.
This affords them with greater motivation to work towards the achievement of their
goals and targets – without the need for direct, and constant supervision.
Uncertainty Avoidance

 Opened to change encourages a culture internal to the organization that is open to

change. The company frequently engages in change management programs to
improve its processes, cultures, as well as work activities through team building
activities. The frequent changes have allowed the organization to become more
adaptable to changes in the internal and external environments without affecting the
performance of employees. Moreover, this has encouraged innovation in the
organization as well.
 Learning and decision-making processes: The learning and decision-making
processes are more open-ended in nature. There is less rigidity, and employees are
encouraged to engage in fruitful debates and discussions to weigh the pros and cons of
various decisions before reaching a unanimous decision that is agreeable by all groups
present and needed in point.
 Sense of urgency encourages a flatter hierarchy within the organization, and as such,
does not place much importance on tiles. Instead, the company focuses more on
merit-based behaviour, and celebrates employees who do not break under pressure.
Moreover, there is a lower sense of urgency in the organization, and employees enjoy
a more relaxed internal culture.
 Risk-taking: Can fairly be seen as a risk-taking organization. The company’s ability
to take risks highlights its need to explore, and benefit from opportunities – as well as
avoid failure. The company’s readiness and motivation to take needs also highlight it
to be more inclined towards lower uncertainty avoidance.
 Flexibility: Flexible in its strategies as well as various departmental activities – to
meet the needs and demands of the organizational goals as well as country-specific
needs. In doing so, AirAsia has become an avid practitioner of localization – which is
based on principles of flexibility and adaptability.
Individualism vs Collectivism

 Privacy AirAsia values the privacy of its employees in their workspace as well as
personal life. The organization does not encroach an employee’s personal matters and
gives them the needed privacy as and when required and helps where needed.
 Time: tasks and job activities are planned so that an individual’s social and personal
life is not impacted, and a work-life balance is maintained. This work-life balance is
important for the emotional and physical wellbeing of the employees, and AirAsia
ensures that employees are valued for their time as well.
 Challenging Tasks: AirAsia regularly and frequently engages its employees with
challenging tasks and goals. The purpose of these tasks and goals is to engage the
employees and keep them motivated to perform optimally. AirAsia invests in ensuring
that all its employees are challenged to not get bored, and dissatisfaction from their
job roles.
 Individual accomplishments: Employees are recognized for their performances and
individual accomplishments – professional as well as personal. The appreciation and
celebration are made through intrinsic as well as extrinsic benefits which helps spike
the motivation of employees further toward improvement.
 Work-life vs. social life maintains a clear demarcation between an employee’s
personal and social life and ensure that the workplace culture is not infiltrated with
social relationships and social contracts. And encourages an employee’s social life
and social relationships, it deems it against the workplace ethics to encourage social
relations and social contracts infiltrating the professional workspaces of employees.
 Creativity: AirAsia frequently encourages and engages employees in challenging and
problem-solving tasks to enable them to enhance the use of their creativity and
develop creativity further. This is important for encouraging an overall culture of
innovation and flexibility – needed for organizational growth and development.
 Merit: All promotions, as well as compensation management activities, are governed
on rules of merit and are based on employee performance strictly. As such, AirAsia
finds it only fair to use these benchmarks for facilitating employee growth as well as a
culture of honesty and transparency within the organization – to avoid and contain
conflict.
LTO Vs STO

 Focus on thrift and education AirAsia place sigh importance on education and merit
of its employees. Not only does the company hire the best and the most educated class
for its various positions and jobs, but the company also ensures that employees are
continually in the learning cycle through job tasks, engagement, and training.
 Values and rights: AirAsia places high importance on the values and rights of the
people and various groups in societies and communities – including minority groups.
The company is an equal opportunity employer, and as such, provides equal
opportunities to all groups in all processes related to the firm and its staffing policies.
 Obligations and virtues: The AirAsia Faces is equally careful, and mindful about its
obligations and cities. The company engages in CSR cities regularly for example, as
an obligation it holds towards the broader society in which it operates. The CSR
activities of the company are ongoing, and carefully planned and executed to
represent the aim and philosophy of the company.
 How vs. why: The AirAsia and its employees are generally more interested in the how
and what, rather than the why of the problem. This indicates a more problem-solving
attitude and an inclination towards long term orientation. This allows the people to be
able to understand the cause, rather than symptoms to be able to completely solve
problems and improve personal and organizational performance.

Masculinity Vs Femininity

 Money orientation: The overall organizational culture is driven more by the quality
of life, and quality of life in the workplace. There are less competition based on
compensatory factors, and benefits, and more competition based on the nature of tasks
allocated.
 Egoism: AirAsia encourages and promotes an organizational culture that is less
egoistic in nature. This has worked in favor of the organization as it has allowed
skillful women to come to the forefront as well – without hurting the team dynamics
and employee relationships within the organization. Women are equally celebrated for
their achievement, just as men in the organization are.
  Motivation factors: Success within the AirAsia is more likely to be achieved through
collaborative means that on negotiation. The company does not encourage, or support
success based on rigid competition that can hurt the wellbeing of individuals –
physically, mentally, or emotionally. The company encourages a focus on work-life
balance and work flexibility to suit and meet the needs of employees. This, in turn,
allows the organization to optimally manage the employee performance levels.
 Gender role differentiation: AirAsia does not support differentiation and stereotyping
in its job responsibilities and tasks, as well as job descriptions based on gender
differentiation. All roles and tasks at AirAsia are designed to be equally allocated and
to encourage workplace equality between men and women. Additionally, AirAsia also
prides itself on being an equal opportunity employer and provides men and women
equal chances of growth within the organization as well.

Indulgence Vs Restraint

 Optimism: The overall culture at AirAsia is optimistic, where employees are treated
with respect. All employees are also trained frequently to remain calm and work with
a focus – even in situations of worry. Moreover, employees are also trained towards
personal emotional wellbeing and offered counseling in dealing with personal troubles
if needed. These indicate that while the organization works in the best interest of its
employees, it also projects an optimistic image.
 Personal happiness: AirAsia values the happiness of its individuals. The culture and
internal organizational environment are relaxed and vibrant. Employees feel at ease
with each other and are comfortable in the presence of their colleagues. As such, the
organization enjoys happiness and values the happiness of employees over everything
else. For the same reason, the organization also offers training and opportunities for
cultivating personal goals and targets that are not professionally measured.
 Freedom of speech: AirAsia offers freedom of speech to its employees. The
organization allows employees to speak what is on their minds in a reasoned and well-
behaved manner. Moreover, the organization also encourages debate, and regular
feedback from employees to continually enhance and improve the organizational
products as well as the internal culture and environment.
CULTURE-STRATEGY FIT AT AIRASIA

Organization (Corporate) culture is as important as Corporate Strategy for any organization.

Corporate culture is an extremely multifaceted concept characterized by many different
approaches, many different points of view.

Corporate culture is an implicit, invisible, intrinsic, and informal consciousness of the

organization which guides the behavior of the individuals.

At the heart of organizations' cultures are commonly shared values. None is right or wrong,
but organizations need to decide which values they will emphasize.

AirAsia has an exploring and creative culture, which indicates a great deal for continuous
search for novel changes.

Strategy is the organization's overall expression of its main objectives as well as of its main
means to accomplish them.

Strategy is an action that managers take to attain one or more of the organization’s goals.
Strategy can also be defined as “A general direction set for the company and its various
components to achieve a desired state in the future. Strategy results from the detailed
strategic planning process”.

Strategy is Significant because it is not possible to foresee the future. Without a perfect
foresight, the firms must be ready to deal with the uncertain events which constitute the
business environment.

Strategy deals with long term developments rather than routine operations, i.e., it deals with
probability of innovations or new products, new methods of productions, or new markets to
be developed in future.

Strategy is a well-defined roadmap of an organization. It defines the overall mission, vision,

and direction of an organization. The objective of a strategy is to maximize an organization’s
strengths and to minimize the strengths of the competitors.
Strength of the Corporate Culture & strategy becomes important for the culture-strategy-fit,
since they are the two pivotal sources of directional information, which may be able to chart
the company's way into the future.

Strategic Fit is the situation in which all the internal and external elements relevant for a
company are in line with each other and with the corporate strategy.

AirAsia Intra-Strategy fit structure, Internal elements are evaluated such as

● R & D: AirAsia could be introducing biofuel- powered flights in the future with
research and development (R&D) underway as airlines want to cut jet fuel costs and
reduce carbon emissions.
● Incentive system: Plans to reward its directors and employees with a long-term
incentive scheme is seen as a step to substitute cash compensation and retain talent.
10% of the issued shares of the group consisting of an employee share option scheme
(Esos) and a share grant scheme (SGS)
● Distribution system: Is constantly expanding its reach and distribution network by
collaborating with new partners.
● Human resource: AirAsia is committed to building a collaborative and boundaryless
culture in which people could be the best versions of themselves.
● Planning system: AirAsia uses Customer Relationship Management (CRM), Yield
Management System (YMS), Enterprise Resource Planning (ERP) System, and
Advanced Planning and Scheduling (APS) system. All these systems aid the top
management in taking the appropriate decision for the benefit of the organization.

As per the external-induced strategy dimension, Air Asia has a Word-hard/play-hard

culture, in which the environment is characterized by relatively low risks combined with
quick feedback. This culture is based on team spirit; fun and action are the rules of the game
here.

Importance of culture-strategic fit

1. The development of a strong Corporate Culture is a technique to boost Strategic Fits

since the Corporate Culture provides implicit directional information.
 2. Strategic Fit reinforces the Corporate Culture's strength, as consistent organizational
behavior is more likely to result in a strong Corporate Culture.
3. Strategic fit is obviously a factor in a business's success, as it entails minimal
frictional losses.
4. When a business is successful, its culture grows. This indicates that a successful
business is more likely to have a strong Corporate Culture, since it is simpler for
employees to adopt similar patterns of behavior when these patterns are linked to
corporate success.

Operation effectiveness and outstanding efficiency are the two main characteristics at
AirAsia to achieve bigger cost advantages.

AirAsia follows successful people-oriented strategies in the way of treating their employees
and efficient operational strategies such as no frills, landing in secondary airports.
CHALLENGES

1. Resistance to change due to unspoken norms

Shaping peoples’ attitudes and mindsets can be challenging because everyone has its own
ways of seeing and doing things. In most cases, employees are used to a fixed way of doing
their work and interacting within the organization. This is a result of having specific
organizational behavior that is understood such as unspoken rules or unspoken norms.
Although nothing is wrong with that, the beliefs may sometimes hinder innovation, creativity,
or block the sharing of vital information.

Also, people can be resistant to change because they are afraid of failure. Being afraid of
mistakes is natural as no one really wants to be blamed for something that did not go as
planned.

2. Not communicating the purpose

It is essential for the management to communicate on the purpose, mission, and vision of the
company. By doing this, the employees will feel that they are important and part of
something especially when making a real difference to the organization. It also can help to
convince the employees to align their action towards the common goals.

3. Competing priorities due to lack of time

Most employers have strategies that need to be achieved. Each strategy comes with its own
set of external and internal challenges to manage. While it is essential to address the
organization’s culture to meet the external demands, if the internal dynamics are not
managed, the organizational culture will significantly suffer. Most frequently, leaders do not
prioritize the internal challenges due to limited available time.
4. Rigid organizational structures

Hierarchical organizational structures are typically used in larger organizations, and it might
cause some bottlenecks for innovation if it restricts the information flow. Commonly, the
middle management which controls the information flow to and from the front line, ends up
as that kind of a bottleneck. Although managers would want to hear ideas from the front line,
they are often too busy as they have too much on the plate and end up prioritizing their tasks
over innovation.

5. Lack or urgency due to the absence of a visible crisis

Organizations often realize the need for change in response to a crisis or a significant
problem. The lack of urgency in the absence of a crisis is due to an organization not having
healthy motivators inherently built into their culture. In this scenario, leaders are lacking the
vision to see their way through the moment and to the future beyond the crisis. Envisioning is
a motivating activity that should be something leaders’ practice with the key stakeholders at
all levels of the company and external partners to create possibilities together.

6. Lack of commitment and reinforcement

High commitment is important in ensuring the success of effective culture. If the

management is not committed, the employees are not likely to be either. Change rarely
happens overnight and especially innovation requires a true shift in mindset as well as
constant reinforcement.

7. Work Style Differences

Every team member has a unique work style that is predominantly dictated by their culture.
Some work cultures value individual contribution and foster individual opinions. With unique
styles, individualistic team members tend to come out as aggressive while the not-so
individualistic one’s merge into the team and may seem to contribute less. Despite the
differences in the work style, it is vital to filter and get the best out of every team member’s
work style.
8. Influences/ Group Dynamics

There can be chances that a section or group of the team has similar cultural identity
or homogeneity. They may attempt to dominate the process and try to influence the entire
team to swing their way. As a result, it can create unnecessary tensions and a frustrating
environment for other team members. Team and group dynamics can be a major concern in a
cross-cultural team. This can lead to unnecessary group politics and conflicts within a team.

9. Lack of proper training

Culturally diverse teams impose some challenges but also a lot of opportunities. If
they are not trained to deal with this aspect of cultural diversity the organization will miss a
lot of opportunities and might ignore some cultural challenges that can disturb the goals and
objectives.

10. Failing to identify regional and subculture differences

Cultural barriers may be just as relevant intranational as internationally. Subcultures

are not limited to regional or ethnic variations. Within emerging markets, there are significant
regional variations in consumer preferences and market conditions, yet within-country
differences are often overlooked—four-fifths of multinationals report that their offshore
decision-making occurs at the country rather than the city level.
RECOMMENDATIONS

1. AirAsia should re-assess corporate culture in relation to strategic, systemic, and

corporate culture changes.
2. The corporate culture must be maintained, for example, by assessing candidates' fit
with the corporate culture throughout the recruitment process.
3. The corporate culture must be reinforced in the sense that it must be made more
apparent; strengthening the corporate culture guarantees that the strategic fits are
maintained.

4. Get to Know Each Team Member

It is essential for the management to take the time and get to know each team
member. Learn about their story and journey. This will help you analyses individual
skills and leverage the knowledge to help the group. Management might uncover
specialized skills that can be beneficial to everyone and understand the personality of
the member at the same time.

5. Adopt Flexibility

Scheduling and decision making are two key workplace values that greatly vary
across cultures. Assessing these values can go a long way to understand the priorities
of your team members. For example, different cultures prioritize either flexibility or a
linear time construct to finish a task.

6. Promote Open Communication

Give every employee a chance to voice their opinions. An open communication line is
essential for greater efficiency. Otherwise, employees feel under-appreciated and
dominated by either the management or the dominant players. When attempting to
reach a consensus through virtual meetings, plan and ensure to send the agenda well
in advance to actively solicit each employees’ opinions.

7. Encourage Team Building Activities

When a mix of cultures is trying to come together in a team, organizations should
make every effort to create opportunities for casual interactions. Happy hours, team
 outings, lunch and learn, birthday parties, pantry banter, etc. help employees to bond
with each other despite their differences.

8. Listen Actively
Do not let faulty assumptions and biases to govern your decision making. These types
of biases can eradicate trust and prevent collaboration. If an organization overlook the
local cultures, considerations, needs that impact each team member, it can lead to
unnecessary friction.
9. Create a Structure for Success

When an organization have a multicultural team, they are bound to have different
work styles. This does not mean everybody should go haywire and work according to
their own methodology. It is up to the leaders to establish clear norms and help the
members to adhere.

Rather than imposing a style, leaders should take the necessary steps to explain the
importance of certain norms and train the employees to partake in these efforts. When
establishing the norms, try to implement practices from multiple cultures to create
uniformity.

10. Address Conflict Immediately

If a conflict ensues regardless of any efforts, make sure to address it promptly before
it is too late. Understand different cultural perspectives at play and try to resolve the
conflict by taking the middle path. A leader should serve as a cultural bridge to
connect different members of the team and bring unison.

11. Create a Cross-Cultural Awareness Program

Training and awareness can include sessions on greetings, business etiquette and
dining customs. This will help to dissolve the tension and educate members on the
prevalent cultural styles of other team members.

This will also enable you to identify and embrace cultural differences rather than
ignoring them altogether. Organizations will be able to create resilient global teams
and better relationships with clients, customers across the globe.

12. Develop a Team Identity and Clearly Define Roles and Responsibility of Members
 In a team, it is important that all members understand the common goal. Having a
shared goal and a common purpose will give your team an identity that can bring
them together. At the same time, clearly outline the expectations of each team
member and let everyone know that their contribution matters.

Break down the common goal into actionable steps that define each member’s role
and responsibilities. This way, everyone will collaborate and work together without
stepping on each other’s territory.

13. Build Great Rapport and Trust

Building work relations and trust cannot happen overnight. Take the steps to slowly
build an environment for collaboration. Respect individual differences and understand
them to build unity in a culturally diverse team.

KEY TAKEAWAYS

1. The proliferation of cross-cultural teams might bring challenges, but it can be handled
successfully with sensitivity and respect for other cultures.

2. Most often a clear understanding and acceptance of cultural differences is what it

takes to successfully manage a cross-cultural team.

3. The organizations that maintain strong traditional ethnocentric values and human
resource management practices, inhibit the selection, development and retention of
employees who are more adept at cross-cultural business and management activity.

4. Cultural barriers are amplified within a national context because they are assumed to
be irrelevant: research on mergers and acquisitions shows that social integration is
more problematic in domestic contexts than in international contexts.

5. Unless local cultures drive business models, foreign businesses have a high risk of
failure.
6. Ideas are transferred to other cultural environments without consideration of cultural
variations. But when practices are translated across cultures without adjustment for
cultural differences they can fail—and may even lead to losses.

7. Cultural ignorance may threaten a firm’s ability to attract, retain, and leverage its pool
of global talent.

8. Diversity is a double-edged sword. Diverse teams may either improve or detract from
performance, unless carefully managed, diverse workgroups may experience greater
conflict and less trust and cohesion than homogenous teams.

9. Cultural Intelligence promotes successful intercultural relations, both inside and

outside the organization. This improves business performance through enhanced
innovation, increased workforce engagement, and more effective partnering.