Organisational Behaviour and Human Resource Management Paper

Kirit P Mehta School of Law, NMIMS (Deemed to be University)

B.B.A LL. B (Hons.)

End Term Examination Semester IV

OB HRM

“A STUDY ON CROSS CULTURAL LEADERSHIP MANAGEMENT IN

INDIA”

Submitted To:

Dr. Karishma Desai

School of Law, NMIMS (Deemed to be University)

Submitted By:

Nikita Rathi

Roll No.- D024

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TABLE OF CONTENTS

ABSTRACT.......................................................................................................................................3

CHAPTER 1: INTRODUCTION........................................................................................................4

1.1 CONCEPT OF CROSS CULTURAL LEADERSHIP MANAGEMENT ......................4

1.2. DIMENSIONS OF CROSS CULTURAL LEADERSHIP MANAGEMENT ..................6

CHAPTER 2: OBJECTIVES OF THE STUDY.................................................................................7

CHAPTER 3: HYPOTHESIS.............................................................................................................7

CHAPTER 4: RESEARCH PROBLEM..............................................................................................7

CHAPTER 5: REVIEW OF LITERATURE .......................................................................................8

CHAPTER 6: RESEARCH METHODOLOGY.................................................................................10

CHAPTER 7: RESEARCH GAP.....................................................................................................10

CHAPTER 8: S IGNIFICANCE ........................................................................................................11

CHAPTER 9: FINDINGS................................................................................................................12

CHAPTER 10: SUGGESTIONS......................................................................................................13

CHAPTER 11: CONCLUSION........................................................................................................13

CHAPTER 12: REFERENCES........................................................................................................15

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ABSTRACT

Today, business globalisation, like an outbreak, is spreading. In addition to strengthening its

financial situation, many companies have vast company units in overseas, but also develop
strong international business networks. Organizations have now spread beyond geographical
borders; the fundamental reason why cross-cultural management is built. Yet it does Offering
in the expansion of company throughout the counties sounds highly profitable, but really
involves several difficult problems. These include cultural disparities, linguistic challenges,
ritual and religious variations, political instability, etc. The incidence of a culture shock is
well-known to a varied business. Every organization's smooth operating depends upon its
staff and how it deals with the difficulties. The emphasis in this article was on the various
dimensions that lead to multiculturalism. In addition, some recommendations and potential
guidance were given to address these issues and to conquer the worldwide business without
risks. This study also shows how initiatives for the establishment of non-racist organisations
should be taken up by higher authorities and subordinates.

KEYWORDS; Cross Cultural, Diversity, MNCs, Leadership

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CHAPTER 1- INTRODUCTION

India is considered an advanced country. Foreign trade has a significant impact on the Indian
economy. With the increasing rise of globalisation and overseas commerce, most MNCs and
IT companies in India face new hurdles daily. Employees with diverse value systems,
objectives, and beliefs, all of which impact their decision-making, are known as a
multicultural workforce. Although culture is not changing since you grow with it, a sensitive
engagement with a variety of employees might assist a manager achieve greater success. It is
not always true, but it does enhance problem-solving skills by a cross-cultural workforce.

Most multinational corporations (MNCs) are unaware of its variety and multi-pluralism.
Because of the cultural differences, the question is whether expatriates should change their
leadership style to fit to their subordinates' cultural backgrounds and prevent creating
unfavourable attitudes. Because of the following variables, expatriate leadership styles have
an impact on staff work performance.

Cross-cultural management, on the other hand, confronts several challenges since different
people have different mindsets and beliefs which is the outcome of their cultural background.
In management who are sensitive to cultural differences and show respect for all cultures,
regardless of their own gets success. Language, attitude, customs, values, and beliefs all
reflect cultural diversity. Culture shapes a person's psychological framework, which therefore
becomes the core reason of their professional behaviour.

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1.1 CONCEPT OF CROSS-CULTURAL LEADERSHIP MANAGEMENT

The people and nations of the globe are more intertwined than ever before.
Interdependence is a fact which is indispensable and growing, making it hard to remain
isolated from international. It pervades all aspects of our existence – culture, economics,
politics, technology or the environment (Lodge, 1995). The way we look at ourselves and
the world we live in has altered this permeation.
Physical barriers no longer limit us to a guarded world of interests, family and languages.
Hudzik (n.d.) represents the porous nature of national frontiers by streamlining travel and
rapidly introducing and absorbing high-tech electronic communications. As geography
and technology are no longer limited, all staff must be seen as global citizens and
multinational workers (Hunter, 2004)
To be successful in the competitive worldwide market, multinational companies need to
be created with people able to operate successfully in a global setting — strategies for
formulation and implementation, technological design and use and information
development and coordination. An important element to facilitate the company's
worldwide success is a talent pool of employees trained and nurtured to lead in a global
context.

To comprehend cross-cultural interaction, it must be understood the notion of culture.

Culture is a primarily social conduct of men, which starts in infancy, passes through
generations and is shaped by our society. India is thought to be a country of diversity
unity. There is essentially only one culture in India that is further divided into many
subcultures. The variations in demographic, geographic, psychographic and behavioural
contexts are responsible for these subcultural diversities. People stick to their culture and
this behaviour is mirrored in their work Life.

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1.2 DIFFERENT DIMENSIONS OF CROSS-CULTURAL MANAGEMENT

According to Hofstede are, the manager may have been presented with various cross-cultural
elements while managing a culturally diverse group:

1. PDI (Power Distance Indicator): It assesses the degree of power imbalance that may
exist in the organisation, as well as its acceptance by the general public. It
demonstrates the degree of concentrated power, which suggests that authority is not
divided among the organization's members. Varied organisations have different
methods to power distribution levels. In Hofstede’s study, the degree of power
distance is assessed by Index.
2. Individualism vs collectivism (IDV): The extent to which the personnel are connected
inside the company is highlighted. People from diverse backgrounds and cultures may
differ and have a distinct way of life. Therefore, the decision-making process is more
commonly perceived as conflicting with one other, behind a multi-cultural varied
work team. High IDV suggests that individuals like to work alone and want to be
acknowledged or chastised for their own work. People like this don't accept
responsibility for other work and don't accept responsibility for other tasks.
3. Masculinity Verses Femininity (MAS): It shows the difference in social decision-
making between men's and women's emotional state. Treatment of men and women in
all institutions now for a day without any sexual prejudice. Nevertheless, it constantly
compares the position of men and women in society. These organisations have a
detailed representation of the balance between women and men after men. Men
should in this kind of environment be self-centred, powerful, bold and career
orientated. Although the comments are beautiful, pleasant and friendly, they go
hungry. The function of men and women in women's organisations overlaps, which
contradicts this stance.

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4. Uncertainty Avoidance (UAI): It reveals how people can control and dynamically
adapt to the unsafe circumstance. In an organisation with a high score in UAI
employees strive to monitor the unknown scenario and they strive to forecast the
scenario as far as feasible. The Low UAI organisation, on the other hand, takes on a
more relaxed managerial approach. Employees are ready to face insecurity and are
ready to address new challenges and shocks.

5. Normative verses Pragmatic: It compares realistically and religiously with long-term

objectives and the short-term rewards. Pragmatic verses Standard. Countries with
many pragmatic principles are humbler, more resource-friendly, chase by knowledge
of the truth and trust in the long-term objective via compromise. In contrast, some
nations have less score Dimension has strong normative ideals, emphasises its rights
and tends to obtain short term gains. Countries such as the United States have attained
high standards You believe on a fast outcome and are not flexible A manager must be
extremely strong and rigorous with high normative ideals to do his work swiftly,
because he does not want to establish a long-term connection. But high pragmatic
organisations are more successful and knowledgeable. For long term guidance it is
suitable thus manager assume that the team he/she manages to be humble and
committed.

CHAPTER 2- RESEARCH OBJECTIVES

1. To highlights the impact of cross-cultural leadership style on the organisation and

work performance of Indian personnel.
2. To examine whether there is a link between subordinates' work-related value and
expatriate leadership conduct.

CHAPTER 3- HYPOTHESIS

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- Null Hypothesis(H0): There is no significant relationship between the cross-culture

leadership and cultural management.

- Alternative Hypothesis (H1): There is significant relationship between cross culture

leadership teachings and cultural management

CHAPTER 4- RESEARCH PROBLEM

In this research, we will look at the notion and aspects of cross-cultural management in
multinational corporations, as well as how we can reduce the major difficulties and
techniques that have negative impact. And can a cross-cultural management system be
applied to make a successful management? If yes, then the next question is how to achieve
that.

CHAPTER 5-REVIEW OF LITERATURE

Hofstede (1980) stated that there are four main aspects of culture that vary across borders.
Distinct countries have different ideals, which are reflected in how they function in
organisations. Some countries believe that power and authority should be distributed equally
in organisations. Individuals believe in working as a team in some settings, while others want
a high level of individualism in the workplace. In certain nations, men and women are
expected to perform equal roles, while in others, gender prejudice is significant. Some firms
include a high level of avoidance of uncertainty, in which they try to monitor known facts
while avoiding unknown information.

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Noel et.al, (1984) is said to be the key to the revitalization of significant US companies such
general engines, AT & T, general electrical equipment. About increasing the demand for
fundamental organisational change, they say that the transformative leaders must build a new
vision for the organisation. Over the years, they claim. Mobilize people to adopt the new
vision and to institutionalise the changes needed Without a national goal to produce this
breed of leaders, the authors are not particularly enthusiastic about revitalising the US
economy.

Hodgetts and Luthans (1994) discovered that cultural variations had significant influence on
employees' technical knowledge, management skills, potential, and talent. An individual's
professional behaviour is heavily influenced by their cultural background.

Farren and Nelson (1999) offered a basic technique for retaining personnel in a
heterogeneous environment. Employees feel connected to the company in any non-
discriminatory organisation, according to him, which is the key reason for the establishment
of such management.

The association between transformational leadership, leader’s anticipation of follow-up

(Pygmalion effect) and follow-up preparedness to promote was researched by Priyabhashini
and Krishnan (2005) using a sample of 101 managers from the two Indian firms. Respondents
were asked about their readiness for advancement as well as their superior's transformative
leadership and aspirations. Two dimensions were used to assess preparedness for promotion.
The first was about the subordinate's incentive to perform and advance. The subordinate's
confidence was measured as the second dimension. The findings revealed that the leader's
anticipation was considerably positively connected with the followers.

Diwakar (2008), explains in his research paper "Managing Cross-Cultural Diversity: Issues
and Challenges" (MCDC). the obstacles and concerns of the multiculturalism approach and
provides corrective strategies to reduce its negative effects His perspective is that, though

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cultural diversity is seen as a huge management burden, it offers numerous advantages that
may be rewarding if managed well.

Kandole (2008) described several cultural characteristics depending on tasks, risk-to-caution,

equal vs. hierarchical management, individuality-team-based management, and individuality-
team-based management Task-based management is primarily concerned with meeting the
deadline and pays little attention to interpersonal interactions. Employees are given the guts
to make decisions based on insufficient data when management decisions are made more
forcefully in risk-based management. In contrast to management, individual management
encourages people to work together and form friendly connections.

Vimal (2011), research has stressed that leadership styles of expatriates are of key
importance. The main factor for success and effectiveness in the host nation has been
addressed. The study evaluated the leadership styles of 25 Japanese and 23 American expats
in India. The study examined 10 leadership components to assess the management styles of
these managers from different nations. To determine the variations and similarities amongst
leadership styles, the results were analysed. Statistical analyses showed that four of the ten
leadership components were significantly different while the remaining six leadership
components were significant.

There is a relationship between national and individual value, according to Fischer and
Porting (2012). These two values, according to the research, have varying effects on
employee behaviour at work. The difference in value systems, on the other hand, modifies the
pattern of decision-making. Even though these two concepts are diametrically opposed, a
manager must accept the existence of both in order to effectively manage cross-culturally.

Holmes (2015) Cross-Cultural Management has identified many of the secrets to making
cross-cultural operations considerably more effective and has continued to demonstrate to
businesses the great advantages they can expect to obtain once they gain awareness and
respect for the cultural variables at work. Therefore, team members learn how to alter and
enhance their management style, and they notice a significant increase in motivation and
collaboration among their colleagues. It leads to more peace and productivity.

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CHAPTER 6- RESEARCH METHODOLOGY

This research paper is a qualitative paper that provides a review and study of the writing on
the development of human resources and, in addition, the understanding of the verses chosen
for self-information by the Bhagavad-Gita. The researchers have used doctrinal method to
conduct the research. The study includes collection of data through various secondary sources
only. The data was collected through books, magazines, thesis reports, conference papers,
articles, website reports, published books, journals, and newspapers, etc. Due to paucity of
time only secondary data has been collected and utilised for this study.

CHAPTER 7- RESEARCH GAP

Research gap is defined as a missing piece or the area that is underexplored or not yet been
explored in the research literature. It could be population, location, outdated research, size, or
any other research condition or variable.

There has been only few research on the association between subordinates' cultural value and
expatriate leadership conduct thus this study identify this area as a potential research gap, the
paper highlights the relationship between subordinates cultural values and expatriate
leadership style and how both have a positive impact on the performance of an organisation
and its cultural management.

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CHAPTER 8 SIGNIFICANCE OF THE STUDY

From the company point of view and from the standpoint of the mobile world leader, greater
investigation of the transnational leadership experience has the theoretical and practical
importance. Harris and Moran's comments in their book, Managing Cultural Differences
(1987), had a great deal of resonance about the meaning and impact of studies that mobile
global leaders or transnational leaderships may possibly have. Globalization and the
subsequent adjustments are sluggish; this quote thus continues to apply. Transnational
corporate executives should participate in the joint battle to rebuild the world of culture and
contribute to the evocative vision of the human family.

Due to their expertise and experience, transnational managers are unusually able to
participate in the project the authors' thesis. In the context of a developing global economy,
successful companies will need expertise to navigate world seas. The capacity to identify
successful cross-cultural leadership approaches and apply them will be a fundamental
component of success. This research offers an insight into the identification and practise of
good cross-cultural leaders.

Because worldwide operations are changing, successful leaders require the capacity to
interact with many cultures and languages. Leaders need to be ready to manage in rapidly
changing contexts with many cultures and traditions and an extremely complicated workforce
(Earnest, 2003). and that corporate success comes from a skilled capitalisation on the
innovative and competitive edge of cultural diversities.

CHAPTER 9 FINDINGS

MULTICULTURAL MANAGEMENT MODEL IN MNCs

numbers of models explaining the framework of multicultural management have been

produced. This model is proven easiest model that provides cross-cultural management
framework in detail The Input-Output Model processes demonstrate cultural variations. The
technique is a refined approach to forming multinational companies (MNCs) throughout the
world.

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Employees from all around the world are swarming multinational corporations. Global
business process improvement not only allows for technology connection, but it also
encourages employees to band together.

The range of two cultures (C1 and C2) which are transcultural. Cultural. This blended culture
then goes through a series of steps, filtering and progressing towards an integrated culture at
each level. Many impediments, such as linguistic differences, might stand in the way of
success when transitioning an inner work culture to a mixed one.

Caste, value, standards, and beliefs are all different. Obstacles to a successful multi-
generational business include education and family history.

management that is varied If an organisation can overcome all these obstacles and handle the
difficulties in a rational manner, it will be more efficient and effective. International business
innovative management

CHAPTER 10- SUGGESTIONS

Knowledge: The first milestone has already been accomplished by those leaders who want to
invite talents from other areas of the world to play in the senior management team. They
know the whole talent pool worldwide. While many Western corporations already
appreciated the whole breadth of talent in the globe, some are behind or not even on their

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radar. These companies do not know what they don't know—and they don't realise that
possibilities are lacking.

Development: The next stage is to establish a programme for establishing the global
executive bench after becoming aware of the notion of the whole global talent pool. It doesn't
imply expanding your horizons to overlook individuals right under your nose. Progressive
firms have extensive management development programmes that nurture local talent and seek
overseas to brilliant individuals who are willing to transcend borders at the next stage in their
growth.

Economic selection and integration: Any global manager selection process should start with a
thorough grasp of the criteria required for the success of the assignment. This covers
worldwide management skills as well as the job imperatives relating to the individual
assignment, such as flexibility and comfort with ambiguities, inquisitively and so on. Because
the expectations for the household and the host nation might vary greatly, this is often
necessary. A qualified specialist may often aid with a third-party evaluation.

CHAPTER 11- CONCLUSION OF THE STUDY

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Organizations undergo modifications in order to react to a diverse society. Varied

corporations have different dimensions based on the places in which they operate. Clearly,
global business aids in the growth of organisations, even though it is loaded with challenges.
As a result, this problem must be handled internally by increasing the number of skilled staff
to reduce the negative consequences of cross-cultural contacts. Clearly, global business aids
in the growth of organisations, even though it is loaded with challenges. As a result, this
problem must be handled internally by increasing the number of skilled staff to reduce the
negative consequences of cross-cultural contacts. Clearly, global business aids in the growth
of organisations, even though it is loaded with challenges. As a result, this problem must be
handled internally by increasing the number of skilled staff to reduce the negative
consequences of cross-cultural contacts.

To fulfil the organization's objective, a leader must be more impartial and sensitive to
different cultures. Global business presents a plethora of opportunities as well as threats to a
corporation. An astute manager should always recognise opportunities.

Once the suitable executive has been chosen for a worldwide management job, particular
consideration must be given to the challenges of operating in a different cultural setting. To
maximise talent in a multinational organisation, it must be sourced locally as well as globally.
Due to a lack of regard for local cultural norms and traditions, poor communication, and
misunderstandings among persons with various cultural orientations, talent can be
squandered, and constructive contributions diminished, as observed in both the colonial and
expatriate stages of history.

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Chapter 12 REFERENCES

[1] Cavegirl, S.T., Gary Knight, John Riesenberger, Management & the new realities
(Student Value Edition (3rd Edition) (page 124- 157, 2007))

[2] https://www.mindtools.com [3]

http://gladstone.uoregon.edu/~asuomca/diversityinit/definition.html [4]
http://smallbusiness.chron.com/advantages-diverse-culture-work-force-18441.html

[5] Fred Luthans, Organisation behaviour (Tenth Edition, McGraw Hill Publishing House
2005 (page 44-112))

[6] Adler, N. (2008) International dimensions of organizational behaviour. (5thed.).

Cincinnati, Ohio: South-Western

[7] Hofstede, G., &Hofstede, G. J. (2005). Cultures and organizations. London: McGraw-
Hill.

[8] Reynolds, S., & Valentine, D. (2011). Guide to Cross-cultural Communication. (2nded).
New Jersey: Prentice Hall.

[9] Hofstede, G. (1980). Culture’s consequences, (1sted.) Beverly Hills: Sage

[10] Stephan Groeschl. Cultural Implications for the Appraisal Process

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