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Arab Open University

Tutor Marked Assignment (TMA 01)

Academic Year: 2023 - 2024 Semester: Fall

Branch: Egypt Program: MBA
Course Title: Managing in a changing world - Mgt Course Code: B870A
Student Name: Ahmed Reyad Salem Shbair Student ID: 23510560
Section Number: 1 Tutor Name: Dr Noha Elbendary
Questions Q1 Total
Allocated Marks Weight 100
Marks /100
Marks Deduction Referencing/In-text Word Count
Presentation Total
Criteria Citations
/-05 /-10 /-05 /-20
Total Mark: /100
Notes on plagiarism:
A. According to the Arab Open University By-laws, “the following acts represent cases of cheating and
Plagiarism:
▪ Verbatim copying of printed material and submitting them as part of TMAs without
proper academic acknowledgement and documentation.
▪ Verbatim copying of material from the Internet, including tables and graphics.
▪ Copying other students’ notes or reports.
▪ Using paid or unpaid material prepared for the student by individuals or firms.
B. Penalties for plagiarism ranges from failure in the TMA to expulsion from the university.

Declaration: I hereby declare that the submitted TMA is my own work and I have not copied any other
person’s work or plagiarized in any other form as specified above.
Student Signature

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Good luck guys
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Do you think Aero management is taking a more standardized or a more localized approach to
their management, specifically human resource management? Explain.

Culture

Culture is one of the most important things that determines the success of an organization, but
many people have a vague and unrealistic idea of what it is. This is especially strange because
culture is one of the most important things that makes an organization successful. The culture of
a group or organization is made up of the shared beliefs, rules, and behaviors of all its members.
How an organization runs on a daily basis is affected by its culture in a big way. To manage the
relationships between employees from different cultural backgrounds in a company well, you
need to know the difference between national culture and organizational culture (Zaidman and
Dodick 2022).

A nation's national culture is the culture of the whole group of people who live there.
"Organizational culture," on the other hand, is "the way we do things around here" in a certain
company. It refers to how that culture is different from the culture of other businesses. At the
organizational level, culture is the way things are done. At the national level, culture is the set of
values that everyone lives by. National culture is largely shaped by history, which is probably the
most important thing to management. However, the leadership team can change organizational
culture to better reflect the values and goals of the organization (Gerhart 2009).

If you want to be successful in the field of intercultural management, you need to think about
both of these things. There is nothing wrong with promoting diversity and cultural awareness,
but it won't make a difference if the company doesn't do anything about it in its daily work.

Localization or standardization

The people in charge of Aero seem to be putting a lot of emphasis on a standardized approach to
management practices so that their policies and values are the same everywhere they work. This
was done so that the business could work better. When dealing with different cultural settings,
like the Mexican subsidiary, this strategy may have some benefits, like being able to keep the
company's culture consistent. However, it may also have some problems when dealing with these
cultural settings. Keep a consistent corporate culture, for instance, could be one of these benefits
(Adkins et al. 2013).

You often need to use a more nuanced management style when working with people from a lot
of different cultural backgrounds. Things that work well in one culture might not work as well in
another. As with any subsidiary, it is very important to think about how the local laws, customs,
and cultural differences might differ from the standard ways of doing things set up by the parent
company in Mexico. This is because these methods are used by the parent company all the time.
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It's possible that Aero's management would do well to change some of their rules or ways of
managing in order to better fit the culture of their Mexican branch. This might mean using a
more regional approach to managing human resources, one that takes into account, honors, and
respects the different cultural aspects while also making them fit with the overall company
values. The strategy described in the last sentence is an example of this type of plan.

It's possible that the key to moving forward with this project is to find a balance between
localized adaptation and standard procedures. For instance, having core values and rules that are
the same everywhere while also letting people be flexible in some areas to meet the needs of
workers in different cultural settings. Sharing the same core values and rules in all locations.
Actions that could be taken to help bridge the gap between the standard corporate culture and the
unique cultural context of the Mexican subsidiary include giving managers training in cultural
sensitivity, setting up open lines of communication, and involving local leadership in decision-
making (Hanlon and Harney 2019).

In order to make sure that their policies and values are followed consistently in all of their
locations, Aero's management may be stressing how important it is to adopt a standardized
approach to management practices. Last but not least, Aero management may be able to improve
their operations by using both standardized and localized methods. When dealing with different
cultural settings, like the Mexican subsidiary, this strategy may have some benefits, like being
able to keep the company's culture consistent. However, it may also have some problems when
dealing with these cultural settings. Keep a consistent corporate culture, for instance, could be
one of these benefits.
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As a primary source of the problem, select one of Hofstede’s five cultural dimensions to critically
explain to Avery the main differences between Aero’s Canadian HQ and its Mexican subsidiary in
terms of culture.

The Hofstede model, also known as the 6-D Model of National Culture, uses cultural values to
understand a country's culture. Professor Geert Hofstede's model has helped organizations
improve cross-cultural communication and cooperation. The model helps explain how cultural
differences affect business transactions (Wu 2023).

Six dimensions make up the model.

POWER DISTANCE

This dimension measures how much society's less powerful accepts and expect unequal power
distribution.

INDIVIDUALISM VS. COLLECTIVISM

Individualism, the high side of this dimension, is a preference for a loose social framework in
which people care for only themselves and their families. Collectivism value orientation,
people's major concern is their ingroup or community.

Masculinity vs. femininity

Masculinity in this dimension represents societal values of success, heroism, assertiveness, and
material rewards. Our society is becoming more competitive. However, femininity favors
cooperation, modesty, caring for the weak, and quality of life. In general, society favors
consensus.

UNCERTAINTY AVOIDANCE

The Uncertainty Avoidance dimension measures society's discomfort with ambiguity. This
question is how a society handles the fact that the future is unknowable: should we try to control
it or let it happen?

LONG TERM ORIENTATION

While facing present and future challenges, every society must maintain some ties to its past.
Society values these two existential goals differently. Low-scoring societies value tradition and
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distrust change. However, those with a high-scoring culture encourage thrift and modern education to
prepare for the future.

INDULGENCE

The society of indulgence allows the relatively free gratification of basic and natural human
drives related to having fun and enjoying life. Restraint represents a society that restricts need
gratification through social norms.

Take into account Hofstede's "Individualism vs. Collectivism" cultural dimension in order to
acquire an understanding of the most significant cultural differences that exist between Aero's
headquarters in Canada and its subsidiary in Mexico. These differences can be found in both
countries' respective political systems. This factor explains why societies place a higher value on
an individual's interests and autonomy than they do on the cohesiveness of groups and their
interdependence. Specifically, this factor explains why societies place a higher value on
individual interests and autonomy (Walker et al. 2018).

Individualism is given a significant amount of weight in the Canadian mentality, which can be
summarized as follows:

1- The culture of Canada places a high value on personal autonomy, the right to freely
express oneself, and the successful completion of one's own goals. People are strongly
encouraged to pursue their own goals and to make their own decisions regarding those
goals.

2- Equality is the idea that all people, regardless of where they came from, should have the
same opportunities to succeed is one that is held by a large number of people with a
strong sense of conviction. There is a strong emphasis placed on open communication,
and the existence of formal hierarchies is kept to a minimum.

3- Work Culture: Individual contributions, initiative, and the ability to strike a healthy
balance between one's personal life and one's professional life are frequently valued in
Canadian places of employment. Employees are actively encouraged to voice their
opinions and provide input during the decision-making process at the majority of their
places of employment today.
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On the other hand, collectivism is an aspect of Mexican culture that is more prominent:

1- In Mexican culture, the importance of having close ties to one's family and being
dedicated to one's community cannot be overstated. The term for this way of thinking is
familism. When making decisions, the welfare of the household or group is frequently
taken into consideration, and family is frequently considered to be the priority that ranks
highest on the list of priorities (Márquez 2015).

2- Because Mexican organizations are typically organized in a more hierarchical fashion,

showing proper respect to those who hold positions of authority is an absolute
requirement. It is generally accepted that superiors will be the ones to make decisions,
and subordinates are much less likely to vocally disagree with the choices made by their
superiors.

3- Because it can have an impact on how people communicate with one another, preserving
the harmony of a group is one of the most important tasks that must be completed. Direct
confrontation should be avoided at all costs, and positive relationships should be
maintained at all costs. Both of these goals should be pursued simultaneously.

Challenges regarding individualism and collectivism

When Aero's headquarters in Canada and its subsidiary in Mexico interact with one another, the
disparities in the ways in which they view individualism and collectivism can lead to a number
of challenges in the workplace, including the following:

1- Decision-Making: Aero's Canadian employees may expect more individual input into
decision-making processes, whereas the Mexican subsidiary may rely more on top-down
leadership decision-making. This is because the Canadian subsidiary is more
decentralized than the Mexican subsidiary. This is because, in comparison to its Mexican
counterpart, the Canadian subsidiary has a greater emphasis on decentralized decision
making.

2- Styles of Communication: Canadians may communicate in a more open and direct

manner, whereas Mexicans may use indirect communication to avoid confrontation and
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to keep the group in harmony. Canadians may also communicate in a more open and
direct manner.

3- Team Dynamics: Employees in Canada may have a preference for working

independently, whereas employees in Mexico may have a preference for working closely
together in groups and placing a higher priority on the wellbeing of their team. Canada's
employees may also place a higher priority on the wellbeing of their team than Mexican
employees do.

4- Work-Life Balance: It is possible that employees in Canada place a higher priority on

work-life balance than employees in Mexico do. Employees in Mexico may be more
willing to work longer hours in order to meet the expectations of the group. It is possible
that employees in Canada place a higher priority on work-life balance than employees in
Mexico do.

The ability of Aero to improve collaboration and communication between its Canadian and
Mexican teams can be aided by a better understanding and appreciation of the cultural
differences that exist between the two countries, as well as the identification of ways to bridge
the divide between individualism and collectivism. Aero is headquartered in Canada, and its
Mexican teams are located in Mexico. It is possible that this will also end up resulting in
improved cross-cultural management and decision-making within the organization.

In your opinion, what are three ways that Canadian managers could demonstrate higher inter-
cultural competence at Aero’s Mexican subsidiary? Critically explain and provide evidence.

To achieve this goal, Canadian managers of Aero's Mexican subsidiary can improve their
intercultural competence by taking a number of steps to bridge cultural gaps and strengthen
relationships. They could demonstrate greater intercultural competence by doing one of the three
following things:

Managers in Canada should be trained in cultural sensitivity so that they can understand the
nuances of Mexican culture, such as the values, communication styles, and social norms that are
prevalent in Mexican society. Discussions about the importance of family ties, hierarchical
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structures, and personal relationships in Mexican business culture may be included in this
training.

Businesses that invest in cultural sensitivity training benefit from significant improvements in
both cross-cultural communication and collaboration. training programs focusing on cultural
adaptation and sensitivity may result in more fruitful interactions between people of different
cultures (Munroe and Munroe 1981).

Encourage a variety of decision-making styles that can accommodate both individual and group
preferences when making decisions through collaborative processes. Canadian managers can
take a more inclusive approach by soliciting feedback from Mexican employees while still
respecting the organizational hierarchy. This approach would acknowledge the importance of
group consensus as a factor in decision-making processes.

incorporating diverse decision-making methods and taking into account both individual and
collective points of view in multicultural teams can result in more successful outcomes and
higher levels of team performance (Stahl and Maznevski, 2021).

Open Communication and Relationship Building: Emphasize open communication while

remaining respectful of the cultural norms of indirect communication that are prevalent in
Mexican culture. Because strong relationships are so important in Mexican business culture,
Canadian managers would be wise to cultivate personal connections with their Mexican
counterparts.

Effective cross-cultural communication is predicated on the development of relationships and

trust among team members. Developing personal connections with one another and
understanding cultural nuances can significantly improve collaboration and trust within
multicultural teams (Gudykunst and Kim, 2003)

If these strategies are implemented, the Canadian managers who work for Aero's Mexican
subsidiary will be able to cultivate a more welcoming and culturally responsive workplace. This
strategy has the potential to improve communication, strengthen relationships, and increase the
effectiveness of collaboration between the two cultures, all of which will contribute to the
success of both.
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References

Zaidman, N. and Dodick, J. 2022. How do high-tech industry remote team employees learn to
manage their emotions? Culture and Organization 29(1), pp. 34–53. Available at:
http://dx.doi.org/10.1080/14759551.2022.2125516.

Gerhart, B. 2009. How Much Does National Culture Constrain Organizational Culture?
Management and Organization Review 5(2), pp. 241–259. Available at:
http://dx.doi.org/10.1111/j.1740-8784.2008.00117.x.

Adkins, C.L., Samaras, S.A., Gilfillan, S.W. and McWee, W.E. 2013. The Relationship between
Owner Characteristics, Company Size, and the Work-Family Culture and Policies of Women-
Owned Businesses. Journal of Small Business Management 51(2), pp. 196–214. Available at:
http://dx.doi.org/10.1111/jsbm.12014.

Hanlon, G. and Harney, S. 2019. Standardisation, disequilibrium, and crisis: The division of
labour and financialisation. Human Relations 74(7), pp. 958–977. Available at:
http://dx.doi.org/10.1177/0018726719884608.

Wu, S. 2023. Beyond Hofstede Dimension Model: A New Cultural Dimension of Context
Culture. International Journal of Languages, Literature and Linguistics 9(1), pp. 90–93.
Available at: http://dx.doi.org/10.18178/ijlll.2023.9.1.386.

Walker, V., Bowkett, G. and Duchaine, I. 2018. All Companies Are Technology Companies:
Preparing Canadians with the Skills for a Digital Future. Canadian Public Policy , pp. 1–6.
Available at: http://dx.doi.org/10.3138/cpp.2018-011.

Márquez, D. 2015. MEXICAN ADMINISTRATIVE LAW AGAINST CORRUPTION: SCOPE

AND FUTURE. Mexican Law Review 8, pp. 75–100. Available at:
http://dx.doi.org/10.1016/j.mexlaw.2015.12.004.

Munroe, R.H. and Munroe, R.L. 1981. : Research in Culture Learning: Language and Conceptual
Studies . Michael P. Hamnett, Richard W. Brislin. American Anthropologist 83(3), pp. 655–656.
Available at: http://dx.doi.org/10.1525/aa.1981.83.3.02a00330.
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Stahl, G.K., Maznevski, M.L. Unraveling the effects of cultural diversity in teams: A
retrospective of research on multicultural work groups and an agenda for future research. J Int
Bus Stud 52, 4–22 (2021). https://doi.org/10.1057/s41267-020-00389-9

Gudykunst, W.B. and Kim, Y.Y. (2003) Communicating With Strangers: An Approach to
Intercultural Communication. 4th Edition, McGraw-Hill, Boston.