HI6005 Management and Organizations in a Global Environment Assignment Help
NATIONAL CULTURE GENERAL FRAMEWORK
Students are required to research a topic from a list of topics provided based on topics discussed in lectures. Topics include:
- Organisational culture and management
- Organisational structures and design
- Decision making
- Operational planning tools and techniques
- Strategic planning
The research provided will provide more in-depth evidence of individual research on the topic, not only material which is provided within the lecture content.
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The complete economic growth will constantly be discussed as the current set of capabilities gain success globally. The list of rapidly developing upcoming markets comes with a long list. The US-based prediction is based on just 2.4 per cent, which can be compared with many economies that can be fine in the west. The local organization that has the possibility to see development which is incremental by nature in next ten years are related to those that are unable to do any business globally, however that are growing with strategic abilities set to gain expertise while doing business in different cultures (Anand and Vohra, 2019). Core competence across cross culture is the core of current sustainable competitive gain. In the current time, a manager can be asked to manage operations like supply chain in a different country and the very next day, the manager can manage the virtual team in some other nation or optimizing operations in India. The fact is that it is not possible to become or gain expertise in every geography or culture in which companies are doing business. However, it is possible to develop a thought process based on a globalist or gaining expertise in the art of cross culture focused core competencies. The report will discuss the theoretical framework of cultural differences with the help of various theories. In the other part, the report will study the country of Korea and specifically a company working in a country called Korean Air.
Discuss why an understanding of national culture is important for multi-national or trans-national corporations seeking to operate in a global business environment.
The overall analysis of cultural difference and its importance in MNC is widely useful especially to conceptualize the different type of culture as containing diverse layers. Specific features of a culture are widely visible, similar to the tip of an iceberg. This shows that culture consists of observe components like behaviour, music, language and food. A deep clarity over culture only designs just by looking at submerging tip part of the iceberg. The deep layer contains the expressed level of values that shows how culturally focused members can explain the exposed culture. In the end, the deep bottom found in iceberg contains basic as well as assumptions that are taken for granted that further from the basics of every culture. These are the basic kind of assumption that gives the final meaning to the expressed level of value system as well as behaviour (Bouncken et al., 2016). For instance, in many cultures of Asia, it is considered rude or bad not to study the business card which is shown to the company since business cards show a professional identity of an individual, their social status and title. While failing to study the business card is considered as a sign of disrespect for the person. Also, the ritual to exchange business cards which can further be explained with deep meaning that is related to business cards in the current specific context. The value system when expressed can be understood completely by focusing on the underlying significance of respect in the direction of seniority as well as status in a specific culture.
Addressing the national culture and existing differences thus need not just knowledge about the right kind of behaviour however, an understanding of assumption along with value system that discusses why specific behaviour is right than any other. There is a number of cultural frameworks present that featured and discuss culture along with diverse value angles (Bousetta et al., 2018).
Hofstede's cultural angles
The widely utilised framework to divide national culture is the one well designed and developed theory by Geert Hofstede which happens to be a Dutch social psychologist as well as a scholar in management studies. The data or information utilised here is focused on deriving important culture focused value angles came from the employee's surveys in IBM as conducted during the time period of 1967 and 1973 focusing on more than fifty cultures. While testing the answers from employees of IBM in order to questions about the work and job set-up has revealed structured cultural changes across four angles that are power distance, collectivism, uncertain ignorance and femininity or masculinity (Jiang, 2017).
There is a high possibility that many cultural angles recognized in the research of the theory are related to power distance which focuses on the overall level to which a culture can accept and further focus or reinforce on the factors that complete power is distributed in an uneven manner in the society. Members of a high level of power distance focused culture like Korean accept status changes or differences as well as are anticipated to show the right kind of respect to the seniors. Status changes or differences are present within the hierarchy of organization however they can also be dependent on the factors like age, the role of family and social class. It is crucial to understand that although such changes in rank will constantly show pieces of evidence, a senior in a high-power distance focused culture will further treat people at low levels with high or immense dignity (Jiang, 2017). On the contrary, low-power distance focused cultures like Denmark are not very comfortable with many differences that can be found in organization rank and are featured by high participation as a part of decision making and constant disregard over hierarchy. The work of power distance assists in explaining the significance of many deferences exist over Korean Air colleagues like their co-pilots showing it for captains. It is significant to understand, but a position of culture along with specific cultural angles is not actually the test of whether people from that culture principle cases good or bad than in many other cultures (Sucherand Cheung, 2015). Despite this, the cultural dimension just shows different kind of preferences for how challenges can be approached in the right manner.
Another angle that Hofstede recognized is collectivism or individualism. Cultures when present in individualism like the UK constantly maintain loose kind of social system that is featured by independence, the significance of rights of people and the identifying of personal kind of initiative along with accomplishments. On the contrary, collectivism culture like Venezuela focused value system the complete good of as well as loyalty towards the group. People of collectivist communities clearly divide the in-group as well as out-group and are anticipated to subordinate the interest at the individual level for the gains of different in-groups (Brannen et al., 2017). The research of Hofstede shows that cultural angles were exhibited to strongly show or correlate with varied power distance. In another word, the individualist focused culture has the tendency to have some kind of preferences for low-power distance. An extraordinary or noted exception in the case of France where all preferences for current status changes or differences goes together with attention on personal accomplishments along with individual rights.
Uncertain ignorance issues the level to which current cultural members have the willingness to say yes and address with risky challenges. Cultures with high stages of uncertain ignorance like Greece asks for structure and prediction, as an outcome which is part of explicit rules of attitudes along with many stringent laws. People of such culture have the tendency to challenge or risk all averse in the direction of transforming managers, embrace new principles or be part of many entrepreneurial functions. In communities with a low focus on uncertainty ignorance like Korea, there is some preference towards unstructured cases along with ambiguity which mainly works in favour of risks, acceptance of diverse opinions and innovations (Bratton and Gold, 2017).
Another angle identified by Hofstede is Femininity or Masculinity. A culture inspired by Masculine features like Japan is based on a thought process to show some kind of dominance of many values systems that are tough to accomplish, assertive by nature, material success as well as competition, that is finally universally related with many roles for male. On the contrary, feminine culture pays attention to the tender level of value system like personal associations, care for other people along with the better quality of life. (Strese et al., 2016)Moreover, feminine culture like Sweden is featured by a reduced level of distinct roles of gender. When compared with masculine cultures, companies in feminine culture can place a strong focus on the complete well-being of the workforce rather on performance coming from the bottom line.
Based on the answers of the surveys, Hofstede can easily compute the current average level of the score for every national level of culture involving in the research along with 4 dimensions. For many years, the study by Hofstede has been replaced by different scholars and can extend over eighty culture for which information on 4 angles are present (Danese et al., 2017).
Other than Hofstede work on cultural difference, there are a number of other principles present that divide national culture along with other dimension or angles. On one hand, some angles based on the concept can match the ones which are recognized by the Hofstede as few differences are worth discussing. People like Fons Trompenaars who happens to be a researcher from Dutch has worked on most recent information in more than forty nations (Eloand Minto-Coy, 2019). There are seven dimensions discussed here and five primarily focus on association exist between people and the other two dimensions focus on time management and a culture focused association with the current nature.
Impact of national culture differences
One major indicator of the impacts of cultural differences is given by different kind of patterns based on trust within along with different nations. The best kind of data present comes from Eurobarometer focused research that calculates trust among people of diverse nations, primarily within the boundaries of Europe. Studies within sixteen countries have focused on whether people trust their people, the citizens of other nations and people from countries like Japan, USA and China. There is a number of researches that constantly explains different patterns of global trust that have concluded since trust can fall as the trends of two nations can develop differently according to languages, religion or body kinds, geography and incomes and finally there is more extensive history focusing on wars (Helmreichand Merritt, 2017).
To give a more structured opinion of the impacts of many cultural differences, this part can rightly review effects of four kinds of global flows focusing on data, people, capital along with products or goods. The survey initiates with data flow since economist normally focuses on information expenses as an element that decreased the other kinds of flows. The flow of people is dealt in another step due to the significance of relationships in helping or facilitate goods and the flow of capital that is covered in another step.
As it can be seen, linguistic focused changes or differences are highly useful while proxy that favours cultural differences. One method of qualifying the effect of language restrictions on data flows is to see the intensity of global telephone conversation on a population basis. The overall intensity focused on minutes in a phone called happening between nations where approx. 20 per cent of the overall population share with the common form of language is much greater than between many other nations (Kumar et al., 2017). The influence of language restrictions on data flows can also be seen as a part of the analysis of many patent focused citations. As per the number of studies, to have a similar kind of language raises the amount of information flows between two parts which come down to twenty-eight per cent. And there are other language restrictions which are highly amenable as a part of quantification where one can comfortably of other right methods where cultural differences can completely impede the current data flow. Varying from many misinterpretations with unwillingness in order to share data across different cultural boundaries.
The influence of current cultural changes or differences on management or staff flows is part of the evidence by migrating designs or patterns. Approx. sixty per cent of migrant's mover to a nation with similar major or important religion and approx. forty per cent goes to a nation along with similar or important language. The research further diasporas along with global business network can be exhibited migration to have a crucial impact on data flows and patterns of investment (Kurnia et al., 2015). The studies also show that along with being utilised to data which is transmitted about past opportunity business focused conducts, as well as networks, can be utilised to information transmitted about the present or available option for highly profitable global trade.
The example in the discussion here is Korean Air and it is crucial because of two important factors. Firstly, when national culture can have important not to mention highly existential- along with different consequences around people of similar cultural focused origin, people require to be highly cautious is how people deal with national kind of cultural changes in cross-border communications. Secondly, it is best to focus on the approach and attitudes highlights Korean Air and their co-pilots and engineers of flights can persist in a current regulated culture like the commercial type of aviation (Lilly, 2017). National or domestic culture helps in shaping behaviour and this impact can reach way beyond administration features like government policies, public institution along with the right kind of laws. This is why the complete note pays attention to how to impact the culture can materialize and how current cultural changes or differences impact the operation of companies around the world.
In order to understand, the culture will be discussed as a group of shared value system, assumption as well as the belief system that is understood via membership and impact of the behaviour of another group member. The concept consists of three important features like culture can be explained as group elements that dividing people of one group from another group. From this angle, cultures present at many levels, consisting of the organizational activity or business departments, occupation, sectors, organization, geography and countries (Nazarian et al., 2017). This pay attention to specific national culture as well as the role from cultural differences across nations rather than different cultural focused group since this stage of culture is specifically crucial for MNC.
Secondly, the discussion above focused on the culture which is not obtained because of the birth however, rather than getting it through a socialization process. The overall learning from the present set of shared values along with assumptions as well as belief system happens via communication with teachers, family, experiences, officials and community. This way, Geert Hofstede talk about culture as a part of the process focused on a collective level of programming of all the crucial mind.
Thirdly, as a part of a collective kind of programming that decide what is acceptable or can attract the right set of attitudes. In other words, cultural kind of value can give preferences for one attitude over others (Neal, 2016).
It is crucial to understand that national cultural changes have always remained stable over a period of time. At the same time, at the surface stage, there can some kind of convergence in cultural approaches, signals and artefacts. For instances, as seen by the spread of Korean customer culture across the world, at deep level cultural differences were highly persistence. For instance, information from the World Value focused survey, a report of sixty-five nations showing seventy-five per cent of the population of the world, exhibit a remarkable kind of resilience of distinct culturally focused values even after focusing into focus the far-reached cultural transformation causing by modern and economic growth (Ollo-López et al., 2017). Focusing on the high-levelstakes' instances, like riding in a vehicle with a close relationship, that can be hit by the pedestrian. People understand that he was constantly at least thirty-five km every hour in a location of the town where the maximum permitted speed of twenty km per hour. The important thing to notice here is that there are no witnesses here. The lawyer mentions that when people can testify as a part of the oath that one can only drive twenty km per hour it can secure people from serious kind of consequences. There are more than ninety per cent of executives in Canada, Korea, Sweden and other parts of the countries reported that they cannot testify in the wrong manner under oath to assist the close friends and few of the managers can be found in South Korea which comes down to twenty-six per cent (Pereira et al., 2017). There is some kind of culture that put some more focus on the universal level of dedications while many others put more focus on loyalty to specific people and associations. Therefore, the perspective for gaining misunderstanding is large, even between deep and wealthy inter-associated nations like South Korea.
High persisting cultural value changes is specifically important for many big MNS that is manifested to multiple domestic or national level of cultures in routine operations. This advises that management across varied borders introducing major or substantial complicated since it can force MNS to customize the practices and principles to every cultural level of context that they work in (Samuel et al., 2017). This is why at the same time concepts discussing as a part of the report will implement different features of cross border functions, the main attention is on MNCs.
The concept of cross-cultural competency is critical for the professional future along with with its increases the viability of the organization. People are omnipresent in every possible firm communication and strategic level of decisions. As per the number of studies, to optimize the procedure via training can raise the level of productivity by thirty per cent. For instance, when the director of the company along with marketing can embark on a marketing campaign showing how speedy the current services are, at the time of many focused cultural encouragement of the global consumer is finally focused on consumer services, the value-focused proposition containing the sales of ice and the important thing is there are plenty of it (Sanders, 2017).
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