INTERNATIONAL MANAGEMENT AND CULTURE

 
INTERNATIONAL MANAGEMENT AND CULTURE 2
International Management and Culture
Introduction
People from different nations have different cultural perceptions, as well people from
different cultures vary in their behaviors. People see situations differently. For example, the
Chinese view early arrival to meetings as admiral work ethic, while Africans do not worry that
much about being on time as much as they consider attendance. This is just one example of how
culture plays a significant role in how people perceive different issues. Cultural differences have
to do with individuals, organizations, and nations. In addition, culture influences how managers
negotiate and how they make decisions, and this influences dispute resolution capability. Other
influential factors include culture being the determinant of an organization’s success, which
affects both political and economic issues.
Management and Culture
Culture plays a pivotal role in multinational company and business development, which
includes the integration of personality, perception, and behavior diversity. In addition, culture
influences the decision-making process, and takes both internal and external factors into account
(Ferraro, 2002). The culture of international organizations, as well as their development, are
influenced by national culture and diversity. Moreover, internal and external factors of culture
work to influence how organizations make decisions, and culture also influences an
organization’s environment (Mead & Andrews, 2009).
Companies use backward linkage to raw materials by securing important raw material
supplies as crucial inputs in the event of asset specificity or uncertainty. These companies deal
with producing a variety of products, which allows them to spread to countries that have cheap
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access to markets and raw materials. Headquarters of industries give rise to industries in various
countries. It is necessary for them to understand existing culture, international structures, and the
aspects of the environment in which they operate. This is because environmental factors have an
effect on strategy development, which includes a nation’s laws, economic profile, and market
conditions. To streamline their strategies, managers usually collect information on environmental
aspects for which they intend to operate (Miroshnik, 2001). Consequently, plans are
implemented based on interpretations.
Cultural values influence staff behaviors and it is in the best interest of a company’s
management team to understand varied cultures, in order to make decisions that enhance growth
in the industry. This has been instrumental in helping to integrate diverse cultures for industry
success. However, it sometimes constricts the decision making process such that not all are
satisfied with the decisions (Pitelis and Roger 2000). When growing multinational companies
understand international and national environments, particularly regarding both internal and
external factors, they adapt quickly. Additionally, these companies move personal capital abroad
so that management diversifies exposure.
The spread of risk results in multinational companies having a tendency to grow more
than national companies (Barnett, 1995). This helps companies avoid complete collapse in the
event of being associated with risks. Another way to mitigate risk is for businesses and firms to
spread assets around to various countries. A company’s management understands and
appreciates the importance of personal differences. This helps managers resolve problems within
the company. Furthermore, multinational corporations often have broad capital bases, even more
so than the gross domestic product of the countries in which they operate. Therefore, they create
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a powerful effect on local economies. This results in tremendous responsibility via globalization
and international relations.
Successfully managing diverse cultures is a characteristic of multinational corporations
(Jagdish, 2004). Managing diverse cultures means managing such aspects as communication
styles, hierarchies, change tolerance, group focus, and time orientation. In addition, technological
advancement is an aspect of managing across cultures that has helped with efficient
communication, advertising, and marketing. The growth of information technology over the
years has helped companies achieve marketing success. Improved infrastructures in many
countries have helped multinational enterprises grow, due to transportation and easy access.
Conclusion
Many cultural perceptions and behaviors can integrate into extremely effective enterprise
workforces. However, one country’s successful strategies may not work in another country. They
are not universal, but they can be changed, as they are adaptable. Stiff competition between
enterprises can be precipitated by market imperfections. Addit