Global Management of Cultural Variables

Discussion Question #1:

What role does culture play on managers in global situations. For example, a US firm in Saudi Arabia, Indonesia, Singapore or Germany would all face different problems from a cultural perspective. What about a foreign venture into North America.

The role that culture plays in managing global situations is contingent upon the culture that is being dealt with. Managers should never assume that they can implement their own past practices. They should therefore manage by contingency. "Contingency management requires managers to adapt to the local environment and people and to manage accordingly" (Deresky, 2011, p. 97). Business practices will vary also. For example, in the U.S profit is a main issue in American and other Western-based human resource management. Yet this assumption contains underlying values that may impede the successful international transfer of management policies and practices. The cultural perception that human beings are a resource to be used in the pursuit of shareholder value may be challenged by a view that people have a value in their own right (Jackson, 2002, pp. 455-475). Manages should take steps to safeguard cultural sensitivity measures and match cultural values to the direction of corporate life. According to Deresky (2011), values are about what is good or evil, right or wrong (p. 97). People respond according to what they value. Management needs to understand that different cultures value people differently. However, it is clear that the objectives of the organization should be met.

Conflict management requires recognition that conflict is occurring. However, often there is no such recognition. Boundaries are often violated, behaviorally or verbally, by apparent abusers, harassers or aggressors unaware of the effects of their actions. And some people perceive no constraint on their actions (Miller, n.d, p. 1). Cultural influences include political, economic, social, communication, and leadership factors. It is when these agendas are not synchronized that true tension between organizational members arises and the differences become clear (John-Paul & Gumm, 2006, pp. 229-246). Value dimensions are key to managers understanding different cultures. Although value dimensions are starting to change in the U.S, past practice has been one of a power distance. Hierarchies were top down with an unequal proportion of power; managers cannot assume that foreign cultures will adhere to this particular style of management. Cultural values operate different across cultures. Deresky (2011) says that, "International managers often face conflicts in the workplace as a result of differences in these four basic values of time, change, materialism and individualism" (p. 105). Managers should expect these differences and adjust their strategies accordingly.

A foreign venture into North America will work the same way as a North American company entering Singapore except role will be in reverse. The U.S has a unique culture and individualism is highly valued. The North American culture does not promote loyalty to any particular organization. A foreign organization will have to adapt to a free market