Cross Cultural Management

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Executive Summary

The aim of this report is to provide a framework for understanding the differences in the cultures of India and China and to highlight the adjustments that will need to be made by ABC Ltd. which is based in Northampton, UK to succeed in the innovation & co-operation of solar technology solutions in these two countries (Bhasin, 2007).

In this paper we have used the historical background of cultures in India and China to define value, traditions, and attitudes. It also highlights the various cross cultural problems and adjustments which the company has to make in order to succeed in India and China. The Conclusion has been drawn after the extensive research in different cross cultural areas where making a small adjustment will make a big difference. To support our research we have used various models which have been discussed by the famous author’s like Hofstede and Trompenaar’s. It also highlights the implications of these cultural differences on management and team member’s practices.

1. Cooperative Strategies

2. Conflict management

3. Decision making

4. Work-group characteristics and

5. Motivation system.

With the help of these aspects few conclusive recommendation are made to inform the CEO and the managers of the company to be aware of varying cultures which would help them to have a long-term relationship and successful negotiations.

Table of Contents

1. Introduction…………………………………………………………………………………………………………….. 4

2. Literature Review………………………………………………………………………………………………… 5

1. Geert Hofstede Five Dimensions Model…………………………………………………………… 5

1. Power Distance Index……………………………………………………………………………………………………… 6

2. Individualism Vs Collectivism…………………………………………………………………………………………… 6

3. Masculinity Vs Femininity………………………………………………………………………………………………… 7

4. Uncertainty Avoidance…………………………………………………………………………………………………….. 7

5. Long-term Orientation Vs Short-term Orientation…………………………………………………………… 7

2. Al(Fons) Trompenaar’s Seven Dimension Model of Culture……………............... 7

1. Universalism Versus Pluralism…………………………………………………………………………………………… 8

2. Collectivism Versus Individualism……………………………………………………………………………………… 8

3. Affective Versus Neutral…………………………………………………………………………………………………… 8

4. Specific Versus Diffuse………………………………………………………………………………………………………. 8

5. Achieving Versus Ascribing………………………………………………………………………………………………….9

6. Time as Sequence Versus Time as Synchronization…………………………………………………………… 9

7. Inner Directed Versus Outer Directed……………………………………………………………………………….. 9

3. Implication or Impact of Cultural differences on Business Organizations. 9

1. Impact of Cultural Differences on Work-Group Characteristics……………………………………………… 10

2. Impact of Cultural Differences on Cooperative Strategies…………………………………………………….. 10

3. Impact of Cultural Differences on Conflict Management………………………………………………………. 11

4. Impact of Cultural Difference in Decision Making Risk Taking/Risk Avoiding…………………………. 11

5. Impact of cultural differences in Motivations………………………………………………………………………… 11

4. Research Findings ……………………………………………………………………………………… 12

Language Barrier…………………………………………………………………………………………………………………… 12

Attitude toward Authority…………………………………………………………………………………………………….. 12

Concepts of Time…………………………………………………………………………………………………………………… 12

Adherence to Rule…………………………………………………………………………………………………………………. 12

Building Relationship……………………………………………………………………………………………………………….12

Communication Style…………………………………………………………………………………………………………….. 13

5. Conclusion with Recommendations ……………………………………………………………………. 13

6. References ……………………………………………………………………………………………………………………… 15

1. Introduction

The 21st century has brought an era of globalization of the world economy. Since the world...
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