Culture and Management styles
1. Introduction
1.1. Background 1.1.1. The challenge of management between cultures has existed since the presence of ancient civilisation (Hickson and Pugh, 1995). From the governance of populations, the commanding of armies and the management of religions; the problem of management across cultures has been present for thousands of years. Business and corporations in recent decades have been exposed to the globalisation of various cultures and philosophies. Many organisations have welcomed this and attempted to buy and sell products outside of their domestic market, whilst others have been more reluctant to face the challenge. Understanding the cultural norms and behaviours of new environments, whilst showing signs of sensitivity, can be the difference between the success and failure of a business operating abroad (Hannagan, 2005a). Improvements in the technology of communication and transportation, and the decreasing costs of production, result in more and more businesses taking advantage of the growing accessibility of global markets (Adler, 1983). The increase in overseas operations for businesses has seen new strategies implemented internally as there needs to be an improvement of communication between the employees and management of different cultures. Hofstede et al (2005a) argues that if we want to understand the management styles of different cultures, we first have to understand their society; for example, how families function and what effects does the government and political system have on citizens. It is understandable why some businesses maybe reluctant to diverse into new cultures, as there is a considerable amount to comprehend about the market; but this is a risk that some large-scale businesses have to take in order to compete in the global market. The growing importance of cultural differences, internally and externally to multinational organisations, is calling for new styles of management to be introduced which follows the norms and
1.1. Background 1.1.1. The challenge of management between cultures has existed since the presence of ancient civilisation (Hickson and Pugh, 1995). From the governance of populations, the commanding of armies and the management of religions; the problem of management across cultures has been present for thousands of years. Business and corporations in recent decades have been exposed to the globalisation of various cultures and philosophies. Many organisations have welcomed this and attempted to buy and sell products outside of their domestic market, whilst others have been more reluctant to face the challenge. Understanding the cultural norms and behaviours of new environments, whilst showing signs of sensitivity, can be the difference between the success and failure of a business operating abroad (Hannagan, 2005a). Improvements in the technology of communication and transportation, and the decreasing costs of production, result in more and more businesses taking advantage of the growing accessibility of global markets (Adler, 1983). The increase in overseas operations for businesses has seen new strategies implemented internally as there needs to be an improvement of communication between the employees and management of different cultures. Hofstede et al (2005a) argues that if we want to understand the management styles of different cultures, we first have to understand their society; for example, how families function and what effects does the government and political system have on citizens. It is understandable why some businesses maybe reluctant to diverse into new cultures, as there is a considerable amount to comprehend about the market; but this is a risk that some large-scale businesses have to take in order to compete in the global market. The growing importance of cultural differences, internally and externally to multinational organisations, is calling for new styles of management to be introduced which follows the norms and