Cross cultural awareness and conflict in firms

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This report is based on an organizational scenario which contains various components. As a Cross Cultural Generalist Consultant I have provided some observations and suggestions to the current situation on this report which requires knowledge of "Management Cross Cultural Awareness

Modcon is a home mechanical and an electronics firm specializes in the development, production, and sales of mechanical and electronic devices. Modcon Company has been produced items related to cooking, home maintenance, and repair. And one of the items provided is refrigerator that includes a TV, internet, telephone, and wine cooler. Modcon head office is located in Seattle, Washington, USA. However it has just prolonged into Argentina. The company is facing the issues of lack of understanding cultural differences between Argentinean and American.

Therefore, As a Cross Cultural Generalist Consultant I have precise the important of understanding each other cultural differences, which the Scenario based on the Modcon organization whose aim is to expand understanding of differences between cultures in the head offices as well as the subsidiary of Modcon. So that they can understand each other differences and work together as a team.


A conflict is an opposition of needs, values or interest of people forces or other entities. For this case there are some conflicts between the Argentinean people and American. In this fact the Argentinean want to control their own things and not been controlled with American, that is the party where the conflicts start.

In this cross cultural, this subject is about to learn on managing across cultures about the threats and opportunities, the problems and possibilities and also on develop the international managers. Moreover, the intellectual of this subject are to help the team in organization to navigate better in global matter.



INSEAD is considered to be its genuine multiculturalism among both students and workers. This multiculturalism is enforced by policy which limits the proportion of students or staffs of any one nationality to less than 25%. This means that the students or staffs confront cultural differences on routine basis.

INSEAD is all about the development of his students to become good managers globally. And also in this INSEAD also explained things about the implicit assumption like, if are moved around enough, they will develop cultural sensitivity. The INSEAD are more experience as well as their intensive cross culture exposure throughout. For this case of INSEAD


Edgar Schein investigates organizational culture, process consultation, the research procedure, profession dynamics, and organization learning and change. In Career Anchors, 3d Ed (Wiley, 2006)), he shows how individuals can diagnose their own career needs and managers can diagnose the future of jobs.

His research on culture shows how national, organizational and occupational cultures influence organizational performance (Organizational Culture and Leadership, 4th Ed, 2010). So by understanding the organizational culture it will be easy to manage the employees this managers because managers should understand difference culture of his employees so that it will be easy the observe the customs and norms of the individual workplace which is necessary before the implementation of change works well in the modern office.


One of the culture differences on management was conducted by Geert hofstede, he done a different survey on employees opinion on differences issues and lastly come with four value dimension on which countries differ. Cultural differences are a trouble at best and often a disaster, Geert Hofstede explains. Hofstede talks about uncertainty avoidance, power distance, individualism of the difference people.

The following are the cultural differences

Nature of decision making

For example in the Modcon, the decision making of local mangers takes the approach of the centralized decision making rather than devolving decision to department managers. This leads to the conflicts between USA and Argentina. Because back in USA they used to make decision by using the decentralize way of solving problems. And there are very directed themselves. But here thing are very slowly in making decision of the well being of the organization.


Argentina they have less delegation in conducting their work, we can see clearly in this case. For example the local managers and department, they are not working hard to make sure their duties are fulfilled. This leads to fall of production within the company. But American they work hard and are quick and efficient people

Structure of management

There is a big difference in a management in Modcon organization due to the fact that there are two different people who have different culture. There are centralized and decentralize way of managing staffs. First the Argentina staffs their rules and regulations are conducted slowly and it is very important which lead to delay of the customer's problems to be solved early. For American they have the ability to respond to customers demand quick, this difference lead to problem of delays in production and sales.

Relationship with people

For USA managers they can do business without considering the relationship with staff members or family, because they focus on task and to keep personal relationship aside. Because they know by involving family or friends the business will be interfered with sound management. But for Argentina thing are different they prefer to work with people they know rather than people they do not know. A good example is when the Modcon decided to hire the department managers from the local.

Inspiration to live and work abroad

The American managers are moving to Argentina, the place they were used to be for their livelihood. Now they have to establish themselves in a place with a different culture. This is the key towards successful adaptation of the American managers and their families due to the fact that, they have to learn the way local people do, accept and adapt so as to fit in with their counterparts. Therefore, before moving to Hong Argentina, Americans should know features of their host such as rigidity and obtain a way on how to deal with them because the Americas believe in flexibility and more of delegation.

Interpersonal skills

This is a competence where relationships are formed and in the long-run trust is established. The specialist managers have the task of integrating into 'social fabric of the host culture'. Formation of such relationships is expected to willingly make the Argentinean to gain new knowledge required in the construction industry and so forth. Due to low power distance, interpersonal coordination is there with the American which they can use to minimize effect of high power distance in their host country. (Schneider & Barsoux 2003, p.190)


They are not able to delegate their work that is for Argentina staff so due to that lead to the work to be done so slowly.

Americans are more direct and explicit which is quite different from Argentina.

They should know there difference so that they will be able to work as a team. Once they understand each other difference it will be able for them to work together. And working as a team is the best method for any organization success.


I would like to recommend that in order for the Modcon managers to succeed in understanding each cultural difference they need to do research on Argentina's culture for America and for Argentina also to look for America culture. Once they understand each other in terms of cultural differences it will be easy for them to do their work together and without conflicts. They research will accelerate the training system in organization, this training will help them to learn about the management structure and identify the management styles suitable either being centralized or decentralized.



Model of cultural regarding external adaptation are particularly relevant to strategy, as it is very purpose is to align the organization with its environment and for assumption regarding internal integration are for the question of who is involved and who takes the decision. For example in this case managers are from different countries that have different assumption against uncertainty and control. And the two models are


This model refers to a society's distress with hesitation, preference for predictability and control, and avoidance of risk. In this model more time is required to analyze and to decide how to respond. The good example is Argentina they have the issues of centralized approach of decision making.

Furthermore this model is characterized with planning. In this planning is where people are positioned together and plan for the organization problems and also the well being of the company. Moreover, they while planning there things they used centralized system which is more strategy and department. And the goo example is local managers in the Modcon company they are using centralized system

Also decisions are made primarily at the top, this is more into Argentina's, and all the decision made by the top managers and does not involve there staff members. Which resulted into the numerous of problem because they are not involved the department managers, and as general the Company like Modcon it needs to associate the entire department while taking the decision.

However the people involved are mostly at the top; here they involved the people from the top administration and not at the lower ranks for all decision are supposed to be completed. It's believed that the top management makes the right decision due to the power possessed or knowledge attained for the company welfare.


This is the model whereby people are more adaptive rather than controlling. In his Modcon the American where seems more adaptive than controlling. A good example is when the American has been able to adapt and change the demands in the external environment of the Modcon. The adaptive leaders create a shared sense of purpose and manage through influence rather than command and control. And we can see clearly when American decided to appoint the local managers in Modcon organization.

The American is more associated with adaptive model due to the fact that, American people are more flexible than Argentina. Because American they believe that some environment are mature, predictable and cannot be controlled. As people are involved in making decision each employer has his or her own opinion on varieties of issues

Types and sources of information are more qualitative, subjective and personal. Each of the staff has got his/her possess opinion and views in arriving at conclusion. Every employer his or her explanation is allowed than figures

And also for Americana they take all the problems are subjective, shown clearly in the head office. The staffs in head office they are very quick and efficient, when it comes to the problems of the customers to be solved.

Decision are made on the front line, it means that they involve all their employees in decision making and not just to involves the top management. Here they can involve different department within the Modcon Company.

Strategic vision is often vague to philosophical. In this adaptive model they believe that strategy implementation is considered to hinge on the development of internal capabilities.

Adaptive model is the model which I recommended and important for Modcon Company. Due to the following reasons

The adaptive model is the best model for such organization as the adaptive model focus on sustainable success for both the company as well as stakeholders. Also adaptive model emphasize on stay close with the customers who is good for Modcon because it attract more customers to come and purchase their products.

This would suit Modcon due to the fact that, the local people would create a feeling that they are valued at most. Collectively top managers' ideas and those of local people are put into consideration.

Environment is uncertain, Modcon should make that it receive knowledge from other people because it has to deal with people who differ from their cultures. Baring in mind that every culture has got its own perceptions towards things

With this model subordinates would able to express their grievances as information and ideas flows from a chain of bottom to the top. This is expected to create a bit of friendly relations among subordinates and the management


I would like to suggest that in order for Modcon organization to successes in managing their difference and work as a team, the model which is very useful for them is adaptive model. It is suitable for them due to the fact that, the adaptive model would best because here it's a merge of people from two different cultures with different perceptions and attitudes. It also expected that, adaptive approach would be likely to reduce frictions and difficulties in carrying out the business.


Stereotype is assigning the generalized attributes to an individual on the basis of membership in particular group. (Page 67 business communication IDCS)


American considered them to be hardworking, self sufficient, do not like to disturb or be disturbed. And Argentina is more overdependence. Clearly, not all Americans are friendly and generous. And Argentina are expected to be more If you assume you know what a person is like, and don't look at each person as an individual, you are likely to make errors in your estimates of a person's character.

This helps in knowing how to deal with people in other cultures since by knowing how people live and interact will help one know how to deal with the other. For instance, the Americans knowing the Argentinean stereotypes they will be able to move on well and cooperate with them in the business and other issues


Stereotype it leads to overdependence on making decision observation can go contrary to the state of reality and decision which may be done without favoring the organization. And this is not good for organization.

Also stereotype can create a wrong interpretation or assessment in organization. Depending on what is said regarding the culture of a certain country, a manger can view an abrupt action made by a worker and then come out with a general decision leading to the action which was made. This may be wrong, so it is a negative impact of stereotype.

Furthermore stereotype may commentary on some issues, one to the cultural difference, some workers may not be valued in their interpretation which of course the comments he or she give out may be strong to organization but because of stereotype one may be left without of the comments to be provided on the table only because the past experience and ideas showed that their culture had a certain pessimistic impacts in the organization.

Stereotypes create biasness in a sense that the beliefs present contradict and give people from other cultures a negative concept regarding culture in the society. Hence people tend to judge others in a wrong way and become bias to certain group of people therefore hinder positive interaction and growth among groups of people.

Moreover stereotype lead to time consuming; here such thing can happen especially in decision making. Decision which can be done in a short time can be done in very long time. Or either long talk may be tabled during the meetings. This is the wastage of time which can be hinder organization development activities. The good example is with Argentinean they follow a long process in

Lastly stereotype it reduce the strength of managers, where managers can act quickly the system can act to tell the managers to act very slowly because they know the employees who are with them are not hardworking. So they decided to work slowly which is very bad for the success of the organization.


I would like to recommend that the first step toward overcoming negative stereotypes problems is overcome the blind spot, and then making conscious efforts to correct the inaccuracies Conclusively the study of stereotypes and the whole process of bringing awareness of the stereotypes present in the American and Argentinean societies will boost the whole process and procedure of getting used and adjusting to each other and hence it will reduce the degree of conflicts and misunderstandings that might rise up in the establishment of the subsidiary and in all the operations at large.



In today's business building a team is a very potential system especially in an organization like Modcon, where Argentineans culture differs from that of Americans. So there is a need for team building for the survival of the Modcon. It is through building the teams where people can work hard by understanding each other in the organization, which leads to the success of the most tasks in organization. A good example is when the Argentina and America meet to discuss their present concerns, and for a team to be effective, the two cultures must cooperate in order to attain goals.


Team building refers to the process of the people or employees to work together, strengthening their efforts to let the tasks in the organization be performed so as the objective can be obtained, or can be explained as a wide range of activities, presented to organizations designed for improving group performance.

Building a team is practice via efforts of creating love among workers, clear communication system, fulfilling the goals of organization the ability to work closely together as a team to problem solve.

Moreover team building acting as a role of bringing together the employees different culture, different behavior, all this aiming at doing the best for an organization. Togetherness creates awareness to the market environment. It is this team building creates the opportunity and strengthening the market. Exercises are also designed to establish trust. Trust is thought to develop faster where teams are exposed to moderate risk and team members have to rely on another support. For American they build trust by being friendly and informal. Building trust is further complicated by problems communicating across cultures. Misunderstanding can often occur where there is no trust.

Work environments, since Modcon has it's headquarter in America building a team on working place can creates a cohesiveness among the two subsidiaries tend to focus on individuals and personal goals. It helps in creating networks on various activities within and hence easing the communication system within the organization.


Communication it is another area where Modcon should interest, language should be chosen as a medium of instruction and conversation. Argentina and American they need to agree on working language due to the fact that these two countries are talking different language and the choice of the language may cause friction because they are coming from different countries. A working language which should be chosen and for Modcon, English language can be absolutely used to evade ambiguities at a working place. As Argentina and America stay in close continents it will be easy for them to adapt that language as medium of communication. And Argentina, English is the second and foreign language in other parts of the country.

So it will be easy for Modcon to adapt that language and to be used within the organization.

Increasingly the issue of ongoing communication among team members involves use of technologies such as groupware, electronic and voice mail, and teleconference. These technologies have significantly facilitated communication among team members in different geographical location.

Groupware enables team members to brainstorm ideas without having to meet face to face. A good example is for Modcon head office in USA they don't have to come from all the way to Argentina for problems related to Modcon.

Both countries can also use teleconferences meetings instead of those who are in Argentina to travel or from USA.


This opinion is aimed mostly at resolving differences between individuals, small groups and organizations. For a Modcon they need to focus more on this resolving conflict as the fact that there are a numerous of problems within the organization. So in order to solve these problems Modcon they need to establish ways of resolving conflicts.

And one of the best ways in solving the conflict is the avoidance of conflict, this happens when there is a little interest in pursuing a relationship. A good example is there is no good relationship between Americans and Argentina which leads to the conflicts in Modcon, because there are different ways of driven the Modcon and both they want to be seen as the perfect one.

Another one is minded by comparison. So often, conflict is created and/or maintained because there is no real discussion or debate. We make assumptions about the other person's point of view and willingness to compromise which might be quite wrong.


I would like to conclude that, team building is one of the best process strategy Modcon managers they need to focus more, because it helps the managers getting to know each other as there is different nation working together. And also getting everyone working together to fulfills the company goals. By focus on English language as the medium of communication for both sides it will also improve the increase in production activities. Lastly the head office they need to think more creatively to try solving more problems.



Once the recruiting effort has developed a pool of candidates, the next step in the HRM process is to determine who is best qualified for the job. This step is called selection. This is the process of screening job applicants to ensure that the most appropriate candidates are hired in Modcon organization.

Selection is an exercise in prediction. It seeks to predict which applicants will be successful if hired. Here successful means that the person performing well on the criteria the Modcon uses to evaluate employees. In filling the sales position, for example the selection process should be able to choose the right people who will generate the high volumes of sales of production of its product. And for marketing position they have to choose a person who will work effectively and manage the organizational profits.

Recruitment is the process of identifying that the organization needs to employ someone up to the point at which application forms for the post have arrived at the organization. Recruiting persons to fill particular posts within a business can be done either internally by recruitment within the firm, or externally by recruiting people from outside.

In my viewpoint the key priority for human resource management should be concern in Modcon organization recruitment and selection which deals with getting the right people in work areas

The key issues and concern that Modcon need to address in this recruitment and selection.

Pursue a generalist approach, here the management philosophy should support or reinforces utilization and development of new employees. Once they have gained enter into the organization.

Argentinean and United States should aim attracting those whom Modcon Head quarter views as the right people. The outcomes of the Human resources management approach should promote.

Strategic integration, such integrate HRM into strategic planning of their subsidiary ensure HRM policies are coherent across HRM policy areas and across hierarchies, the acceptance and use of HRM policies by HRM line managers.

The management they can focus on decision making on objectives, structure job design and work processes.

HRM can shape direction of change, influence culture and help bring about the mindset which decides which strategic issues are considered. Such decision will clearly affect the quantity and quality of recruitment.

Modcon Argentina should recruit and select for commitments, here they have to find workers with high work values and high work standards and built organizational characteristics to match these standards. When talking about commitments Modcon they have to make sure that employees are satisfied.

Modcon should also recruit and employees to form a core group that possesses flexibility or are willing to learn and adapt. Flexible employees have the potential to learn new skills continuously such as to broaden the range of skills possessed and deeper understanding and performance in existing areas; multiskillied workforce gives rise to new forms in organizational structure and job design.

Attraction, image projected values they also need to consider all such issues. Because once the image of the organization is very good even the people who want to ask for a job they will also be attracted.

The following are the best HRM recruitment and selection ways

Job advertisements Modcon can use the Advertisements methods, as are the most common way. Advertising allows the employer to reach wider listeners. They can choose advertising media like national newspaper, internet, and magazine

Job centers these are paid for by the government and are responsible for helping the unemployed find jobs or get training. They also provide a service for businesses needing to advertise a vacancy and are generally free to use.

Recruitment agency the Modcon organization can select or recruit through recruitment agents who provide a more specialized approach to the recruitment of key workers and/or senior management. They tend to come close to individuals with a good reputation rather than rely on long lists of registered applicants often using privileged industry contacts to draw up a short

Personal recommendation frequently referred to as unconfirmed information' and can be a recommendation from a colleague at work, family members, and friends. A full assessment of the candidate is still needed however but potentially it saves on advertising cost. Cause here the organization does not need to go for advertisement.

Problems of recruitment and selection

Stereotyping, here they have to avoid assumption. Because they don't have to assume that others will act as the same as way they do things, use language and symbols. For instance in comparison of the Argentinean and American in most of 10 important values in three cultures American had no values in common with people from Argentinean.

Judgments, when people act differently, the interviewer conclude that they are in mistake that their way is worthless or substandard. This is not true they might do that due to the way he or she used to do his or her work but after the training and explanation about the way things they supposed to be conducted in organization.

First impression, the interviewers might select the wrong or the right person due to the first impression and this is not appropriate. They must select the employees according to his education and not by looking.


Diversity is taking people from different background, with different expectations and different stages of life and melding them into a force that will drive the company profitability and competitiveness (page 145 cross culture awareness). Most organization does not think of cultural difference as the sources of competitive advantages.

Moreover diversity efforts are focused more on creating a work environment good where all people can contribute to the company and have an opportunity to reach their personal goals. Diversity is much more than a program or legal requirements. Diversity is the business priority for several compelling reasons.

Organizations around the world has been realizing the cultural diversity, within organization is not a negative aspect, rather can facilitate organizational pursue his goals. However it is not an easy task to manage employees with different cultural backgrounds. Nevertheless there are many policy guidelines that can make the employees to do their work faster and easy.

Advantages of Cultural diversity in the workplace are:

Enhances quality of decisions

This sounds more better due to the fact that, presence of individuals from varieties of national cultures and background allows those people to share views, ideas, opinions and suggestions in the process of decision making relying upon the past experiences that they have came across. Basically, people tend to differ because of values, beliefs and behavior. Assure a firm of different views and perspectives in reaching a solution. The good is, involve obtaining proper solutions or options and keeping aside those alternatives not relevant but not in an annoying way.

High creativity

Multicultural teams bring in people who differ in talents, expertise and specialization towards attempting to tackle a challenge ahead of them. In this way, creativity enhancement is greater as different people with differing knowledge and experience participate. The interesting part, being individuals bringing in innovations (i.e. new ways and techniques to trigger challenges and standing still).

Organizational integration and learning, managerial development

The degree of cohesion or integration is likely to be very high because managers from varying national cultures and geographical regions come together, leaving aside their cultural differences for organizations welfare. It's quite possible for a learning process to take place as each member would eagerly like to learn what is good to retain about others identity and ignore culturally conflicting views and ideas.

Easiness in marketing customers

Proper utilization of the cultural differences, stand as an asset to an organization such as Standout Construction. It is an asset as people don't use it to be sources of conflicts instead unite to create new market opportunities across borders. People will use their cultures to enter places which they are familiar in-order to start and nurture customer relationship without greater difficulties.

Lateral network

Most organizations are used to downward communication as an approach to transfer information within. In cultural diversity context, side way flow of information is very important in assuring that it is properly shared by members within a team. Lateral communication is good because information is rarely filtered before it reaches a person. Team members are to be flexible to each other by not allowing high degree of power distance so as to pass on information without obstacles.

Facilitating implementation

With team spirit, members can confidently enough implement the agreed plans and targets due to the fact that, decisions were collectively made basing on beliefs, values, expectations and knowledge. So the responsibility of doing things lies to the whole group and not an individual towards goals and desires.

Productivity increases exponentially when people of all cultures pull together towards a single stimulating goal. Foreign executives and employees bring in different sets of competency and skills because of globalization and internationalization.

Reduce cost, cultural diversity reduces the cost incurred by turnover of non home country managers. Those cost which is not necessary like choosing manager from other country is not necessary. Because they can choose the manager within the country they are doing their business.


In conclusion, I would to advice the Modcon company to understand that, cultural diversity can make a Modcon company more productive and more profitable if they believe that the competitive advantages is derived from cultural diversity as Cox and Blake explain a lot. They also bring differences that Modcon must understand and embrace for those benefits to be realized in the organization