The Managers Of An Organisation Business Essay

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This chapter explains the basic terms needed to understand the organisation culture and resulting benefits. In today's fast pace chaanging world, its always a challenge for organisations to extend their cultures in order to accomodate the changes. This chapter explains in detail the various issues related to maintenance of suitable organisation culture.

Organisation Culture: Definition

Organisation culture can be defined as the environment and set of practices built by organisations in handling their staff or it can also be defined as the values and beliefs of an organisation.

The managers of an organisation are required to act as per the culture of an organisation. An ultimate leader is the one, who follows the culture and abandon the culture when it becomes outdated( in case of rapidly changinbg world). The culture also explains about the ways ,how an organisation does its things, so it can be treated as a differentator and helps to build organisation identity. The culture also includes the past achievements and the ways to do things in past. So, the long-serving members of an organisation become totally integrated with the organisation and rarely question it. This uniform pattern of behavior is called as norm. The new members of an organisation oftenn judge their actions based on some of the organisation legends.As, an individual's actions is directed by his personality and character, the culture does the same for a group of people sharing common norms. The culture of an organisation has been described as an ice berg. That is only limited part of it is visible, for e.g. the visible attributes of an organisation culture include slogans, dress code, ceremonies and physical settings while the invisible attributes include assumptions, beliefs and underlying values.

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According to experts Deal and Kenney(1983), the visible attributes of the organisation culture are responsible to shape the behavior of individulas while invisible attributes help to implement the organisational change. Rousseau(1990), has defined the organisation culture in a multi layered ring model. According to this model, the values and beliefs are deepely inherent in an organisation. Some of the researchers argue that, it is possible to change the organisation by simply altering the visual attributes, while others believe that the inner layer attributes like beliefs and feelings must be taken into account for changing the culture of an organisation. The model is depicted below as Figure 1. The outer rings of the model denotes visible attributes of a culture while inner rings refer to the invisible attributes of a culture.

Figure- Layers of Culture

Types of Organisational Culture:

The organisational culture can vary from one firm to other as well as it can vary within an organisation. Bradley and Parker(2006) has described the competing value framework of organisational culture. The below mentioned Figure 2 refers to the CVF.

The CVF studies the organisation based on the extremes of internal& external environment on one side and control&flexibility on other. Theses extremes represent axes of the competing value model. The organisations which are sensitive to internal demands gives importance to information management, integrationa and communication while the external demand sensitive organisation put emphasis on resource acquisition and growth. On the other side, the organisations which are sensitive to stability and cohension give importance to adaptability and spontaniety. So, based on the above dimensions, the organisation culture can be categorized into four types:

The first type of organisation culture is explained by the internal focus model. It is also known as "Hierarchical Culture" as it signifies to usuage of rules and gives importance to technical matters. For e.g. the traditional structure of public administration, which contains lot of formalities in form of rules and also has considerable bureaucracy. So, in this model, an organisation can achieve stability and control with the help of information management and control.

The organisation culture can also be explained by an open system model. This model follows a flexibility/external oriented approach to achieve growth. This type of organisation culture promotes innovation. The leaders in this organisation culture are risk taking individuals who enjoy attractive compensation according to their individual innovative capacity. Hence, the open system model is external environment oriented.

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The third model to explain organisation culture is known as human relation model. This model advocates the use of training&development technique to improve the workers morale. This model lobbies for cooperation among workers(group culture) and attach importance to teamwork instead of individual performances.

The fourth model to explain the organisation culture is known as a rational goal model. As the name suggests, it involves selection of a suitable goal and is control&external focussed. This model is more strategic in approach and rewards employees based on the achievements of organisational goals. Such organisations are production oriented and the employees are arranged to maximise the attainment of organisational goals.

In practice, It is not necessary for an organisation to have just one type of organisation culture and it is common to see a mix of above types of organisation culture in a single organisation. However, there is the need for systematic categorization of organisation cultures as it aids in their study and helps to find out the existing limitations, which should be overcomed to support new practices and values.

Importance of Organisation Culture

The researchers have constantly linked organisational culture changes to improvement in economic performance and public service management. The effect of management decisions can vary in different organisations according to their organisation culture. For e.g. An organisation favoring internal process culture is against innovations . The study of the organisational culture has become an important issue for HR becuase the HR department is responsible for implementing changes in an organisation. The change can only be implementeed in an organisation by changing it's organisation culture. The management of cultural change is discussed in the next section of the chapter. The aim of the management is to promote an organisation culture which is itself motivating for carrer progress and development.

Issues in Managing Culture:

Preparing the organisational environment for change.

Formulating a strong vision by top management to establish sense of urgency and drive change.

Asking for group participation and focus on shared vision.

Use new methods of communication to highlight current values and beliefs.

Use role models.

Increase training and development to help employees make change.

Award employees for their achievements.

Adjust vision with progress and follow the progress.

Researcher like Hatch(1997) argued that the focus should be on management of cultural awareness in place of managing only culture.There are some other views regarding change, for e.g. Lewis says that organisations tend to move back to past practices and beliefs, so it's important to refreeze an organisation into new equilibrium. I decsribe the six basic task of managers for implementing change.

Figure: Understanding and Managing Culture( Six issues for managers)

It's always a subject of concern, that is upto what extent the managers can influence culture. It's considered unwise to focus on attempting changes by altering superficial part of culture like symbol and ceremonies without focussing on core issues of beliefs and values. The deep rooted aspect of any organisation culture is difficult to be influenced. The above mentioned figure explains the six basic things the manager should do to change the organisation culture.

Step 1: Creating Environment for Change.

Step 2: Project leaders as role models.

Step 3: Employee empowerment.

Step 4: Promoting Group Culture.

Step 5: Monitoring Cultural change process.

Step 6: Training and rewards.

It is important for manager to identify a current issue to establish an organisation wide sense of urgent cultural change requirement. The managers should have understanding of the factors responsible for cultural behavior as implementing the change agenda against cultural ethos of an organisation usually backfires. The leadership of an organisation is responsible for determining effectiveness of cultural change. The leaders are responsible to promote/restrict cultures which align/not align with the required corporate culture requirements. The change process cannot be implemented in an isolation and the researchers advocate for the creation of a group coalition to motivate people, who work as a team and implement change. The organisations use demonstration projects to empower employees as these projects demonstrate required managerial thinking for cultural change. The managers are also required to measure the progress of implemetation of cultural change process and also to take corrective measures if it becomes necessary. The managers are also required to create short-term wins and award their employee to maintain morale and progress.

Management Process:

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Management can be defined as a process through which the organizations unite their workforce to meet their goals. The management process consists of the five main functions such as planning, organizing, staffing, leading , and controlling. It also includes doing right things and utilise available resources efficiently, to attain the objective of an organisation. An organisational resource consisits of its workforce, capital and technology. The management tries to do optimum use of resouces in attainment of objectives. The management of an organisation plays an important role in it's success, at one end, they are appreciated for the organisational success and on the other hand they have to defend blames for non-attainment of organisational goals. Now is discussed the five basic functions of management:

Planning: It is the process through which organization's top management decide the goals to be achieved, the standards to be followed, policies to be implemented and plans to be executed.

Organizing: It is the process through which managers assign specific responsibilities to their subordinates , create departments, develop a suitable mechanism for authority , communication and coordination among various departments.

Leading: It is the process through which the managers get their work done by subordinates and at the same time motivate their subordinates to maintain high morale needed for the organisational success.

Staffing: It is a process through which managers select right type of employees necessary for attainment of organisational goals, do performance appraisal, provide compensation and arrange counselling or training and development when needed.

Controlling: It is the process through which managers set the suitable standards for e.g. Sales quota, quality, production level and compare the current performance with these standards as well as take corrective action.

There are two important things attached to above mentioned five functions of the management, that is, Decision making and communicating:

Decision Making is a process through which the managers choose between two or more than two alternatives, manager decide among the alternatives by carefully examining the pros and cons of each available ways of accomplishing goals as well as objectives. The managers take the help of various functions like staffing, motivating and controlling to reach out at any decision. The managers are required to think strategically and take decisions that are necessary for the growth of an organization.

In any organizational set up, there is a need for suitable mechanism of communication. The communication process enables an organization to transmit the managerial decisions effectively as well as allow the feedback to reach back to managers. The organization faces many challenges in the absence of a communication mechanism. For example, it can severely affect planning process as an effective planning process requires the review of all ideas and opinions formed among employees of an organization. Also, suitable communication of the plans to subordinates is important to ensure correct actions. In the absence of communication, it is impossible to do organizing, staffing, motivating and controlling. It should be emphasized that the majority of problems within the management are caused because of a breakdown in communication system of an organization.

Organization: It can be defined as a group of people united for the attainment of common goal and objectives. The size of a Business organization can vary from one person to several thousands. Organizations are formed by people having common aim or want to do work to meet a common purpose that may be useful for the group of people apart from organizations. Although an organization is a legal entity, in its most general form it might not be a legal entity. To achieve a common goal is the main driving and motivating force for all the individuals connected with the organization. The organization exists in a structured form, with suitable hierarchy according to job duties and reporting responsibilities. The organizational structure is defined by, task, goals and strategies, policies in addition to procedures, operating manuals, etc. The organization is depicted by its organizational charts, occupation descriptions, promotion materials, etc. The organizational system is also maintained or prohibited by policies and procedures, budgets, in order supervision systems, quality management systems, performance evaluation systems, etc.

The aim of an organization is sub-divided into many short term objectives. The objectives are rapidly varying as per the current market situation. In primitive period, the organizations were formed to serve either a common purpose or had membership of people associated with common occupation. For e.g. In UK, building societies were made to help in construction of houses and were dissolved once the houses were constructed. But, now days especially after conglomerate boom, the organizations have become widely diversified. In present days, it's necessary to go global for enhanced profits and hence ensure success to the organization.

As a system consists of inputs, processes and outcomes, an organization consists of material goods such as raw materials, wealth, technologies apart from human resource as inputs. Theses inputs are mixed, through coordinated processes to

Sustainability

Processes Efficiency

Personnel Worth

Organizational Legitimacy

Figure: Organizational Effectiveness

Attain the organizational goals. The outputs consist of the tangible things like product and services. There is also another set of outcomes of an organization in form of job generation and increased spending, which benefits the economy. The human resource of an organization is its most important asset. In this rapidly changing world, the organizations need to implement changes and remain competitive in the market, so it requires highly competent work force.

Managerial functions, skills and roles

Managerial Functions: The managerial function includes all the management work of an organisation. As explained above, it includesthe basic functions of planning, organizing, staffing, directing along with controlling. The Planning, organizing and controlling represents non-people aspects of management and are treated as mechanics of management, while staffing and direction which represents human being aspects includes dynamics of management. One can think of the various management process as listed in a sequence but in practice they are interdependent as an organisation. Also, the above mentioned functions are not equally important to all the managers and the managers allocate time to each of these funtions as per there importance level.

The functions are explained as under:

Planning: It is the process by which management identifies the goals of an organization. The planning practice usually includes activities like forecasting employment needs, developing rules and standards. The managers also develop plans according to the forecasts. The management use forecasting technique to predict sales target, production and personnel needs in coming future. The management also decides the relevant performance standards for each department. The managers also involve in scheduling, that is to allocate time for each process. The managers try to outline the standard way of doing things and this is known as developing rules and procedures. Then is the organizing function: The organizing function of management is the process of establishing authority relationship among the employees. It consists of developing the organization structure and organization chart. The organization structure helps in development of departments and hence allocation of tasks and responsibilities to every employee while the organization chart shows the reporting relationships among them.. The managers are delegated authority to make them responsible for group performance.

Staffing: The staffing process helps an organization to find out what kind of people it should recruit in order to fulfill the organizational goals. The managers are required to do job analysis in order to properly assign job responsibilities to all employees. Staffing does include selection, training, performance appraisal and compensation, of the employees. The managers are also required to do counseling for employees in order to find out their problems and then take suitable steps necessary to maintain competency and morale of the employees.

Directing: This function covers the issues related to management of people with the help of motivation, effective leadership and communication in addition to coordination. The managers should demonstrate capability to command. The managers are required to command authority over sub ordinates such that there is no resentment among employees. The managers need to be accommodative and approachable to employees. In addition, they require a sound communication system to enable exchange of ideas along with other information for common understanding among their workforce.

Controlling: This process includes comparison of performance with respect to the established standards. The goal is to minimize the deviation from the standard requirements. Controlling includes three steps, that is establishing performance standards, comparing actual performance against standards, and taking corrective action when needed. The performance standards can be quoted in monetary terms as well as in non-monetary terms. For e.g. the sales department has its performance standards like revenue, and profits, which are monetary in nature, while production department has performance parameters as units produced, number of defective products which are non-monetary in nature. Although, for any department, the performance standards can be a mix of both monetary and non-monetary standards.

Figure: Linking Corporate and HR strategies

Management is an executive function which directs human efforts towards achievement of company goals and managerial skill is a broad term which includes actions from wider areas such as technological, human as well as conceptual. The managers are required to perform line as well as staff functions. In order to do line functions, the managers are required to manage every activity of the organization but their real responsibility is concerned with the technical skill. The technical skills means the ability to handle a specific field, such as computers, financial accounting, in manufacturing management. They need to direct the sub-ordinates. But staff functions are what the HR managers are required to do like staffing, recruitment etc. The other important part of management is the knowledge of human skills.

Figure: 5M's of Management

The good managers are generally expected to have four types of skills namely Conceptual, Communication, Interpersonal, Technical and political skills. The managers who demonstrate high levels of human skills are most favorable to achieve the best group productivity. Thus, a good manager is required to have abilities of communicating (both verbal and written) with other employees, motivation ability, guide, as well as encourage enthusiasm in addition to trust. Human skills are in the same way important by the side of every levels of management. Conceptual skills of the managers refer to their ability to think strategically. So, he must be able to estimate the problems which an organization can face in future and the required solutions. Hence, the managers must be able to forecast the competition and technological as well as human resource requirements. The conceptual skills are most needed for the top management. Another important aspect of top management is their political skills for e.g. their ability to negotiate with the government officials as well as suppliers and other business partners. The top management is also required to formulate strategies, build team and promote coordination among their sub ordinates. These skills are referred as interpersonal skills.

There are some important managerial skills as discussed below:

Strategic planning Skill: The strategic planning involves focusing on the question that where the organization is headed for? This is an activity involving senior managers across different departments. For e.g. the senior marketing heads are responsible for formulating strategies related to product demand, meeting challenges of competitors while the R&D department senior managers are responsible to implement innovative technologies in the products, launching new products. Each organization has its own approach for strategic planning for e.g. an ODM manufacturer wants to enhance market share with the help of improved designs while an OEM manufacturer will like to utilize the technology and durability of products as key strategies. Hence, the strategic plan of an organization depends on organization's leadership, size of the organization, expertise of planners, complexity of the organization's environment, culture of the organization etc.

Communication Skills: The communication skills include both verbal and non-verbal part. The managers must be able to transform thoughts into words as well as proceedings; he must be able to establish rapport with the suppliers and other sub-ordinates. Another important aspect of communication process is listening skills, presentation skills as these activities are of prime importance to senior management. The managers must be good listeners as they are the ones who are responsible for maintaining ethics in an organization.

Improving Productivity Skill: It is the responsibility of managers and goal of an organization to improve productivity. The managers aim to improve productivity of their workers by providing suitable training and development, maintaining ethics as well as various other processes. A highly competent and productive workforce is an asset to the organization as it leads to improved business outcome for e.g. better customer service, innovation and product development. There are few other skills like ability to communicate effectively, the skill to present frank as well as positive feedback which is necessary for enhancement of productivity.

Effectiveness Skills: This focuses on effectiveness of organization and department, multitasking; it further refers to negotiating skills, project management. These skills aim to establishment of performance standards and time to time of review of current performance in relation to those standards. It also aims to prioritize work activities as well as proper time management.

Disciplining Skill: The skills of a manager to maintain organization wide discipline is crucial for the management of organization. The managers are required to have proper knowledge of grievance handling procedures. 

Resolving conflict Skill: The managers in an organization are required to have skills needed to resolve conflicts. As a big organization consists of people from different backgrounds and is culturally diverse, the managers must be properly trained for meeting conflicting values, experiences, beliefs, and perceptions.

The manager's responsibility lays in reducing conflicts, in addition to minimizing the anger, grudges. The intention for conflict is more damaging than the conflict itself that is if the intentions for conflict goes unmanaged and unresolved it will cause future problems for the organization. So, there should be proper systems in place for handling conflict as it helps an organization in providing quality services even when there are differences.

Interpersonal Skills: These skills are related to dynamics and personality of managers. That is, how a manager is able to direct his group for achievement of organizational goals. The managers must be able to drive teamwork in an organization as well as they should have proper networking outside the group functioning.

In current fast paced, rapidly changing scenario, employees need to constantly upgrade their skills in order to remain valuable to an organization. There is also increasing trend for multi tasking. The different skills will continue to be a base for segmentation of manager's action.

Managerial roles are duties to be carried out by top managers of an organization. They are assigned departmental roles apart from the other common roles for all members of organization. As, nowadays there is increasing demand for managers to perform various functions under different roles. The function can be regarded as a structured set of behaviors. The managers are required to do additional different types of jobs apart from the traditional task activities related to their positions. The satisfied roles played by a manager depend both on the level in addition to function of management as well as the specific organizational situation. The managers functional roles are assigned as per different importance. There are ten types of managerial roles and these roles can be further classified into three general groupings:

Interpersonal roles,

Informational roles, and

Decisional roles.

Interpersonal Roles: As discussed before, Interpersonal roles depend on the interaction of managers with the others. They need to act as figureheads in the management of human resource. The workers are grouped in departments and the manager are assigned responsibilities of different departments and hence they become the head of a department, unit or team, representing the people of that department. In terms of interpersonal roles, any manager has to do three different roles as a figurehead, leader, in addition to liaison be every one essential under contradictory state of affairs. The role adoption is eased by the formal authority from an organization. In the figurehead role, the manager are required to represents the organization. The top management represents the corporation legally and socially.

The managers exhibit liaison role, when they speak with other people. These people can be outsider to an organization. The top level manager with the help of their liaison role, try to gain favors and information, while the supervisor uses it on the way to maintain the routine flow of work. Thus, with the help of the liaison role managers are able to form a network, which helps them to get external information that can be further used to cater current and future needs of an organization.

The third interpersonal role is the ability to lead that is, role of a leader. This involves the coordination as well as control of the job of the manager's and subordinates. This role can be exercised in both direct and indirect way. In the direct way, it involves various ways to connect with subordinates that is hiring, training, and motivating. While on the other hand, the decision making responsibilities, as well as time commitments for various work chain activities are the indirect part of leader role.

Information Role: The managers are responsible to maintain suitable conditions both inside and outside the organization. The manager should do this role on priority basis by establishing two-way communication. The manager are required to act as a spokesperson. It is the role of management to disseminate information about the organization to outsiders.

Thus, the three informational roles of managers are:

Monitor,

Disseminator,

Spokesperson.

The managers coordinate the work activities of employees (supervisors/subordinates) with these roles. The interpersonal contacts of managers within the company and outside make them nerve center of the unit, and they are responsible for gathering, receiving, and transmitting information.

The manager's monitor role involves repeatedly scanning the external environment for information. This may involve trying to locate factors which may act as threat or opportunities for the given work unit. The manager's also gather information through the network of contacts, which they have established through the interpersonal roles. In other words the monitor role involves examining the environment during order in the direction of gather information, changes, in addition to opportunities in addition to problems that may affect the unit.

The disseminator role of managers involve the transmission of information. It involves the transfer of information from external environment to the other sub ordinates. As a disseminator, the managers are required to take certain actions like addressing informational meetings in the organization as well as spreading information in the organization through suitable communication channel. Also, the managers receive information because of liaison and leader role. The managers share such kind of information with their subordinates in the disseminator role. In brief, the role of managers includes clarifying, interpreting and integrating different information as well as do value addition of knowledge for organizational advantage. The managers are also required to do performance appraisal of their sub-ordinates and hence they support verbal communication.

Managers do the spokesperson role by speaking on the behalf of the organization (within or outside). This means demanding for important resources or appealing to upper management in order to do organization wide changes. For example, top managers can ask the board of directors to keep the organization united during a reorganization period or the spokesperson role may include how a corporate president will speak to the college audience on the supportive role of company for their education.

In brief, spokesperson role involves transmitting information to the outsiders on the behalf of the organization. The Manager also need to act as an expert and clarify the organizational plan, policies, to the subordinates and ensure organizational performance.

Decisional Roles: Planning is an important function, which helps an organization to anticipate the future threats and opportunities and design necessary strategic plans to meet organizational goals. The managers enjoy access to the strategic information and hence represent the decision making bodies of an organization. The decisional roles of managers are of four types. For example, the entrepreneur role helps the manager to implement organization wide changes through various strategies and help the organization to overcome various threats and challenges. Through, the disturbance handler role, the managers solve the threats and critical issues of the organization. With the resource allocator role, the manager plan the efficient allocation of company's resources, material, capital, time and man power. In the negotiator role, the managers are responsible to negotiate sale, lease and cooperation contracts on behalf of the organization.

Entrepreneur role: The Entrepreneur role involves locating opportunities for the organization and also implementing organization wide change program. This also involves designing work systems for the implementation of organization wide changes and contribute towards increasing efficiency. The work systems aid in improvement of management style, enhance team work etc. The entrepreneur role also involves in making improvements in overall effectiveness and output of the organization.

Disturbance Handler role: This involves formulation of strategies in implementation of organization wide improvements to make an organization resistant to external disturbances. The management tries to evaluate and implement corrective measures. This role also involves decision making and taking corrective action in response to the intentions to control. The objective of an organization is to refreeze an organization in the stable position.

Resource Allocator role: This role involves allocating resources in an efficient way throughout an organization. This process also involves various processes like budgeting, scheduling, job allocation to subordinates etc. This role also includes distribution of resources like money, people, and capital.

Negotiator role: This role involves handling negotiations on the behalf of an organization. The manager is required to take necessary steps to the advantage of an organization in any business negotiation. This role also requires the manager to take advantage from the bargains of the negotiations for the gives organization. The most general negotiations are related to work, performance, goals, resources and other factors that may influence the organization.

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Chapter 2 - Culture, Management Style and Business Systems

2.1 Introduction:

The culture and its other constituents has deep impact on the management style and work systems. For the first time , in 1930, a German sociologist Max weber, underlined the high importance of culture and said that the culture is responsible for daily business behavior as well as in the formation of general organizational values and motivations. The above said words find the support from the fact that the business executives behavior is dependent on the culture in which they are born and brought up and they cannot escape it. For example, in United States of America, the individualism is prevelant from historical past and personal wealth and corporate profits are the prime measure of sucess. But, the Japan, considers uniformity, management of supervisor and suordinates relation and high level of employment as the criteria for success at individual and corporate level. This kind of Japanese behavior originates from the fact that Japan was never self sufficient in natural resources and was dependent on trade relations with other countries for the natural resources. The various studies conducted at global level pin point Americans as individualist, Japanese as consensus oriented believing in group cooperation while central and south Europeans as rank conscious. These differences reflect the presence of cultural unsimiliarities and are often visible in business behavior and practices.

The lack of the diffrent cultuare can cause serious trouble in business for any organisation. The cultural differences can cause problems like mis communication, frustation and failed business opportunities. Thus, to succeed in an international market, the business executives should have proper understanding of business culture and values of the foreign countries as well as they must be flexible in adaptation of different cultural issues. These cultural issues can be related to religious beliefs , political system and way of thinking. This chapter of the thesis focuses on the different management style and ethics. It also highlight the impact of culture's influence on strategic thinking.

2.2 Required Adaption

Adaption is a term consistently used with cultural differences. The adaption is required at small and large level. There are ten basic factors responsible for adaption:

Open Tolerance.

Flexibility.

Humility.

Justice.

Ability to adjust to various tempos.

Curiosity.

Knowledge of the country.

Liking for others.

Ability to command respect.

Ability to integrate oneself into the environment.

Degree of Adaption:

The adaption is not a necessity to change as per local customs but the business executives must consider the accomodation of local customs. The most important thing is the awareness of own culture and the acceptance that the cultural differences can cause anxiety, frustation and misunderstandings.Another important term is Self-reference criterion (SRC), which means that unawareness of foreign culture can lead to comparison of foreign counterpart behaviors in terms of our local beliefs and customs.

The key to adaption is to remain citizen of a country but accomodative to cultural differences that exists across globe. For example, in Germany, its not good to address a person with the first name. In Brazil, its usual to touch others during any conversation, which can be a problem for other countries. The next part of the chapter focuses on the questions, Which customs should be absolutely adhered to? Which others can be ignored?

Imperatives, Electives and Exclusives

There is further classification of business customs as:

Imperatives.

Electives.

Exclusives.

There are certain business customs which must be followed and adhered to , called as imperatives while the electives help an organization in business but is not necessary to adopt. The exclusive segment of business customs are unparticipative to outsiders. They are further described as:

Cultural imperatives- These things should be followed in order to ensure successful business relations. It's common for managers to know about Chinese "guanxi" , the Japanese" ningen Kankei", or the Latin American "compadre". The above mentioned terms denote the importance of friendship and trust in business in certain countries. The chinese guanxi means doing business with relatives or some colleague. The general belief in above mentioned countries is that the friendship helps good relationsip among sales personnel and end users. The business people in these countries feel that without establishing friendship the managers risk the acceptance of there products and market satisfaction. In some countries like China, the friendship is given lesser priority than family relations in business. The chinese people consider friendship as fifth best criterion for deciding with whom to do business.

There are various other differences as well, for example many cultures donot accept impatient behavior like correcting some one in front of public or peers. But, the main problem arises when a trend imperative in one culture is not imperative in other culture. For Example, in Japan its bad to maintain long eye contacts and is imperative but in Latin America and Arab country , not maintaining strong eye contact will term the managers as untrustworthy.

Figure: Chinese Business relationship priority list

Cultural Electives:

These represent the set of behavior patterns which any management may follow but its not mandatory to follow. This segment refer to majority of customs for e.g. a man may not kiss his counterpart, although this is a tradition in some countries or drink alcoholic beverages. For example, the Japanese people understand that bowing is not important in other cultures, although if a foreign manager bows, it will help him to establish initial rapport and trust. So, adherence to electives will definetly showcase the knowledge of Expats for a country's culture.

There are some cultural electives which are imperatives for other cultures. For example, in some cultures its an insulting behavior to refuse the offered drinks while the beverages might be politely refused in other cultures. The people of Czech Republic like to have liqueur to form mutual trust and friendship and even in morning its welcomed. So, here this tradition of liqueur becomes cultural imperative and if somebody wants to avoid this because of health or religious reasons, he should politely convey this to Czech counterparts. In the same way, its common to be offered coffee while starting business negotiations in Arabic world and it is advisable to have a coffee sip as a gesture to establish trust.

Cultural exclusives:

These behaviors are meant for local people and the participation of outsiders is not good. For example, a person following a certain religion should not try to copy and behave like people of other religions or even though the insiders are criticizing about their own culture the outsiders should not do the same.

So, its a challenge for expats to distinguish among cultural electives, imperatives and exclusives. Although, the imperatives and exclusives are only a few, its practically impossible to avoid them completely. The business leaders should try to minimise their missteps for good and consistent business relationships.

The Impact of American culture on Management style

The American culture is discussed because of three reasons.

Its important for Americans to study and adapt to other cultures.

For ousiders its good to understand the culture of USA as it is the world's biggest economy.

After 1990s, the American culture is being followed everywhere around the world like Japanese management explosion in 1980s.

So, the aim of this section of my thesis is to study American culture and form a selective judgement about accepting/rejecting the American management practices. There are various theories trying to explain the cultural pattern of USA.

" Master of destiny" viewpoint.

Use of merit as the only criterion for personnel selection and reward.

Use of objective analysis in decision making.

Never-ending search for efficiency enhancement.

Participation and discussions in decision making.

Recognition of the independence of an organization.

The "Master of destiny" viewpoint argues that an individual can himself influence his future. This view supports that apart from luck, an individual can make his future through hardwork, commitment and persistence. This belief contrast to many cultures where its believed that God decides the future of an individual and he cannot influence it. Also, the other management functions are also considered in the reach of humans for e.g. the management functions such as planning, controling, supervision, scheduling and deadlines.

In USA, there is strong support to do the personnel selection and reward based on merit. The managers work to select the best-qualified candidate for a job, retain the individuals at par with the performanmce standards. But, in some other cultures the friendship, kinship dominate in personnel selection, performance appraisal, or dismissal. The managers should take note of the fact the dominance of friendship and kinship in the management functions lead to decreased morale and has demotivating effects. In USA, there is predominant idea of an independent enterprise. A corporation is considered as a separate institution hving existence, rights and rules for being governed. This kind of recognition helps people to form feeling of service and loyality to an organization. So, in USA, a company is considered above family against the mexico, where realtions and friendship dominate over a company.

In United states, the decision making is done by objective analysis. So, one can say that the managers of USA try to follow a scientific approach for accuracy of decisions.The US managers do accept the importance of judgement and intuition in decision making but they prefer accurate and relevant information for decision making.So, the business managers in USA, put more importance on free flow of information to all members of an organisation. But, many cultures neglect this and donot pay emphasis on accuracy and frank reporting of data. Also,many cultures have practice of re-using data for several years. So, the frankness and openness of expression in USA doesnot fit in other cultures.

The decision making in United states of America is a multi layered/participative process and is decentralised. Although its not one hundred percent democratic. The American culture promote the participation of junior management in decision making. But, these practices are against the customs of many countries. For example, in Arabic world, the top management is solely responsible for decision and strategy formulation.

Another important theory of American business practices is the "never ending quest for efficiency improvements". The US business managers strongly belief that a change is never static and there is always some space for improvements. Also, the performance appraisal depends a lot on the individual's ability to make changes. However, this kind of practicves doesnot suit many cultures, where its offensive for a junior manager to suggest changes as it reflects complete failure of upper management in decision making.

The researchers have always maintained that the basic fundamental belief of American management is that they give high importance to competition and consider it a necessity for efficiency improvement. On the one hand there are strict rules for maintaining competition and restricting monopoly while on the other side the increased competition at lower levels of management leads to increased individual performance and total corporate sales.Gordon Gekko, put it in a simple way" Greed is Good ". It means that when the business companies compete, the society is bettrer off. Although, this practice seems to be good but is not suitable for cultures like Japan. In Japan, the efficiency gains are achieved by focussing on reduced transaction costs.

Management Styles Around the World

There are various ways to do the international business based on the different cultures existing in this world. Even the experienced managers feel cultural shock when dealing with a new location abroad. Similar to ethics, the cultural rituals like sales interactions and negotiations vary across countries. In most of the countries the expats encopunter a high degree of government involvement.

Figure: Hofstede's Cultural Values

In context of cross-cultural business dimensions, the Individual/Collectivism index and Power Distance index are more significant.

Authority and Decision making

In countries with higher PDI(prominence of status and position), the subordinates are not expected to contradict their seniors. An Example of high PDI countries is Mexico or Malaysia. In these countries, there is increased focus on understanding the rank and status of clients or business partners. Although, the above mentioned trends are on opposite side in low-PDI countries such as Denmark or Israel. There are generally three types of business pattern to be encountered in international business.

Top-level management decisions.

Decentralized decisions.

Committee or group decisions.

The centralized decision making is generally found in family owned business. Here, the business is of small nature. Although some countries like France has culture of embedding decision making into top management. Apart from this, even in government companies, the managers are expected to follow the path laid down by the politicians. As mentioned before, in Arabic world, the top managers take care of decision making and like to negotiate with only their conterparts having decision making abilities. However, with growing business there is a tendency for the management to become decentralised in decision making. This is also known as highly developed management system. Another decision making is a committee or group. This decision making can be centralized or decentralized. The asian culture is known to promote group culture, even in Japan, the group harmony and participation is promoted at high level. The challenge is to form a group consensus in a committee or to find the exact person with authority in the authoritative societies.

Management Objectives and Aspirations

The outlook and personality of managers is dependent on their historical backgrounds. So, the culture tend to effect the attitude of business managers towards innovation, dealing with foreign parties. To conduct global business, the management must be familiar with the different objectives and aspirations.

Security and mobility

Although the word security can have different meaning for different people, it seriously effect human motivation. Some people view security as a good salary slip as well as training necessary for job shifts, while other can view security as staying with the firm for lifetime. There are some people, who see security in the sense of retirement and welfare benefits. In few countries like Italy and France, there is tendency for individuals to stick with any company for long years.

Personal life:

There are people who give priority to personal life over other things like high pay slip or security. David Mc Clelland, found that few cultures are supportive to a good personal life over profits. For example, Japanese give more importance to the company than to their personal life. They feel satisfaction in doing work for the company. The table 1 shows the amount of time worked by individuals across different cultures.

Table 1: Annual hours worked

Country Name

Britain

Canada

Germany

Hong Kong

Japan

Norway

Singapore

United States

Source: International labor organization, 2009

From the above table its clear that Americans work hours are in between the South asians and Europeans. However, as far as the selection of profession, the junior doctors are over worked. For example, In USA, they worked upto 80 hours per week and in Ireland 75 hours per week. Their work consistently had mistakes because of fatique and medical associations demand to cut their work hours.

Affiliation and Social acceptance

Some business give more importance to the acceptance of a business by their neighbours and fellow workers. For example, in Japan, its more important for a worker to be able to adjust in a group than to exhibit individual skills. Also, the Japanese like group identification. For example, instead of calling their job title by profession, they name the company in which they are working for.

Power and Achievement:

The business managers around the globe are power seekers upto some extent, but this tendency is dominant among the business managers of some countries. For example, In South-American countries, the business leaders think beyond politics and are active in politics.

Communication styles:

Edward T.Hall, a noted professor of anthropology, advocates that communication extends beyond the way of writing/speaking words. His master piecework was published in the Harvard Business review(1960) as "The silent language of overseas business". The article describes the symbolic sense of space, things, friendships and agreements. In the next section, is described face-to-face communication as well as communication via electronic media.

Face-to-Face communication:

It is very difficult to translate a language exactly into another one because every language has different set of words with different meanings. Although, the verbal communication is explicit the bulk of business issues are settled via implicit messages which are not verbal in nature. The below mentioned figure outlines the contextual background of different countries. In high-context countries, the communication is more related to non-verbal things like who says it, when and how it is said whereas the low-context countries give priority to verbally expressed communications.

Figure: Contextual Background of various countries( From High to Low)

A good example of high and low context is as follows. If an American(High-Context) picks up a guest from Germany(Low context) at airport and becomes his host for few days, at the end if he asks how was the stay of his German guest. The German can directly say, he did not like the stay, without thinking more as Germans are direct and deliver information with thinking of social consequences. Had it been opposite way, an American would have answered in a diplomatic way. However, a person from Japan, who is more high-context, would have said that he liked it most. Although, the others may not like Japanese way, but the Japanese defend themselves by saying that they are more happy to maintain harmonious relationships.

Internet Communications:

Any business web site contains information, which can be read globally. The message has infinite opportunity to be conveyed. The language of information is important because of the fact that around 78 percent of today's web content is in English and 35 percent of the internet users donot understand it. Another survey reports that the 33 percent of Senior managers in Europe are intolerant towards the English language. In France, there is restrictions by government towards the use of english terms.

So, the best solution of the above mentioned problem is to have web pages specific to different cultures(languages). The premier companies like IBM, Dell and Marriot provide their homepage in 12 different languages. The business firms take the help of various language translation companies as well as there is software available to translate in different languages. This job is challenging as an improperly translated word can severly damage the reputation of a firm. There are some issues related to web pages like the color. For example, Green represents a sacred colour in Arabic countrie and may not suit as a background web page colour of many firms.

Formality and Tempo

The American business communication involves lot of haste and informality. For example, the Americans usually refer to other by first name which is unacceptable in other cultures like Germany. In Germany, the people who are long term colleagues can refer each other with last names but the juniors are never required to call seniors with their last names. The British business managers complain that their American counterparts are at work even in a cocktail party and are too much involved in business. Although, the Nort Europeans are fast catching up with the acceptance of American culture, French people are higher on Hofstede's Power Distance Index and like lot of formality. Its common for American to declare French managers as proudy while French managers term American counterparts as crude. The hasty approach of American business leaders do create problems in dealing with Arabic business people. The Arabs like to start business negotiations only after initial 2-3 meetings which is against hasty American business approach.

The successful managers need to behave with foreign executives as per their culture. For example, Latin American like to live with friends but are slow in making friends and do it over a period of time. Also, the formality prevails in Latin America and they like to start business only after some time.

P-Time versus M-Time

There is general belief that Nort Americans are more time consious than Middle Eastern and Latin cultures. Edward T. Hall has described two time systems in the world as :

M-time, or monochronic time.

P-time, or polychronic time.

M-times is concerned with North Americans, Swiss,Germans and Scandinavians and relates to concetration at a particular thing at one point of time. The western cultures justify promptness. P-time is found in high-context cultures. P-type allows for importance of human transactions over time management issues. The American way of straight away getting on to the business is a reflection of M-time culture. Table 3 provides rank 31 countries based on overall pace of life.

Overall pace

Country

Walking 60 feet

Postal service

Public clocks

1

Switzerland

3

2

1

2

Ireland

1

3

11

3

Germany

5

1

8

4

Japan

7

4

6

5

Italy

10

12

2

6

England

4

9

13

7

Sweden

13

5

7

8

Austria

23

8

9

9

Netherlands

2

14

25

10

Hong Kong

14

6

14

11

France

8

18

10

12

Poland

12

15

8

13

Costa Rica

16

10

15

14

Taiwan

18

7

21

15

Singapore

25

11

4

16

United States

6

23

20

17

Canada

11

21

22

18

South Korea

20

20

16

19

Hungary

19

19

18

20

Czech Republic

21

17

23

21

Greece

14

13

29

22

Kenya

9

30

24

23

China

24

25

12

24

Bulgaria

27

22

17

25

Romania

30

29

5

26

Jordan

28

27

19

27

Syria

29

28

27

28

EI Salvador

22

16

31

29

Brazil

31

24

28

30

Indonesia

26

26

30

31

Mexico

17

31

26

Source: From Robert Levine,"The pace of life in 31 countries,"American Demographics, November, 1997.

However, P-time relates to loose adherence to time schedule. For example, Latin Americans donot care for next appointment and end the meetings in natural way. So, the next meeting may be postponed. As a precautionary measure, in a gathering of P-time and M-time business leaders, the individuals should do littile adjustments for efficient business operations. Now days with increased globalization the P-time business managers are increasingly become M-time.

Negotiations Emphasis

The business negotiations are a part of any commercial meeting. The fundamental of business negotiations include type of product, price, vendor relations with customers etc. Although, negotiation is a simple process but if done with some foreigners, it becomes a complicated process. As discussed before, the SRC(self reference criterion), plays a crucial role in business negotiations. In order to complete, smooth negotiations, the SRC of both the parties should be controlled.

Gender Bias in International Business

The women face discrimination as far as allotment of international assignments is concerned. For Example, the myths prevents women from international assignments. Although, women are 50% of US workforce, there number decreases to just 18%of the number of expats. There are numerous reasons for the lesser number of women foreign managers. Some business leaders conclude that the women are not accepted in managerial ranks in a culture, so can they be accepted in global world. The below drawn chart shows the female directors on corporate boards as percent of total.

From, the above chart one can see that senior women managers are not found in countries like Asia, Middle east and Latin America. There are several attempts to raise the issue of discrimination against women but one can say that a women in foreign country may not be treated similiarly to the local women and most of the stories against women are perceptions.

Much of the success of foreign business leaders is dependent on the support of an organization and training provided to foreign business leaders. So, the success of a woman business leaders in foreign assignments is dependent on the power given to her by the organization. The number of women business leaders in the European countries is similiar to USA, with Germany being an exception. However, the cross-mentoring program introduced in Germany has helped to groom women business leaders. This program allows the business leaders from different organizations to offer tips to women counterparts and such programs were successfully implemented by top firms such as Lufthansa. The below mentioned chart shows the data of female executives holding managerial positions:

Figure: Percent of Women business leaders.

Now, with increased pressure of globalization, the MNC's are looking for individuals with international experience for oversea assignments. Such individuals have easier promotions and better compensation.

Business Ethics

Even in a local set up its very difficult to judge what is wrong or what is right. Although , these things become more complex in an international business environment.For example, the acceptance of high value gifts is not promoted in USA but the same is acceptable and required in many cultures.

Corruption Defined

The word corruption has got many meanings, it can vary from one country to another. In Marxist countries, profit was termed as illegal and corrupt. The things which are a business necessity might be termed as exploitation in another countries. For example, in Sub-Sahara Africa, the intellectual property rights of western world are considered a hinderance to the treatment of AIDS.

The Western focus on Bribery

The word corruption was considered as bribery before Enron crisis in United States of America. After this event, fraud was also termed as corruption. The Americans had no rules to fight bribery cases in foreign subsidairies in 1970s, only the government companies were required to disclose all the payments by securities exchange commission. And, the executives behaving otherwise were charged for violating SEC's requirements. The meaning of bribery can be studied by an example, if a company wants to engage in power plant business outside of America, if he pays a bribery to some executive, who has promised a deal, he will face prison upto 4 years in USA, but will be able to evade taxes in countries like Japan, France or Germany. So, decision to pay taxes is always a debatable issue. Some argue it to be a business necessity while others not. The rules against bribery are most stringent in USA, the members of OECD( organisation for economic coperation and development) following on the similiar footsteps have made their rules like USA. Till now, 31 major trading countries have signed a memorendum and have agreed to fight corruption.<