Cross cultural management, Assignment solution

 

Introduction:

Generally, culture includes all sorts of behavioural patterns, the lifestyle of the related people, attitude, language style, manners and so on (Christiana, 2018). It is the combination of the established structure of a society, country or a business organisation within where employees from different regions work together to meet a certain goal. Cross-culture is slightly modified from the actual meaning of culture. It belongs to the ethnicity where a person or an employee or a manager of a business organisation has to perform functions with different attitudes other than the home or domestic culture (Dietz et al., 2017). It often derives some issues which can hinder the actual motive of performing activities.

The case study of Hydro Generation (HG) has been a matter of fact for cross-culture issue. As per the project plan, HG wanted to run a major dam project in Tanzania. The case study shows some issues regarding cross-culture management for which the authority is in dilemma to take the right decisions. The vice president of HG analysed the performance of the manager who was given the duty to carry the project in Tanzania. Though the performance was quite satisfactory, the vice president experienced that there have been some issues that were distracting the organisational culture. So, the author has chosen three topics as per the criteria adjacent to two certain issues for each. The topics will be- organisational culture, leadership and Ethics & CSR. Related issues will be addressed here for each topic such as nepotism and indulgence for organisational culture, leadership style and retention rate for leadership, corruption and hiring employees unethically. 

Organisational culture:

Every business organisation whether it is small or large develops a certain pattern of culture. Business functions, plans, managerial decisions, employees’ orientation, goal setting strategy and so on are determined through the practice are established culture (Christiana, 2018). Thus organisational culture defines the functions and boundary of the business to be. Development of business for sustainable arena depends on the better implication of the organisational culture with the employees. There is a close connection between organisational structure and culture. Effective practice of culture can be set if the structure of the organization is well enough (Faldu, 2015).

Organisational culture is determined by two dimensions as per the CVF model developed by Quinn, Rohrbaugh (French, 2015) The dimensions are- organisational focus and organisational preferences for certain structure. It includes the following sub-factors:

Figure 01: CVF model

Source: (Faldu, 2015)

Human relation model (Clan): This model implies that the organisation should focus on the development of the relationship with the employees to obtain better control over the functions of the employees (Faldu, 2015). The HR department has to play an important role here. From the case study, it has been analysed that the leader, Steinberg could not perform better control for the functions of Jones.

Open system model (Adhocracy): Open system model focuses externally for determining growth, acquisition and so on. It is embodied for general criteria to provide some basic power to the employees. From the case study, Brett Jones did not use the power given by the authority ethically (French, 2015). For attaining a local programme for clarifying the dam project, Brett Jones incurred cost without seeking permission from the authority.

Rational goal model (Market): Rational goal model emphasises on external focus for setting and attaining of the goal of the organisation which is a plan based (French, 2015). For the business of HG in Tanzania, the goal was set without developing the prospect of effective plans.

Internal process model (Hierarchy):  Patterns are set a d acknowledged getting internal control under this process. So, it focuses on internal functions by communicating with every source. HG is an organisation of flat culture for which direct charge cannot be enabled.

Theoretical relations with a problem: Tanzania absorbs some critical cultural dimensions which can be analysed through Hofstede’s cultural dimensions as individualism and indulgence.

Figure 02: Cultural differences

Source: (Hofstede insight, 2018)

Individualism: There is a direct relationship among the members of a certain society where persons have to work in different groups also. Society can be segmented into individualistic and collectivistic (Hofstede insight, 2018). Focus is given more in their activity where individualistic society prevails. It has been acknowledged that in Tanzania, collectivistic society prevails as there are several groups. There are immense family links between the persons as it has been acclaimed through the recruitment process of HG. Jones had the duty to recruit employees as per the organisational guidelines. But there prevailed nepotism in that case as Jones recruited those employees as per the recommendations of the family members. It has seen in that case, Jones has recruited their relatives who are working at high rank of government in the import-export division. Jones wants to get some added benefits from relatives.

Indulgence: It is expected that there should be better control to satisfy the desire for both of the workgroups and the organisation (Hofstede insight, 2018). But it possesses negative output when satisfying any desire of certain groups hampers the business of the firm. Due to superstitious belief of local tribe, HG had to incur $7500 at first for the smooth operation of the project. But Jones went for an extra $10000 again for rearranging the ritual as per the criteria of the local tribe. Jones is spending money willingly which is example of indulgence and this is national culture also. Because of Tanzania scored 38 in the indulgence. 

Recommendations:

·         As an issue exists, it will be imperative to reshape the organisational structure with proper guidelines so that strict actions can be enabled.

·         Project plans must be made according to the organisational own cultural patterns

·         There should be better control over the expatriate manager and functions of the expatriate manager must be accountable if any issue is found.

·         The recruitment process should not be hampered by nepotism. There should be strict guidelines in this case and the top authority should take control for this fact.

·         Structure of the organization can be modified to have better control and charge the employees directly for low performance.

·         Steinberg has already decided to send some managers and engineers to Tanzania which is a great deal. However, it should also be acknowledged that Jones is valuable for the organisation for having proper knowledge about African business prospects. So, Jones should not be eliminated rather can be controlled.

Leadership:

Leadership is the process of leading or guiding the assigned employees or members of a group. It is the continuous process of monitoring, guiding, rectifying the issues, motivating and so on. And the person related to those functions is determined as a leader (King and Lawley, 2016). A leader has to play significant roles for increasing skills and efficiencies of the employees. The development of the business depends on better monitoring and guiding of the leader (Maxwell, 2017).

HG has enabled flat culture for the functions of the business. Employees always hate the scope for performing functions as per their idea. It has degraded the situation of business already. Thus it has become a cross-cultural issue of the business as the firm has decided to carry the dam project in Tanzania.

Theoretical view

Figure 03: Types of leadership style

Source: (Maxwell, 2017)

Democratic leader: Democratic leader is desperate to improve the business functions and for this reason, suggestion and advice are taken from the employees. But general power for decision making always tends to the leader (Maxwell, 2017).

Characteristics:

·         Employees prefer to have this type of leader as value is given to the suggestions of the employees.

·         Participation of employees is ensured by the leader for taking advanced steps.

·         Employees are motivated enough and thus perform advanced functions for the growth of the firm.

·         Though the leadership is effective but not always derive better output as the suggestions can be manipulated by the employees.

·         The leader is a great motivator to the employees.

Autocratic leader: Autocratic leader believes only own ability and does not take or grant any recommendation or suggestion from the employees. The decision-making process is tended to the leader only (Northouse, 2017).

Characteristics:

·         Employees are not given any power.

·         The leader is all in all cases.

·         Employee’s suggestions are not granted.

·         The leader is not a good motivator to get the best performance from the employees.

·         The leader forces the employees what is thought right and effective by the leader.

Laissez-faire: A leader is said to be laissez-faire when the employees are allowed by the leader to make decisions and perform in such a way that is effective for the business (Muenjohn et al., 2018).

Characteristics:

·         Employees have to take the main steps for performing and decision making.

·         Employees are not accountable for performing minor quality of services.

·         The leader depends on the employees a lot to take responsibility for performing the assigned projects.

·         Performance of the employees is not up to the mark in most cases as there are no strict actions and accountability.

As per the business perspective, it has been acknowledged that HG has enabled flat organisational culture. There prevails laissez-faire leadership. For this reason, there is no accountability from the employees and if any issue arrives, no charge can be undertaken also. Thus, it is deemed to be a great issue for the business of HG in Tanzania. As duties had been given to Jones, the authority of HG depended on the activities of Jones. But Jones could not perform as per the organisational culture and guidelines. There was a high employee’s turnover rate in Tanzania. Jones recruited staffs by the recommendations of the locals. So, nepotism was taken place that has been mentioned already. The vice president, Steinberg analysed the leadership of Jones and found that the leadership was not up to the mark. Though the employees had the right to take participation in the decision-making process according to the leadership style, there was no participation. Even Jones did not provide effective guidelines to the employees. Thus employee dealing was not up to the mark as the performance has been available to Steinberg.

Recommendations

·         According to the author, HG should restrict laissez-faire leadership because it cannot make any significant guidance to the employees. Rather democratic leadership should be introduced so that the employees can get the scope for having skilled guidelines and participate in the decision-making process (Muenjohn et al., 2018).

·         Jones should be accountable by corporate regulations in this case and forced to follow the organisational guidelines.

·         Regulations should be modified for having effective growth of the business by succeeding the project in Tanzania.

·         Proper training must be arranged to improve the skills of the employees. This will increase the efficiency of the firm also.

·         Cash management should be better so that unnecessary expenses can be eliminated which has been taken place in Tanzania for dealing with locals.

·         Recruitment of the employees should be done in the best possible ways where talented employees must be recruited.

Ethics and CSR:

For operating business, certain factors must be maintained for maintaining the standards. Ethics includes those considerations that force the organisation to perform positive vibes for the consumers (Singer, 2013). It enables actions that are effective and restricts the organisation to perform any function which is unethical and does not offer any good intention. There are many stakeholders of the organisation and the firm must obtain moral values in all sorts of activities.

The modern aspect of business includes CSR activities determined for performing business globally. It includes philanthropic, advanced, humanitarian, societal development activities and so on for bringing development in the societies where the organisation belongs (Singer, 2013). At present, CSR is considered the most important factor that is needed to be regulated. Sustainable growth of the business by developing the standards of the societies can be attained through development projects of the organisation.

From analysing the case study of Jones of HG, the author has understood the issue facing by the organisation. For succeeding the dam project in Tanzania, Jones has been recruited. Jones has sufficient knowledge about the business environment of the African region. So, it has been expected that Jones would not violate the terms and conditions for operating activities. But it has been experienced that regulations are not maintained properly. Jones became partial in the case of recruiting employees in Tanzania. Organisational rules and regulations were not maintained. Nepotism was there. Jones became unethical in terms of recruiting the required staffs.

In Tanzania, there are issues of unemployment, poverty, nepotism, unethical considerations and so on. Though Jones has given the responsibility to hire talented employees according to the recruitment process of HG, it was not maintained either. There was the existence of uncertainty avoidance dimension developed by Hofstede. Employees were recruited by the recommendations of the locals and pressure groups. Through interviews and other processes were there, the recruitment process was a mockery. Tanzania is one of the most corrupted countries in the world. Though the government of Tanzania has been taking a lot of actions from the very beginning, corruption has not been lessened either. The local people have the intention to be engaged in corruption in high degrees. Most of the recruitments in local firms are done through the recommendations of the relatives and family members. Jones also went for this. So, it has been in the attention of Steinberg regarding the performance analysis of Jones. Halo Effect was there in that case. HG has already established a lot of power plans in many regions of the world. Alike there in Tanzania, the dam project was the plan for expanding the business. Jones was hired to shoulder the duty. But Jones got placed in bribery, nepotism and thus unethical activities.

Theoretical view:

From the case study, it has been clear that there was a complete violation of rules and regulations. Jones did not follow the rules for recruiting the employees. Even, the local ritual was also supported by Jones though it was done for eliminating the local issue. However, the ceremony that was incurred for local tribes was financed by HG. And the fund was given by Jones on behalf of the firm. Later, additional$10000 was given by Jones to the ceremony for repeating the ceremony. Jones did not let the organisation know it initially. Along with it, the recruitment was done through bribery. Jones could not perform the assigned duty to recruit the best employees. The relatives of the existing employees were asked to recommend possible staffs. However, there was no alternative to this for the firm. Jones knows better business knowledge in Tanzania. Jones has sufficient skills and efficiency. So, contingency theory prevailed there (Schein, 2016). According to Romani et al., (2018) contingency theory has claimed that there are perfect ways of managing an organization.

Jones followed their leadership idea and the firm has no more option than to rectify this.

The fact here implies most significantly is the practice of established standards which can be expressed as the doctrine of legitimacy (Okpara and Idowu, 2013). What is accepted in any society cannot be termed legal. Max Weber, the sociologist believes that it is the traditional practice of specific areas for imparting any factor legitimate. In Tanzania, the recruitment process does not support the system followed by the USA. Nepotism is allowed in Tanzania which is unethical in the USA.

Recommendations:

·         HG should strictly impose regulations to maintain ethics in terms of recruiting the employees.

·         Rules of established laws for employment must be maintained and the assigned manager must be controlled.

·         CSR activities must be developed so that those can assure the locals that the project will be beneficial.

·         Nepotism, bribery and unethical activities should not be there. So, the assigned manager must be controlled in this regard.

·         Jones should be allowed in the position as the manager is skilled enough. However, the activities of Jones should be controlled and monitored.

Conclusion:

The author has analysed the case study and prepared the report accordingly. To evaluate the required factors, Hofstede’s model has been applied (Okpara and Idowu, 2013). HG wanted to develop the dam project in Tanzania but faced a cross-cultural management issue. Brett Jones is the leader and manager of the project in Tanzania. Brett Jones has obtained the required degrees and knowledge to perform active functions. That’s why the authority selected Brett Jones. However, from the case study, the author viewed that Jones was in nepotism for recruiting the staffs required for various sources (Muenjohn et al., 2018). Even other functions were not maintained either like staying with the foreign managers' community. Thus dissatisfaction took place for the performance of Jones. That is why, Steinberg, the vice president of HG is in dilemma whether to keep Jones in this position or not. The report has thus been prepared to make effective recommendations for making the right decisions. The author has described the factors like organisational structure, leadership and Ethics & CSR. The author recommends for developing the organisational structure. Leadership style should also be changed to democratic so that the expectation of advanced performance can be derived. The author urges for maintaining Ethics and CSR effectively to generate the project of HG effectively. The author also suggests that Jones should be kept in the position also (MacQueen, 2019). As Jones is capable of analysing the business perspectives of Tanzania properly, the authority should keep Jones in the position. However, the activities of Jones should be under control by the organisation.

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