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This final project delves into the intricate and vital aspects of multi-cultural and transnational management in today's interconnected global economy. As businesses increasingly operate across borders, understanding and effectively managing diverse cultural landscapes and geographically dispersed operations are paramount for success.
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Faculty of international business and economic FINAL ASSIGNMENT COURSE MULTI-CULTURAL AND TRANSNATIONAL MANAGEMENT (INE 3223 E) Instructor: MA. Nguyen Thi Phuong Linh Name of student: Nguyen Van Duong Date of birth: 28/05/2 003 Student ID: 21050825*
Course: Multi-Cultural and Transnational Management (INE 3223 E) Student* Name (Student ID):210508 25 Number of page …… 34. (Excluding Title page, Table of Contents, and Appendices) Module instructor MA. Nguyen Thi Phuong Linh Date of submission 3/1/ Plagiarism statement “I confirm that this assignment is entirely my own work and has not been submitted in full or in part for any other course within or outside UEB. I confirm that all references are duly acknowledged.” Signature: Duong
PART I : ESSAY QUESTIONS (3 points) In the current era of globalization, how does cultural diversity impact management activities in general? Utilizing the cultural dimensions' methods learned in this course, analyze and provide examples of their influence on management activities. Additionally, offer recommendations if deemed necessary Answer: In the dynamic and interconnected world of contemporary business, the impact of cultural diversity on management activities has become a pivotal factor for organizational success. As companies expand their global reach and teams become more diverse, understanding and effectively navigating cultural differences are fundamental to achieving effective leadership, collaboration, and overall organizational excellence.From communication strategies and decision-making processes to leadership styles and organizational culture, the significance of acknowledging and leveraging cultural diversity cannot be overstated. By exploring these dimensions, we gain valuable insights into how businesses can harness the strengths embedded in a diverse workforce to thrive in today's multicultural environment. Consequently let's embark on a journey to unravel the intricate dynamics of cultural diversity and its profound implications for modern management practices. 1.1.Hofstede’s division methods In 1980,Dutch researcher Geert Hoftede identified four original,and later two additional dimesions of culture that helps explain how and why people from various cultures behave as they do.The original four dimensions that
Hofstede examined were (1) power distance, (2)uncertainty avoidance,(3) invidualism and (4)masculinity.Futher research by Hofstede led to the recent identification of the fifth and sixth cultural dimensions:(5) time orientation,identified in 1988 and (6) indulgence versus restraint,identified in 2010 1.1.1.Power distance: Power distance is “the extent to which less powerful members of institution and organizations accept that power is distributed unequally”.Countries in which people blindly obey the orders of their superiors have high power distance.In many societies,lower – level employees tend to follow orders as a matter of procedure.In societies with high power distance,however,strict obedience is found even at the upper executive with a PhD from a prestigious U.S university. The effect of the dimension can be measured in a number of way.For example,organization in low power distance countries generally will be decentralized and have a flatter organization structures.These organizations also will have a smaller proportion of supervisory personnel and the lower strata of the workforce often will consist of highly qualified people.By contrast,organizations in high power distance countries will tend to be centralized and have tall organization structures.Organizations in high power distance countries will have a large propotion of supervisory personnel,and the people in the lower levels of the structure often will have low job qualification.This latter structure encourages and promotes unequality between people at different levels. For instance, consider a multinational company operating in both a high power distance culture (e.g., Malaysia) and a low power distance culture (e.g., Sweden). The company is implementing a new organizational strategy that requires input and cooperation from various departments.
1 .1.2.Uncertainty avoidance Uncertainty avoidance is the extent to which people feel threatened by ambigiuous situations and have created beliefs and institutions that try to avoid these.Countries populated with people who do not like uncertainty tend to have a high need for security tend and a strong beliefs in experts and their knowledge;examples include Germany,Japan and Spain.Cultures with low uncertainty avoidance have people who are more willing to accept that risks are associated with the unknown and that life must go on in spite of this.Examples include Denmark and Great Britain. The effect of this dimension can be measured in a number of ways.Countries with high uncertainty avoidance have a great deal of structuring of organizational activities ,more written rules,less risk taking by managers,lower labor turnover,and less ambitious employees. Low uncertainty avoidance societies have organization settings with less structuring of activities,fewer written rules,more risk taking by managers,high labor turnover,and more ambitious employee.The organization encourages personnel to use their own initiatives and assume responsibility for their actions For example,imagine a multinational company with subsidiaries in both a high uncertainty avoidance culture (e.g., Japan) and a low uncertainty avoidance culture (e.g., Denmark). The company needs to make a strategic decision about entering a new and innovative market.
may be more open to experimentation, adaptable to changes, and comfortable making decisions even with incomplete information. The emphasis could be on agility and flexibility, with a tolerance for the uncertainty inherent in exploring new markets. Impact on Management:
group decision makers,and achievement is defined in terms of layman contacts and the living environment.The workplace tends to be characterized by low stress,and managers give their emploees more credit for being responsible and allow them more freedom.Culturally,this group prefers small-scale enterprises,and they place greater importance on conservation of the environment.The school system is designed to teach social adaptation.Some young men and women want careers;others do not.Many women hold higher level jobs and do not find it necessary to be assertive. For instance, Consider a global technology company with offices in countries that exhibit varying degrees of masculinity and femininity in their cultural values, such as the United States (masculine) and Sweden (feminine). The company is in the process of selecting a new CEO. Masculine Culture: In the U.S. office, where a more masculine culture prevails, the leadership style may be characterized by assertiveness, competition, and a focus on individual achievements. The CEO is expected to demonstrate strong, decisive leadership, make bold decisions, and emphasize financial success and market dominance. The work environment may prioritize clear hierarchical structures and direct communication. Feminine Culture: In the Swedish office, where a more feminine culture is predominant, the leadership style may be characterized by collaboration, consensus-building, and a focus on the well-being of employees. The CEO is expected to be empathetic, inclusive, and concerned with maintaining a positive work environment. Decision-making may involve seeking input from the team, and there may be a flatter organizational structure with an emphasis on work-life balance. Impact on Management Activities: Masculine Culture:
quick results and do not tend to save for the future.Asian cultures primarily long – term orientation.Countries with a high long- term orientation index include Japan,Chinese and Indonesia.In these cultures,individuals are persistent,thrifty with their money,and highly adaptable to the way that situation are handled.Additionally,people in long term- oriented cultures are more likely to believe that there are multiple truths to issues that arise rather than just one absolute answer For example, Consider a scenario where a multinational construction company is undertaking a large infrastructure project with teams in two countries – Germany (a culture characterized by a high preference for long- term orientation) and the United States (a culture with a more short-term orientation). High Long-Term Orientation (Germany): In Germany, where there is a strong inclination toward long-term orientation, the project management activities may prioritize thorough planning, risk assessment, and a focus on sustainable outcomes. The project timeline is likely to be extended to accommodate detailed preparations, extensive consultations, and a comprehensive evaluation of potential challenges. Long- term relationships with stakeholders, suppliers, and partners are valued, and decisions are made with an eye on the project's impact over the years. High Short-Term Orientation (United States): In the U.S., where there is a tendency toward short-term orientation, project management activities may be more agile and focused on immediate results. The emphasis is on efficiency, quick decision-making, and meeting short- term milestones. There may be a greater acceptance of change and a willingness to adjust plans rapidly based on immediate project needs or market conditions. The project timeline is optimized for quick turnaround, and success is often measured by immediate project outcomes. Impact on Management Activities:
are modified,and as people get to know each other better,they often change the way in which deals are executed. For instance, Consider a multinational manufacturing company with operations in two culturally distinct countries – Germany (a culture with a higher inclination toward universalism) and China (a culture with a higher inclination toward particularism). The company is developing a standardized performance evaluation system for its global teams.
composure.An emotional culture is one in which emotions are openly and naturally expressed.People in emotional cultures often smile a great deal,talk loudly when they are excited,and greets each other with a great deal of enthusiasm. For example, Consider a global marketing agency with teams in two culturally distinct countries – Japan (a culture with a higher inclination toward neutrality) and Italy (a culture with a higher inclination toward emotionality). The company is implementing a feedback system to improve project outcomes.
