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International perspectives in organizations, In a globalized economy, organizations are continuously faced with various challenges. In an effort to stay competitive, organizations have expanded their operations overseas thereby tapping the potential of emerging economies. As such, organizations, especially multi-national companies, are increasingly exposed to cross-cultural environments. Organizations are also playing an increasingly important role in the global arena, which has caused some speculation as to their role in the realms of global justice, ethics, and corporate social responsibility.
The development has also had a deep impact on the way businesses are being carried out locally and globally. For one, globalization of economy has necessitated the formulation of global strategies that has enabled organizations to succeed in a cross-cultural environment, amidst international pressures. Further, multi-national companies are threatened in their home countries by excessive competition, pushing them to the verge of retrenchment. Therefore, organizations have to face tough decisions pertaining to their operations, International perspectives in organizations especially relating to downsizing, restructuring, and so on. So while globalization is opening up new opportunities for multi-national companies, many organizations also have to face diverse challenges in a cross-cultural context (Senge, 2014; Griffin, 2013; and Caganova, Cambal & Weidlichova Luptakova, 2015).
Keeping aforementioned in view, this paper will attempt to highlight, evaluate, and reflect on the challenges of operating globally, touching upon aspects such as global justice, change management, cross-cultural management, and global leadership, in the light of arguments presented by Arnold (2013), Butler, Crundwell & Sweeney (2011), Hofstede (1993), and Javidan Et al. (2006).
Hofstede (1993) has explored the variances in management practices that exist across cultures. In his journal article, he has noted that management differs across various cultural settings (Hofstede, 1993). The author has also classified national cultures based upon five cultural dimensions namely: power distance, individualism, masculinity, uncertainty avoidance, International perspectives in organizations long term orientation, and indulgence. While a collectivist society like that of China puts a greater emphasis on family values, individualistic societies like that of America or Europe lay a greater emphasis on autonomy, independence, and the individuals.
These dimensions define a particular culture’s tendency to practice ‘management’ in a certain way. The variances in management practice are even more pronounced in the organizational setting, where contrasts in various national cultures translate to contrasts in organizational cultures. This is where the significance of cross-cultural management lies. In short, Hofstede (1993) points out that culture deeply influences management practices and that the concept is not consistent across different cultures. This is why, according to Hofstede (1993), there is a need to adopt internationalism in an effort to enhance management theory and practice. Cross-cultural management is critically relevant in a globalized economy because many of the contemporary management theories only apply in the American organizational setting and not in the larger global context.
Hofstede (1993) has made a very valid argument against the notions of a ‘universal’ management theory because it simply does not exist. The difference in the economic development of different countries affirms the fact that western management theories do not apply well to non-western environments.
Every individual is situated in a particular time, culture and social environment to which he or she belongs to. As such, culture is a critical factor which impacts the management of the workforce within an organization. Hofstede’s (1993) case for internationalism is particularly relevant to this era of globalization because it incorporates a global perspective of management, which is vital in ensuring success to multi-national companies that are operating in a cross-cultural environment (Moran, Abramson & Moran, 2014).
That said, it is paradoxical to hope for a consistent management theory considering the diversity in global cultures. Although there can be a global strategy that organizations can employ, ultimately it all boils down to domestic management practice within the context of a particular culture. Many multi-nationals in fact allow for flexibility in management practice for their foreign subsidiaries so as to respond to the needs…
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