Introduction
The current global market presents both tremendous opportunities and challenges to every potential company that tends to expand its business beyond the local boundaries. In this regard, the management should gain a profound understanding of the rules and tendencies that occur in the global business environment and acquire skills allowing for responding to issues related to cultural diversity. This paper aims to discuss the factors managers face while running a business in the globalized environment and describe at least three skills that ensure effective management across multiple national cultures. In addition, the paper will consider at least two cultural considerations unique to each country, such as the UK, Saudi Arabia, and Japan.
Managing and the Global Environment
Over the last decades, due to the rapid development of global transportation systems and migration tendencies, the general business conditions have experienced a revolutionary shift. Internally, because of demographic changes in the native labor market, management promotes diversity and accommodation of employees with different beliefs and value systems. According to Dobbin and Kalev (2016), almost all companies included in Fortune 500 and nearly half of US mid-sized businesses have programs directed at improving employee inclusion. Externally, through the increased opportunity of establishing and conducting business overseas, companies have to adapt to various legal regulations and laws accepted by foreign governments. Besides, they have to create policies and strategies that consider issues related to dissimilarities in cultures’ demands, tastes, and rules. Overall, such measures are made to provide sustainable growth and competitiveness in international trade.
On the other hand, the appearance and expansion of advanced technologies have reflected on workforce preferences and attitudes towards the conventional workflow. In particular, presently, many employees in developed countries tend to perform their duties and tasks remotely, sometimes very far from the base workplace, maintaining connection via the internet. Furthermore, many organizations running the business worldwide start using outsourcing services, implying that a company transfers particular functions of entrepreneurial activity to another company operating in the required field based on an agreement. According to Clutch’s survey, over thirty percent of small businesses outsourced their business processes in 2018, and around 52 percent planned to do this in 2019 (Panko, 2019). In 2018, for instance, the global outsourcing market accounted for $85.6 billion (Panko, 2019). In addition, it is worth noting that due to the rapid development of technologies, there is an increased need for a highly qualified workforce, which sometimes makes companies seek professional employees from foreign countries.
Skills Needed for a Manager
To ensure the effective operation of a company in the global environment, a manager should possess or at least acquire a broad range of skills and knowledge. In particular, successful international management necessitates improved sensitivity to differences in national practices and customs. Cultural sensitivity implies that individuals of different origins accept, respect, and understand each other’s features as well as cooperate without cultural constraints. To promote cross-cultural sensitivity, a manager should examine the characteristics of both dominant and different cultures, and amplify the interaction with diverse groups of people (“Practicing Cultural Sensitivity,” 2016). In this respect, various shared research projects, internships, and practicum experiences can be a suitable tool to enhance the cultural competence of a supervisor.
Another trait that a manager should have is integrity that implies honesty, responsibility, consistency, and trust. In this context, honesty is not only impartiality and truth in communication but also the ability of self-assessment, which enables managers to ensure that their leadership approach assists employees in daily workflow. Regarding responsibility, it is worth noting that managers should be accountable for all their actions and decisions, especially those that confuse the team or direct members in the wrong way. In addition, supervisors should encourage employees to take the initiative and trust them when they perform their job assignments. Finally, the manager should have substantial knowledge about business processes, theories, and approaches since it facilitates decision-making and conflict-resolution.
Cultural Considerations
The success or failure of the business strategies in different countries significantly depends on the consideration of inherent cultural features, norms, and traditions. For example, to provide the efficient implementation of the training program in the United Kingdom, the management of PG Industries should be aware that English society is characterized by individualism and low Uncertainty Avoidance (“Country comparison,” n.d.). From an early age, children are taught to think and act independently, seek their unique purpose and place in life, and that the path to success is only through personal attainment. Moreover, with a low Uncertainty Avoidance index, the British nation feels comfortable in vague and even risky situations, which impacts the planning process regarding work. It is worth noting that in the UK, entrepreneurs focus on the ultimate end rather than particular details of reaching the aim.
Concerning Saudi Arabia, the society in this state has apparent features of masculinity and prefers short-term time orientation. In such types of countries, managers are supposed to be assiduous, persistent, and resolute, and the emphasis is primarily placed on competition, justice, and strong relationship (“Country comparison,” n.d.). Besides, they demonstrate a deep respect for traditions, fulfillment of social obligations, a focus on reaching intermediate results, and a relatively slight inclination to save for the future.
Lastly, regarding Japan, it should be indicated that this nation is famous for its collectivism and one of the highest Uncertainty Avoidance rates on the globe. According to Hofstede Insights, the later index accounts for 92 (“Country comparison,” n.d.). This situation can be attributed to constant readiness to unpredictable, dangerous events and catastrophes such as earthquakes, typhoons, tsunamis, and volcano eruptions. Due to the strict emergency plan and precautions for sudden natural disasters, maximum predictability is the attribute of Japanese society. For example, the dress code and Rules of Conduct are determined for every significant social event, including ceremonies, weddings, graduations, and funerals. In terms of collectivism, Japanese are regarded as collectivist by Western standards and perceived as an individualist by Asian norms (“Country comparison,” n.d.). On the one hand, they are known for valuing group opinion over an individual’s suggestion; on the other hand, they are characterized by their loyalty to a company, which is an attribute of an individualist.
Conclusion
In summary, the paper has explored the critical factors that cause the increased involvement of managers in international business, including the rapid development of migration tendencies and the appearance and expansion of advanced technologies. In addition, the paper has described the essential skills needed for effective management in a global environment. In particular, the given skills include cultural sensitivity, integrity, responsibility, and profound knowledge about business processes and theories. Finally, two cultural considerations have been discussed for each of the countries, including the UK, Saudi Arabia, and Japan. The British community is more inclined to individualism and low Uncertainty Avoidance, Saudi Arabia has prominent characteristics of masculinity and the preference of short-term time orientation, and Japanese people possess collectivism and high Uncertainty Avoidance.
References
Country comparison. Web.
Dobbin, F., & Kalev, A. (2016). Diversity why diversity programs fail and what works better. Harvard Business Review, 94(7-8), 52-60.
Panko, R. Small business outsourcing statistics in 2019. Web.
Practicing Cultural Sensitivity. (2017). Web.