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GLOBALIZATION OF BUSINESS.
  Term Paper ID:25761
Essay Subject:
Overview of problems & solutions for firms, cross-cultural communication & misperceptions, stereotypes, minimizing conflict.... More...
6 Pages / 1350 Words
5 sources, 8 Citations, APA Format
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Paper Abstract:
Overview of problems & solutions for firms, cross-cultural communication & misperceptions, stereotypes, minimizing conflict.

Paper Introduction:
Introduction Today's business environment is a global environment. Where transportation and communications once formed real limits on globalization which were costly and time-consuming to overcome, advances in both of these areas have made it possible for even small companies to have foreign operations. In some cases, the domestic company may not have a physical presence in the overseas market; in other cases, the company may have facilities located throughout the world. Regardless of how small a foreign presence might be, all companies which operate in the global market must be aware of potential problems which may arise among employees. By being cognizant of such problems, companies can implement programs designed to reduce the level of miscommunication within an organization, resulting in higher morale for employees and higher productivity for th

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Such is notthe case in all countries however, and managers in Israel (for example)often find that their subordinates disagree with them often andenthusiastically (Maital, 1993, p. There are two primaryreasons why they do this: competition and markets. Once thestereotypes have been confronted and eliminated, and once employer andemployee learn common resolution strategies, the cultural conflict can beminimized, if not eliminated. 53). 53-54. Goal-setting is a powerfulmotivational and management tool often used by American managers inAmerican companies, and many employers throughout the world are expected toaccept the goals of their employers as their personal goals. 22-27. Members of collectivist cultures and individualist cultures may haveproblems communicating on what appears to be the most simple of levels.Within IBM's American facilities, for example, it is common practice tohave open performance evaluations; these worker evaluations are madeavailable to anyone else within the organization. 188). The communication and perception are correct,but the evaluation of the event is different than his Japanese hosts. The business impact of managementattitudes towards dealing with conflict. 26). Cross Cultural Misperception Misperception problems can arise from the very earliest interactionswhich may take place between members of different cultures. This comes from a desire to maintainconsensus and avoid conflict while the American approach emphasizesindividual achievement. How culture clashes can ambushthe unwary buyer going abroad. Supervisors and subordinates alike must be educated aboutthe differences--and similarities--between the two cultures. Introduction Today's business environment is a global environment. It is unlikely that a company cancompletely eliminate cultural miscommunication, but with education andawareness, such miscommunication can be minimized. S. A modelfor addressing cross-cultural ethical conflicts. 26). Yet the language barrier may well be theeasiest communication obstacle to overcome when considered in light ofother barriers to communication which can arise among members of differentcultures (Leighton, 1993, p. (1994, June). Conclusion Globalization has led to increased contact between members of vastlydifferent cultures. Because of this,education can be one of the most important tools in minimizing culturalconflict (Maital, 1993, p. In both cases, the company has recognized thedifferences in culture and allowed two different corporate approaches to beused in order to enhance corporate communication (Maital, 1993, p. F., Kohls, J. 24). At the same time, the human resources department is often responsible forensuring that employees are able to communicate with one anothereffectively. 169). Americans, on theother hand, often perceive Asians as timid and unassertive, and unwillingto make clear and unambiguous statements about a particularly businesssituation (McKenna, 1995, p. W. Such a performanceevaluation system has not been implemented in the company's Japanfacilities because of an unwillingness of Japanese workers to say negativethings about their co-workers. Across the Board, pp. (1995, July). When in Rome. Leighton, L. Griffin, E. Maital, S. Cultures in conflict. 188. 54). The competition facingcompanies domestically is increasingly from foreign firms. In this situation, themisevaluation can come about as managers try to impose strategies whichhave worked elsewhere, but which fail to take into account the uniquecharacteristics of the host country. 26-29. New trading blocs, based on regional interests, haveformed with the European Community (EC) and the North American Free TradeAgreement (NAFTA). Globalization Companies and countries can no longer operate as if the rest of theworld did not exist. (1993, March-April). This canbe a particularly challenging situation for the human resources departmentsince it is up to the department to ensure that all employees enjoy thebenefits of working for the organization, and that employees performingsimilar tasks in different countries are fairly remunerated for their work. For example,failure by those from individualist cultures to recognize that collectivistculture members approach meetings with entirely different perspectives onwhat those meetings are designed to accomplish can result in frustrationand lost productivity on both sides. When there is not a commonlanguage among participants, they are forced to rely on interpreters, whomay be able to convey the precise meaning of the words being used, but notthe underlying implications. J., & Anderson, K. Despite the difficulties, an increasing number of companies throughoutthe world are marketing on an international basis. Business and Society, pp.169-193. Such education needs to take place at all levels of an organization,but is particularly important when new management comes into anorganization or when existing employees receive new supervisors fromanother culture. Journal of Managerial Psychology,pp. Even when all partiesunderstand what has been said and perceived correctly the roles that eachparty has played, the evaluation of the event can still be different. When multiple cultures come into contact, as happens withglobal companies, the opportunities for miscommunication increasesubstantially. Wheretransportation and communications once formed real limits on globalizationwhich were costly and time-consuming to overcome, advances in both of theseareas have made it possible for even small companies to have foreignoperations. (1993, April). Meetings &Conventions, p. Methods for Minimizing Cross Cultural Conflict As with any conflict resolution strategy, the first step towardminimizing cross cultural conflict is to recognize that such conflict isinevitable when two cultures come into close working contact with oneanother. Regardless of how small a foreignpresence might be, all companies which operate in the global market must beaware of potential problems which may arise among employees. Even the most understanding and perceptive employees and managerswill inadvertently say or do something which can be misunderstood by thosearound them when they are immersed in a new culture. Cross Cultural Misevaluation Another type of miscommunication which can occur among members ofdifferent cultures is that of misevaluation. Cross Cultural Communication The most obvious communication problem which arises when members ofvarious cultures attempt to conduct business is that of language. Americans, forexample, purchase cars and electronics made in Japan, ham and golf cartsfrom Poland and shoes from Brazil. Mergers & Acquisitions, pp. Inthe meeting example above, an American who goes out for an evening ofdinner and socializing with his Japanese hosts may consider the eveningmerely a social event lacking in important business relevance if businessis not explicitly discussed. Among Asians, for example, Americans areoften perceived as arrogant and overbearing and unwilling to develop therelationships necessary for long-term business success. Forthe hosts, the evening has been a success from a business standpointbecause the relationship has been furthered with the American associate.Although no business was discussed (which is a primary consideration fromthe Japanese point of view), the personal relationship has been solidifiedand the American is now in a far better position to conduct business withthe hosts than previously (Leighton, 1993, p. Competition comes not only fromrecognized industrial nations, but also from developing nations and theformer Soviet Union (Buller, Kohls & Anderson, 1997, p. Meetings held by American companieswithin the United States, for example, are generally viewed by participantsas a forum for making decisions. McKenna, S. In some cases, the domestic company may not have a physicalpresence in the overseas market; in other cases, the company may havefacilities located throughout the world. References Buller, P. (1997, June). Such stereotypes can be an impediment toeffective communication, but can also serve as a building block forrecognizing that there are differences in the ways in which members ofdifferent cultures communicate with one another. 53). Evenwhen a common language is spoken, such as English, members of variouscultures have different connotations for particular words and phrases withwhich other participants may not be familiar. There are some stereotypes which members of cultures carry with theminto the corporate environment. Globalization means that there are employees based in many differentcountries, even though they all work for the same organization. Countries which have pursued protectionist strategiesin the past are moving away from these strategies to take a broader view oftheir environment. There will be increased pressure on these trading blocsto produce results for the members as a whole, not merely for individualcountries or companies. Misevaluation can also occur when managers come from one culturalbackground and their subordinates from another. In the past, such contact might be limited to asindividuals did not necessarily intermingle, but today's global businessenvironment has thrown these individuals together with the expectation thatthey will be able to work together to accomplish common corporate goals.Miscommunication, in the form of language problems, misperceptions andmisevaluation, can occur even among the most well-intentioned individuals.To minimize this conflict, companies and individuals need to be educatedabout differences in culture which might lead to miscommunication andstrategies to avoid those conflicts. By beingcognizant of such problems, companies can implement programs designed toreduce the level of miscommunication within an organization, resulting inhigher morale for employees and higher productivity for the company. In Asian companies holding meetingswithin their home country, meetings may well serve as social ceremonieswith few business undertones (Griffin, 1994, p.

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