7928IBA-Cross-Cultural Management | Report
Numerous hawker stalls were a familiar sight in Singapore's streets and alleys until late 1960s. They were not much different from the hawker stalls that visitors to many developing nations see: colorful, arranged in a disorderly pattern, inviting visitors to use them, but unconsciously sending the message “buyer beware”.While there's little argument that these hawkers (street food vendors) brought a certain charm to the social and cultural landscape of Singapore, many stall holders plied their trade under less than desirable conditions. More often than not, hawkers operated under unhygienic conditions, contending with a lack of piped water supply and inadequate facilities to prepare and cook their food. To compound the problems, the authorities and wider population had to deal with the indiscriminate disposal of wastes into drains. Over a period of time, these conditions caused considerable pollution in the island's water courses, endangering both public health and the environment.
As a result, the Singaporean government developed a plan to build designated hawker centers with complete infrastructure and strict regulations. Stall holders were expected to be vigilant in adhering to proper food and personal hygiene practices and to ensure that their stalls are free from pests and other infestation. Importantly, the hawker centers in Singapore succeeded in promoting five important standards of community development: ethnic diversity but unity, efficiency, the power of women, safety, and synthesis of traditional and modern values.
In view of this success, Sunshine Inc., a privately owned European food company, negotiated an agreement with the government in YOUR ASSIGNED COUNTRY to establish and manage a hawker center in a regional city of that country. The local government stipulated that the newly established hawker center must adhere to the same health, safety and community standards as the Singaporean model but it left the authority to implement and maintain these standards to Sunshine Inc., unwilling to pass or enforce any state laws that would ensure the standards. The local government will not intervene in the operations but it will close the hawker center down if it is inefficient and/or breaches health, safety or community standards. No assistance of international agencies is available.
In order to have a stronger management control, Sunshine Inc. changed the Singaporean model and decided to hire all hawkers as permanent employees. To stand apart from other food services available in the country, additionally to the adherence to strict food safety, sanitation requirements and community standards promoted in Singaporean hawker centers, the local hawkers are required to operate according to company core values. Sunshine Inc. prides itself to be quality-conscious and innovation-focused and promotes in all its operations consistent quality of food, friendly and professional customer service, and provision of innovative food services to local community. It is known for its management expertise and efficient operations but it has never operated in the region where YOUR ASSIGNED COUNTRY is located. That is why the company hired you to advise them how to set up the organizational structure, operations and people systems, and management practices in a culturally-effective way to make the new hawker center successful while adhering to the required standards and core company values. The specific goals, which you are assisting with as an experienced cross-cultural management consultant, are listed on Page 1 of this assignment.
Based on your analysis, propose suitable culture-specific organisational structure, operations systems, support systems or management practices, such as problem solving, decision making, motivation or other management activities, that will enable and enforce the required standards and company core values. Your goal is to ensure that employees of the hawker center maintain the standards and behave in line with company values. Focus in your analysis on 3-4 most critical internal management issues of your choice (determined by your management analysis) and recommend other issues for future research in the scope section. Justify by means of your cultural analysis (using cultural dimensions) why the recommended methods would work in the local situation. Assume that local employees will be managed by supervisors from Sunshine Inc. headquarters in the initial phase.
Answer:
Introduction:
Taiwan is a state of East Asia. The cultural is Taiwan is influenced by the China, America and Japan. The company is following both the traditional and modern approach to run the business efficiently. If an organization is trying to enter into the Taiwan market than it becomes important for them to evaluate and analyze all the related factors of the comapny so that the position could be maintained and non cultural issues could raise (Rao and Rao, 2006). Cultural issues could be raise due to language, communication gap, gender issues, and thoughts of the people. Modern and traditional culture etc. the different nation with different culture cannot do business together. Until and unless, they evaluate the entire culture of the host country and implement and set up this business in the manner of the host country so that they could also able to manage the performance of the company in better way.
Cross cultural management is the administration process in which people who are involving in the different culture and the background are managed together to achieve the common goal of the company. Cross cultural management process explains that how can an organization evaluate and manage the different culture. The culture of an organization could be measured on the 6 dimensions which would make it easier for the business to evaluate that what conflicts could raise in the business and which points must be ignored by the company (Oyserman and Lee, 2008).
In the report, the sunshine Inc, a European company is trying to enter the Singapore Company in the Taiwan market. The Hawker business is the Singapore is from long time. But their hygiene level is zero and thus the government has decided to close the stalls about Sunshine Inc has offered them a deal, according to which they will set up the hawkers business in the Taiwan market and this will help them to be hygiene (Banerjee and Iyer, 2005). The required resources are easily available in the Taiwan market and they have discussed the case with the Taiwan government as well. The main issues with the company are cross cultural management. In the report, cross cultural dimension of Taiwan has been studied along with the operational and management issues which could be raise and their recommendation.
Host country (Taiwan):
Taiwan’s culture has been studied on the basis of the basis of the 6 D model to measure the Taiwan culture against the Singapore culture. The deep drivers of 6 D model have been conducted on the company and it has been identified that the Taiwan culture is the combination of modern and traditional approaches. The country is following own tradition along with the Chinese tradition, American tradition and the Japanese tradition. It is also influenced with the Asian culture. The 6- D study on the country is as follows:
Power distance:
Power distance is cultural dimension which explains about the inequality which exists in the culture of a country. It measures that weather is company is accepting the inequality or not. The company represents about the inequality but in the sense of the acceptance level. A great number of PDI score explains that the company could observe a huge number of distances in the society which concludes that there is great inequality in the business (Need, 2006).
Taiwan has scored 58 on power distance dimension which indicates that the society is works as a hierarchy level. In the society, inequality is accepted by the people and it is quite popular in their culture. The hierarchy could be seen in the overall business operations of the company.
Individualism versus collectivism:
Individualism versus collectivism is cultural dimension which explains about the connection of an individual with himself or herself and the society. It measures that weather the people of the country think about themselves only or they care about their culture as well. The dimension represents about the freedom level, individual thoughts, cohesion etc of a people. A great number of Individualism versus collectivism score explains that the people of the country are like to be individualism and care about themselves and their family only. They do not care much about the society and other people (O'neill, 2011). On the other hand, low number explains that the strong group cohesion and large number of loyalty and respect is there in the business.
Taiwan has scored 17 on individualism and collectivism which indicates that the people of the country are like to be collectivism and care about them and their family, culture etc. In the society, people are loyal to themselves, family, friends etc. They show their worry about the society and other group. The employer/ employee relationship explains that the people are worrying about the society as well.
Masculinity versus femininity:
Masculinity versus femininity is cultural dimension which explains about the value, male and female role, traditional approaches of work etc of a country. It measures that what kind of jobs must be done by male and female. This approach explains that the man emphasized on the performance and success whereas the woman emphasizes on the sensitivity, quality of life, modesty etc. The dimension represents about the level of culture and the traditional and modern approach of the business. A great number of Masculinity versus femininity score explains that the people of the country are masculine and they are following the traditional approach and believes that woman should not work (Myer and Land, 2006). On the other hand, low number explains that the women can also work in the male dominant society and they are also powerful and successful.
Taiwan has scored 45 on Masculinity versus femininity which indicates that the people of the country are slightly a feminine society and focuses on the male dominant society and the female culture as well. In the society, people are not showing much gender differences and working efficiently in the market (Bhaskaran and Sukumaran, 2007). They show their worry about the masculinity level and the feminine level. The employer/ employee relationship explains that the females are also working in the society and the performance is quite better.
Low uncertainty avoidance versus high uncertainty avoidance:
Uncertainty is cultural dimension which explains about the degree of anxiety which is faced by the local people at the time of sudden risk and issues in the business. It measures the level of problems and anxiety they feel at the time f any unknown and uncertain issues. This approach explains that the different people react differently in case of sudden risk. The dimension represents about the level of anxiety of the people. A great number of uncertainty avoidance score explains that the people of the country are like to make rules and controls too avoid the sudden risk. On the other hand, low number explains that the people make some innovative decision at the time of risk to save from it (Milanovic, 2013).
Taiwan has scored 69 on uncertainty level which indicates that the people of the country are slightly to make the rules and regulations after a while. In the society, people of the country are like to make rules and controls too avoid the sudden risk. They show their worry about the risk level and thus they prepare with the policies and the strategies in advance (Bochner, 2013). The employer/ employee relationship explains that the females are also working in the society to avoid the risk.
Short term versus long term orientation:
Short term versus long term orientation is cultural dimension which explains about the traditional and centuries old traditional of a culture. This rule applies on the decision making process of the company. It measures the level of people to use the past year experience, the current trends and thee future forecasting for making a decision. This approach explains that the decision making process is understand by the people on the basis of the family and the society (Luke et al, 2005). A great number of Short terms versus long term orientation score explains that the people do not care much about the overall process of the decision making. On the other hand, low number explains that the people are creative in the decision making and could execute the decisions for the betterment of the society.
Taiwan has scored 93 on Short term versus long term orientation level which indicates that the people make the decisions process after evaluating all the related factors. In the society, a great number of Short terms versus long term orientation score explain that the people do not care much about the overall process of the decision making. They show their worry about the entire process of the decision making which is influenced by the friends and the family of the individual (loh et al, 2015). The employer/ employee relationship explains that the people will work efficiently and effectively in the market.
Operational issues:
Operational issues of the company has been discussed further and it has been measured that the cross culture could impact on the overall operations of the company at a huge level (Lipner, 2012). The operational issues of the company explain that the organization is required to manage all the operations and the strategies of the business some of the operational issues of the company could be as follows:
Management level:
Management level of the company explains that the management of an organization is different in nature. It us influenced by the overall operations of the company and thus it become important for the business to set up the business and their culture in such a way that Taiwan people could feel connected to them. The management level of the country explains that there s huge difference among both the cultures and thus the management could raise few issues in the overall operations of the company (Leininger and McFarland, 2006).
Human resource management:
Human resource management of the company explains that the management of an organization is different in nature. The HRM process of an organization is influenced by the overall operations of the company and thus it is very important for the business to set up the business and the HRM process in such a way that Taiwan people could feel connected to them (Iyer and Debevec, 2015). The human resource management level of the country explains that there is huge difference among both the cultures and thus the human resource practices of the company could be affected.
Leadership differences:
In addition, it has been recognized that there is huge difference among the leadership process of the company. It explains that the leaders of the country are different to each other and believe that the leaders are the top level manager of the company and still, they think that everyone’s advice is important and it much is considered while making a decision about the overall process of the company (Kolanad, 2008). The leadership practices of Taiwan culture makes it easy for the business to enhance the level of the operations and activities of the business.
Internal management issues:
Internal management issues of the company have been studied further to measure the issues which could rise in the business internally due to cross culture. The process explains that the following issues could be faced by the company:
Long term orientation:
Long term orientation process of Taiwan explains that the Taiwan has scored 93 on Short term versus long term orientation level which indicates that the people make the decisions process after evaluating all the related factors (Huat, 2011). In the society, a great number of Short terms versus long term orientation score explain that the people do not care much about the overall process of the decision making. They show their worry about the entire process of the decision making which is influenced by the friends and the family of the individual. The employer/ employee relationship explains that the people will work efficiently and effectively in the market.
This rule applies on the decision making process of the company. It measures the level of people to use the past year experience, the current trends and thee future forecasting for making a decision. This approach explains that the decision making process is understand by the people on the basis of the family and the society. The Taiwan industry explains that the people are focusing on the modern approach to make decision. However, the level of the decision making of Taiwan is still lower than the Singapore market which could lead to the business towards the failure as it would be tough for the business to maintain the long term orientation in both the business.
Communication gap:
Communication gap is also an issue for the sunshine Inc in the entry of the Taiwan market. It has been evaluated that the both of the countries are influenced by the Asian culture but still there are few communication barriers which do not allow the business to communicate the ideas, information and orders in better way. It explains that the business and the managers of the sunshine Inc are required to measure all the related points of the company so that the communication barrier of the company could be overcome and the business could be set up in better way in the market (Guha, 2006).
On the basis of the evaluation on the Taiwan culture, it has been found that the position of the Taiwan culture is way better than the performance of the Taiwan culture. It has been studied that the people of Taiwan are using the Taiwan Chinese culture which is also influences by the American and Japanese culture due to which their communication signs and the language has also been affected and thus, it has become important for the business to measure that the overall position of the company is quite better and it would lead to the business towards the fewer issues of internal management (George, 2006).
Lack of empowerment:
Empowerment level is also an issue for the sunshine Inc in the entry of the Taiwan market. It has been evaluated that the Taiwan culture and the people from the Taiwan are not risk taker and thus the people like to do labour work rather than involving into the higher level community and the meetings of a business to make better decision about the position and performance of the business. The Taiwan culture explains that the risk taker people are less in the market. It explains that the business and the managers of the sunshine Inc are required to measure all the related points of the company so that the manager’s issues and the training issues about the Taiwan culture could be reduced (Gahan and Abeysekera, 2009).
On the basis of the evaluation on the Taiwan culture, it has been found that the position of the Taiwan culture is way better than the performance of the Taiwan culture. It has been studied that the people of Taiwan are trying to accomplish the labour work so that the sense of responsibility could be lower (David, 2008). It explains that the main issues of the sunshine Inc is to hire the managers for the company from the Taiwan market and if the company hires the managers from other countries than it would be tough for the company to give a proper training to the managers about the Taiwan culture.
Time usage:
Lastly, it has been studied that the time is also an issue for the sunshine Inc in the entry of the Taiwan market. It has been evaluated that the Taiwan culture and the people from the Taiwan are not much serious about the time management. They do not have the sense of responsibility much and thus it would lead them to the mismanagement of the business and the assigned task to them. They believed that if they can’t do the job today, they will do it tomorrow or day after tomorrow (Farh et al, 2007). This attitude of them leads to the worst management of the business. The Taiwan culture explains that the people who understand the time values are less in the market. It explains that the business and the managers of the sunshine Inc are required to measure all the related points of the company so that the manager’s issues and the training issues about the Taiwan culture could be reduced.
On the basis of the evaluation on the Taiwan culture, it has been found that the position of the Taiwan culture and their people is not at all good and due to it, they are required to enhance the overall operations of the company (D?browska, 2013). It has been studied that the people of Taiwan are trying to accomplish the work but they do not show much concern about the time factor.
Recommendation and conclusion:
On the basis of the study, it has been measured that the Sunshine Inc is required to manage and evaluate various factors so that the position of the business could be improved. The company is required to enhance the long term orientation level so that the better management of the business could be done as well as the company is required to evaluate all the other factors of the business as well. The other factors of the company explains that the communication gap of the company is also higher and it is important for the sunshine inc to offer a proper training to the employees so that they could adjust into the Taiwan market and the people of Taiwan could also feel connection to them. It would lead to the higher sales of the company.
Further, the study has been done on the empowerment issues and the time usage of the company and it has been recognized that the overall performance of the company and the cross cultural management could be set with a proper planning programme and the better usage of all the factors of the business.
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