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Cross-Cultural Studies and Decision-Making Styles Essay

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Updated: Jul 8th, 2021

In organisational settings, a decision-making style is crucial for the company’s success. Culture is one of the many factors that can affect managerial decisions. It is vital to study the link between culture and a decision-making style to analyse the motives and outcomes of choices. In addition, the impact of culture can be considered an understudied issue that is particularly important in the field of business (Agborsangaya & Omoregie, 2016).

Investigations on the topic show that culture affects the decision-making style significantly. The study by Tian, Deng, Zhang, and Salmador (2018) reveals the link between cultural peculiarities and the aspects of the decision-making process. For example, the authors note that managers from high power distance cultures may feel uncomfortable while implementing innovations (Tian et al., 2018). Odongo (2016) supports this argument and reports that individuals are highly affected by their national cultures, adding that personal characteristics have an impact on their choices as well. Cultural aspects shape people’s perspectives, their thought process, as well as how they formulate their views, evaluate available options and analyse possible alternatives. Cultural differences affect socialisation and trade between individuals of different countries significantly; the understanding of their implications leads to positive outcomes of cross-cultural interactions.

There are examples of various nations that have particular decision-making styles due to culture-related factors. For instance, in Germany, employees’ opinions are usually considered while making choices despite a high degree of formality and authoritativeness of employers (Bryant, 2018). In the US, on the contrary, individuals are asked to challenge managerial decisions, which allows for a more comprehensive approach to the selection process. In Scandinavian countries, choices are highly affected by societal factors as most of them are collectivist cultures (Bryant, 2018). Japanese people tend to avoid conflict, which may affect their decision-making process significantly and make it dependent on other individuals’ opinions.

It is necessary to consider the impact of culture on the decision-making styles as choices may affect not only divisions within organisations but whole firms and even societies (Adler & Gundersen, 2007). It is particularly important for companies that have cross-border dealings. Understanding the background of foreign stakeholders’ actions and decisions is vital to avoid conflicts, misunderstandings and poor communication. Companies operating in international settings should ensure that their policies for each of their subdivisions respond to the needs and norms of corresponding cultures.

Odongo (2016) adds that employers should concentrate not on studying culture as an entity but on analysing its effects in particular contexts. It means that decision-making styles among different nations vary due to cultural aspects related to particular services or products. This point suggests that companies should not rely on models of cultural dimensions solely while working with international partners. In summary, culture is a significant driver of a decision-making process and the cause of differences in decision-making styles. Global managers’ decisions should be analysed from the perspective of this factor to avoid misunderstanding. Cultural differences affect many aspects, such as socialisation, trade and firms’ readiness to implement innovation.

References

Adler, N. J., & Gundersen, A. (2007). International dimensions of organizational behaviour (5th ed.). Mason, OH: Thomson South-Western.

Agborsangaya, E. O., & Omoregie, F. (2016). Web.

Bryant, S. (2018). Web.

Odongo, I. (2016). International Journal of Advanced Legal Studies & Governance, 6(1). Web.

Tian, M., Deng, P., Zhang, Y., & Salmador, M. P. (2018). How does culture influence innovation? A systematic literature review. Management Decision, 56(5), 1088-1107.

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1. IvyPanda. "Cross-Cultural Studies and Decision-Making Styles." July 8, 2021. https://ivypanda.com/essays/cross-cultural-studies-and-decision-making-styles/.


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IvyPanda. 2021. "Cross-Cultural Studies and Decision-Making Styles." July 8, 2021. https://ivypanda.com/essays/cross-cultural-studies-and-decision-making-styles/.

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IvyPanda. (2021) 'Cross-Cultural Studies and Decision-Making Styles'. 8 July.

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