Cross-cultural management illustrates how management is impacted by the cultural and social characteristics of a certain area or country. Akio Morito, the chairman and Chief Executive Officer of The Sony Corporation in Japan, referred to the differences in conducting business in the Western world and Japan, including human resources management, goal-setting, approaches to hiring new employees, investors, and dialogue. The Sony chief executive has exemplified the benefits of approaching cross-cultural management in a way that the best aspects of both models are incorporated for the results to be effective in terms of organizational processes and results.
Morito referred to the differences between Japanese and Western corporations regarding employees. The Japanese model is based on the idea that once an individual is hired, they are more likely to spend their lives working for the same company (UW Video, 2014). This, however, has both negative and positive effects. The beneficial implications include the organization’s responsibility for the people operating in the corporation as well as longevity and loyalty. Nonetheless, the Western way implies a higher rate of employee turnover. On the one hand, it encourages employees to maximize their proficiency. On the other hand, the lack of certainty and support experienced by the workers does not facilitate the focus on long-term goals and corporate aspirations.
This also relates to the second argument, which is that investors have different objectives when investing in a Japanese business versus a Western one. In countries such as the US, investors are preoccupied with the quarterly report since they aim for short-term profit and do not pay attention to other vital markers. On the other hand, similarly to the approach to employee retention, the Japanese model is centered around long-term economic goals. Thus, fast profit is less important compared to the longevity of the corporation. In this case, investors may not see significant gains initially yet have steady growth due to the organization’s constant improvement and long-term goal setting.
An aspect discussed from a cross-cultural perspective is the overall characteristics of Japanese versus Western individuals, which can impact dialogue within the internal environment. The argument illustrated how Japanese people are less likely to engage in confrontations even if they facilitate a broader overview of a problem and healthy competitiveness. On the other hand, Western employees are more open to having discussions and expressing views that oppose those of their coworkers. This facilitates the organization to be more flexible and contributes to an environment in which employees with different backgrounds and points of view can engage in brainstorming activities before deciding which strategy is more optimal for the company’s business goal.
An example of a company in which cross-cultural management has been applied successfully is IBM. Thus, the company’s Western democratic approach is combined with the Japanese long-term employee retention model, which ultimately contributed to the formation of a solid organizational culture. This is cross-cultural management at its core since the models applied in different cultures have formed a symbiotic connection and have been efficiently implemented in how the company deals with internal and external environments.
Cross-cultural management is an effective way of creating a unique system in which the most beneficial practices of different types of companies are all incorporated under one umbrella. Thus, international corporations can assess the experiences of various businesses, examine the strategies that have facilitated success, and build a model that best suits the organizational goals. As a result, the social and cultural characteristics are being acknowledged, and businesses become more inclusive and open-minded regarding hiring, goal-setting, and planning.
References
UW Video. (2014). Akio Morita: Comparing Japanese and American business practices [Video]. YouTube. Web.