Discuss How Global Issues And International Trade Has And Will Affect Management Types, Styles, And Trends
With trade barriers receding, more and more business are able to pursue market opportunities on an international scale, especially in developed economies. However, as the world becomes more compact it becomes easier to note that management styles differ from country to country, with cultural influences playing a vital role. Certain behaviors that are seen as the norm in one culture may appear to be bizarre in another. Where international trade is concerned, these details can be a significant deciding factor of the success rate of the business venture. Hence, the business environment are often times largely influenced by global issues and trends, that in turn dictate how these businesses respond to competition and interact with their customers.
A renowned Dutch organizational sociologist, Hofstede, conducted detailed interviews with IBM employees across 53 countries, and has been further developing his research. Through the statistical analysis of a large database, he has determined five dimensions of culture that affect management types, styles and trends.
This is how management deals with the power distance between more powerful members if the organisations and the less powerful members. In such cultures where PD is prevalent it is accepted and even expected that power is distributed unequally. Integrated hierarchy plays a powerful role in the management styles of the cultures where PD is found to be high.
This refers to the collective behavior towards community. To what extent an individual is encouraged to become a part of the community and to what extent they are expected to be self-reliant, in other words their sense of individualism. In cultures where IDV is high, the management style is one where an individual’s time and privacy are prioritized. And cultures where IDV is low, the management styles are expected to promote a sort of collectivist mentality.
MAS compares the ‘masculine’ cultures, where competitiveness, ambition and accumulation of wealth and possessions is valued, with ‘feminine’ cultures. Where quality of life and relationships are prioritized. The terms masculine cultures of feminine cultures do not reflect a patriarchal or matriarchal society, rather in in countries like Germany where MAS is high, and the culture is considered to be masculine, people of all genders value competitiveness, assertiveness and ambition which translates onto the type of management applied as well. Similarly in countries like Sweden where MAS is very low, the style of management is most likely to be egalitarian and very nurturing, and one that priorities quality over quantity.
UA means uncertainty avoidance and refers to the need of structure and how strictly it is implemented. Cultures like the one of Japan place a lot of importance on structure and have a high UA, whereas cultures like China have a very low UA and the management trends tend to have more flexible rules and guidelines.
This refers to how much importance is placed on long term customs and values. Cultures where LTO is high, like China or Japan is indicative of a style of management that preserves traditions and places value on education and training. Places like Sweden and the US show low LTO, which means that change can occur rapidly.