Hofstede (1994) defines culture as “the collective programming of the mind that distinguishes the members of one category people from another”(p.5.). A particular “category of people” may include a nation, an ethnic group, an organization, a family, or some other unit. He suggests that the cultures of different nations can be compared in terms of five dimensions, which is power distance, individualism, masculinity, uncertainty avoidance, and long term orientation.
Cross-cultural management is the management of people and things that involve a different culture background. Cross-culture management studies teach how to handle conflicts of the heterogeneity culture and actualize effective management (Li, 2000). Its aim is to design a feasible organization structure and management mechanism across the different culture backgrounds. It also plans to use enterprises’ resources, especially exert potential value of enterprises efficiently and effectively.
Besides, according to Holden (2001), culture is presented as a form of organizational knowledge that can be converted into a resource for underpinning core competence, instead of being presented as a source of difference and antagonism. Cross cultural management is a knowledge management perspective that breaks the concept of culture that has affect management thinking, education, and research for several decades.
2.2 The importance of cross cultural management
2.2.1 The importance of cross cultural management to organization
The ethnic or national contexts has been conversion and open the vision by cross cultural. It can provide an opportunity for an organization to learn a new way of social interaction. This helps an organization to become more effective and efficient in multicultural business environments (Deeks, 2004). Thus, it helps increase the organization’s global fluency. Global fluency could establish a good business relationship and creating a competitive advantage in the global marketplace for the organization.
The improvement in production, delivery service, technologies that fulfill customers needs has increase the organizations’ competitiveness. Competences are views as a competitive strategy. Thus, they must improve their organization by running competence development programs. The purpose of competence development programs is to prepare for the uncertain future (Weick & Sutcliffe, 2001). For a cross-cultural organization, it is very important (Govindarajan & Gupta, 2001). The expectations, behavior, and attitudes of a new employee are affecting by socialization and desirable by the organization with different manner (Mannen & Schein, 1979).
2.2.2 The importance of cross cultural management to employees
It is an opportunity when working with people from different country and background as employees can get a specify knowledge which cannot obtain in home environment (Deeks, 2004. Furthermore, work in team that across national boundaries will increase employees’ interpersonal skill and enhance their perspective. Working as part of an international team can also acquire a valuable experience that may useful in the future roles.
Heterogeneous groups are tending to generate a boarder range of ideas. This is because heterogeneous groups are more prefer to solve problem from a wide range of perspectives than homogenous groups. A research shows that heterogeneous groups are more creative than homogenous groups (Deeks, 2004). On the other ways, heterogeneous groups frequent ask about the opinion of each other, and will not fear about the status quo compared to homogenous groups. It will help the heterogeneous group to recognize problems and identify opportunities for improvement.
Cross cultural encouraging individuals to collaborate internationally that can ensure the information is flow up and down among members, obtain ample information from a wider range. This helps everyone to keep their work up to date and high quality. Working internationally and let people from different backgrounds work together on projects, tasks and reviewing each other’s work will helps to minimize bias and maximize economy of effort (Deeks, 2004). As a result, employees’ productivity will definitely increased.
2.3 1 Language
Language can be viewed as being done and perform emotional. In this angle, it is commonly assumed that people at least on occasions, have emotions, and that being emotional gains its own agency, impacting in a variety of ways on the communicative situation (Bamberg, 2000). Besides, according to Budwig (2000), language commonly differentiates between two functions of language. On the other hand, language is used to socially connect with others, to communicate and to engage in relational practices. Furthermore, according to Dennett (1994), language is the expression of emotions and the act of expressing affect in communication. In this view, language and emotion are concurrent and parallel system in use. So, both of them share functionality in the communicative process between people.
According to Munter& Mary 1993, body language describe notions of appropriate posture, gestures, eye contact, facial expression, touching, pitch, volume, and rate differ across cultures. Furthermore, according to Salacuse (1998), in cultures that rely on indirect communication, such as the Japanese, reaction to proposals may be gained by interpreting seemly indefinite comments, gestures, and other signs.
2.3. 2 Individualism vs. collectivism
According to Hofstede (1980), individualism is defined as lies in one’s moral right to pursue one’s own happiness. This pursuit requires a large amount of independence, initiative, and self-responsibility that is the degree to which individuals are integrated into groups. Besides that, individualism carried out not just on the level of goods but on the level of knowledge and friendship. Trade is essential for life; it provides one with many of the goods and values one needs. Creating an environment where trade flourishes is of great importance and great interest for the individualist. According to Klein (2001), individualism means recognize that one has right to his or her own life and happiness. It also means uniting with other people to preserve and defend that right. According to Zapletalová (2003), individualism dimension show more confidence in status purchases, individual motivation, and success.
According to Hofstede (1980), collectivism is defined as the theory and practice that makes some sort of group rather than the individual the fundamental unit of political, social, and economic concern. Besides, collectivists insist that the claims of groups, associations, or the state must normally supersede the claims of individuals. According to Zapletalová (2003), collectivism culture dimension is recognized value mutual cooperation, stimulation and group-orientated motivation, whose complex progress takes priority over an individual. Furthermore, collectivism is the principle that the social collective is called society, the people, the state and other has rights, needs, or moral authority above and apart from the individuals who comprise it (Hofstede, 1980). According to Wollstein (2001), people are take precedence over the rights of individual, production for people, and the common good to fulfil their group needs.
According to Ahearn (2009), cooperation is the core of element of preferential treatment and building on partnerships. Furthermore, cooperation is now being seen as a priority in many business round tables and dialogues Allio¼ˆ2008¼‰.Besides that, cooperation is an umbrella concept that incorporates a broad range of activities. Furthermore, according to Brown, Rugman and Verbeke (1989) cooperation is an information exchanges and dialogues among people that are designed to build trust and confidence. At the other end of the activities designed to harmonize regulatory approaches through acceptance of common principles and standards.
2.3.4 Uncertainty Avoidance
According to Hofstede (1980), uncertainty avoidance refers to the society’s preference for risk-free, unambiguous situations and implies a number of things, from aggressiveness to a need for absolute truth that people do not usually consider as belonging together. Besides that, it measures how much members of a society are anxious about the unknown, and as a consequence, attempt to cope with anxiety by minimizing uncertainty. According to Kogut and Singh (1988), in cultures with strong uncertainty avoidance, people prefer explicit rules (e.g. about religion and food) and formally structured activities, and employees tend to remain longer with their present employer. In cultures with weak uncertainty avoidance, people prefer implicit or flexible rules or guidelines and informal activities. Employees tend to change employers more frequently. According to Zapletalová (2003), this dimension describes society’s attitude to and the treatment of the uncertainties and ambiguities of everyday life.
2.3.5 Power Distance
According to Hofstede (1980), power distance as a cultural characteristic defines the extent to which inequality in power is accepted and considered as normal by less powerful people in a society. Power distance describes also the extent to which employees accept that superiors have more power than they have. Furthermore, according to Zapletalová (2003), this dimension expresses the extent to which less powerful members of a society accept and agree that power is not distributed equally.
2.3.6 Masculinity vs. femininity
According to Hofstede (1980), femininity stands for a society where gender roles overlap: both men and women are supposed to be modest, tender and concerned with the quality of life and helping others to be very important. Besides, according to Zapletalová (2003), femininity dimension describe caring, softness, relationship and emphasis on people rather than money count a lot.
According to Zapletalová (2003), the masculinity dimension describes how cultures differentiate on not between gender roles and value. According to Hofstede (1980), masculine dimension tend to be ambitious and need to excel. Furthermore, masculinity is the dimensions of national cultures and stands for a society which social gender roles are dearly distinct: men are supposed to be more modest, tender, and concerned with the quality of life. Members of these cultures have a leaning to polarize and consider big and fast to be beautiful.
2.3.7 Conflict resolution
According to (Burton, 1991), conflict resolution is identity disputes are explored and getting to the source of the problem and the proposition that aggressions and conflicts are the direct result of some institutions and social norms being incompatible with inherent human needs. According to Bush and Folger (1994), conflict resolution dimension is a term associated with the manipulative search for an agreement that is satisfactory not merely to the adversaries, but also to the third party and the latent interests they represent. Furthermore, according to Mitchell¼ˆ2002¼‰, conflict resolution is likely to argue that resolving a particular conflict will remove all differences or potential differences between parties, whether the differences take the form of possessing contrasting goals or aspirations or simply being different from one another, perhaps as regards language, appearance, religious beliefs, social organization or culture.
2.3.8 High and low context culture
According to Hall (1966), high context cultures rely on an internalized social context and physical environment such as body language and face-to-face communication for all or a large part of the message. On the other hand, low context cultures rely on direct culture such as clear and stated in word, with emphasis on the time management, punctuality and deadlines.
2.3.9 Long and short-orientation
According to Hofstede (1980), long term orientation indicates that culture values are future- looking, including thrift, perseverance, humility/shame, and observe hierarchical relationships, whereas short-term orientation values look to the past, such as respecting tradition. Furthermore, according to Zapletalová (2003), long and short-term orientation represented measures the value systems from the point of time. So, a short-term orientated society pays attention to present and past activities and long-term orientated society values activities in long term perspective.
2.3.10 Universalism Vs. particularism
According to Trompenaars and Hampden-Turner (1993), universalism defined as people believe objective rules can be developed that apply to all people and goods regardless of circumstances. Therefore, people are faced with a judgment task such as, evaluation of an unknown brand. Beside, universalism is inclined to develop general rules that can be applied across situations. Rule generation involves consideration of conditions associated with prior judgments, and this consideration fuels proclivity to contrast current judgments with prior experience. According to Zapletalová (2003), universalism represented people who are prefers rule-orientated behavior that has to be respected; it rather neglects individuals and specific circumstance
According to Trompenaars and Hampden-Turner (1993), particularism defined as people believe objective rules cannot be applied to decisions but rather situational and personal circumstances must be taken into account when making judgments. Furthermore, particularism is a place greater emphasis on obligations and relationships that encompass the unique situations in which one makes decision sand they see the world as unique, exceptio