January 10th, 2018
Are National Business Cultures being muted by Changing Environments
Culture differences have a great influence on a number of business aspects including management. The knowledge of a people’s culture for instance helps managers to develop efficient strategies towards workforce management. Such would help in building better working teams in organisations thus ensuring effective performance. This is has become important partially because of the changes that globalization has brought into the modern day business environment. One of these is that globalization has increased competition in domestic markets thus necessitating many firms to explore non-traditional markets to sustain or improve their performance. Such foreign markets present a challenge of ensuring sustainable performance in an environment where workforce relations differ from that of the domestic environment as influenced by culture. Secondly globalization has enhanced mobility of labour thus resulting into workforce diversity in many organizations (Seymen 2006). Presence of multicultural workforce in a firm could also adversely affect the performance in the organization if the cultural differences are not well managed.
The importance of culture in ensuring business success has thus attracted a lot of research. Some of this has been on what constitutes the measurable aspects of culture hence the means via which cultural differences can be ascertained. Such studied have lead to different conceptualisations of cultural diversity with input from Holfstede, Trompenaars and Hall providing some of the widely argued dimensions. On a different perspective, the advancements that have been made in technological, legislative, economic and political aspects may have curtailed the degree to which cultures differ by transforming such cultures towards synchronicity. This would then mean that in future whether cultural differences affect or do not affect the type of management adopted could largely be dependent on the level of advancements of a country. To evaluate such a scenario this paper focuses on analysing the cultural differences between the United States and the United Kingdom. The cultures in the two countries will be compared as advised by Hofstede’s, Trompenaars’ and Hall’s dimensions on cultural differences.