INTRODUCTION TO CROSS CULTURE LEADERSHIP

Technological advancement in communication and transportation has increased cross culture interaction in all types of organizations. Similarly, expansion of the business at international level also increases the requirement of cross culture leadership and management for a company (Cooke, 2012). The current research report is based on different aspects of cross culture leadership. It focuses on Fulwood PLC of UK which manufactures and distributes small, eco-friendly motor vehicles to the UK and European market. But, now this organization wants to expand its market in two Asian countries China and Japan. This expansion increases the cross culture requirements of Fulwood. So, the present study includes different factors which need to be considered by the company at the time of allocating new manager and relocating existing one. The research also comprises different cultural issues for organization and provides appropriate recommendations for resolving all these problems in effective manner.

TASK 1

Analysis of the factors to be taken into account when deciding to appoint local or to relocate managers of Fulwood

For managing the different operations in other countries Fulwood needs to appoint or to relocate managers. Analysis has reflected that there are huge different between cultural of UK, China and Japan (Diversity and Inclusion, 2013). So, organization needs to consider different factors at the time of selecting and relocating managers. Some important factors are described as under:

Relative cost: It is one of the important factors which need to consider at the time selecting manager for China and Japan. So, Fulwood Plc should measure or forecast the cost of recruitment and selection process for hiring new managers for organization. But, at the time of selecting manager organization must hire most appropriate applicant for this position at new sites because any wrong or poor decision can increase the overall cost of organization (Gupta and Fernandez, 2009). Along with this, company should also determine the cost of relocation of existing managers. This cost includes the opportunity cost for manager Fulwood which can also augment the total cost of relocation of managers. So, Fulwood organization should select manager from China and Japan if cost of relocation of existing managers is high as compare to cost of selection and vice-versa (Nienaber and Roodt, 2008).

Political and Legal issues: Fulwood organization also needs to consider different political and legal issues which can also affect the selection and relocating process of manager of Fulwood organization. Major issues are associated with the employment law, Visas and other formalities. Process of Visa for china and Japan is more complex as compare to other countries. Along with this, employment law, health and safety issues and child labor are also considered as major political and legal issues for Fulwood Plc (Gopee and Galloway, 2013). So, at the time of hiring and relocating managers in other countries organization require appropriate consideration of all factors in effective manner. It will help in hiring appropriate managers for both new locations.

Ability to transfer existing company culture to host country: Fulwood organization needs to assure about that new manager must be able to transfer existing company culture to host country culture. As per this factor manager of Fulwood organization needs to manage the culture of all three courtiers China, Japan and UK. Regarding this, Fulwood plc needs to taken into account that manager must be capable to reduce the negative impacts of cultural differences and to improve the performance of team members (Tsiotsou and Ratten, 2010). Including this, organization should also assure about that manager must have appropriate capability to understand the culture of China and Japan. It will help in increasing the performance of the firm.



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Ability to communicate: At the time of international expansion language barrier will be one of the major issue for Fulwood plc. So, organization needs to consider this factor at the time of selecting manager. As per this factor manager must have appropriate capability to make effective communication with China and Japan. Along with this, manager must have strong communication skills for making written and verbal communication with managers of other countries (Longenecker and Fink, 2013). Further, proficiency in English language helps in making communication at international level. So, it should be taken into account at the time of selecting and relocating managers of Fulwood.

Understanding of host country economic situation and market intelligence: It is also very important factor for recruitment, selection and relocating manager of Fulwood. The organization wants to expand its business in China and Japan. So, new manager of the organization in global market must have appropriate capability to understand economic situation and market intelligence. Manager needs to have appropriate knowledge about the world economic position and its impact on china, Japan and UK. It is required for managing operations of Fulwood in host countries (Grisham and Walker, 2008).Therefore, these above discussed factors needs to be taken into account by Fulwood organizations to appoint local or to relocate managers for China and Japan.

TASK 2

Prioritizing the Factors to be considered while deciding types of Individuals for appointing as Manager for new sites

Fulwood plc wants to appoint a new manager for new sites, China and Japan. So, there are different factors which need to be considered by organization while appointing an individual as a manager for new sites.

Skills: It is the most prioritized factor which needs to be considered by Fulwood organization at the time of hiring new managers for China and Japan. As per this factor, selected individual must have sufficient skills such as communication, motivational, leadership and management skills (Agha, 2001). Along with this, individual must have appropriate capability to understand the culture of customers of China and Japan as well as have appropriate knowledge about the local language to make communication with employees as well as international business partners. Including this, Fulwood plc should hire that candidate who has positive attitude to resolve problems and conflicts at workplace due to cultural differences. Further, appropriate skills for managing time and risks are also one of the major requirements for this post. So, Fulwood plc needs to taken in account that selected individual must have all these skills for managing all operation of organizations at new sites (Bosma, 2007).

Competencies: For being an effective manager at new sites an individual requires key competencies. So, Fulwood plc needs to be taken into account that new manager must have appropriate competencies for completing their roles and responsibilities in effective manner. Fulwood plc wants to allocate manager for china and Japan so individual must be competent to maintaining managerial changes at workplace (Yeo and Li, 2011). Along with this, candidate must be capable enough to develop appropriate strategies for improving performance of the company. Competency of building industrial relationships and valuing diversity are also considered as major priority for the post of manager for new sites. Including this, plc should also consider that selected individual must have appropriate potential to convey important information at different level. Including this, differences among culture can create different situation of conflicts and problems at workplace so, plc should hire only that individual who have appropriate competencies of conflict management and positive attitudes for resolving problem (Jetmore, 2005). Similarly, coaching, strategic thinking, organization awareness and decision making attitudes are also considered as major management competencies for this post. So, Fulwood plc needs to be considered all these competencies at the time of appointing manager for China and Japan (DeFeo, 2013).

Experience: This is also one of the major factors which need to be considered by Fulwood plc at the time of hiring an individual as a manager for new sites. But, is its less important factor as compare to skills and competencies. If any individual who does not have appropriate experience but have appropriate skills and competencies for completing roles and responsibility then Fulwood plc should hire that people. But, if individual has sufficient experience for managing operations of other organizations but does not have appropriate skills and competencies for managing activities of Fulwood in China and Japan, the in this case company should not hire that individual for this post (Bush, 2011). As per the requirements of the current job position, selected individual must have one or two year experience of management and cross culture leadership. Therefore, company should also consider this factor at the time of selecting new individual as a manager for new sites.

TASK 3

Critical evaluation of the cultural issues

Cultural issues increase due to the international expansion of Fulwood plc in China and Japan. All these issues need to be taken into account while identifying the leadership style which should be adopted by the new manager (Sanders, Cogin and Bainbridge, 2013). Critical evaluation of all these cultural issues is described as under:

Cultural gap: It is one of the major cultural issues which can affect the selection of leadership style of new manager of Fulwood. There is a huge gap between culture of UK and china as well as Japan. This gap increases the differences between values, beliefs and thoughts of employees of the firm at different locations. It creates unfavorable situations for managers. Different beliefs and values can create circumstances of conflicts and other problems at workplace of Fulwood Motors plc (Schoemaker, Krupp and Howland, 2013). So, it is very essential for manager to consider this culture issue before adopting any leadership style for new sites. Manager should identify and adopt that leadership style which helps in reducing the negative impacts of cultural gap at workplace and improving working environment of Fulwood plc.

Language barrier: It is also one of the major cultural issues of nations which can also affect the leadership style of new manager (Tams, 2008). There is huge difference in language of UK, China and Japan. Language barrier in domestic and international market affect the interaction and communication of manager within the internal environment of the company. So, new manager should adopt such types of leadership style which helps in reducing the negative impacts of language barrier for Fulwood (Zepeda, 2011).

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Lack of communication: In the international market there are different communication barriers which can create situation of absence and lack of communication at workplace. Due to communication barriers new manager cannot make appropriate communication with all staff members and cannot convey important strategies and information on time. Major communication barriers include difference in culture, language and nationality. It can harm the final outcomes and expected performance of employees of Fulwood in China and Japan (Nienaber and Roodt, 2008). So, new manager should also consider this culture issues at the time of deciding appropriate leadership style for new sites.

Difference in leadership style: Employees and managers of UK, China and Japan follow different styles of working and leadership. So, new manager should identify the appropriate leadership style of working which will help in managing business operations as per the economic position of new sites. Inappropriate leadership and working style can increases the probability of project failure. So, new manager should adopt suitable leadership style as per the economic position of China as well as Japan (Gopee and Galloway, 2013).

Motivation: It is the most important factor which can affect the selection of leadership style. In the current business scenario, motivation among employees also depends on their needs and requirements. Due to difference in culture, language and nationality needs and requirements are also different. So, employee motivation is also become a complex task for each and every management. Competition in the market of China and Japan has been increasing day by day which increases complexity for Fulwood plc. In appropriate motivation and frustration from job can increases the level of dissatisfaction among employees which can harm the overall performance of Fulwood (Jetmore, 2005). So, new manager should adopt most appropriate leadership style which helps in improving motivation of employees in China and Japan.

TASK 4

Recommendations

There are different relevant and feasible recommendations which will help managing director of Fulwood in managing cross culture of both nations in effective manner. As per the given business scenario, Fulwood plc wants to expand its business in China and Japan so, it is to be suggested that managing director of the plc should hire the manager who have appropriate capabilities to manage the culture of different nations in effective manner. Along with this, selected individual must have suitable capability of managing the distinct situations of global market (Tams, 2008). Along with this, selection process must be considered that candidate must have correct skills and competencies and experience in the field of automobile. Such types of selection will reduce the training needs and increase the individual performance of manager of Fulwood at new sites. Appropriate selection of manager will also helps in reducing the unnecessary expenses of the company which will help in increasing the initial profit of the firm in international market. In addition, it is also to be suggested that manager of Fulwood plc should adopt democratic or participative leadership style for managing the different operations in China and Japan. It will helps in adopting the working style of host countries which will improve the industrial relations and improves the performance of the firm (Longenecker and Fink, 2013). But, on the other hand, for maintaining discipline at workplace manager of Fulwood plc should adopt autocratic leadership style.

Along with this, as per the current market situation managing director of Fulwood plc should hire manager who have appropriate capability to apply participative leadership styles in host countries. It is required for increasing the satisfaction level of employees as well as for reducing the conflicts at workplace. In addition there are different factors which also should be considered at the time of selecting or relocating managers at new sites. Managing director should hire the manager for organization on the basis of the cost of recruitment and selection and relocation (Grisham and Walker, 2008). Along with this, director should aware about the different political and legal issues relevant to employment law and visas because these issues can also affect the selection process of the Fulwood plc in China and Japan. Managing director should also focus on other factors such as ability of an individual to make communication to manage culture of host country, etc. Including this, manager should take the decision of the selection of an individual for the post of manager on the basis of skills, competencies and experience (Bush, 2011).

Along with this, it is also to be suggested that manager of the Fulwood plc should consider different cultural issues at the time of identifying appropriate leadership style for Chain and Japan (Bosma, 2007). Evaluation has reflected huge gap between culture of UK and China as well as Japan. So, managing director of the plc should assure about the adoption of such types of leadership style which will help in reducing the differences of cultures. Therefore, manager of the plc should adopt participative leadership style for increasing employee relations and communication at workplace. It will also help in improving the performance of the firm at international level. Including this, managing director of the Fulwood plc should make appropriate arrangement for providing appropriate training to the managers of the company in host countries (Continuous personal and professional development, 2014). These training sessions should be focused on cross culture leadership, language and different social and practical issues associated with the international expansion of business. Managing directors of the plc should appreciate the cultural values of China and Japan and adopt these values in effective manner. It will help Fulwood plc in successful completion of the international business expansion project.

These factors are based on skills, competencies and experience of individual. Report has also analyzed that for managing the business operations Fulwood plc should consider different cultural issues at the time of identifying leadership styles for new sites. According to the research differences in culture, values, languages and working styles are the major issues which can affect the leadership style of manager of Fulwood plc in China and Japan.

CONCLUSION

The current research report has concluded that international business expansion project of Fulwood motors plc requires appropriate management of culture of UK, China and Japan. It has described that Fulwood plc needs to appoint new manager on the basis of skills, competencies and experience. At this time, managing director of plc should consider different factors such as relative cost, political and legal issues of host countries and ability of selected individual to make appropriate communication within the organization. As per the current report, mangers of Fulwood plc should be capable to understand economic situation of host countries. Report has also identified different cultural issues which can affect the leadership style of new manger. These issues are cultural gap, language barrier, lack of communication, changes in working style and motivation. So, manager of the organization should consider all these cultural issues at the time of identifying leadership style for host countries. Along with this, report has also suggested some appropriate suggestions to managing director of Fulwood plc which will helps in improving the performance of the company in international market.

REFERNCES

Agha, S. S., 2001. Professional development: specialization or hybridization. Library Review.

Bosma, T., 2007. Effective Leadership Practices in Cross-cultural Conflict Resolution: A Qualitative Study.

Bush, T. 2011. Theories of Educational Leadership and Management. SagePublications.

Cooke, A. N., 2012. Professional development 2.0 for librarians: developing an online personal learning network (PLN). Library Hi Tech News.

DeFeo, J. D. 2013. Toward a model of purposeful participant inclusion: examining deselection as a participant risk. Qualitative Research Journal.

Gopee, N. and Galloway, J., 2013. Leadership and Management in Healthcare.2nd ed. SAGE publication.

Grisham, T. and Walker, D. H., 2008. Cross-cultural leadership.International Journal of Managing Projects in Business.

Gupta, V. and Fernandez, C., 2009. Cross-cultural similarities and differences in characteristics attributed to entrepreneurs a three-nation study. Journal of Leadership & Organizational Studies.

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