Leadership is of utmost importance for organization as it helps in leading the employees to achieve goals. Cross cultural leadership, is a concept, which has developed to take into account the leaders that work in a newly globalized market. In today's times, when organizations work internationally, they require leaders who are capable of adjusting to different environments quickly (Tran and Skitmore, 2002). They are also required to work with partners and employees of other cultures. The present report is based on the case study of FinAdsPlc and attempts to critically evaluate leadership theories and cross cultural factors that exist in power relations. Prioritization has been done of the various factors that should be taken into account while making decisions regarding the appointment of managers at the new site. Critical evaluation of the cultural issues which should be considered during identification of leadership styles has been done. Based on this, justified recommendations have been provided to the managing director of FinAdsPlc.
As per the given case, FinAdsPlc wants to enter lucrative north American market. It also wants to explore South American markets such as Brazil. As such, several factors need to be taken into account by FinAdsPlc while deciding whether a local manager should be appointed or a current manager should be relocated so as to take over the leadership of new site
communication in an important aspect which forms the backbone of the success of every organization. Effective workplace communication is important for achievement of targets on time. However, while moving across cultures, communication becomes even more significant factor which needs to be taken into account. As FinAdsPlc has to enter south and north American markets, it will have to consider the differences in the language. This factor suggests that a local manager should be appointed to take over the leadership of the new site. This is because, he will be able to eliminate the differences in language (Schraeder and et. al, 2005). As he will be possessing knowledge about the basics of language of the country, it will be easy for him to manage the work. Moreover, he will be able to better communicate about the goals and purpose of the organization to the employees. however, it can be critically evaluated that a local manager will not be aware of the business culture of FinAdsPlc. Considering the case, there is need of transformational leadership at the new site of FinAdsPlc. According to transformational leadership theory, a leader knows how a robust and inspiring vision for the future can be developed. Hence, these leaders are able to develop positive culture at the workplace. However, it can be critically analyzed that the local manager, should be able to carry forward the business culture of FinAdsPlc. Being a transformational leader is not sufficient. He will have top learn about the fine aspects of culture of this organization and pass it on to the other employees whom he leads.
However, it can be critically analyzed that local manager, that FinAdsPlc appoints will not be possessing the international communication skills. While entering into the markets of north as well as south America, FinAdsPlc needs to ensure that its managers possess advanced skills of international communication (Hoppe, 2007). In this regard, decision can be made to relocate a current FinAds manager who can take over the leadership at the new site. The factor of international communication skills needs to be considered while making the decision. These skills are important for communicating the right message of the company to the customers in the new market.
This is another factor that needs to be considered before FinAdsPlc makes decision regarding appointing the managers. It is important that the company adapts its business model to the customer of the foreign country. The basics of the new culture will have to be added to the business model of FinAdsPlc. As such, certain changes will have to be made in the way of working. This can be handled by the local manager. As he is aware of the norms and traditions of culture of the new country, he will be able to incorporated these details in the business model of FinAdsPlc. However, it can be critically evaluated that changing the business model is not suitable for the firm in every situation (Hummel, 2012). Alterations in the business model would require changes to be brought in several other functions of FinAdsPlc. This may hamper its productivity and effectiveness.
While going global, the most important factor to be taken into account is knowledge about the local market. This is also an important factor that needs to be considered while making decision whether FinAdsPlc should appoint a new local manager or relocate a current manager to act as a leader in south as well as north America. Knowledge about local market is extremely significant for determining the demands of the local market. This is required for manufacturing goods and providing service as per the needs and wants of the customers of the foreign country. For this, the manager is required to possess extensive local market experience. It can be analyzed that this experience is possessed by the local manager. Hence, FinAdsPlc can appoint a new local manager as leader at the new site (Hofstede and Minkov, 2010). However, it can be critically evaluated that possessing the knowledge of the local market is not as important as is effective leadership. Employees will be able to increase the productivity of the company when they are led by an effective manager who adopts the suitable leadership style. Considering this, it will be suitable to relocate a current manager.
It will be a new venture for FinAdsPlc when it will enter south American as well as North American markets. In order to make this step successful, there is a need for effective leadership skills and expertise. Changes will be required to be brought within the organization. At the new site as well, there will be need of a leader who can motivate the employees to work for the company and achieve its goals and objectives. Hence, this factor needs to be considered while making decisions regarding appointing a manager for the new site. The new manager should possess effective leadership skills and expertise (Bird and Fang, 2009). Thus these are certain decision which are required to be followed to take a decision regarding the appointment of local manager or relying upon the current manager.
Appointing the managers for new site could be one of the most tough decisions for the organization. The effectiveness of this decision can provide various lucrative results to the company. The skills set or competency level which are required to be analyzed or prioritize are as follows:
It is one of the major skill or personality trait that should be available within any individual with the perspective of acting as a manager at new sites. The cited organization has to assess this quality or skill set on the priority basis. If there is lack of adaptability in any person then less adjustment factor can put its impact at the working efficiency of manager. Most importantly the emotional as well as health factor can also go down (Christensen, 2002). It is to acknowledge that through these factors the managers can face troubles in taking the important decisions as well. So it is clear that feature of adaptability to new environment and changes should be taken into special account.
Here this skill set or habitual element is very crucial. It is to acknowledge that through exploring nature one can provide huge range of opportunities to its organization. The manager for the new site should be opportunistic along with the proper communication skills. If a person is able to identify the variety of opportunities at new site then it become easier to increase the business. Further expansion or change in the product line of service feature can also done in proper way. Relationship with suppliers or knowledge about competitor's market strategy could also identified easily (Mills, 2006).
Therefore it is clear that an individual should be opportunistic or exploring in nature.
Especially with the context of new sites an individual should be a quick learner. It is required at very large scale that with respect to feel comfortable at new place or new site there is need of understanding the local culture and accustoms. If an individual will be familiar with such aspects then it might help in increasing the level of confidence and burden or stressed working environment could be eradicated. Through local culture or by gaining the knowledge about the local language the person can communicate with people and can build healthy relationships with local people who are associated with customers. Further quick learning about local culture or social norms can enable a manager to take appropriate decisions with respect to manage business operations (Miner, 2007). It is to acknowledge that through these factors the organization can bet on the learning attitude of the manager. Ahead another significant aspects of learning attitude or quick learner is that the person should develop quick understanding about the local business environment. Here in this scenario the organization can take the advice of an individual for new site and can take significant decisions. The better knowledge level of manager can provide help in the strategy formulation stage as his experience can show its competency. It is something that might be highly beneficial and useful with the perspective of gaining the competitive advantage.
At last the most important factor which is crucial to act in every role, in every situation or to justify with each and every aspect within the organization. Communication skills are something which directly put its impact at the personality trait and can provide leading edge to the organization at new site (Reddy, 2004). Here the communication skills could be segregated into different categories. The one is that the person should be able to talk with various people and the level of hesitation is supposed to be minimized. If the hesitation level is not a part of individual's personality then it just help in making relationship with stakeholders. Another area where communication skills are required is influencing the sub ordinates to accomplish their task. This kind of communication skill is different and significant with a view of operating within the new business environment. Interaction power is required at every stage or in every job profile so as a manager the expediency of this skill increases immensely. Hence these are certain skill set or competency level that could be prioritized in any individual before appointing as a manager for new site.
The major cultural issues is the management of diversity. Now days the organizations are working in the era of globalization and they are not only sharing the technology or resources but human intellect is also shared by the organizations or between the countries (Weaver and Stansbury, 2014). The distances between two countries or people have been minimized. So in organizations also the people from all over the world are working with each another especially when company starts to work at international level. They share different cultural values, ethical aspects and various code of conduct. At this juncture it is clear to mention that the role of sense of respect and sense of understanding is very huge in dealing with these differentiated elements of culture. It is to acknowledge that through such aspects the organization might face trouble in adopting the appropriate leadership style (Adams, 2007). The diversity could be realized on the ground of value, beliefs, customs of the people working at single platform. In cited organization this particular problem could be experienced at very large scale. The cultural diversity is the common scenario that is required to be handled by the managers or leaders. The top management is supposed to give adequate amount of of consideration to such factors. The diversity ca minimize the level of communication as well which is another loop hole in the cultural aspects of any organization.
With a difference in cultural aspects the responsibility of leaders increases that they should give proper focus to develop the sense of respect towards the religions beliefs or social norms to the employees. It can set example in front of staff people and they can avoid to create difference. The employees can definitely try to respect the thought process or opinion if the leader is supporting and understood the significance of building the healthy relationships. Even if the manager is concentrated towards the autocratic style of management then also this kind of attitude is required (Huszczo, 2010). It could create the job dissatisfaction level and morale of employees could be reduced. Through giving reverence to religious values the sense of freedom can also disseminated and managers can lead towards the kind of management approach. Another diversity feature could be related to attire or language as well. It should be appreciated by managers rather than any kind of criticism else it might definitely affect mindset of employees. Thus the diversity is very crucial element which must be taken into special consideration (Lee and Yu, 2004).
It is another cultural issues which is required to be analyzed for adopting the appropriate leadership quality. It is to ascertain that discrimination is the result of lack of proper management of diversity. If an organization is not able to deal with the diversity related aspects then it definitely leads towards the discrimination. Thus the diversity is major factor and discrimination is part of diversity as a cultural issue. The discrimination could be experienced on the ground of race, caste, sex, gender etc. In the scenario of discrimination the leader or manager is required to be autocratic as it might helps on the ground of ensuring the discipline among the staff people (French, 2009). The autocratic attitude of a manager can prevent employees to practice the unethical behavior and most importantly the pleasant working environment could be developed. For the purpose of eliminating the discrimination the transitional style of leadership could comes into existence. It foster the environment of discipline, framing the policies and implement rules and regulations in stringent manner. Further the managers could disseminate the organizational values within the department with the help of transitional style of leadership.
Inter personal interactions: It is not direct cultural issue which it is highly affected by the organizational culture. If the interaction between people working within the organization is not proper and effective then it surely creates troubles in completing the task with less kiosk. The leader has to prioritize this particular element with respect to the ensure continuous and obstacles free communication among the people. It is to ascertain that here situation leadership or participate leadership style could highly beneficial (Baer, 2004). With the help of this leadership style the managers can try to bring people on one platform. The managers arrange some fun activities and other team work so that the communication related issues could be removed. Further the manager try to identify the regions behind the less inter personal communication and can take appropriate steps. If he found personal conflicts and grudges between employees then proper steps could be taken to deal with these negative aspects. The flow of communication could be improved by adopting the democratic leadership style as well. It also allows to handle minimize the negative consequences of less interpersonal communication. Hence these are some of the prioritized factor that should be taken into special account for adopting the leadership styles (Men and Stacks, 2013). These elements or above mentioned cultural issues could act as guideline and help the managers in improving their managerial skills or decision making process.
On the basis of above recommendations it is recommended to the Managing director that before selecting any person there is need of implementing the competency analysis so that the skill set and potential of any individual can be identified. With the help of competency analysis the organization can take appropriate decision and can definitely improve their position into the international market (Paparoidamis, 2005). Other than this it is recommended that the environmental scanning is needed and major consideration must be given to analyze the cultural values of local area. For the same purpose Hofstede cultural dimension model could be implemented and most importantly the organization can understand the local cultural environment. This model can allow an organization to construct such policies that could be compatible with the local external culture. The results of hofstede model could be matched with the competency level of an individual along with the skill set and behavioral aspects. It can help in taking the decisions related to the sent any person at new site or another region. Therefore these are some of the major recommendations which are required to be followed so that the lucrative results could be generated.
Thus with the help of above report it can be concluded that in order to establish the business at other geographical location there is huge requirement of focusing upon the man power that can definitely enable an organization to gain the success at new site. With the perspective of moving into another area there are various qualities of an individual which must be prioritized and most importantly there is requirement of assessing these skills. It has been cited at various instances that communication is something that can definitely treated as one of the most important personality trait with respect to trust on employees. Further the major learning of this report could be related to the identification of cultural issues. It could be stated that there is link between cultural issues and leadership style. In order to get positive results the organization is required to understand all these aspects of culture and leadership.