Introduction to Cross Cultural Leadership

The term leadership is considered as an essential part of management for each and every business. It is referred to as the procedure of social influence under which an individual assists as well as support others with the aim to achieve the organizational goals in an effective manner (Gomez, 2011). For every business leaders are regarded as the one who guides the direction to the personnel so that they can perform the job in a desired way. The report entails to understand the factors that needs to be considered for recruitment of workforce for new locations.

Factors which should be taken into account when deciding for local manager

The productivity and profitability of every business largely depends upon the quality of work force that it includes both at top and lower level that it possess (Grisham and Walker, 2008). It is essential for Fulwood Motors plc to consider different factors while recruiting a new local manager or relocating the current one. The factors in both cases would be different which have been enumerated as under:

Factors to be considered for appointing local manager

Education:This factor plays an imperative role while making selection of potential employee for the job. For the selection of local manager it is essential to consider the educational background the potential job candidate. This would assist in gaining insight to whether or not the particular person suits with the requirement of Fulwood Motors plc. 

Work experience:  This is an important factors that needs to be taken into account while making selection of new local manager for new sites. The local manager who is required to be appointed for international market needs to possess sufficient amount of experience in the automobile sector. The candidate needs to well acquainted with the conditions of the business such as Fulwood Motors plc. As a local manager the an individual might not experience issues in getting familiar with the local market (Frost and Walker, 2007). In case the required experience is possessed by the candidate then he would be able to offer quality services to the organization. Further this would results in achievement of pre determined targets of Fulwood Motors plc. With the existence of sound experience the profitability as well as productivity of the firm would enhance in the new market.

Confidence: For the role of local manager there is greater importance of person who possess confidence. This is because it has necessity in tackling various business situation in an effective manner. This is an essential factor which ensures that person can meet the challenges that might occur before Fulwood Motors plc in international market. If local manager will have confidence then these can be resolved with ease.

Leadership skills: When making recruitment of new local manager it is essential to check on whether that person possess leadership skills or not. As such leadership quality will enable him to influence the behaviour of other and get work done from them. Further it should be considered that person who will appointed as local manager is required to have ability to motivate its subordinates so that work can be done with efficiency (Resick and et.al., 2006). This would result in increasing the profitability as well as productivity of the organization in long run.

Skills set: This includes specific set of skills that are necessary for the performance of a particular job. In the present study for the job of local manager the factors such communication skills as well as ability to innovate needs to be considered. With the presence of sound skills of communication the manager can communicate the information in an understandable manner (Management: Developing Self Management Skills, 2007). Further they can also provide sufficient amount of motivation to their subordinates with effectiveness. In addition to this the new local manager of Fulwood Motors plc needs to possess innovative approach. This is essential in case  when immediate decision making is required. Further it is to be checked that whether the individual have sufficient amount of knowledge regarding automobile sector.

Factors to be considered for relocation

Cultural differences: It is the major aspect which might have greater impact on the performance of the business. It is important for Fulwood Motors plc to be cautious while making relocation of the local manager. As there is existence of large cultural difference between domestic and international market (Chhokar, Brodbeck and House, 2013). It has been believed that there are cultural difference among the nation including UK, Japan and China. Such difference might act as issue for the relocated manager as he might not understand the conditions as well as expectation of the people in new market due to cultural differences.

Economic factors: Fulwood Motors plc is required to consider the factor that is related with economic condition in the new market before relocation of current local manager. The economic situation prevailing in China and Japan might affects the performance of the relocated new manager. The elements that includes income level, living standards, purchasing power of the people in international market who influence the decision making of the relocated managers. Thus proper knowledge of the market is necessary to be considered.

Issues related with language: One of the major problem associated with relocation of current local manager to international market is in relation with language barrier (Gupta and Fernandez, 2009). The manager that is relocated to Japan and China might face issue in understanding the languages thus this hampers the communication within the management to a significant level. This might results in increasing disputes within Fulwood Motors plc.

Factors which should be considered when deciding the type of individual

There is existence of various types of factors that needs to be taken into account while recruiting manager for international market that is in China and Japan. The factors have been enumerated as under:

Technical skills

It is important to consider existence of such skills within the individual as it ensure that local managers will effectively gain insight to the new technologies. In the present era automobile sector is experiencing with greater changes in the technology. Thus automobile sector is required to bring alterations in its processes (Festing and Maletzky, 2011). There is greater need that appointed individual possess technical skills so that he can cope up with the changing technologies in the market. As particular industry is dynamic as well as vibrant in nature thus it requires potential managers with technical skills so that Fulwood Motors plc can sustain in the market for long run.

Conceptual skills

Such type of skills must be considered by Fulwood Motors plc while deciding on the type of individual for the new site. It is important that the new local manager is familiar with the automobile industry and is aware of the concept in particular sector. This is because with the assistance of suitable knowledge they will be able to perform the job in an effective manner. Presence of conceptual skills will require the firm to invest lesser amount on training and development of individual. As such is both time consuming and requires funds.

Experience

The local manager for the new locations  that is China and Japan needs to possess required experience of working within automobile sector. The experience within an individual would assist the individual in understanding the business conditions at new sites. In order to expand in international market greater concentration as well as efforts are required to be made. By appointing experienced person firm can get better advantage that can result in increasing its productivity as well as profitability to a significant level. Further they would be able to perform in better manner. Thus this enhances the survival of the company in international market.

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Ability to handle adverse situations

It is not an easy task for the business to enter into a market that is not known to them. There are greater number of challenges that occurs before the manager at new locations. It is very essential that the appointed local manager should possess the ability to deal with adverse situation of the market with effectiveness (Paul Jones and et.al., 2014). Further the  executive must have the capability to handle greater amount of stress. This is because such will assist the business in overcoming the adverse market conditions and complexities. The market conditions in UK would differ from that of Japan and China. Thus understanding regarding such plays an imperative role which needs to be considered while appointment of an individual.

Leadership skills

This is considered an essential factor that needs to be considered by Fulwood Motors plc while making selection of an individual as local manager for international market. There is greater necessity that manager possess sound leadership skills that are essential for the survival in the new market. The manager should be competent enough to tackle its subordinates and get work done through them. Leadership skills also includes ability to influence the behaviour of the subordinates when they are resisting changes emerging at work place. It is important that the new local manager should have capability to motivate the his subordinates so that they can work to their best of potential. This would result in achievement of organizational targets with greater efficiency.

Interpersonal skills

It is essential for the firm to consider the factor that is related with interpersonal skills within new appointed manager. In order to work on new site there is greater importance that new manager possess interpersonal skills. This includes skills such as communication, attitude, behaviour, personality, dedication etc. In order to expand in new market the major barriers are with respect to communication as well as language (Caligiuri and Tarique, 2012). It is essential for the manager to possess sound skills of communication so that information can be conveyed to the subordinates as well as customers in an effective manner. For the survival in China and Japan the local manager needs to have effective managerial skills so that he can deal with different business situation in an appropriate way.

Competency

This is regarded as one of the essential factor that needs to be taken into account while making selection of the new manager for new site. High competency level is required within the manager so that he can handle the complex market situations in an effective manner. Competent managers will assist Fulwood Motors plc to enter in international market.

Human skills

Such skills plays significant role when selecting new local manager. It includes skills that are related with decision making (Cheng and et.al., 2014). This is includes establishing coordination among the work. Human skills needs to be possess by local manager so that Fulwood Motors plc can achieve success through its expansion plan in China and Japan.

 Critical evaluation of cultural issues

There is existence of various cultural issues that should be taken into account while identifying the leadership style which should be adopted by the new manager. These have been presented in the manner below:

Cultural difference: This act as major cultural issue that affects the style of leadership. There is greater differences among the culture prevailing in UK, China as well as Japan. Thus due to such there is huge difference in their thoughts as well as believes. Such can result in developing adverse situation for the manager (Emrich, Denmark and Den Hartog, 2004). The mindset of the people belonging to different culture varies greatly. With the existence of such there are chances of increasing disputes within Fulwood Motors plc. It is essential that leadership style needs to be taken into account by identifying such factor so that enhancement can be bought within the organizational working environment.

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Language difference: This is another major cultural issue that affects the performance of the firm. Due to differences in languages in international and domestic market it becomes difficult for the local manager to establish suitable interaction within organization's internal environment in an effective manner.

Absence of communication: This is referred to as another cultural issue that occurs when the firm carries out its operations at international level. It is very difficult for the local manager of Fulwood Motors plc to communicate its strategies to the employees who are working in firm (Gomez, 2011). This is affected due to differences in the cultures and nationality. It might be possible that manager cannot make employees of China and Japan understand the outcomes that are expected from them. Thus due to this interaction between manager and personnel weakens and hence the integration of the activities cannot be carried in an effective manner.

Leadership style: It must be ensured that the appointed local manager should possess suitable style of leadership for the purpose of dealing with market condition in global environment. For the employees it is essential to listen to the direction that are provided by local managers (Gelfand, Erez and Aycan, 2007). There needs o be existence of sound interaction among the leaders as well as employees. Management of people within international market is difficult because of the existence of cultural differences. This results in giving rise to the disputes that would create problem for the local manager. With the absence of leadership the project of the business might fail.

Thus it is important that local manager in international market must possess the ability to get work done through others.

Motivation: Due to the difference in the needs and expectation of the personnel. There is greater issue faced by the firm in providing the motivation to the people at global level. There is huge importance in inspiring the personnel in order to enhance the performance of the firm in a significant manner (Thomas, 2002). In the present environment because of globalization and increasing complexities it has become challenging for Fulwood Motors plc to provide motivation to the employees. This is because with the existence of dissatisfaction the personnel get frustrated and this results in affecting their performance in an adverse manner. This leads to major cause of dissatisfaction among the employees. Thus it is believed that motivation is an essential part of the firm and it cannot be avoided.

Relevant and feasible recommendations

There is existence of various types of relevant and feasible recommendations that can be made to the managing director of Fulwood Motors plc. The recommendations are provided as such. It suggested to the managing director to recruit the manager who possess suitable leadership style in order to manage the global market situation. In addition to this it is essential that the selection of the manager that has wide range of experience in the automobile sector should be made. This assist has greater benefit as lesser amount of training needs to be provided to the new local manager (Gupta, MacMillan and Surie, 2004). This reduces the expenses of the firm in a significant manner. In order to carry out business within international market that is China and Japan the leadership style required by the local manager includes autocratic as well as democratic. It is important for the manager to possess both the styles as such  assists in managing business activities and organizational personnel in an effective manner. With the assistance of autocratic style of leadership the manager would be able to keep discipline within the organization's internal environment. Such style needs to be adopted while certain disciplinary actions are required to be taken. On the other hand it is also recommended to managing director of Fulwood Motors plc to select manager with democratic leadership style as such has greater role towards increasing the  satisfaction level among the other employees in an effective manner. It is important in making selection of the local manager with democratic leadership style  as it assist firm in encouraging participation of the employees in the decision making which would further act as an aid in increasing their motivation to a greater extend (Penley and Ao, 2006). It is recommended to the managing director to consider the cultural issues while entering into international market. The resolution of the cultural issues can be made by measuring the business performance at different levels. This indicates that Fulwood Motors plc needs to keep monitor and control various aspects so that it can survive in the new market with effectiveness. Further it is recommended that deviation in the performance needs to be examined so that corrective measures can be taken in order to enhance the work performance to a significant level.

It is suggested to the managing director of Fulwood Motors plc to make selection of local manager who possess sound skills of communication as well as ability to delegate the work in an effective manner. Due to lack of communication skills the performance of the entire firm is affected. With sound communication ability the information as well as business strategies can be communicated effectively. This would result in minimizing the chance of mistakes and error while carrying out the work (Snaebjornsson and et.al., 2015). Along with this through ability to delegate the work the local manager can allocate the task in accordance with the skills and ability possessed by the employees. Thus this increases their motivation level and results in enhancing the productivity and profitability of the organization.

CONCLUSION

It can be concluded from the study that there is existence of various factors that needs to be taken into account by Fulwood Motors plc in order to select new local manager for its new sites that is China and Japan. In order relocate the existing manager in the new market there are certain issues faced which are in relation with language, culture differences as well as conditions in the economy. There are wide range of cultural issues that needs to be taken into account by the firm while making identification on the leadership style of the new local manager.

REFERENCES

  • Caligiuri, P. and Tarique, I., 2012. Dynamic cross-cultural competencies and global leadership effectiveness. Journal of World Business. 47(4). pp.612-622.
  • Cheng, B. S. and et. al., 2014. Paternalistic Leadership in Four East Asian Societies Generalizability and Cultural Differences of the Triad Model. Journal of Cross-Cultural Psychology. 45(1). pp. 82-90.
  • Chhokar, J. S., Brodbeck, F. C. and House, R. J., 2013. Culture and leadership across the world: The GLOBE book of in-depth studies of 25 societies. Routledge.
  • Emrich, C. G., Denmark, F. L., and Den Hartog, D. N., 2004. Cross-cultural differences in gender egalitarianism: Implications for societies, organizations, and leaders. Culture, leadership, and organizations: The GLOBE study of, 6(2), pp.343-394.
  • Festing, M. and Maletzky, M., 2011. Cross-cultural leadership adjustment—A multilevel framework based on the theory of structuration. Human resource management review. 21(3). pp. 186-200.
  • Frost, J. and Walker, M., 2007. Cross cultural leadership. Engineering Management. 17(3). pp.27-29.
  • Gelfand, M. J., Erez, M. and Aycan, Z., 2007. Cross-cultural organizational behavior. Annu. Rev. Psychol., 58. pp.479-514.
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