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Leading a
Cross-Cultural Team

Human Resource Management can include two large areas: personnel management and development functions. The following note attempts to shed light on development functions, which have tended to be somewhat disregarded in traditional public personnel administration and international public administration education. In fact, globalization of human resource management demands a precise cross-cultural vision in corporations that operate internationally.

International environments are changing rapidly. Nothing is permanent and the cause of yesterday’s success may be the cause of tomorrow’s failure. Today’s leaders must assume the responsibility for creating new models of management systems because many of the assumptions on which management practice was based are now becoming obsolete. Foreign competition and the need to trade more effectively overseas have forced most corporations and governments to become increasingly culturally sensitive and global minded.
Globalization implies accepting that cultural diversity in management composition and management style contributes to the competitive advantage of the global agency. Global human resource management provides an organized framework for developing and managing people who are comfortable with the strategic and operational paradoxes embedded in global organizations and who are capable of managing cultural diversity.
The process of globalization requires a progressive transformation of thinking about the role and tools of human resources management in the public sector. The argument proposed is that human resources management can and should make a contribution to the competitive strategy of a global village.

To survive in the 21st century, Iranian managers must adopt a global mindset and transform leadership to be globally competitive

Setting the Context for Globalization: To remain successful in the new global age, agencies must commit themselves to transformation, internalized strategies that are likely to succeed in the global competition, and to survive in the 21st century, they must adopt a global mindset and transform leadership to be globally competitive. Agencies and their leaders must learn to manage such transformations or they will inevitably lose their competitive edge. Global leaders, therefore, must have the capacity to turn threats or stumbling blocks into opportunities and to operate globally through cross-cultural problem solving and team building.
The ability to cope with cultural relativity is the key requirement for global managers to succeed today and tomorrow. It is said that culture refers to the collective programming of the mind, which distinguishes the members of one group or category of people from another. Therefore, four dimensions of national culture are identified: power distance, uncertainty avoidance, individualism/collectivism and masculinity/femininity.
Differences between cultures have many consequences for management practices. In collectivist cultures, leadership should respect and encourage employees’ group loyalty; incentives should be given collectively and their distribution should be left up to the group. In individual cultures, individuals tend to be more mobile and incentives should be given to individuals. Cross-cultural skills and intercultural communications skills can contribute to the success of negotiations in cross-cultural settings.

Developing Leadership in Global Negotiations: Negotiation is a skill and it can be improved. Here, five considerations for analyzing cross-cultural negotiations are addressed:

  1. The Players and the Situation: There is a cultural dimension inherent in the way negotiators view the negotiation process. There is always a difference in what negotiators expect of a negotiation’s social setting.

  2. Styles of Decision-Making: A negotiator can find ways to influence a foreign agency’s decision by analyzing its organizational culture and structuring arguments to fit within established guidelines.

  3. National Character: Foreign negotiators concerned with international image may be preoccupied with discussions of their national heritage, identity, and language.

  4. Cross-Cultural Noise: Noise consists of background distractions that have nothing to do with the substance of foreign negotiator’s message.

  5. Interpreters and Translators: There are limitations in translating certain ideas, concepts, meanings, and nuances.

An effective human resource management is a powerful competitive weapon not only in the private sector, but also in the public sector

Training and Development for Global Public Manager: Equipping executives with a global mindset is one of the key strategic tasks facing human resource management in global organizations. Among other desirable traits and skills, cultural empathy and adaptability are increasingly demanded in the era of globalization. The successful training of future leaders of global organizations requires a radical transformation of thinking about basic premises of human resources development techniques. There are many essential characteristics for the successful global leader of tomorrow: a global mindset, global leadership skill, an ability to lead cross-cultural teams, energy and talent to participate in global networking, and skills as a global change agent. Traditional training and development approaches fall short of what is required for globalization.
The development of the global or transitional organization requires senior managers who are not only internationally mobile, but who in their minds can also travel across boundaries by understanding the international implications of their work. How can such competencies best be developed? Many more organizations now seek to use international assignments for individual and organizational development, often with the assistance of a centralized human resource function, which can plan and track staff careers on a global basis.
Organizations need to provide on-going training so that managers adjust to expatriation and repatriation. With central and local governments expanding their efforts to promote and attract foreign investment or investors, encounters with officials from foreign corporations and governments have significantly increased. Governments have entered the arena of international commerce and open competition under the guidance of the World Trade Organization (WTO) and the Organization for Economic Cooperation and Development (OECD). Some of these encounters are predictable, but one element that continues to be problematic is how much and what kind of preparation should be undertaken for interaction with people from foreign cultures. To better understand cross-cultural skill development, adjustment and performance, the integration of cross-cultural training, and social learning theory is key.
As conclusion, the effective human resource management is a powerful competitive weapon not only in the private sector, but also in the public sector. Removing the competitive handicap of parochialism is an essential task facing not only human resource specialists, but line managers and executives as well. Increasing cross-border encounters make us aware of what we share as human beings: our significant cultural diversity, our need to cooperate and the competition underlying our relationships.

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