Introduction to Cross-Cultural Management
Cross-cultural management has become one of the most important aspects of business management in the present context of globalisation. The study of cross-cultural management is largely directed at understanding the influencing factors that are based on specific social and cultural settings. The study of cross-cultural management is aimed at helping the managers and the workers of an organisation to successfully operate in a global context. People’s values as well as their understandings of and reactions to their cultural context and experiences play an important role at the individual level (Vlaj?i? et al., 2019). Among the contributing disciplines are cross-cultural psychology, sociology, and anthropology, as well as management and organizational behaviour, and human resource management internationally. In the present case scenario, the current report aims at understanding and outlining the cultural challenges that might be faced by Takeda Pharmaceutical in the UK. The report will also include discussions related to the specific background of the company, different theories and frameworks of cross-cultural management in international organisations and also will include a range of feasible strategies for the company to manage cultural differences in the UK. Last but not the least, the report will also include a concluding section, lining out all the findings of the report.
For the purpose of the report, a brief background of the company involved is imperative. The company in this particular context is a pharmaceuticals company. The company operates internationally and started its operations in Japan first (“Our Stories | Takeda”, 2022). The company recently took over the Irish company Shire in a deal of $62 million. Both the companies are established in the industry of pharmaceuticals. The highly experienced employees and the diverse product range of Shire will be added to the market portfolio of Takeda. On the other hand, the exposure and investment capabilities of Takeda will significantly grow through this takeover. As Takeda started in Japan and has plans of expanding into the market of the UK, the company can estimate a fair share of cultural differences in different operational areas of the organisation. Not only social but also the different aspects of culture are massively different in the UK and in Japan. Also, the work culture, ethics and human resource management in the UK will be largely different from those in Japan. Takeda will have to consider not only the differences but also the factors of influence on the business operations of the company.
A number of authors and researchers utilize Geert Hofstede’s definition of culture. Using the same definition he used in his 2010 revised edition, this definition dates from 1980. Culture, according to him, is the collective mental programming of the mind that differentiates people belonging to one group or category from those belonging to another. Considering that it is at least partly shared with people within the same social environment, which is where it was acquired, it is a collective phenomenon (Attar, 2018). Culture is learned rather than inherited. The social environment determines the characteristics of a person, not their genes. The concept of culture should be distinguished from human nature on one hand, and from the notion of an individual’s personality on the other.
Background of Takeda Pharmaceutical
The theory of culture, as propounded by Hofstede is a model or a framework for understanding the different dimensions of a particular culture. The model is immensely significant in understanding cultural differences between countries and also in strategising different operational moves for an organisation operating in an international market (Beugelsdijk & Welzel, 2018). In the specific context of international expansion, understanding the target country’s cultural dimensions is of utmost importance. Hofstede’s model divides specific cultures into different levels, such as regional/linguistic levels, national levels, generation levels, gender levels and social strata levels. The model also considers the specific cultural settings of an organisation. However, it is to be kept in mind that the organisational culture is largely influenced by the workers and the management of the company. Hence, the organisational culture is secondary in this particular consideration (Jackson, 2020).
Figure 1: Hofstede’s Model of Cultural Dimensions
(Source: Internet)
Drawing from the above figure the cultural dimensions as propounded by Hofstede can be understood. By analysing the present context, it can be said that the UK is in the lower power distance dimension. Especially, the cultural difference that Takeda will face in the UK is in adjusting to the mindset of the workforce recruited in the UK. As Takeda is joining hands with the Shire, which was an established name in Ireland, the company can successfully adapt strategies formed by the Shire, in managing the international human resources for the company (Shao et al, 2020). Japanese Takeda can also encounter problems in adjusting to the feminine qualities of the society in the UK. In this particular context, Takeda needs to keep in mind that to manage the human resources and other operations successfully, the company will have to adopt a more democratic strategy of managing the workforce, where every member of the workforce is involved in the decision-making processes.
According to the opinion of Trompenaars, culture is the accumulation of the specific strategies people use in problem-solving. This particular way of defining culture in the context of an organisation operating on a global level is important to consider (Sapuarachchi, 2021). The model propounded by Trompenaars consists of 7 dimensions, which is namely- individualism vs collectivism, Universalism vs particularism, Neutral vs emotional, Achievement vs ascription, attitudes to time and environment, and Specific vs diffuse. All these dimensions according to Trompenaars help organisations in deciphering the specific cultural backdrop of a region (Carolina, 2019). The differences (and in fact challenges) that Takeda of Japan could face in the UK might consist of the problem in dealing with the attitudes of employees towards time and work environment. Employees of Japan and the UK will have hugely different views of not only organisational culture and time-related disciplines but also the views of achievement within the organisation. For example, employees in Japan generally consider time and related disciplines in the work culture very seriously and they generally consider a family-like relationship with the managers and co-workers outside the working hours. However, this is hugely different in the case of the UK.
Edward T. Hall’s contribution to the determination of the influences of cultural differences in organisational management is important for consideration in the present case scenario. According to the definition of Hall, by the application of the study of anthropological factors, the organisational cultures and the effects of specific societies can be outlined. Edward T. Hall mainly focused on the differences in communication between different cultures (Szkudlarek et al., 2020). The framework propounded by Hall consists of three dimensions. The three dimensions are namely- Space, Context and Attitudes toward time. According to the dimension of context, cultures can be defined as high or low context cultures (Floyd & Cardon, 2020). By analysing the current scenario of Takeda, it can be said that the company in their ventures in the UK can face cultural challenges related to the difference between the high/low culture in Japan and in the UK. As the Japanese culture is largely high context, where body language is a significantly important part of communication, communication in the ventures in the UK can be a challenge for the company. In terms of the dimension of Space, Japanese and UK cultures differs hugely. While Japanese people largely prefer physical affection and they are massively comfortable standing closely or even in bodily contact like hugging (Ermasova, 2021). However, people in the UK are a bit conservative in this aspect of the culture. Understanding the societal differences in communication should be taken into account by the company. In terms of Attitudes toward time, Takeda Pharmaceutical would not face any difficulties. As both the cultures in the UK and in Japan mandate people to be on time and be disciplined about time, the company will not face any difficulties in this particular aspect.
Theories and Frameworks of Cross-Cultural Management
Cultural differences largely influence behavioural differences in different countries. In the present case scenario, for Takeda, it is very important to keep in their mind the cultural differences that they might face in the UK and also take into account the effects of those specific differences (Lewis & Bairatchnyi, 2017). Richard D. Lewis propounded his model theory of cultural differences based on his study of the theories of the previously discussed scholars. The cultural theory propounded by Lewis is mainly based on the behavioural differences among the respective cultures. Based on the behavioural differences Lewis outlined three different categories that can describe a particular society’s culture. The three different categories are- Linear-active, Reactive and Multi-active (Lewis, 2019). The Linear-active category encompasses the cultures that are polite but are direct in their communication and limiting in body language. The UK categorically falls under this particular category according to Richard Lewis. The Reactive category cultures are characterised by patience, subtle use of body language and less emotional and more rational. The Multi-active culture is the particular category that encompasses the culture of Japan in particular. The multi-active culture is characterised by more use of body language, emotional connection in communicating at the workplace and people-oriented (Lewis, 2018). By this particular analysis, it can be said that Takeda can face challenges in communication and adjusting to the particularities of the cultural aspects of the UK.
Keeping in mind, the issues and challenges in different operational areas for Takeda operating in the UK, as outlined in the sections above, can be mitigated by utilising different fitting strategies. Different strategies can be outlined depending on the nature and severity of the challenge. The first challenge that should be addressed, is the issue or challenge in communication. Communication is an essential part of any business organisation. The organisation’s managers and leaders play a particularly important role in properly establishing communication between the employees and among the management and the employees (Li, Zhang & Shi, 2020). The most challenging issue can be faced by the company in communicating the goals and objectives of the company to the employees of the UK (Radovic Markovic & Salamzadeh, 2018). To successfully mitigate the issues in communication, the leaders and managers at Takeda should properly strategize their communication plan (Ting-Toomey & Dorjee, 2018). Also, the company should maintain a properly democratic communication structure within the workplace.
Another challenge in the cross-cultural interaction that Takeda can face in the UK, is the problem in particular mindsets of the employees and the other stakeholders (Macnamara & Gregory, 2018). The company should properly take into account the socio-political scenario of the UK to be able to smoothly run operations in the UK. In terms of the responsibilities and roles played by the managers and leaders within the company, the company needs to consider the particular mindsets of the employees in the UK. Attention, motivation and engagement of the employees are essential parts of achieving greater heights for the company’s operations. The company should employ specific leadership strategies such as democratic leadership, to be able to consider the opinions of every employee (Haque & Yamoah, 2021). That in turn will add a sense of recognition, among the employees in the organisation. The most important cultural difference can be spotted in the outlook toward job roles (Miao, Humphrey & Qian, 2018). The company should definitely keep in mind that the same rewards and recognition structures would not be befitting for the employees of different countries.
Strategies to Manage Cultural Differences in the UK
Conclusion
In conclusion, it can be said that, although Takeda Pharmaceutical will face some challenges in the UK, due to the cultural differences, the company can effectively manage their operations in the UK by utilising the knowledge and the specific problem areas outlined in this report. The report has effectively outlined the specific theories and frameworks for understanding cultural differences and their levels of influence on Takeda’s expansion in the UK. The report has also effectively outlined the probable challenges and their respective mitigation strategies for the company. Some of the major challenges the company can face are in the area of human resources management and communication. Both effective communication and human resources management are highly important in the context of global business management. The report has also outlined the importance of understanding the specific cultural preferences of countries in order to smoothly run an international organisation.
References
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