Front page Discussion and evaluation of theoretical approaches in the field of cross cultural management and cross cultural conflict management and their applicability to international companies with multi-cultural working environment Name: Lubomira Vesselinova Popova Name of supervisor: Simon Fischer Number of pages: 44 Number of symbols: 55 077 1 Table of content: 1. Introduction……………………………………………………………..4 1.1 Problem statement……………………………………………………….4 1.2 Purpose of the paper……………………………………………………..4 1.3 Theoretical framework and structure…………………………………….5 1.4 Methodology…………………………………………………………….6 1.5 Discussion of the chosen method and theories: A critical perspective…..6 2. Definitions and clarifications……………………………………………..7 2.1 Culture……………………………………………………………………7 2.2 Cross cultural management……………………………………………….8 2.3 Conflict and cross cultural conflict……………………………………….8 3. Different perspectives towards cross cultural management………………9 3.1 Primesz et al.’s four paradigms…………………………………………...9 3.1. The two dimensions……….………………………………………...........10 3.1.2 Burrell and Morgan’s matrix……………………………………………...11 3.1.3 The main streams of research……………………………………………..11 3.1.3.1 Cross-national comparison………………………………………………..12 3.1.3.2 Intercultural interactions………………………………………………….12 3.1.3.3 The multiple culture perspective………………………………………….13 3.1.4 Discussion…………………………………………………………………13 3.2 Fontaine’s (2007) perspectives……………………………………………14 3.2.1 The classical approach…………………………………………………….15 3.2.2 The anthropological approach……………………………………………..17 3.2.3 The psychological approach……………………………………………….20 2 3.2.4 The psychological approach with focus on stereotyping…………………...21 3.2.5 The knowledge management approach……………………………………..22 4. Cross cultural conflict………………………………………………………26 management………………………………………………………………………...27 4.1 Blake and Mouton’s (1964) typology………………………………………28 4.2 Thomas and Kilmann’s (1974) model……………………………………...30 4.2.1 Discussion of the different styles………………………...…………………34 4.2.2 Applicability of the model…………………………………………………..36 4.3 The role of emotions in cross cultural conflict……………………………...36 4.3.1 The influence of cultural values on emotions……………………………….36 4.3.2 Ting-Toomey and Oetzel’s (2002) model…………………………………...38 5. Conclusion…………………………………………………………………...40 6. Summary…………………………………………………………………….41 7. Bubliography………………………………………………………………...43 3 1. Introduction: In the world we live in nowadays, with the Internet access, the possibility to communicate freely around the world independently of time and space, the easiness to travel and the existence of different political and economic unions, the process of globalization is definitely taking place and developing fast (Neulip, 2012). In this globalized world one of the most powerful entities are, in fact, big international organizations. Some companies are entitled with the task to manage an enormous amount of money. For example, statistics show that in 2011 Apple had bigger budget than the entire US government (http://www.itp.net/585623-apple-has-bigger-budgetthan-us-government). Such organizations operate on an international level, and have to manage employees, working together, who come from various cultural backgrounds, who have been socialized within different cultural norms, have different believes, attitudes and understandings of right and wrong, and share different religions. In this case intercultural conflict is inevitable. 1.1. Problem statement: How can an international organization having employees from different cultural backgrounds turn cultural differences in the benefit of the company and manage cross cultural conflict effectively? 1.2. Purpose of the paper Exploring the field of cross cultural management is extremely useful and relevant for organizations operating internationally in today's environment and it is so for several reasons. First of all, nowadays companies have the task to create an international working environment in which employees coming from different ethnical backgrounds to feel 4 comfortable and work productively. Moreover, this is a relatively new field of study and there is no complete clarity concerning the term as well as the tasks and responsibilities of a cross cultural manager (Fontaine, 2007). Thirdly, as Primecz et al. (2009) claim, most of the research done in that field has been focused on one particular direction - studying cross cultural management from the positivist approach, and other methods and viewpoints have been ignored or at least underestimated (Primecz et al., 2009). And finally, the review of the different papers on cross cultural management shows that there is a tendency towards perceiving cultural differences as a barrier to interaction and an obstacle to effective work rather than a benefit for the company (Bush, 2011; Holden & Sønderberg, 2002). The aim of this paper is by critically reviewing a number of different theories and theoretical approaches to show that, if executed effectively, cross cultural management is a tool which can help manage internal conflict in the most productive way and, additionally, turn cultural differences into an important resource that works in the benefit of the company. 1.3. Theoretical framework and structure The paper will discuss and evaluate a variety of theories on cross cultural management and conflict management. The work is structured in four main chapters. The first chapter will introduce the topic and define the framework from which the subject will be approached, as well as the structure and the methodology. In the second chapter the relevant terms will be defined. The third chapter of the thesis will look at some different perspectives towards the field of cross cultural management and will be divided into two parts. The first part will be based mainly and Primecz et al.’s (2009) work who offer four different paradigms into approaching cross cultural management. After that it will look at Fonatain’s (2007) study, who approaches the field from six different perspectives, 5 using theoretical evidence from Hofstede, Holden and other acknowledged scholars. Only five of these paradigms will be discussed. In the last chapter of the paper, the different conflict management styles will be evaluated. Brawaeys & Price’s (2008) work on conflicts and cultural differences, as well as Neuliep’s (2012) book on intercultural communication. In this part two different models of cross cultural conflict management styles will be described and evaluated will serve as a main theoretical framework for that part. 1.4. Methodology The chosen method for creating the paper is using already-available secondary research, rather than conducting a primary research or combining both. The paper reviews the major perspectives on cross cultural management and some of the main theories which are based on these perspectives, as well as the basic cross cultural conflict management styles. The theories are reviewed critically with the purpose to search for approaches that would best fit in international organizations with multi-cultural working environment. 1.5. Discussion of the chosen method and theories: a critical perspective Using already available research gives the opportunity to look at a large number of different perspectives and compare their advantages and disadvantages. It allows an in-depth review of the basic theories available in the different paradigms. On the other hands, it limits the work only to the studies, which exist already, and does not give the opportunity to contribute to the field with new findings. Many authors have been interested in the field of cross cultural management and there is a lot of research conducted already. The problematic area is that there is no complete clarity concerning the origins of the field and therefore the main paradigms 6 which exist. The thesis tries to classify the different theories and perspectives and to show that there is a predominance of one of the paradigms - the positivist one. The theories studied in the paper differ significantly from one another. After the evaluation some of them are considered not effective for international organizations, but they are still included, because the aim is to show examples of all the basic paradigms discussed. 2. Definitions and clarifications When discussing the field of cross cultural management, it is necessary to define and clarify some related terms. 2.1. Culture First of all, the term “culture” needs to be explained. “Culture” is an abstract notion, which is very difficult to define, and the various fields of study use different definitions. According to Neuliep (2012) over 300 definitions of culture exist, all of which differ from one another. Probably the most commonly used one is Hofstede’s definition, according to whom “culture is the programming of the mind that differentiates one group from another” (Hofstede, 1980 in (Fontaine, 2007)). Being quite accurate, this definition, however, does not directly include the most important components of culture, namely the values, beliefs and behaviors. Therefore, for the purpose of this paper, culture, as defined by Neuliep (2012) will be viewed as “an accumulated pattern of values, beliefs and behaviors, shared by an identifiable group of people with a common history and verbal and non-verbal symbol system” (Neuliep, 2012). Cultural beliefs are strong perceptions about the world, and about what is right and wrong, which are reluctant to change. Values are also perceptions, which are closely related to the beliefs, but in contrast to them, they can be changed. Behaviors are the actions which follow from the beliefs and values (Beamer and Varner, 2011). 7 2.2. Cross cultural management After clarifying the notion of culture, the term cross cultural management needs to be defined. As Bush (2012) argues, there is no complete clarity concerning that term and concerning what exactly the cross cultural manager should do. For the purpose of this paper, Holden and Sonderberg’s (2002) definition will be used, which is “the task of managing workforces from different cultural backgrounds, and moderating the impact of cultural differences in the execution of management tasks” (Holden & Sonderberg’s, 2002). Although being quite accurate, this definition will be questioned further in the paper, because some management approaches are not focused on moderating the negative impact of cultural differences, but, on the contrary, on seeking ways to achieve a positive impact (Jing, 2010). 2.3. Conflict and cross cultural conflict And finally, since the paper tries to prove that through sound management practices, cross cultural conflict can be reduced, and when occurs, resolved effectively, this term needs to be defined as well. The term conflict also has different definitions in the different disciplines, but Brawaeys & Price (2008) offer a relatively encompassing one, claiming that a conflict appears when “people with different needs or goals are prevented – or perceive that they are being prevented – by others in achieving these needs or goals” (Brawaeys & Price, 2008). Cross cultural conflict occurs in the process of communication between members of different cultures, and as defined by Thing-Toomey and Oetzel is “the experience of emotional frustration or mismatched expectations between individuals from different cultures who perceive an incompatibility between their values, norms, goals, scarce 8 resources, or outcomes during an intercultural exchange” (Thing-Toomey and Oetzel, 2003 in (Fontaine, 2007)). 3. Different perspectives towards cross cultural management After defining the relevant concepts, the paper will have a look at the main streams of research and the different perspectives, which exist in cross cultural management. The chapter will be divided into two main parts. Firstly, it will discuss the multiparadigmatic view of the field, offered by Primesz et al. (2009). The next part will be focused mainly on Fontaine’s (2007) work, and it will evaluate the six main approaches he describes. 3.1. Primesz et al.’s four paradigms As Redding (1994) argue, the field of cross cultural management has developed under the influence of distinct paradigms, each of which having their own assumptions, definitions and methodologies. There is also no consensus concerning the theoretical field it has its roots in – weather it should be studied in the framework of organizational management, human resource management, communication management, or another subject ((Redding, 1994) in Fontaine, 2007). In this chapter, Primesz et al.’s (1994) multi-paradigmatic view towards the subject will be used as a framework. Their study is built upon the argument that the fields of organizational management and cross cultural management are closely related, and, in fact, cross cultural management is a small discipline inside the more all-embracing field of organizational management. Therefore the field of cross cultural management should be approached with the same methodology and theoretical framework. They use the same paradigms, which exist in organizational studies, in order to prove their argument. Primesz et al. (2009) argue against the general claim that the study of cross cultural management is being at a stage of “early paradigmatic maturity” (Lower et al., 2007) 9 in Primesz et al., 2009)) and dominated by one paradigm only, namely the positivist one. Their attempt is to show that various paradigms exist and to prove that there has been valuable contribution from all the different approaches. 3.1.1. The two dimensions In order to look at the field of cross cultural management from four different paradigms, Primesz et al. (2009) use Burrell and Morgan’s (1979) two dimensions dealing with assumptions about the nature of social sciences and assumptions about the nature of society. The first dimension distinguishes between objective and subjective view. Objectivists believe that the social world is “objectively given and independently exists out there” (Primesz et al., 2009). They believe that, seeking for causal relationships, they can investigate its structure and regularities through scientific research (Primesz et al., 2009). The subjectivists, on the other hand, claim that society is socially constructed and members of society actively participate in creating and recreating the social world. They believe that social sciences cannot be studied and investigated independently from outside, but investigators should, however, be actively involved, in order to be able to understand the social processes (Primesz et al., 2009). The second dimension distinguishes between the sociology of regulation and the sociology of radical change. Researchers in favor of the society of regulation believe that no better society than the Western capitalist society exists and that all societal problems should be fixed “within the framework of capitalism” (Primesz et al., 2009). Proponents of the society of radical change believe that there are fundamentally better societies. They try to put light on different social problems, such as power and wealth 10 inequalities, discrimination, social tensions etc. in order to highlight the need of new better social order (Primesz et al., 2009). 3.1.2. Burrell and Morgan’s matrix Based on the two dimensions discussed above, Burrell and Morgan’s (1979) grid is created, which is shown in figure 1. The grid defines four paradigms in the field of organizational studies. On the basis of these paradigms, the field of cross cultural management will be discussed in the paper. Figure 1: The sociology of radical change Radical Radical humanist Structuralist Subjective Objective Interpretive Functionalist The sociology of regulation (Burrell and Morgan, 1979) 3.1.3 The main streams of research The paper will now look at the three main streams of research identified by Sackmann and Phillips (2004), and using the matrix as a basis, it will try to figure out in which paradigms the different studies fit. The aim is to estimate whether the work has been 11 distributed equally within the paradigms, or some of them have been emphasized more, while others ignored. 3.1.3.1. Cross-national comparison The first stream of research is the cross-national comparison perspective, which investigates the variations of values across cultures. It is associated with Hofstede, whose theory will be discussed further in the paper, and other well-known theoreticians such as Schwartz and House (Sackmann and Phillips, 2004). Research in that field is generally conducted according to the functionalist paradigm (Primesz et al., 2009). As Primesz et al. (2009) claim, some comparative studies have been conducted from the interpretative paradigm as well. It is important, however, to mention, that the cross national comparison conducted according to the functionalist paradigm, or positivist, as referred to by many authors, is the pre-dominant approach towards researching cross-cultural management (Primesz et al., 2009; Holden and Sønderberg, 2002). 3.1.3.2 Intercultural interactions The second main stream of research focuses on intercultural interactions and investigates how cultural influences behavior during the process of interaction (Phillips and Sackmann, 2004). As Primesz et al. (2009) claim it has been inspired by anthropologists such as Geerz (1973) and Kluckholm and Strodbeck (1961). Anthropological approaches will be discussed in more detail in the next chapter. Phillips and Sackmann (2004) claim that anthropology can be both positive and interpretative, and examples of intercultural interaction studies in both paradigms can be found. They claim, however, that although the interpretative paradigm is gaining acceptance, the functionalist perspective is still predominating (Phillips and Sackmann, 2004). It is worth mentioning that some of the studies in this main stream of research are radical humanist studies, but as Westwood & Jack (2007) argue, they are very few. 12 3.1.3.3 The multiple culture perspective The third and final main stream which Phillips and Sackmann (2004) describe is the multiple culture perspective, which investigates the various cultural influences that exist simultaneously at the different levels of analysis, such as nation industry, organization. It analyzes also cultural groups such as ethnic groups, professional groups etc. The aim is to figure out how culture influences individual’s identity and perception of self (Phillips and Sackmann, 2004). Research, conducted in this perspective is mainly interpretative, but there are examples of functionalist studies as well (Phillips and Sackmann, 2004). 3.1.4 Discussion Considering the above information, it can be concluded that most of the research in cross cultural management is conducted according to the functionalist paradigm. Interpretative studies are quite common as well. There are some radical humanist studies to be found, but the radical structuralist paradigm is missing completely. Further on, considering the three main streams of research, it can be concluded that there is a predominance of the cross-national comparisons. Intercultural interaction studies can be found as well, while the multiple culture studies are very few. To show this imbalance clearer, Primecz et al. (2009) develop a model, which is based on Burrell and Morgan’s (1979) paradigm grid. It is shown in figure 2. 13 Figure 2: The sociology of radical change ??? 2 1 11 3 Subjective Objective 2 2 3 The sociology of regulation 1:Cross-national comparisons; 2:Intercultural interaction; 3: Multiple cultures Primecz et al. (2009) using Burrell and Morgan (1979) paradigm grid The grid summarizes the discussion above and shows once again the dominance of the functionalist cross national comparison studies. After looking at the field of cross cultural management from the theoretical framework of organizational management, and discussing the four basic paradigms, introduced by Burrell and Morgan (1979) as well as the different research perspectives, the paper will discuss and evaluate six more specific approaches towards cross cultural management. 3.2. Fontaine’s perspectives The next chapter of the paper will be based on Fontaine’s (2007) work, who believes that there are six basic approaches towards cross-cultural management, which lead to completely different management styles. Five of these approaches will be described, and analyzed thoroughly, and their applicability, and advantages and disadvantages 14 will be discussed. The sixth approach is not considered relevant for the purpose of this paper. 3.2.1. The classical approach The first perspective – the classical approach - is based on Hofstede’s theory (Fontaine, 2007). Hofstede (1980) conducted a research among IBM employees around the world with the purpose to identify similarities and differences between their cultures, and more specifically he was concerned with their work ethics. He used four dimensions, based on which every culture can be analyzed and described. The dimensions are individualism versus collectivism, power distance, uncertainty avoidance, and masculinity versus femininity (Peterson, 2007). Hofstede defines individualism as “a loosely knit social framework in which people are supposed to take care of themselves and their immediate families only” (Hostede, 1980 in (Kirkman, 2006), while collectivism, according to his work, is “characterized by a tight social framework in which people distinguish between ingroups and outgroups, they expect their ingroup to look after them, and in exchange for it they feel they owe absolute loyalty to it” (Hostede, 1980 in (Kirkman, 2006)). The second dimension deals with the power distance between individuals, occupying different positions in society, because of their age, gender, position in the office or something else. Hofstede defines power distance as “the extent to which a society accepts the fact that power in institutions and organizations is distributed unequally” (Hostede, 1980 in (Kirkman, 2006)). The third dimension deals with uncertainty and measures the degree to which a society feels threatened by ambiguous and uncertain situation and tries to prevent them and achieve greater stability and clear view of the future (Kirkman, 2006). 15 The masculinity versus femininity dimension studies weather the dominant values in a culture are masculine or feminine, masculine values being, for example “assertiveness, the acquisition of money and things” while feminine “quality of life, other people, etc.” (Kirkman, 2006). Hofstede and Bond (1988) include a fifth dimension, which is long-term orientation. It distinguishes between cultures with future-oriented values, such as persistence, for example, and cultures with values, such as respect for tradition, which are oriented towards the past (Kirkman, 2006). The classical approach states that cross cultural managers should be cultural experts, studying the variations of values across cultures in the framework of Hofstede’s dimensions. Their aim is to grasp the past of the cultures they are dealing with, together with their value systems, in order to be able to understand the present behavior of the employees and communicate to them successfully (Fontaine, 2007). Discussion: Hofstede’s theory is based on serious research and it presents a very good ground for approaching another culture, identifying similarities and differences, and trying to figure out effective ways of communication, as well as possible causes of outbursts and conflict. It does, however, have serious weaknesses. First of all, it is quite simplistic, classifying all cultures in terms of five dimensions. Moreover, using Hofstede’s work, people can easily jump into stereotypes. Stereotyping involves “members of one group attribute characteristics to members of another group” which characteristics “carry a positive or negative evaluation” (Neuliep, 2012). Basically, based on the impression of the behavior of one individual people tend to believe that all the members of the group he/she belongs to possess certain characteristics. People can attribute stereotypes also from stories they have heard or read (Neuliep, 2012). Managers, depending on Hofstede’s work can make the conclusion that all Japanese employees, for example (Japan is a highly collectivist country (Varner and Beamer, 16 2011)), will be dedicated to the company, and put the interest of the company before their own, but it might not always be the case. It could be so for a variety of reasons. For example, some Japanese employees might not be able to relate to the organizational culture, and therefore would not perceive it as an in-group. Others might feel constantly offended at the workplace by their colleagues, because of their directedness and straightforwardness (individualistic characteristics (Varner and Beamer, 2011)) and again, perceive the company as an out-group. In such cases, a cross cultural manager depending entirely on Hofstede and perceiving his findings as an absolute truth will be very confused. Another weak point in Hofstede’s study is that he uses the words culture and ethnicity as synonyms- as two perfectly overlapping concepts. In reality, however, in multicultural countries, such as the Netherlands, Belgium, Malaysia, the United States and many others, children might be socialized at home by their parents who represent one ethnic group, in school by their teacher who is a member of another, and at the same time probably study in a multicultural environment. Such children grow up without a clear national identity- they learn and accept some values from their family’s culture and others from the culture they live in, study, and socialize with friends (Staber, 2006). Moreover, it has been proven that when living abroad, people unconsciously start to forget some of the norms and values of their home culture while at the same time acquire new norms and values from the host culture. This is known as the process of “acculturation” (Frongillo et al., 2003). This concept is missing in Hofstede’s theory. Considering the discussion above it can be argued that the classical approach might serve as a good start to cross cultural managers, helping them to get to know the bases of the value systems, and the basic differences and similarities between the cultures they have to deal with. It should not, however, be used as the dominant approach, because managers need to take into account the concept of stereotyping, all the exceptions, such as mixed marriages, children, whose parents represent one ethnic group, but who have been born and socialized in another, as well as the fact that most of the foreign employees 17 in a company would be living abroad for many years and would have outgone the process of acculturation to some extent. 3.2.2. The anthropological approach The second perspective Fontaine (2007) talks about is the anthropological approach. This perspective recognizes that there is a difference between the terms culture and ethnicity and that in one ethnic group several distinct cultures might be found. To describe the validity of this approach, Fontaine (2007) uses Fontaine and Tan (2003)’s work. They conducted a study among students from various ethnic backgrounds in a Malaysian university. The results showed significant variations in the way the students perceived their ethnic identity, depending on their parents’ ethnic background, the degree to which their family is religious, the schools they attended prior to university and other factors (Fontaine, 2007). The study described above proves that there are people with unclear ethnic identities, who live according to a set of values, which is created as a mixture of the value systems of two or more cultures. Therefore, according to the anthropological approach, Hofstede’s theory is considered misleading in multicultural societies. Cross cultural managers, following this perspective, “should be more like anthropologists” (Fontaine, 2007), studying carefully in details the differences, which exist between the little subgroups in every ethnic group, in terms of religious beliefs, education, family, living area, and all factors that serve as agents of socialization (Fontaine, 2007). The focus of the cross cultural manager as anthropologist is again directed towards understanding the past with the purpose to understand the behavior of the employees and their attitudes towards work, conflict at the workplace etc. (Fontaine, 2007). 18 Discussion: Studying the subgroups and the small ethnic groups would give the cross cultural managers a very good understanding of the cultures they have to work with, and very good explanation for their employees’ behavior. It can again serve as an excellent start to get to know what they can expects from the people working in the company. Knowing their values and attitudes will help them create a guideline for the management practices they can adopt and execute, and how to do it in a way that everyone in the company can understand and accept these practices. Like in the classical approach, however, the risk of stereotyping exists. When studying smaller groups, which are considered more homogeneous that entire countries, it becomes even easier to attribute characteristics that describe the whole group. Managers, adopting this approach, should be able to distinguish stereotypes from proven with evidence qualities, typical for a certain cultural group. Further on, they should always be prepared for exceptions and instead of being surprised, they should react reasonably and start to search for an explanation for the unexpected behavior of a certain individual. And finally, there is one serious weakness which exists both in the anthropological and the classical approaches, which is that they view culture as “pre-existing and static” (Fontaine, 2007), not ever-changing and dynamic. The focus of this two approaches is directed entirely to the past, believing that culture is learned by the individuals but not as well created and changed by them. Bush (2012) makes the distinction between these two ways of understanding culture very clear. He talks about two general perspectives into approaching culture – the primordialist and the constructivist perspectives. Primordialists view culture as a static phenomenon, which is passed on from one generation to another without any alteration. It is perceived as existing prior the situation of analysis, and it is assumed to remain the same (Bush, 2012). 19 According to the constructivist perspective, “people create culture, cultural differences and identities within the situation” (Bush, 2012). Culture is perceived as ever-changing and “potentially open for learning” (Bush, 2012). Cross cultural management perspectives, which view culture as dynamic rather then static, will also be discussed in the paper. 3.2.3. The psychological perspective The third perspective presented by Fontaine (2007) in the psychological perspective. It is based on Fontaine and Richardson’s (2005) (Fontaine, 2007). Fontaine and Richardson (2005) claimed that contextual factors, such as national and organizational policies and individual factors, are more important in determining employees’ behavior than culture (Fontaine, 2007). The idea of the psychological approach is that since cultural factors are “essentially fixed and cannot be managed” (Fontaine, 2007), the cross cultural manager needs to work as a psychologist, putting his/her effort into modifying contextual factors in order to “minimize cultural differences at work” (Fontaine, 2007) and that way reduce cross cultural conflict. The focus of this approach is, again, on understanding the past (culture is again considered static) but this time with a clear goal in the future – to create a less diversified working environment, which would shape employees’ behavior in a productive for the organization way and reduce conflict. Discussion: A serious weakness of this approach is that cultural differences are seen as an obstacle to productive work and the main goal is to reduce diversity. In fact, as (Holden and Sønderberg, 2002) claim, many of the work done in the field of cross cultural management is directed towards the same goal. Culture is often treated as a “barrier to 20 interaction and a source of confusion” and cultural differences are seen as “a source of conflict, friction and miscommunication” (Holden and Sønderberg, 2002). There is, however, an alternative perspective which views cultural differences as a “source of competitive advantage” (Holden and Sønderberg, 2002) rather than a threat. Authors, following this approach, believe that diversity leads to competitive advantage and organizational health, because culture is unique knowledge that cannot be learned and the only way to bring it into the organization and to create a multicultural environment. The idea of minimizing cultural differences automatically implies that the company will lose the unique contribution cultural diversity can bring to the organization. Therefore the psychological approach is not the best perspective cross cultural managers can chose to adopt There are few theories, which consider cultural differences as an important bringing unique knowledge to the organization and they will be discussed later in the paper. 3.2.4. The psychological perspective, with a focus on stereotyping The fourth approach, which Fontaine (2007) talks about, is again a psychological perspective, but this time, with a focus on stereotypes. This approach is based on the idea that cross cultural conflict and misunderstandings are not entirely due to different cultural values, but primarily arise “because of ignorance and stereotyping rather than actual differences in culture” (Fontaine, 2007). It is based on Hewstone’s (2003) theory who claims that before engaging in cross cultural contacts people usually hold negative stereotypes but after developing a relationship most of that stereotypes disappear and positive impressions start to arise. These positive impressions are directed not only towards the people they were in contact with but towards the whole cultures they represent (Fontaine, 2007). 21 Managers following this approach should act like “psychological counselors” (Fontaine, 2007). Their job would be to help people overcome the negative stereotypes they have towards the other cultural groups. The focus will be again on understanding the past, or understanding where the stereotypes come from, in order to be able to eliminate them and change the future behavior of the employees (Fontaine, 2007). Discussion: This approach goes directly against all positivist theories on culture including Hoftede’s theory and against all interpretative studies, which try to explain the impact culture has on the way people form their identities and acquire an understanding of self. It is true that stereotypes exist and that stereotyping is underestimated in many theories on cross cultural management. On the other hand, it is acknowledged and proven by evidence that the culture people are socialized in, the cultural beliefs and values they learn shape their identities and dictate their behavior (Beamer and Varner, 2011). Ignoring the cultural differences and claiming such degree of similarity is not legitimate considering all the evidence in the opposite pole. 3.2.5. The knowledge management approach The fifth perspective, which Fonatiane (2007) proposes is build around the belief that cultural diversity is a valuable resource for the organization rather than a treat. This viewpoint has been mentioned briefly earlier in the paper. The knowledge management approach is based on Holden’s (2002) theory who claims that knowledge is the most important asset in a firm. He distinguishes between “explicit” and “tacit” knowledge. According to his theory, “explicit knowledge” is easy to explain and share with others. “Tacit knowledge”, on the other hand, is difficult to explain and is often gained by personal experience. It includes “believes, mental models and perception that are taken for granted” (Fonatiane, 2007). 22 Holden (2002) believes that culture is tacit knowledge and organizations should take advantage of it (Fonatiane, 2007). Holden’s (2002) basic process model of cross cultural management is presented in figure 3. Figure 3: Crosscultural management Participation across cultures Maintaining equivalence across cultures Learning from experience Knowledge sharing Holden (2002) Holden’s (2002) model shows how the knowledge which cultural diversity brings can be used by the company. The cross cultural manager should execute his/her management tasks and develop strategies, then participate across the different cultures, maintain equivalence between the cultures, exchange knowledge with employees, learn from experience, moderate the management strategies, and then the cycle starts again. The model shows that cross cultural management is a process, a never ending learning experience. Managers following this approach should encourage employees to openly express their cultures and bring it to the workplace. They should appreciate different opinions, different behaviors and alternative ways of performing a task. Their goal would be directed towards the future – to shape the future of the company with diversity being one of the core values. 23 Discussion: The knowledge management approach is extremely valuable, because, in contrast to most of the cross cultural management theories, it encourages diversity and appreciates the contribution of the different cultures to the organization. It shows how multicultural environment can be beneficial for a company and how culture brings unique knowledge which employees cannot learn from courses or trainings. This approach is very useful for organizations with less hierarchy, less control and direct supervision, and more task autonomy, because it automatically assumes more freedom for the employees to chose themselves how to execute the tasks they are assigned. The only weak point of the knowledge management perspective is that when encouraging employees to express their own cultural values and to behave according to their own cultural norms, the danger of intercultural conflict raises. If sticking to Holden’s (2002) theory, in a situation of cross cultural conflict managers should intervene less and again, try to take advantage of the knowledge the different parties have to offer during the conflict. This would mean that the two parties would be encouraged to use their own cultural patterns of resolving conflict. These patterns, however, vary significantly in the different cultures. The first major difference is due to whether a society is individualist or collectivist. As mentioned earlier, in individualist societies the individual is the basic unit of society and members of such cultures are interested more into achieving their own goals then into the collective good (Beamer and Varner, 2011). 24 On the contrary, in collectivist cultures the group is more important than the individual and members of these cultures work together for the benefit of their society with the ultimate goal to preserve the harmony (Beamer and Varner, 2011). In collectivist cultures the concept of face is of significant importance. People are very sensitive about losing face, and, at the same time, about preserving the face of others. In a situation of conflict they will be very careful not offend their opponent. In individualist societies, on the other hand, people are more straightforward and they are likely to say directly what they disagree with or what they feel their colleague is doing wrong. A conflict between a member of a collectivist society and one of an individualist culture might end up with the first being seriously offended, even in situations when the latter has no such intentions. Another point to be considered is the difference between high-context and lowcontext cultures. In high-context cultures the communication is highly dependent o the context and people do not need to put in words all their thoughts in order to understand each other. Non-verbal language is more important and silence can mean a lot. On the contrary, in low-context cultures language is the most important factor for the production of meaning and only what is expressed out loud matters (Beamer and Varner, 2011). Considering this, in a situation of conflict between members of high-context cultures and members of low-context cultures, the result could be serious misunderstanding which might be dangerous for the outcome of their work. The discussion above shows that in some situations without a third-party intervention conflict might not be resolved, or even worse, one party could feel that he/she has expressed clearly a position of disagreement, for example, through silence or gesture, while the other party could be convinced that the conflict is settled. Therefore it is 25 logical to state that a company needs to have a clear policy for dealing with conflict, applicable to all employees. Different conflict management styles will be discussed further in the paper. What is worth mentioning now is that there should be a fixed pattern, which is the same for all employees, so that no one feels discriminated. At the same time it should be chosen carefully, considering the different cultures, members of which work in the company, their attitudes towards conflict and behavioral differences. It can be concluded that Holden’s (2002) theory is very useful because it allows cross cultural managers to take advantage of the unique tacit knowledge, which the employees posses. It should be, however, applied carefully and reasonably. Cross cultural managers should not fall into the idea of giving complete freedom to the employees to express their cultural differences and behave according to their own cultural norms. They should, however, work towards creating an organizational culture, which allows the company to take advantage of employees’ that knowledge. Core values of this culture should be diversity and appreciation of the contribution of cultural variety. Employees should be able to relate to that culture together with its values, as well as norms and rules. And most importantly, they should be able to feel part of that culture and valued for bringing something unique. 4. Cross cultural conflict management After discussing the various approaches to cross cultural management the paper will focus on one specific part of that field, namely management of conflict between members of different cultures. Browaeys and Price (2008) and Neuliep (2012) will be used as a main theoretical framework for this chapter. Before discussing the conflict management styles, offered by the different theoreticians, it is important to mention that all the studies talk about a person’s “conflict style”, which Browaeys and Price (2008) define as “patterned responses or 26 clusters that people use in conflict” (Browaeys and Price, 2008). This behavior, according to their work, depends on three factors - cultural traits; personality; and the situation in which the conflict takes place. Basically, in a situation of conflict, the job of the cross cultural manager would be to consider carefully the different conflict styles of the individuals involved, and to find the best and the most effective solution to resolve the conflict fast, without any serious negative outcome for the organization, and without negative consequences for the employees and the working environment. A conflict is considered resolved, when there is a solution which guarantees that this subject matter would not be a cause for another conflict or misunderstanding (Neuliep, 2012). After clarifying the most important notions, the thesis will have a look and discuss a variety of cross cultural conflict styles proposed by the different theoreticians. 4.1. Blake and Mouton’s (1964) typology Many of the models of cross cultural conflict styles are based on Blake and Mouton’s (1964) typology. They define the behavior of people in a situation of cross cultural contact, based on two dimensions – concern for production and concern for people. These dimensions are corresponding to concern for self and concern for others, which other authors such as Beamer and Varner (2011) talk about. These dimensions are closely related to the concept of self-construal. Basically, people with independent self-construal define themselves separately from their social context, while people with interdependent self-construal define themselves based on their relationships with others (Beamer and Varner, 2011). Generally, in collectivist societies, where people have an interdependent self construal, during cross cultural communication and negotiations they show a high concern for people, or a high concern for others. High concern for production, or self, 27 is typical for members of individualist societies with independent self-construal (Neuliep, 2012). Discussion: The difference in the communication styles in a situation of conflict between members of individualist and members of collectivist societies has been discussed briefly in chapter two. To summarize, in such situation effective conflict management style from the organization is extremely important, because the chances that the conflict can be resolved by the employees themselves are slim. The most likely outcome would be that the member of the collectivist society, because of the high concern for people, would not express his/her position completely in the attempt to save the face of his/her opponent. The member of the individualist society, however, might unconsciously offend his/her opponent, because of the high-concern for production (or self) and because of the directedness and straightforwardness typical for individualist cultures. 4.2. Thomas and Kilmann’s (1974) model Thoman and Kilmann (1974) devise a model, which is based on two dimensions, corresponding in meaning to Blake and Mouton’s (1964) “concern for production” and “concern for people”, and Varner and Beamer’s “concern for self” and “concern for others”. They name the dimensions “assertiveness” and “co-operativeness” Browaeys and Price (2008). Assertiveness will be defined as “the degree to which a person is concerned with his or her own interests” (Browaeys and Price, 2008) Cooperativeness is “the degree to which a person is concerned with the interest of others” (Browaeys and Price, 2008). The model is shown in figure 3. 28 Figure 3: Thomas and Kilmann (1974) Thomas and Kilmann (1974) claim that based on the degree of assertiveness and the degree of co-operativeness people possess, they can be placed in five categories, as shown in the model. When an individual is low on both dimensions, it means that he/she is not willing to communicate or negotiate, neither in the interest of others, nor in his/her own. People, who possess a high degree of assertiveness and a low-degree of co-operativeness are competitive, working towards their own interest and ignoring the needs and wants of others. People with high degree of co-operativeness and low degree of assertiveness are more concerned with the interest of others and try to accommodate to the situation in the expense of their own needs. Individuals, who are high on both dimensions, are likely to collaborate and to look for a solution which is in the best interest of both parties. And finally, individuals, who are placed in the middle of the model, with a middle degree of both assertiveness and co-operativeness, are compromising. They look for their own interest, as well as for the needs of others, but at the same time are willing to compromise, if the other party would do the same (Browaeys and Price, 2008). 29 4.2.1. Discussion of the different styles: It is obvious that one of the major factors determining the category in which an individual will be placed is the culture he/she has been socialized in, and the cultural values he/she has learnt (Browaeys and Price, 2008). Logically, only people who come from highly collectivist societies, such as Japan, for example, can fit in the accommodating category. On the contrary Western societies are usually highly individualistic, and people coming from the US, for example are most likely to be placed in the competing category. Countries like Italy, Greece and Bulgaria, for example, are described as relatively low in both individualism and collectivism (Georgas, 1989), or as Georgas (1989) defines them- they are “family collectivist”. This means that the basic unit of society is neither the individual, nor the collective, but it is the family and the closest friends. Individuals coming from family-collectivist countries are sometimes likely to compromise with closer friends and colleagues, while at the same time competing with people they do not know that well. As Browaeys and Price (2008) argue, Thomas and Kilmann’s (1974) model can be used to determine five basic conflict resolution management styles in a company, which correspond to the five categories. Clearly, the best way to resolve a conflict in an organization will be collaboration. It is, of course, the most difficult to achieve. What cross cultural managers can do is provide cultural trainings and courses to their employees to help them understand the differences between their own communication patterns and conflict resolution behavior and those of their colleges. They should understand how value systems vary across cultures. When talking about organizational context, a very important factor to be considered is the variations in power distance among the different cultures. The concept of power distance was explained earlier in the paper. As defined by Browaeys and Price (2008) 30 it will be “the degree to which the less powerful members of organizations and institutions within a country expect and accept that power is distributed unequally” (Browaeys and Price, 2008). In large power distance countries there is strong hierarchy and the power of its members is defined by their position in society, namely age, gender and status, which Hofstede define as “positional power”. In companies in such countries employees need to be very careful when talking to their superiors. They should be respectful, never disagree loudly, and even use different language from the one they use when they talk to their equals (Neuliep, 2012). An example of high power-distance culture would be the Indian society, where the position of a person in society depends entirely on the cast in which he/she is born and cannot be changed (Kumar and Sinha, 2004). In small power distance cultures there is less hierarchy, the organizations are more decentralized, people who occupy the lower positions in an organization are also involved in the decision-making process and are allowed and welcome to express their concerns and to openly disagree with their superiors. The type of power, which individuals possess in low power distance societies, is defined by Hofstede as “earned power”, because individuals earn it with their efforts, hard work and motivation (Browaeys and Price, 2008). This factor can also be related to individualism and collectivism, since usually in collectivist societies such as Mexico, Malaysia and India the power distance is large, while in individualist societies such as the United States and Denmark, it is small. Today, in the Western world, and especially in big international companies, there is a growing tendency towards decentralization of power and less hierarchy (Axel, 2008). When having employees, which come from large power-distance cultures, the organization needs to make sure that they understand clearly the difference. They should be encouraged, on the one hand, to express opinions and openly disagree with their superiors, when they feel there is a reason to do so, and, on the other hand, that they should not consider it disrespectful when their subordinates talk to them in a similar manner they talk to their friends and sometimes question the effectiveness and the outcomes of their work. 31 The difference in power distance should also be explained to the employees, who come from small power-distance societies, because otherwise the behavior of their colleges might seem weird and unnatural in some situations. During the cultural trainings employees need to be familiarized with the concept of ethnocentrism. Ethnocentrism is the tendency to use your own culture as a frame of reference when communicating with people from different cultures (Beamer and Varner, 2011). Ethnocentrists usually perceive the different behavior and cultural values of a member of another culture as wrong, because they compare it to the behavior and values of their own culture, which they consider the correct ones. As (Neuliep, 2012) explain, everyone possesses a certain degree of ethnocentrism, and it is the job of the cross cultural managers to reduce that ethnocentrism and to make sure that everyone in the company understands that there is no right and wrong behavior, when it comes to cultural differences, but there is a certain behavior, which is part of the companies rules and policy and everyone is expected to act upon it. In addition, a company that wants to achieve the collaborative style of resolving conflict needs to have a specific organizational culture, in which teamwork, cooperativeness and employee satisfaction should be among the core values. The organization should try to oppress, to a very little degree, of course, the individualism among the members of the highly individualistic societies, by explaining them that high competition is not desirable. The company should promote the basic values carefully, explaining that effective teamwork can be achieved through sharing of ideas and listening to others. It should be clear that employee satisfaction means that the needs of everybody are met or at least seriously considered, and that the needs of all employees are equally important. The cross cultural managers need to explain clearly that ignoring the needs of others in the expense of someone’s own needs would be against the organizational culture. 32 Of, course, the company will promote the same values to the employees coming from highly collectivist societies, but this time the approach will be slightly different. The managers need to explain that effective teamwork means that the ideas and opinions of everybody are valuable and encourage them to speak up when they feel dissatisfied with something. They should explain that cooperativeness is important, but the organization values not only the final result, but the contribution of each teammember. It should be clear that employee satisfaction is a core value and it is a main goal of the company to be familiar with the needs and desires of everybody, in order to be able to work towards achieving them and it is the employees’ responsibility to help that happen, by speaking up and explaining clearly what they feel is going well and where they see problems. As stated above, it is very important how the company presents the core values to the employees, considering carefully their culture. It is even more important, however, that the organization actually works upon these values. This is so because if the company does not have the organizational culture, which the managers are trying to promote, then it is impossible for the employees to understand and feel part of that culture. They will be confused because the values they are supposed to follow would not correspond to the values, which are actually important for the company. The collaborating approach, of course, is not suitable for every company, and is not the only effective conflict management style. Finding a solution, which satisfies everyone’s needs is difficult and time-consuming. Organizations, which have productivity and fast work as a main goal, might prefer the compromising approach. It would mean that managers would encourage employees to compromise and seek for fast solutions to the conflicts in order to get the job done faster. In such cases, of course cultural training is still helpful, and again it is important that employees are familiar with and able to relate to the organizational culture. Again, members of individualist societies should be encouraged to consider the needs of others more, while members of collectivist societies – to express their own needs more. If this is the chosen style for managing conflict, however, the trainings will require less time, because the employees will just need to understand the basic 33 cultural differences and to slightly moderate their communication patterns, not to adopt new behavior, like the collaborative approach requires. The competing approach is also applicable to some companies, namely organizations which value personal contribution more then teamwork. Such organizations usually encourage employees to compete with each other through personal bonuses and other methods (Cai and Fink, 2002). It is logical to state that a core value of such organizations would be individualism, and probably these companies would be looking to hire members of individualist societies in order to easily fit in the organization and relate to its culture. Therefore, such organizations are out of the range of this paper and will not be discussed further. The accommodating conflict management style encourages employees to suppress their opinions and needs, which automatically makes it not applicable in the Western world where the big international organizations are located, and therefore it is again not part of the subject. This style might be encountered in local organizations in highly collectivist societies. The last possible choice, the avoiding style would not be useful for any company anywhere in the world because it would encourage employees to be indifferent to their own and the others’ needs and consequently, indifferent to the work. 4.2.2. Applicability of the model: Thomas and Kilmann’s (1974) model has been criticized by many authors. Saphiro and Kulik (2004) argue that it is hardly applicable in today’s world because communication nowadays is not always face-to-face and sometimes disputes take days over the internet before they get resolved. In such situations, it is very difficult to engage in an open discussion and to understand clearly all the needs of your opponent, especially if there are unspoken needs to be considered. Another problem is that sometimes conflict between colleges can take place in open platforms, for example, in the intranet chat forums of the company, where there will be a lot of 34 interventions. In such cases, even with the best intentions and the best training, it will be very difficult for the two parties to understand clearly the needs and wants of one another (Browaeys and Price, 2008). Having this in mind, Saphiro and Kulik’s (2004) argument can be considered legitimate and it can be stated that the model is applicable when it comes to face-toface communication and conflicts that take place at the physical working context (Saphiro and Kulik’s, 2004 in(Browaeys and Price, 2008 )). The model has also been criticized by Leung et al. (2002), who claim that the concept of “harmony” and is missing in the model. The idea of preserving the harmony is very typical for some collectivist societies, such as the Mexican society, for example. Members of such cultures would avoid arguments because they will be afraid it will harm the harmony (Beamer and Varner, 2011). Leung et al. (2002) sees harmony as “concerned with the relationship between the self and others” (Leung et al., 2002 in (Browaeys and Price, 2008)) rather than “concern for others”. They claim that “concern for others” means to be concerned with the goals they want to reach during the dispute, while “concern for the relationship” would mean not engaging in the dispute at all, because it threatens the harmony (Browaeys and Price, 2008). If perceiving the idea of preserving the harmony as different from the concern for others, as Leung (2002) describes it, than the harmony is really missing from the model and the criticism could be accepted. The two concepts, however, are closely related and the same solutions, which were proposed earlier in the paper for encouraging employees with high-concern for others to express their needs and opinions, can be applied to employees concerned with preserving the harmony (Browaeys and Price, 2008). To summarize these solutions, the cross cultural managers should present the core values of the company to these employees in a specific way, by underlying how much the company appreciates each employee’s opinions and ideas and how important it is for the company the needs of all employees are met. 35 This is necessary because running away from conflict can under no means be considered constructive for the company. This is a completely different situation from the avoiding category, when there is low concern for self and for others, and hence low concern for the work outcomes. Here the employees run away from conflict because of their fear of damaging the harmony. The result, however, is the samethere is something wrong which cannot be fixed, because employees ignore it. As Posthuma (2012) argues, the unspoken conflict is still conflict which needs to be resolved (Posthuma, 2012). As mentioned above, the Thomas and Kilmann’s (1974) model has received a certain degree of criticism. In addition, it is quite simplistic, putting all people, or all cultures, into five categories. Another weak point would be that it does not discuss the role that emotions plays during conflict. The relationship between culture and emotions and the role of emotions in a situation of conflict will be discussed in the next chapter. Despite all the criticism and the weakness discussed above, it can be concluded that the model is useful for companies. It can serve as a general tool to determine the conflict management style they want to follow and to decide how to promote their basic organizational values to the employees with different cultural backgrounds. 4.3. The role of emotions in cross cultural conflict After discussing Thomas and Kilmann’s (1974) model, the paper will talk about the relationship between culture and emotions and how emotions influence behavior during conflict. After that another model of conflict management styles will be proposed, which is based on similar dimensions, as the model discussed in the previous chapter, but this time emotions are included in the model. 4.3.1. The influence of cultural values on emotions As Beamer and Varner (2011) argue, the degree to which an individual is likely to display emotions is very much dependant on the value system of the culture he/she 36 has been socialized in. Members of individualist cultures with independent selfconstrual usually show their emotions openly. They shout when they get angry which can happen even in the workplace. In collectivist societies this type of behavior is considered unacceptable, because people are concerned more with saving the face of their co-workers than with their own feelings (Varner and Beamer, 2011). Kumar (2004) claims that not only the degree to which people display emotions vary across cultures, but even the emotions themselves are different. He defines emotions as “high-intensity affective states that stem from the focal actors’ ability or inability to achieve their goals” (Kumar, 2004 in (Browaeys and Price, 2008)). He believes that the nature of the goals pursued by the different parties varies across cultures and if the two cultures are more distant, the differences in the nature of the goals and the means of communication to achieve that goal will cause negative emotions to both parties, which might lead to a conflict. Kumar (2004) distinguishes between “ego-focused” and “other-focused” emotions. He believes that “ego-focused” emotions are usually experienced by members of individualist cultures. These are emotions such as anger, frustration, pride and guilt and they are usually caused by fulfillment or non-fulfillment of individual goals and “reflect the need of the individual to show their particular identity” (Kumar, 2004). “Others-focused” emotions, according to Kumar (2004), are emotions such as shame, anxiety and fear, and they are experienced by members of collectivist societies. He argues that these emotions are related to the ability or inability “to promote the interdependent self, to show oneself as belonging to the social context, and they reflect the need to fit in” (Kumar, 2004). Kumar (2004) believes that there are differences between the outcomes of these emotions as well. He claims that “ego-focused” emotions can cause people to try harder to reach their goals, while “others-focused emotions” can motivate them to work harder to fix the relationship. Therefore, in a situation of conflict, the members of the individualist societies may put more pressure on their opponent in order to reach all of the desired outcomes, while the members of collectivist societies might 37 give up or reduce some of their wants in order to recover the relationship (Browaeys and Price, 2008). 4.3.2. Ting-Toomey and Oetzel’s (2002) model Many authors, such as Nicotera (1993) and Ting-Toomey and Oetzel (2000) come to the conclusion that since emotions play such an important role during conflict, they need to be included in the model. Therefore Ting-Toomey and Oetzel (2000) design an eight style conflict grid, which is in a way, an improved version of Thomas and Kilmann’s (1974) model (Browaeys and Price, 2008). It is shown in figure 4. Figure 4: Ting-Toomey and Oetzel (2002) It can be seen that the model includes the five conflict styles, introduced earlier, but some of the names are changed. In addition, there are three more styles - emotional expression, neglect and third party help. The emotional expression is placed in the top left side of the model, because, as stated earlier, only members of individualist cultures are likely to display emotions in public. This is not considered a productive way of resolving cross cultural conflict, because 38 members of collectivist societies might feel offended, threatened or the least confused by emotional outbursts (Browaeys and Price, 2008). The cross cultural managers should try to reduce emotional outbursts by explaining to the employees that this behavior is against the policy of the company. The second addition, the neglect, or the passive aggression, refers to situations when individuals give up and leave the conflict unresolved. This could be very harmful for the organization because it will affect the results of the work, which the employees in conflict have to do together. This behavior is again caused by emotions. It is typical for people who are concerned equally for themselves and for others. It occurs when individuals experience inability to achieve their goals and notice unwillingness for a compromise by the other party (Browaeys and Price, 2008). Of course, the company should try to avoid such situations, but when it happens, probably the best solution would be the last addition to the model – the third party help. It involves the use of an outsider, who is acceptable to both parties, to act as a mediator. The third-party help is considered a concern both for self and for others (Browaeys and Price, 2008). This conflict management style is definitely effective and in most cases results is successful conflict resolution. The problem, however, is that if companies adopt this style and turn it into a common practice, then the freedom of the employees to choose their own way of managing tasks, problems, conflicts etc. is limited. This goes against the value of diversity and the appreciation of the contribution employees bring from their own cultures. Therefore, managers should choose to put this style into practice only in situations when they see no alternative. Considering the models discussed in this chapter and the different conflict resolution styles they are related to, it can be concluded that, although there are some styles which cannot work in any firm, there is no ultimately best solution, which can be applied in everywhere. The different organizations have different cultures, different visions and different goals for the future, and based on that, they are free the chose the conflict management style that would suit their company best. 39 What is important is that they have a clear understanding of their organizational culture and they act upon the core values they promote to the employees. If this is so, then the choice of conflict management style and the proper way to execute it should not be an unattainable goal. And finally, as stated earlier, for an international organization with a multi-cultural working environment, “diversity, teamwork and employee satisfaction” should probably be among the core values, and if this is so, the collaborative approach can be considered a very good solution. 5. Conclusion The paper discussed the main paradigms and perspectives to cross cultural management, described by Sackman et al.’s (2009) and Fonatain’s (2007) and the basic theories, related to them. By evaluating them, the thesis aimed to find out the set of approaches which would serve most effectively international organizations, which work with employees from different cultural backgrounds. Later on, the thesis described and evaluated two models dealing with the different styles for managing cross-cultural conflict. Considering all the different theories reviewed, it can be concluded that cultural differences are an important source of knowledge for an organization, if the cross cultural management is executed in a sound way. In today’s globalized world, international organizations often have employees from different ethnic backgrounds, and it is a necessity for them to find a way to operate effectively in a multi-cultural working environment and to take advantage of all the different types of knowledge, which employees possess, including the culture. 40 Summary The paper is developed around the idea that in today’s globalized world there are many international organizations which have employees coming from different cultural backgrounds. It aims to help identify solutions for effective cross cultural management, which in the framework of this thesis, is understood as turning cultural differences in the benefit of the organization. The other aim is to find out effectives ways for managing cross-cultural conflict in the company. The paper reviews Sackman et al.’s (2009) work, who approach the field of cross cultural management from the theoretical framework of organizational studies. They develop four paradigms, which are based on two dimensions: the subjective-objective dimension, which distinguishes between the belief that society is socially constructed and the conviction that social world is objectively given; and the society of radical change and society of regulation dimension, which deals with weather there are better societies, or the Western capitalist society is the best possible one (Sackman et al., 2009). Sackman et al.’s (2009) also describes three main streams of research I the field of cross cultural management, which are also discussed in the paper. Further on, the thesis takes a look at Fontaine et al.’s (2007) work, who introduces six different perspectives to cross cultural management. Only five of them are discussed in the paper. The last one is not considered relevant for the purpose of the paper. The five perspectives are the classical approach, which deals with comparing cultures on the basis on Hofstede’s dimension; the anthropological approach which deals with studying small cultural groups and subgroups; the two psychological approaches, which focus on reducing cultural differences, and reducing stereotypes respectively; and the knowledge management approach, which views culture as a source of unique knowledge (Fontaine, 2007). The last chapter is dedicated to conflict management and describes and evaluates two models of conflict management styles – Thomas and Kilmann’s (1974) model, which offers five conflict management styles (competition, collaboration, compromising, accommodating and avoiding); and the Ting-Toomey and Oetzel’s (2002) model, 41 which is a moderated version of the previous model, and includes three new styles – emotional expression, neglect and third-party help (Browaeys and Price, 2008). The paper aims to prove that with effective management cross cultural conflicts can be minimized and cultural differences can be transformed into a huge resource for the organization. 42 Bibliography Axel, D. (2008). The political economy of international organizations. The review of international organizations, 3(4), 331-334. Beamer, L. & Varner, I. (2011). Intercultural Communication in the Global Workplace. McGraw-Hill (5th ed.). Brawaeys, M and Price, R. (2008). Understanding cross-cultural management (1st ed.). Prentice Hall: New Jersey Bush, D. (2011). Cultural theory and conflict management in organization: How does theory shape our understanding of culture in practice? International Journal of Cross Cultural Management, 12(1), 9-24. Cai and Fing (2002). Conflict style differences between individualists and collectivists. Communication Monographs,69(1), 67-87. Fontaine, R. (2007). Cross cultural management: Six perspectives. Cross Cultural Management: An International Journal, 14(2), 125-135. Frongilo, E., Sobal, J. and Soo-Kyung, L. (2003). Comparison of models of acculturation : The case of Korean Americans. Journal of cross-cultural psychology, 34(3), 282-296. Georgas, J. (1989). Changing family values in Greece: From collectivist to individualist. Journal of cross-cultural psychology, 20(1), 80-91. Holden, N & Sønderberg, A. (2002). Rethinking cross cultural management in a globalized business world. International Journal of Cross Cultural Management, 2(1), 103-121. Jing, 2010 Kirkman, B. (2006). A quarter century of "culture's consequences": A review of empirical research incorporating Hofstede's cultural values framework. Journal of international business, 27(3), 285-320. Kumar, E. (2004). The handbook of negotiations and culture, Stanford University press: Stanford. Kumar, R. and Sinha, J. (2004). Methodology for understanding Indian culture. Copenhagen journal of Asian studies,19, 98-104 Neuliep, J. (2012). The necessity of intercultural communication. Intercultural communication: a contextual approach. Sage publications. 43 Peterson, M. (2007). The heritage of cross cultural management: Implications for the Hofstede chair in cultural diversity. International journal of cross cultural management, 7(3), 359-377. Posthuma, R. (2012). Conflict management and emotions. International journal of conflict management, 23(1), 4-5. Primecz, H., Romani, L. & Sackmann, A. (2009). Cross-cultural management research: Contribution from various paradigms. International Journal of Cross Cultural Management, 9(3), 267-274. Philips, M. and Sackmann, S. (2004) Contextual influences of culture research: Shifting assumptions for new workplace realities. International journal of cross cultural management, 4(3), 370-390. Staber, U. (2006) Social capital processes in cross cultural management. Journal of cross cultural management, 6(2), 289-203. 44