Melissa Adams
OLEAD 410, 001, FA17
Cultural Synergy
Cultural Synergy was coined by Nancy Alder in 1980 when she wrote an article for Trends and Issues in OD: Current Theory and Practice. (1. Alder) She starts the paper with a copy of a memo to North American Executives in Saudia Arabia. (2. Anonymous) The person writing the memo was upset about “nonchalant” behaviour. However, saudi Arabia is not the United States; creating an atmosphere for a global policy is not as clear. Companies trying to take their successful business model from one country to another often find this is not a clear and streamlined process.
I have also worked on a Middle Eastern project, the first thoughts that came to mind was when the project wanted the United States retailers to create a shopping center that had minimal households in the area. US retailers have precise formulas that include housing, population, wages and access to products. In the Middle East and other place people travel to where they shop at top retailers. This is not a concept that can be mimicked for other locations outside the US.
There are many cross-cultural management systems that have to be considered some include parochial, assimilation, ethnocentric, polycentric, comparative, geocentric, and synergistic. Theories are only as good as the information on the area relates; there is amnay assumptions as to the similarity and difference of a culture. Weick in 1976, wrote that to enact new forms of management, the companies have to transcend the individual culture of their members. (3.Weick, 1976) Cultural Synergy has to be aware of the members differences and similarities and use them as a resource to grow the team. with proper research to uncover the true possibilities.
Pondy and Mitroff, stated in a 1979 article that business are ” static framework and empirical systems; which is still true today. (4. Pondy and Mittroff, 1979) They believed in 1979 that on a scale of 1-9 that most companies only understood Cultural diversity between 1-3. In an article in the Economic Times from this year there is little change; yet there is a foreseeable future want to change. “When the people strategy is aligned to overall business strategy, it helps build sustainable and scalable business. This coupled with a digitised work environment will help business achieve efficiency and enhanced customer experience and engagement.” (5. Bhattacharyya 2017) With more businesses reaching globally for financial backing. The article quotes, Avendus Capital CEO Ranu Vohra, “We wanted to take on board someone to head our HR function, someone who had the experience of growing and nurturing businesses, someone who could spot and groom talent, someone who could create a cultural synergy across our businesses.” (6. Bhattacharyya 2017)
Reference
Adler, Nancy. (1980). Cultural synergy: The management of cross-cultural organizations. page 163 – 184
Weick, K.E. Enactment in Organization. In B.M. Staw & G.R. Salincik (eds) New Directions in Orgaizational Behavior. Chicago: St. Clair Press, 1976
Pondy, L.R. & Mitroff, I.I. Beyond Open Systems Model of Organizations. In B.M. Staw (ed) Research in Organizational behaviours, Greenwich Conn. JAI Press, 1979 Pg 3-39
Bhattacharyya, Rica & Shah, Snesha. “Pay of HR Heads Rises as Finance Sector Expands.” The Economic Times, 9 Sept. 2017, economictimes.indiatimes.com/jobs/pay-of-hr-heads-rises-as-finance-sector-expands/articleshow/60739654.cms.
I think most people that are not in the sales world (ME) just assume that a business model will work in any country, but with out knowing the cultural needs and differences, those models will fail. These plans need to be polished for every country or region that business will be conducted in. Those companies trying to expand will succeed if they bring in a diverse group of people that can create a cultural synergy and develop a plan for those different areas.
Thanks for sharing your personal experiences.
Mickey McCormick
Hello Melissa,
It was really interesting to read about cultural synergy. I especially enjoyed reading the notes about your business dealings within Saudi Arabia. Shopping in different countries or cultures is always fascinating for me. In China, for instance, they purchase American goods because they perceive them as status symbols (Thompson, 2015). In Saudi Arabia as you mentioned, customers do not mind travelling to shop because they make it a special event. Companies are now shifting to less structured models. Mainly fueled by technology advances in telecommunications, such as the internet and smart phones, companies are now transcending borders. I ordered something off of Amazon, for instance, that is getting shipped out of someone’s house in China. Although the product will take about a month to reach my house, it is still substantially cheaper than local retailers. I am also pretty sure that this is a home operated business that is competing with a global market. Established companies will be wise to wield these new technologies in their favor.
References
Thompson, M. (2011). Chinese hedonic values and the chinese classical virtues: Managing the
tension. The Journal of Management Development, 30(7), 709-723.