Analysis Of The Socio Cultural Implications For Managersn - Samples

Question: Discuss about the Analysis Of The Socio Cultural Implications For Managers. Answer: Introduction Globalisation has resulted in improved communication and transportation. Businesses are focused on expanding globally with the exciting new opportunities for growth and profit. However, there are several challenges and issues associated with sociocultural factors. The cultural difference between the nations can interfere with the global business community (Homann, Koslowski Luetge 2007). It has been evident that the managers in the current global business community have come across cultural differences that can create an impact on the competition of the project. The government of Australia has strengthened the relationship with India for busies expansion. The Indian market has a suitable competitive advantage (Willcocks 2016). The operation of Australian business in India has become quite easy for some common grounds such as a member of language, member of Commonwealth and crickets. These social factors have developed a long-term relationship between India and Australia leading to t rade and investment. Several businesses from Australia are successful in India. Strategic location, rapidly growing consumer market, skilled workforce, and well-developed financial and vibrant capital market has attracted the business from Australia to expand in India. BHP Billiton is one such Australian company that expanded in India. BHP Billiton is a multi-national mining, metal and petroleum listed dual public company. Founded in the year 1885, the company has grown enormously and presently and in terms of market value, it is the largest mining company in the world. The commodities produced by BHP Billiton are iron ore, coal, copper, uranium and metallurgical coal. Presently, the company has 65,000 employees and contractors. The business focuses on the health and the safety of the individuals and ensures on creating an environment that would cure fatalities, injuries and occupational illness(Billiton.com 2017). Considering the progressive development in India, BHP Billiton expanded in India and is presently focused on strengthening its position in India. The sustainable economic growth is unlocked by the productivity gains in the advanced economy. The high transformative growth in India is attained through reform transform in India. BHP Billiton has been successful in India only because the managers have been able to manage the socio-cultural implication on the business. It is a noteworthy fact that the India and Australia have huge socio-cultural difference in terms language, culture, religion, lifestyle and history. While expanding the business, the senior managers are bound to encounter challenges (Bhattacharyya Cummings 2014). The whole societal trend has been accepting the diversity and valuing it and this is creating significant impact. This encourages the leaders of the company to behave in a more enthused manner and address the diversity issues (Sinclair Wilson 2000). Valuing diversity is essential for business and BHP Billiton ensure respect by embracing openness, teamwork, diversity and relationship that are mutually beneficial. The senior managers are responsible for managing the sociocultural implications so that business projects are successful. This aspect has been analysed in this report. The present report analyses the importance of managing the socio-cultural implication for attaining success in business. The report would shed light on the ways in BHP Billiton has managed the socio cultural implication. The cross-cultural theory of Geert Hofstede is evaluated in this report for further understanding and analysis of the issues related to diversity. Implication of Cultural Values in Work Place Culture Culture refers to the ways in which an individual perceives the man-made part of one's environment. Culture functions in different ways. It is based on a culture that an individual behaves in a different situation and at the same time interpret the behaviour of others. The decision-making process in the business is often influenced by the culture. The decision-making approach of the business can hinder the strategic planning as well as the operation of the business. While carrying out overseas business, it is essential to evaluate the culture of different countries so that the employees and the customers can be kept satisfied. Australian culture is highly individualistic (McFarlane Kennedy 2006). (Aycan et al. 2000) put forward two socio-cultural dimensions which are called paternalism and fatalism. In paternalism, the superior always provide guidance and protection to the subordinate while the role of the subordinate is to remain loyal and deferential to the superior. Fatalism focuses on the fact that it is not always possible to control someone and fulfilling long-term plans. However, in business to keep the employees satisfied as well as attract the customers, it becomes necessary for the managers to guide the juniors and does not always control them. Addressing the cultural difference between the different nations is essential to keep the culture of the business intact across the borders. Culture in India is based on relationship. The managers of BHP Billiton have understood that fact being decisive does not work for the Indian employees as compared to Australia where decisions are taken much quickly (Chang, 2017). Considering the socio-cultural implications, the managers of the business organization needs to know cultural issues that affect the motivation of the employees at work thereby creating an impact on the productivity and the performance. India and Australia are distinctly different but the understanding of the culture by the business organization has led to the increase in trade between the two countries. Moreover, the removal of the ban on the sales of uranium in India and the visit of the Indian Prime Minister in Australia has boosted the relationship of trade between both the countries. This has further enabled BHP Billiton to strengthen its position in India (Mathew 2013). Social-Cultural Evaluation through Hofstedes Model The last few years have seen quite significant increase business between India and Australia. The medium, as well as the large enterprises, are taking up opportunities in the new globalization that help in making collaboration between the smallest of firms possible in any part of the globe (Hebbani 2008). The progressive development in India followed by material opportunities has drawn the attention of BHP Billiton in India. However, while carrying out its business, the managers of the organization are affected by the socio-cultural factors, as they are completely different from that of India. For examining the cultural difference between India and Australia and its impact on the business of BHP Billiton and the managers of the organizations are taken into consideration. BHP Billiton leaders engage in the full, frank and robust interchange of what can be very different views, opinions and perspectives. The five dimensions of Hofstede would help to reveal the cultural difference between India and Australia as shown below: Power Distance: This aspect deals with the equality of the power among the individuals. In India, the power distance has raking of 77, which is higher as compared to the world average of 56.5. This shows a high level of inequality of power and wealth in society. Australia's score is 36. Hence, organizations in Australia have a different hierarchy for convenience and good communication between the employees and managers as is seen in the case of BHP Billiton(Juhasz 2014). Long-term Orientation: This shows the links of the society with its own past while dealing with the challenges of the present and the future. Indias raking in this aspect is 61 while the average of the world is 48. This shows that India is preservative and parsimonious. While the score of Australia is, 21, which shows that it, have normative culture. Australians are also exhibited great respect for their culture(Geert-hofstede.com. 2017). Masculinity: This highlights the extent to which the society is driven by success and achievement. The masculinity rank of India is 56, which is third highest in the world, and it shows a competitive and assertive society and the higher gap between men and women. Australias rank is 61 that shows that behaviour in work is based on shared values and considerable success, and achievements to be quite important (Young Thyil 2014). Uncertainty Avoidance: India has a lower rank in this aspect as it has 40th position while the world average is 65. This shows that the culture is more open to unstructured ideas and situations. Australia scores 51 positions in uncertainty avoidance. Considering this difference, BHP Billiton has organized two Corporate Community Leadership Program helping the Indian employees to gain practical experience in complex social and environmental issues(Hofstede 2010). Individualism: This aspect reveals the degree of interdependence between the members in the society. Indias individual rank is 48, which is quite lower as compared to that of Australia, which is 90. There are limited standards for rewarding the employees and decisive working is not applicable in India. Development of relationship is essential in India for carrying out business (Tripathi Cervone 2008). It is for this reason BHP Billiton has developed Community Leadership Program in India for understanding the practical and theoretical of Oxfam CAAs approach to development. Corresponding Challenges for Managers of BHP Billiton in India Mining companies like those that BHP Billiton has focused on principles of participative development for making the Indian employees work efficiently, also influence, and share control, decisions and resources. Apart from the employees, BHP Billiton has also focused on fulfilling its social responsibility to create goodwill in the market and attract the customers based on their good purpose. For helping the environment to develop, the managers provide reports about their activities for developing mutual respect and trust. However, the issues, which are encountered by the managers of BHP Billiton because of socio-cultural implications, are listed below: Often the managers of BHP Billiton has encountered issues related to relinquishing control over the employees as their conventional orientation for operation and project control. Fundamentalism often plays an important role in the business of India as the majority of the people of India have strictly adhered to theological doctrines (Sharma Singh 2015). The concept of power to the people' may create an impact on the power structure as India has an instrumentalist view of power. Bureaucratic structure creates an obstruction in the participation of the employees. Hence, BHP Billiton requires humanistic approach for participatory development within the company. BHP Billiton is an Australian company that focuses on the professional relationship with the employees and expects the professionals and the experts to be respected, as they are able to undertake the right decision for the employees and the organization. Being decisive does not work for the Indian employees as compared to Australia where decisions are taken much quickly. In India, the managers need to develop a strong relationship not only with the employees but also with the community people and the customers for further development (BHP Billiton 2015). BHP Billiton focused on making a long-term investment in people. They are more concerned about seeing the outside result and made a little investment in people. However, to strengthen their position in India, the company focused on making an investment in the people for gaining the competitive advantage in the market. Another social issue, which was encountered by BHP Billiton, is the difficulty in showing sensitiveness for the local context. Initially, the company does not have enough knowledge about the local people, processes, relationship and traditional domain of India that the business has to adapt to for carrying out its exploration and excavations within the country (Business-humanrights.org. 2017) Implication of the issues on the managers The socio-cultural differences between India and Australia have potentially affected the current and the future business interaction between India and Australia. Managers from the individualist culture are much more concerned with their own performance as compared to that interpersonal relationship. This reduces the loyalty of the Indian employees as well as that of the customers towards the organization (Bohlander Snell 2006). To generate high commitment and responsibility on the part of the employees, BHP Billiton has to focus on creating different types of loyalty program not only for the employees but also for the community as a whole. The managers in the BHP encountered issues related to the cross-cultural competency of the workers for recognizing the cultural differences. Moreover, India has Vertical Collectivism as the people accept ranking and inequality while Australia has Horizontal Individualism where people are regarded to be similar based on certain attributes and status. Communication was a major issue for the managers within the organization due to the culture and the language differences (Hebbani 2008). The managers also encountered issues related to diversity managers that affected the performance of the employees. The organization needed to obtain knowledge and skills and develop cultural competence. The conflict was major issues between the cross-cultural employees in BHP Billiton, which affected the performance of the organization. The managers of the organization needed to ensure that the business in India is able to perform their task effectively. BHP Billiton has to ensure that the organization f ocuses on social well-being and minimize the environmental impact to strengthen its business within the country (BHP Billiton 2013). Addressing the Socio-Cultural Implications The socio-cultural differences between India and Australia have created major implication on the managers of BHP Billiton. However, Billiton has been successful in strengthening its position in the country has this has been done through the formulation and the application of the effective strategies. BHP Billiton realised that communication is the key to gain success in any business. Overcoming the language barriers became quite essential for the Billiton. This requires proper training of the existing as well as the newly recruited employees of the organization. Proper communication also requires understanding the needs of the employees and allowing them to put forward their views, complaints and grievances (Vanclay et al. 2015). BHP Billiton also focused on Group Dynamics that led to the understanding of Indian culture and their interaction in Group. The above analysis has made it made it evident inequality is quite common in India. However, BHP Billiton has created good will in the market by creating a hierarchical organization where the employees in India can easily communicate with the managers and can participate in the decision-making process. In collectivist culture country like India, decisions are undertaken significantly influenced by the group. Hence, BHP Billiton made strategies that only highlighted the needs of the employees but of the entire community(Oracle.com. 2017). For addressing the socio-cultural implications, BHP Billiton has made policy commitment for the development of the community. This policy is applicable not only in India but in all the places where BHP has expanded. The three key policy document of this organization include BHP Billiton Charter, Health, and Safety, Environment and Community Policy and Guidelines on Community Development. BHP has increased its focus on transparency, learning orientation local consideration and self-reliance to address the socio-cultural implications (BHP Billiton 2011). Development of Corporate Community Leadership Program (CCLP) has helped in making payments to the members of the public direct exposure understand the cultural and social aspects of development within the country(Billiton.com 2017). The pilot CCLP projects have helped the employees to gain practical experience in social and environmental issues in India. CCLP was an exposure program to create awareness about the social issues. BHP Bill iton relied on the local knowledge of India for accessing the local people and organization for the field exposure. The CCLP has resulted in a positive outcome in terms of participant learning as well as relationship building that helped the organization to establish its position within India. Conclusion The present study explored the different socio-cultural factors that affect the business across borders. The study has been carried out in the light of India and Australia. BHP Billiton, an Australian mining company, has successfully established its business in India. However, the business has undergone impact on several social and cultural factors as both the country are distinctly different from each other. Valuing diversity is essential for business and BHP Billiton ensure respect by embracing openness, teamwork, diversity and relationship that are mutually beneficial. Addressing the cultural difference between the different nations are essential to keep the culture of the business intact across the borders. Hofstedes cultural dimensions revealed the differences in culture and religion that affected the business of the organization. India is collectivist country while Australia is individualistic. This has created major differences in terms of work culture and expectation of the employees as well as that of the community people. The progressive development in India followed by material opportunities has drawn the attention of BHP Billiton in India. The leaders in BHP Billiton have focused on a complete frank and robust interchange of what can be very different views, opinions and perspectives. 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