Cross cultural leadership provides assistance in understanding ways by means of which leaders carries out their day to day routine set of activities in globalized market. In the recent times, it has been observed that global organization requires leaders who can easily adjust in ever changing different environment conditions without posing any difficulty. Here, in this present report cross cultural leadership of Addvit plc
Business enterprise manufactures as well as distributes energy drinks in the market of UK for those people who want a healthy lifestyle. Some of its regular customers are sportsmen, women and those who attend gym on regular basis. The study will laid focus on appointment of manager for looking after the work in new areas. In addition to this, factors that need to be considered while deciding on a person in terms of competencies, skills and knowledge. The statement will be followed by cultural issues along with style of leadership that can be adopted for the same.
Factors need to be taken into account on deciding on manager for new site
Addvit plc has gained huge amount of success in recent years as it products become quite popular with people as a result to which its sales have increased drastically in the last five years. Followed by this success in domestic market, its Board of Directors has decided to expand its business in international market especially in North America and in certain countries of South America such as Brazil. This is due to the fact that market of North America is comparatively more lucrative for such kind of products and in Brazil younger generation gives great importance of boy image exists (Moran, Harris and Moran, 2011). They can make best possible use of this image and can enhance their productivity and profitability ratio within few years. In order to start business in new site, it is significant for organization to appoint a manager or leader who can look after overall functioning and at the same time can ensure smooth flow of entire course of action at new market place.
For this, company can relocate its current Addvit manager to take over leadership of each new site because of some of the factors which are enumerated as under:
Training and development
In case if it relocates its manager during initial stage, then no training need to be provided to him, as he already poses adequate knowledge regarding policies and procedures of organization. In the similar manner have better understanding in terms of attainment of organizational aims and objectives within stipulated period of time with utmost effectiveness and efficiency.
Relocated manager will have appropriate and much required experience with the help of which he will be able to provide direction as well as guidance to employees and lead them in much better way. This will prove beneficial in better commencement of work which will lead to improved coordination in regular set of activities.
Better knowledge and understanding
Relocating of manager will prove to be of great use as he has superior knowledge as well as understanding regarding entire course of action along with mission and vision of Addvit plc and ways for attending it. In addition to this, he can easily carry out work without posing any difficulty and at the same time provide adequate guidance to his subordinates.
Existing manager will be reliable source and business enterprise such as Addvit plc can trust him and provide him more important information and power to handle work. Confidentiality of important data as well as information can be maintained which is quite doubtful in case of appointing a new manager as generating trust in such a short span of time is a quite difficult task.
Cost effective method
It is regarded as cost effective method as by means of internal source they will relocate manager. This will save considerable amount of cost of Addvit plc which can be incurred on providing training and development, recruitment and selection, sharing of knowledge and series of such type of activities in the long run.
Considerable amount of time of company can be saved on activities such as induction of employees right from starting, making them understand goals and objectives, vision and mission statement of firm and so on. This saved time can be further invested by Addvit plc in range of research and development activities as a result to which they can carry out new improvements and experiments in their existing line of products of health drink as per taste and preference of customers of new as well as existing market place (Bucic, Robinson and Ramburuth, 2010).
Optimum utilization of resources
By relocating existing Addvit manager to new site, business enterprise will be able to make optimum utilization of resources such as time, finance, human resource, technical and so on effectively and efficiently. This is due to the fact that it is a well known fact that resources are quite scarce in nature and by using them efficiently will deliver desired outcomes for organization as well as community.
Sound and two way communication plays a very crucial role in success of any organization especially at new market place and same applies in the case of Addvit plc. It can be foster well with existing manager, as he will openly communicate problems and suggest ways for improving the same
Factors need to be considered while deciding on type of individual to be appointed as manager of new sites
In order to carry out work with utmost effectiveness along with fluency at new site of North America and South America, it is very significant on the part of administration of Addvit plc to appoint well versed manager or leader there so that entire course of action can be carried out smoothly. For this, there are ranges of factors that need to taken into account while deciding on appointment of a new manager. In regard to this, it can be bifurcated in terms of three segments in terms of experience, skills and competencies (Jones and et.al., 2014). Some of them are mentioned as under:
It comprises of knowledge or skills which can be gained by means of adequate involvement or exposure while carrying out any set of activities. For appointing a manager to a completely new site, business enterprise such as Advitt plc need to appoint a manager with an experience of approximately 5 years to handle team and related activities so that he can grip work at completely new place without posing any type problem or difficulty (Northouse, 2012). In addition to this, he needs to have good educational background and knowledge of company’s goals and objectives and time period of attaining it. This will prove beneficial in sound working of entire course of action. Likewise, individual must be experienced enough to solve queries of customers as well as employees related to work and products and services so that they can feel satisfied and brand image can be established at completely new location. In case of Addvit plc, manager needs to have physical as well as mental experience for the purpose of establishing business at new market place. This is because of the reason that with the help of physical experience can easily adapt continuous changing business environment and deal with them easily. On the other hand, mental experience will prove beneficial in his though process, imagination and in innovation and creativity.
They are the learned ability which are going to be possessed by manager of Addvit plc while performing duty at new site are enumerated as under:
Problem solving skills
Manager must be competent enough to solve work based problems along with personal problems of employees while undertaking his set of duties so that desired outcomes can be attained. In addition to this, better commencement of work can be undertaken within stipulated period of time.
These are yet another set of skills which are quite essential for manager of business enterprise, as by means of this he can communicate issues and nature of work taking place at new locations. This capability proves beneficial in especially establishing business in new place so that matter concerning them can be solved and communicated easily (Casimir and Ng, 2010).
It is one of the most important skills, as through this manager of Addvit plc can lead and direct employees into right direction as a result to which goals and objectives of organization can be achieved in set framework of time. In the similar manner, he will be able to motivate and inspire staff members to perform well and at the same time adequate delegation of duties and responsibilities will take place.
Grievance handling skills
While entering into new market, business enterprise such as Addvit plc will surely face number of difficulties during initial period of years. So it would be beneficial to appoint a manager who can handle conflicts as well as grievance at their starting only so that sound working environment can be created. This will develop better and cordial work relationships among employees and management.
In order to sell their energy drink to new customer base adequate demonstration is needed; it can be delivered by manager as he is quite familiar with it. So he needs to have good presentation skills for the purpose of drawing attention of large number of customers and to generate knowledge among employees as well (Mastrangelo, Eddy and Lorenzet, 2004).
It is an overall ability of a person by means of which job can be carried out effectively as it provides structured guidance. There exists variety of competencies which definitely need to be possessed by manager of Addvit plc so that huge amount of profit can be generated at new work location, some of them are enumerated as under:
Manager needs to be competent enough to keep pace with changes and can make possible modifications as and when required for the betterment of business at entirely new location. They should not resist to changes and constantly strive for new ways for meeting expectations of clients by providing them maximum satisfaction (Komives and Wagner, 2012).
It is necessary for manager to effectively carry out its functioning as team leaders and team members, for this he will be required strong team management skills. This will prove advantageous in enhancing productivity as well as profitability ratio of business at international market within short span of time.
Focus on career development needs of employees
At new place, it is quite difficult to retain staff for longer period of time. In order to maintain loyalty of staff towards organization, Addvit plc can focus on providing ample opportunities for employees for their further growth and development (Goyal, 2012).
Understand multigenerational workforce trends
Addvit plc appoint a manager at their new locations who can strike a balance between employees of different generations along with this understand their needs and adapt accordingly. By doing so, they will be able to balance work and expected results can be attained in set framework of time.
Provides performance feedback
For the purpose of providing assistance to existing workforce and developing their full potential they need to present continuous feedbacks whether negative or positive on their performance which will motivate underperforming and high performing employees to do better. With the help of this existing level of performance can be enhanced and chances of repetition of mistakes lowers down in future (Bucic, Robinson and Ramburuth, 2010).
Cultural issues need to be considered when identifying style of leadership which must be adopted by new manager
There exist various styles of leadership which can be adopted by manager of Addvit plc at new location. But prior to doing so, they need to consider cultural issues associated with it for generation of desired outcomes. It has been observed that there are three basic leadership styles which can be used by managers such as autocratic, democratic and laissez-fair (Culturally-linked Leadership Styles, 2010).
Cultural issues associated while adopting autocratic style of leadership
Autocratic leader are the one who keep strict check over followers by keeping strict check on their performance. With the help of this managers of Addvit plc can create professional relationship at new market place with its subordinates and takes decision on basis of activities taking place. By doing so they will entirely focus on efficiency and strict rules and regulations will be followed at place of work. By adopting this they will not consult their subordinates before undertaking any course of action.
In case if this managers of Addvit plc adopt this leadership style than in that scenario there are various cultural issues which can be faced by newly appointed manager such as:
Resistance among employees
Cultural difference will create resistance among employees appointed at new location. This is due to the fact that they will not like the fact that they are being controlled by the one who is dissimilar to them and does not has anything in common. Due to this they will resist any changes or decision made by new manager (Svensson and Wood, 2007).
Lack of motivation
It is yet another difference which will be faced by manager while carrying out authoritarian style of leadership. This is because of reason that first of all cultural background of manager is entirely dissimilar and top of that he is not considering their views, suggestions as well as opinions while carrying out functioning. This will create discontentment in the minds of workforce as a result to which attainment of goals and objectives will become quite complicated task.
Cultural issues associated while adopting democratic style of leadership
This is also known as participative style as leaders in this takes decision after consulting existing workforce so that better options can be generated. By means of this executives can encourage creativity and innovation in their energy drinks as a result to which adequate amount of job satisfaction can be created among employees. This is one of the most effective styles which can be adopted by administration of Addvit plc at new site (Komives and Wagner, 2012). Some of cultural differences while adopting this style are enumerated as under:
Problem in offering solutions
Due to diverse culture, language and lifestyle pattern which can create dilemma in offering solutions as well as suggestions in decision making process. Their level of understanding is quite different than newly relocated manager due to disparity in culture (Jones and et.al., 2014).
In some culture of North and South America participation of employees are not considered as positive point as their duty is to only look after operational work. While in UK participation is mandatory as it gives them sense of belongingness towards business enterprise (Derr, Roussillion and Bournois, 2002).
Cultural issues associated while adopting laissez-faire style of leadership
This leadership style is concerned with freedom which is being provided to team members by managers so that they can gain knowledge regarding managing their work. Support and guidance is provided as and when required otherwise leaders do not get involved in this. It has been observed that working culture of North America and South America is quite different from that prevailing in UK (Northouse, 2012). Due to this number of problems has been created while adopting this particular set of style as in UK employees prefers freedom to carry out their work and ask for guidance in case if it is needed. But scenario is quite different in some of part of North and South America. Their participation of leaders is much needed and in case if it does not happen so that it is considered as incompetency on the side of manager. So, new manager of Addvit plc have to keep this point of cultural difference in mind while practicing this leadership style (Goyal, 2012).
In order to overcome such kind of such kind of differences, it is highly recommended for manager to gain adequate knowledge as well as understanding about cultures prevailing at North and South America so that he can easily handle workforce by avoiding discontentment in their minds. Along with this, Addvit plc must send that manager for a short trip of those locations so that he can gather information which can prove beneficial while carrying out his set of duties diligently and effectively. By means of this he will get an idea about their culture, background, language and so on and according to that he can make preparations for dealing.
By summing up facts and findings from the above mentioned report, it can be rightly articulated that cross cultural leadership proves to be of great use and provides satisfactory results at the time when business enterprise such as Addvit plc plans to enter into international market place. For this, their first and foremost responsibility is to appoint a manager by relocating current executive or appointing a new one and to carry out this there are ranges of factors which need to be considered by them. In addition to this, for successful commencement of work and attainment of aims and objectives of Addvit plc within stipulated period of time they it is essential to take into account various aspects in terms of experience, skills along with competencies. In the similar manner, while moving to a new place it is evident that various cultural difference will be faced by manager while operating. So it is necessary on his part to consider them as well at the time identifying most suited style of leadership for governing employees at new market place.
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