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A study on cross-cultural management between the UK and Bangladesh

How do the geographical and cultural diversities of the UK and Bangladesh contribute to differences in organizational leadership and management styles?

Exploring Cross-Cultural Management Dynamics between the UK and Bangladesh

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Cross-cultural management has become increasingly imperative in today’s globalized world, where businesses operate across borders, engaging with diverse cultures, norms, and practices. Understanding the intricacies of managing across cultures is crucial for effective collaboration, communication, and business success. In this study, we delve into the cross-cultural management dynamics between the United Kingdom (UK) and Bangladesh, two countries with distinct cultural backgrounds, yet interconnected through trade, investment, and multinational operations.

Title: A study on cross-cultural management between the UK and Bangladesh

The UK, with its rich history, diverse society, and established business environment, contrasts with Bangladesh, a South Asian nation steeped in tradition, rapid economic growth, and its own unique cultural landscape. Despite their differences, both countries share commonalities in their aspirations for economic development and international partnerships. However, navigating the complexities of cultural differences is paramount for organizations seeking to establish and sustain successful business relationships between these two nations.

In this study, we aim to examine the key cultural dimensions, communication styles, leadership approaches, and negotiation tactics that shape cross-cultural management between the UK and Bangladesh. By analyzing cultural frameworks such as Hofstede’s cultural dimensions theory and Trompenaars’ cultural dimensions model, we seek to identify areas of convergence and divergence in cultural values, beliefs, and behaviors.

Furthermore, we explore the implications of cultural diversity on organizational structures, decision-making processes, and human resource management practices in multinational corporations operating across the UK and Bangladesh. Through qualitative research methods such as interviews, case studies, and cultural sensitivity training programs, we endeavor to provide practical insights and recommendations for managers and executives navigating cross-cultural challenges in their daily operations.

Ultimately, this study aims to contribute to the existing body of knowledge on cross-cultural management by shedding light on the nuanced dynamics between the UK and Bangladesh, offering valuable insights for organizations seeking to foster successful intercultural collaborations and achieve sustainable growth in an increasingly interconnected global economy.

Introduction

The diverse social cultures and varying practices between countries manifest in distinct leadership and management processes within organizations. Contrasting cultural norms between the UK and Bangladesh influence organizational practices and shape leadership and management styles differently.

The UK, characterized by its less traditional and more relaxed culture, exhibits distinct rituals in organizational operations. As a developed nation with a significant presence in the global market, the UK boasts approximately 5.51 million businesses in the private sector, including those in professional, scientific, and technical fields (Statista, 2023).

In contrast, Bangladesh operates within a markedly different market landscape, striving to establish itself in the competitive global arena. The e-commerce sector in Bangladesh is projected to reach 7.63 billion US dollars by 2023 (Statista, 2023), yet the country faces challenges in fully integrating into the global market.

Both the UK and Bangladesh possess diverse geographical landscapes that foster a multitude of cultural practices and norms. These cultural disparities create barriers in the adoption of leadership and management styles within organizational settings.

This study examines the cultural distinctions between the two nations and identifies their respective traits. By exploring these differences in practices and approaches, a comprehensive understanding of the diverse leadership and management styles in the UK and Bangladesh can be achieved.

Main Body

The leadership approach and management style within an organization are inherently influenced by the cultural context of the country in which it operates, as well as by social and legal policies. Culture plays a significant role in shaping the behavior of both leaders and customers, thus defining the prevailing management style within the organization (Budur, 2020). In the UK, the leadership approach tends to emphasize innovation and embraces change in alignment with cultural practices. Conversely, Bangladesh’s traditional and orthodox culture tends to hinder the innovation process within its leadership approach.

Figure 1: Public Employment in Bangladesh (Source: Statista, 2023)

Analysis of Leadership and Management Styles Using Hofstede’s Cultural Dimension Model

Differences in culture between nations or regions inevitably influence the approaches to handling situations and the values held by individuals. This is evident in the case of the United Kingdom and Bangladesh, where distinct cultural norms impact business practices, leadership, and management styles. Hofstede’s cultural dimension theory highlights key factors such as power distance, gender roles, uncertainty avoidance, individualism versus collectivism, and long-term orientation, all of which shape organizational dynamics (Gallego-Álvarez and Pucheta-Martínez, 2021).

Bangladesh demonstrates a high power distance score of 80, indicating a greater acceptance of hierarchical structures and inequality within society. In contrast, the UK scores lower at 35, reflecting a societal preference for reduced inequality and greater egalitarianism. British values emphasize the removal of societal and professional inequalities to foster national development. This is exemplified by initiatives within UK organizations to promote equality and provide equal opportunities to all employees.

For instance, Unilever’s CEO advocates for transforming the company into a sustainable business while prioritizing diversity and inclusivity within its workforce (Unilever, 2023). This commitment to equality aligns with broader societal values in the UK, where efforts are made to create inclusive environments that benefit both individuals and organizations.

Figure 2: Culture Comparison of Bangladesh and the UK (Source: Hofstede’s-insights 2023)

Bangladesh adheres to a hierarchical power structure, which influences social order and authority distribution, often leading to discrimination and preference for superior positions (Choi et al., 2019). This hierarchical power dynamic contributes to conflicts and organizational challenges, impacting management and leadership styles. In contrast, the UK embraces a lower power distance, fostering a more egalitarian work culture and equitable treatment, thus shaping its leadership and management approaches toward diversity and inclusion.

Regarding individualism, Bangladesh scores lower (20) compared to the UK (89). Individualism allows for personal contribution to societal development (Thapa, 2020). Bangladesh’s education system, emphasizing theoretical learning, contrasts with the UK’s individualistic upbringing, fostering self-confidence and independent problem-solving skills (Murray and Tizzoni, 2022). This divergence affects leadership development and management practices, potentially hindering Bangladesh’s ability to cultivate innovative leaders and adapt to evolving workforce dynamics.

Both Bangladesh and the UK exhibit a masculine societal orientation, valuing ambition and material success (Gabasiane, 2022). However, Bangladesh’s traditional, patriarchal societal structure contrasts with the UK’s more contemporary organizational culture, emphasizing ambition and work-life balance. Despite these differences, both countries share a drive for competitive advantage.

Uncertainty avoidance also differs, with Bangladesh scoring higher (60) than the UK (35). Bangladesh’s orthodox mindset and limited innovation capacity hinder its ability to adapt to uncertain business environments (Sharma et al., 2020). In contrast, the UK’s proactive approach and resource-rich environment enable it to navigate uncertainties effectively.

The CEO of Basundhara Group, Ahmed Akbar Sobhan, focuses on fostering Bangladesh’s growth through innovative business strategies, reflecting the company’s commitment to national development (Bashundharagroup, 2023). Conversely, Unilever, a UK-based company, prioritizes global market expansion and product diversification (Unilever, 2023), highlighting differing business priorities between the two countries.

Lewis Model Application to Cultural Differences

The organizational performance of a nation is intricately tied to its financial structure, reflecting factors such as poverty levels, employment rates, and cost structures. Lewis’s Dual Sector Model suggests that low wages and high poverty levels can adversely affect productivity (Knight, 2021). Consequently, countries must prioritize structural improvements, such as enhancing infrastructure and fostering overall economic growth. A crucial aspect of this structural improvement involves investing in human resources, as labor performance significantly impacts sector efficiency.

In the context of Bangladesh’s demographic profile, its sizable population serves as a strength, providing a large pool of potential employees conducive to business growth. However, addressing challenges such as poverty and low wages is vital to harnessing the full potential of this workforce.

Statistics indicate that the central government of Bangladesh holds a substantial debt, approximately 42.1% of which is owed to the public sector and other businesses (Statista, 2023). Despite this financial burden, the government plays a crucial role in fostering human resource development to enhance service processes and overall economic performance. By focusing on improving the skills and capabilities of its workforce, Bangladesh can strive towards sustainable growth and organizational success.

Figure 3: UK labour market (Source: Researchbriefings, 2023)

The employment rate in the UK has seen a significant rise compared to the previous year, with a notable surge in the public sector. Recent data indicates that approximately 76% of the workforce is employed in the UK (Researchbriefings, 2023). However, the pandemic has caused an increase in the unemployment rate, reaching 4%. Despite the UK’s smaller population compared to Bangladesh, this poses challenges in meeting the demands of an overpopulated market and delivering necessary goods and services. Consequently, Bangladesh’s larger population provides it with advantages in managing its production processes.
Cultural disparities in lifestyle and societal norms also impact business operations and leadership styles. The UK populace tends to embrace a multicultural and diverse environment. Consequently, businesses in the UK prioritize meeting consumer demands by offering diverse and innovative product ranges. In contrast, Bangladesh adheres more to traditional practices, which presents varied business opportunities rooted in cultural norms. For instance, renowned UK fashion brands like Gucci, Chanel, Dior, and Prada cater to the UK’s appetite for fast fashion and luxury items (Statista, 2023). The increasing brand awareness of these companies, reaching 87% in 2023, reflects the UK’s inclination towards fashionable and branded products, unlike Bangladesh.
The fashion market in Bangladesh is experiencing rapid growth, fueled by the influence of global brands. Many Bangladeshi fashion brands leverage traditional segments to expand into the global market. The sector grows by approximately 15% annually, with market volume projected to reach 2.710 million US dollars by 2027 (Statista, 2023). The rising demand for Bangladesh’s traditional fashion items in the global market elevates its value on the international stage.
Figure 4: Culture categories by Lewis cross-culture model
(Source: Influenced by Paiuc, 2021)

Lewis’s model suggests that developing a country’s structure can enhance business performance. He identifies three typologies for cultural differences: linear active, multi-active, and reactive (Paiuc, 2021). In the UK, following the linear active typology, the organizational structure is job-oriented, whereas in Bangladesh, following the multi-active typology, it is people-oriented. The UK tends to separate social and professional life to avoid conflicts, whereas Bangladesh integrates professional and social life. This cultural background influences leadership and management styles, enabling a better understanding of employee value for enhanced performance. Thus, cultural dimensions impact the leadership and management approaches in the UK and Bangladesh, contributing to increased market engagement.

Conclusion

The examination of cross-cultural management in leadership and management styles reveals distinct cultural contrasts between the UK and Bangladesh. These differences pose challenges to organizational practices, rooted in divergent values and rituals. While both countries strive for organizational growth and competitiveness in the market, they approach it from different cultural perspectives. The UK emphasizes individualism, fostering self-confidence and assertiveness in conflict resolution. Conversely, Bangladesh leans towards collective values and rituals, shaping its approach to business differently.

The disparities in cultural practices between Bangladesh and the UK present significant challenges in the business landscape. Varied values and beliefs profoundly influence leadership and management practices within each country. Therefore, adopting Lewis’s model can offer valuable insights into navigating the complexities of cross-cultural issues within organizations.

Recommendation for negotiation skills to resolve the conflicts in cultural differences

Communicating effectively with global markets is crucial for connecting with diverse audiences and resolving conflicts within organizations. In countries like the UK and Bangladesh, where a competitive market culture prevails due to masculinity norms, effective communication becomes even more essential for navigating negotiations and building understanding between parties (Masuram and Sripada, 2020). Whether expanding into new markets or engaging in joint ventures, companies from these countries may encounter challenges in connecting with each other. However, by prioritizing clear communication, these issues can be addressed, fostering mutual understanding and cooperation.

Problem-solving skills are also paramount for organizations to overcome challenges and achieve their objectives. By systematically identifying and addressing issues, leaders and management teams can mitigate problems at their root causes (Mathew et al., 2019). This approach enables companies to navigate complexities and achieve their goals efficiently.

Drawing from theoretical frameworks, such as Hofstede’s cultural dimensions, can provide valuable insights into cultural nuances and inform strategic decision-making (Sedita et al., 2022). By understanding and respecting cultural differences, businesses in the UK and Bangladesh can tailor their negotiation strategies accordingly, fostering mutually beneficial outcomes.

Incorporating advanced technological resources, such as AI, machine learning, and data analytics, can enhance organizational capabilities and performance (Mishra and Tyagi, 2022). By leveraging these tools, companies can streamline processes and gain a competitive edge in negotiations.

Furthermore, embracing creativity in addressing cultural differences can drive innovation and productivity within organizations. By encouraging novel ideas and approaches, companies can adapt to diverse cultural contexts and find innovative solutions to cross-cultural challenges. By infusing creativity into their negotiation processes, businesses in the UK and Bangladesh can enhance their effectiveness and achieve better outcomes.

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