A research assignment done by: Mr. Koffi Olomide, 31st October, 2012. Warsaw, Poland.

Power distance and Cross Culture in the case of business Introduction: As a result of globalization, several studies have been carried out on the issue of culture and the business environment. Hofstede (1983) states that, more than ten years ago, the existence of the relationship between culture and management was far from obvious to many people, and it is still not that obvious to every person now. There has been an increase in innovation and competition which has become universal in many industries. And in the past few decades there has been a serious concern about the influence of culture on the different parts of the organization. (Aycan, 2000) maintains that these concerns are typically as a result of the changes in the business environment and the workplaces. Modern business management should address cultural diversity and needs trans-cultural competence using empathy, communication and creativity. Multinational enterprises which operate in different countries face many challenges, which include the impact of heterogeneous cultural, organizational and institutional contexts. Every environment has a different culture which needs different managerial strategies, behaviors, planning, control and organizational structures. Miroshnik (2002) argues that, what is appropriate to another culture may not necessarily be appropriate to the other. Each culture has a different set of beliefs which influence human behavior, therefore understanding individual set of beliefs, attitudes, norms and values is very important. This helps the manager dealing with different people from different cultures to understand why they behave as they do. It also enhances the efficiency of business processes especially in multinational companies where the diversity of cultures in the organization is very large. When communication occurs across cultural boundaries, managers should understand the verbal and non-verbal communication so as to avoid miscommunication in the work place. This is because the senders and receivers of the communication will tend to encode the information using their different cultural filters (Griffin and Putsay, 2010). Multinational companies which operate worldwide usually bring into the host country positive changes in terms of technology, new management practices, and new products. They can also have a major impact on the cultures of the local communities by raising their standards of living through job creation especially in poor and developing nations. On the other hand cultural differences may lead to increased costs through communication breakdowns and interpersonal conflicts. Cultural difference between Kenyan and Anglo-American management in organizations Kenyan and Anglo-American countries management are quite different in their orientation and style. The Kenyan managers generally prefer to obey and follow rules and regulations instead of exercising their professional judgments. These kinds of management styles make people to have a feeling of institutional powerlessness. In Kenya, the managerial
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effectiveness shows a different pattern that has a different style of managerial effectiveness as compared to the Anglo-American managerial culture, which is achievement and power oriented. The Anglo-American manager loyalties are mainly motivated by their professional judgments with regards to personal financial rewards and profitability. Individualism is the basis for work ethic. Before understanding the Anglo-American companies, it is important to know the international trade and relations around the world. This understanding is important because it will give a clear view of the difference between the Kenyan and Anglo-American companies operating in Kenya. The western countries serve as the headquarters of most of the multinational companies in the world. They represent the most advanced economies in the contemporary world. These countries strongly endorse accomplishment especially in pursuit of material wealth. It also exhibits a male dominated society in practice. In Kenya, ethnic traditions play a significant role in shaping commonalities in the sociocultural practices and values. There are many historical factors that influence the Kenyan management practices, such as the family and tribal traditions and the colonial bureaucracy. Conclusion It may be argued that culture entrenched in the organizational management behavior. Douglas et al (2007) states that, the management behavior is embedded in culture, Kenyan employees keep their own culture. They maintain their own culture even if they are working for different organizations with different cultures. However, it is important for managers operating in different cultures to understand the ways and means of communicating with people from different culture so as to avoid sending wrong signals in the workplace.

BIBLIOGRAPHY: Aycan, Z., (2000). 'Cross-cultural Industrial and organizational psychology: contributions, past developments, and future directions'. Journal of Cross-Cultural Psychology, 31 (1):110-128. Douglas, P., HassabElnaby, H., Norman, C.S. and Wier, B., (2007). 'An investigation of ethical position and budgeting systems: Egyptian managers in US and Egyptian firms'. Journal of International Accounting, Auditing and Taxation, 16 (1):90-109. Griffin, R. and Pustay, M.W., (2010). International business. Upper Saddle River: Prentice Hall. Hofstede, G., (1983). 'The Cultural Relativity of Organizational Practices and Theories'. Journal of International Business Studies, 14 (2):75-89.

Miroshnik, V., (2002). 'Culture and international management: a review'. Journal of Management Development, 21 (7):521-544.