CROSS-CULTURAL MANAGEMENT:

An Exploration in the Philippine Setting

ACHACOSO, Jeanfranco Rufino P.
DEOGRACIAS, Farah Iman F.
DOROSAN, Aileen E.
MAGLAQUI, Monique Louise L.
ORLINO, Jan Arel S.
Department of Psychology
University of the Philippines, Diliman
December 6, 2014

Submitted to: Prof. GRACE ABELLA-ZATA

CROSS-CULTURAL MANAGEMENT: An Exploration in the Philippine Setting

Cross-cultural management, in simplest terms, is the management of a team
or individual that has to adapt a working style of a foreign culture. Because of
globalization and the rapidly changing working environment, it is possible nowadays
to have a company which consists of people who speak different languages,
subscribe to different practices, and ultimately have different thoughts, actions, and
beliefs. This diversity calls for the need of a different managerial style to suit each a
culture, and at the same time to find commonalities in order to unite the multitude
of cultures.
There are some challenges that will arise in a globalized company which will
make cross-cultural management the necessary type of management. One of this is
the lack of proper communication. Having different languages in the company is
tricky. If not all can speak English then certain misunderstandings may occur.
Differences in communication style is also a factor. A simple direct translation of the
words are not helpful since language is a dynamic mediumone saying in another
culture might mean an entirely different thing in another. In cross-cultural
companies it is essential to be cautious in sending messages acrosssome
meaning may be lost in translation or interpretation.
Another

problem

encountered

could

be

the

different

working

styles

accustomed to each culture. It is inevitable that individuals have the tendency to

have different quality of work. Matching these individuals will be a challenge
especially if not all of them are from similar cultures. Linked to this is a certain
mismatch in the working times of the people (i.e., if applicable, due to the
differences in time zones). Misaligned work due to lack of proper coordination may
lead to this undesired event.
However, the biggest challenge faced by managers of a cross-cultural
company is when the cultural differences are openly taking priority in the
workplace. When differences are taking priorities in the workplace, the quality of
work is in danger of being compromised or even neglected. The company might
turn into some political powerhouse that will inevitable spin the company (and the
business) down the drain. Immediate intervention is necessary should a situation of
the like occurs. Also, if the majority of the people in the company are from one
culture and only a small fraction is of other cultures, problems will definitely arise.
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CROSS-CULTURAL MANAGEMENT: An Exploration in the Philippine Setting

Given the many problems that come with cross-cultural companies, many
managers tackle the problems using a four-point strategythe first point being
adaptation. Acknowledging the gaps of different cultures will make working around
it much easier than when it is denied: a problem must be present first before a
solution can be found. From there, actions to familiarize and adjust to the cultures is
made possible.
The second point is physical intervention. This point involves altering the
shape of the team. If for some reason the project is crucial and the need is urgent,
the management can opt to make a physical intervention or to change the
construction of the team. This could either be manifested as a change in project
leaders or number of members, a change in the grouping system, or a change in the
composition of the individuals that make up the team.
Administrative involvement is the third point. When projects that will require
people from different cultures to work together, it is important to have the
administrators to be hands-on and clear with the set of rules that is necessary for
the team to be able to perform optimally. The administrators and managers of
course should be able to readily address the problems even before they surface.
The fourth point must be the last case scenario because it involves the
exiting of a team member/s. This means that the team member/s will be asked to
leave the group or transferred to another group because the problem could not be
solved. This point of course should be the last resort or when the other points of
strategy fail to solve the problem.
In addition to the previous four-point strategy mentioned, there are also other
methods for dealing with cross-cultural teams and companies. First: Goals and
objectives are (as much as possible) communicated clearly and objectively. Second:
There must be an effort to identify conflicting areas (i.e. in cultures) so that creating
solutions will be fit for the problem. Third: Cross-cultural training sessions can be
coordinated. These is important because the members of the team should be
attuned to the cultures of their co-workers, and so that they will be able to adjust
accordingly based on the working style of the culture. Fourth: It is important to
remember that motivation and trust is crucial. Even more crucial is giving the same
levels to each culture.
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CROSS-CULTURAL MANAGEMENT: An Exploration in the Philippine Setting

Fifth: Rewarding proper overt and oral behavior regarding the adaptation to a
communication style of a culture will promote the usage of this adaptation (which is
a benefit). Recognition of progress is also worth rewarding. Sixth: Always give
people a chance to participate in discussions and debate. If some individuals are
soft-spoken, it is the job of the manager to encourage them. Seventh: Individuals
are individuals, so they should be treated the way they should be treatedand that
is, in a proper manner. In line with this is that the manager should be sensitive in
the placement of the members in groups. For example, a woman must not be
teamed with a man who comes from a culture who does not treat women equally.
In contrast to the perspective we have discussed previously, it is essential
also to look at the positive things that come with working in a cross-cultural
management. First of all, working with people from a different culture can elicit
creativity and innovative thinking brought about the diverse knowledge each one
has. A sharing of experiences can be a cause for a new and brilliant idea to come
up. Second, having different places to work can offer different perspectives for the
team member/s. This may enable insights and a development of useful concepts.
Most importantly, the understanding of humanity is made possible because of the
way team members try to incorporate themselves to other cultures and vice-versa.
There is a greater tendency to learn and there is also a better development of
communication skills and practices when working in a cross-cultural company.

Signifi cance of Cross-Cultural Management

Cross-cultural adjustment is generally defined as the process of adaptation to
living and working in a foreign culture. It is the perceived degree of psychological
comfort and familiarity a person has with the new host culture. Such definition has
been subdivided into three facets. The first facet is work adjustment that involves
the adaptation to new job tasks, work roles, and the new work environment. The
second facet is interaction adjustment that involves the comfort achieved in
interacting with host nationals in both work and non-work situations. The third facet
is general adjustment that involves the overall adaptation to living in the foreign
culture. On the other hand, maladjusted expatriates are unable or unwilling to
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CROSS-CULTURAL MANAGEMENT: An Exploration in the Philippine Setting

accept the host countries' behaviors, norms, and roles: They view the host cultures
as inferior to their own. They tend to cling to their home cultures (Black, 1990).
A study by Palthe (2003) has shown that cross-cultural management in
organization or workplace provides significant cross-cultural adjustment to foreign
workers towards their work performance, interaction with other workers, and
general quality of life. The active participation of the host company in fostering
environment enhances adjustment amongst expatriate workers. Culturally adjusted
workers will tend to perform better in their work as compared with the maladjusted
ones. They also tend to have increasing interactions and less conflict with local
workers. Adjusted workers tend to respond more favorably in their general quality of
life as contrast with the maladjusted ones.
Academic research in cross-culture management has also provided an avenue
in selecting the best suited expatriates for cross-cultural adjustment. Below is a
model which provides an integrative model of cross-cultural adjustment.

INDIVIDUAL
VARIABLES

Self-efficacy
Learning
orientation

ORGANIZATION
SOCIALIZATION

Parent company
Host company

JOB VARIABLES

Role clarity
Role conflict
Role discretion

NON-WORK
VARIABLES

CROSS-CULTURAL
ADJUSTMENT

Work
Interaction
General

Cultural
similarity
Family
adjustment

CROSS-CULTURAL MANAGEMENT: An Exploration in the Philippine Setting

Integrated Model of Cross-Cultural Adjustment (Palthe, 2003)
As can be seen, individual, job, and non-work variables are also contributing
factors in cross-cultural adjustment. From the level of individual variable, the study
also supports that high self-efficacy (belief in one's own ability) correlates much
high with their adjustment with the new culture. Clarification about the expatriate
work role will decrease their uncertainty upon the arrival in the new host
organization. Role clarity and role conflict are also significantly correlated with
culture adjustment. According to the study, the adjustment of expatriate workers is
largely affected by the adjustment of their family members towards the host
country.
Based

from

this,

cross-cultural

managing

organizations

could

also

strategically focus on these other factors so that culture-adjustment could be

fostered

much

effectively.

culturally-adjusted

expatriate

tends

to

costs

significantly lower on the expenses of the organization than the maladjusted ones.

The face of a cross-cultural organization: An interview

Dr. Socorro Lupisan is currently Director of the Research Institute for Tropical
Medicine (RITM) and has participated in various research collaborations, mostly with
Japanese researchers. According to her, research collaborators are often just equal
given that they are all professionals and have their own expertise. However, the
way foreign co-workers are dealt with may also vary depending on ones position.
Colleagues are treated equally. If the Filipinos are the ones in authority, on the other
hand, keep a faade, reminding the Japanese that the Filipinos are the ones in
charge. When interacting with younger Japanese researchers, they are treated like
students with the Filipinos acting as supervisors.
Japanese experts, on the other hand, are treated with high regard, the same
way Filipino experts are looked up to. Communication barrier, as Dr. Lupisan further
shared her experiences, have not much been a problem. During meetings, for
example, Filipinos do not speak in Filipino and the Japanese try their best to not use

CROSS-CULTURAL MANAGEMENT: An Exploration in the Philippine Setting

their native language as well. If there are instances wherein they have to speak in
Japanese, they excuse themselves first.
Moreover, they see the Japanese as very professional, honorable and
punctual. Even in the World Health Organization, the Japanese are always on time, if
not ahead of time. When a meeting is set at nine in the morning, they would usually
arrive at half past eight. Also, they prefer sticking to the agenda and not adjourn the
meeting without having discussed everything they have to. Filipinos, on other hand,
try very hard to be on time but always make excuses for being late.
Furthermore, Dr. Lupisan added that when the Japanese come here to
conduct researches, they adhere to the rules and regulations even if they do not
value ethics review as much as Filipinos do. Despite many of them being senseis in
Japan with students constantly bowing before them, they are treated very casually
when they work here as well as when their Filipino colleagues visit them in Japan.
Lastly, the Japanese are very generous with their technologies, ideas and methods.
With their expertise and virology, they complement RITMs prowess in microbiology
and bacteriology.

Cross-cultural Management in the Philippines

For a foreigner trying to work in the Philippines, he/she will have to deal with
understanding and the culture of the society. Soon after, it is essential for the
foreign worker to also adapt this learning to his/her working style. According to one
web article, Challenges of doing business in the Philippines (Communicaid, 2010),
there are five key cultural differences that is unique to the working environment of
the Filipino people. The first deals with the dependence of the subordinates to the
leader. As they have noticed, Filipinos tend to be overly dependent on someone in a
higher position or a leader. It is rare for Filipinos to actually challenge the person in
authority. The Filipinos really value the hierarchical settings of work.
Secondly, Filipinos have a need to reach consensus before making a crucial
decision. It is important to talk about it, as well as voice out each others opinion
first. Thirdly, Filipinos take importance in building personal relationships. For some
reason, some of the business matters are to be talked about during small talk
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CROSS-CULTURAL MANAGEMENT: An Exploration in the Philippine Setting

between colleagues, meaning they should build a relationship with their business
partner. Fourth, Filipinos have this reputation of avoiding conflict. In terms of
answering back, Filipinos usually stay calm and not retaliate at the moment theyre
being confronted. Maintaining self-control is of utmost importance.
Lastly, time is a factor that becomes a challenge for the Filipino people. In
this cultural setting, it should be understood that Filipinos are more relaxed when
dealing with time pressure. Sometimes, deadlines and appointments are forgone
because Filipinos treat time more flexibly than other dimensions of work (e.g.
relationship with co-workers).
In a study conducted Chen, Tsai, and Liu (2011), they found out that Filipinos
are regarded as kind-hearted. A possible reason for this might be because of their
religious background. The Philippines was also regarded as country filled with
respect for others, one of the more unique cultures contrary to the other ASEAN
countries. Another advantage of the Philippines is that they are one of the few
countries in this particular region, probably even the whole world that speak English
well. Since English-speaking has become secondary and being one of the widespread in this country, dealing with Filipinos are easier and language is no longer a
significant barrier. Working in the Philippine environment is attractive to the
Taiwanese companies because of these particular reasons.
In order to keep up with all the culture differences of the Philippines, which is
far more than what has been discussed earlier, some international companies have
conducted Cross-culture awareness training programs and the like. The foreigners
are usually eased into the culture of a Filipino working environment, so that they
can adjust their working style accordingly (PASCO Philippines, 2012). In general,
foreigners face different challenges when dealing with Filipino workmates, as well as
dealing with Filipino clients. Since they are trying to work in the Philippines, they
must try to understand at least the countrys culture and how they should act
around these issues. They should adapt accordingly to maintain a healthy and
effective working environment.
Hundreds of companies in the Philippines are multinational corporations, and
thus have a large amount of exposure to working with other cultures. Globalization
has long allowed foreigners to enter the local organizations. Aside from having to
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CROSS-CULTURAL MANAGEMENT: An Exploration in the Philippine Setting

adjust to the organizational culture, as most other employees, foreigners will need
to break into the local culture (Shieh, Wang, & Wang, 2009). This immersion into an
unfamiliar culture can be a disorienting experience for them. It may cause conflicts
with how they interact with their coworkers and discomfort with how their
colleagues communicate with them.
There are various reasons for cultural conflicts. While language is one of the
primary barriers, it is not much of a problem in countries comfortable with the
global language English. Other culture elements include customs, traditions and
religion. Most importantly, conflict can stem from the differences in the values each
culture prioritizes. Like most Asian cultures, the Philippines is a collectivist society
that has high regards for group harmony, consensus, hierarchy, and conflict
avoidance. These would contrast greatly with Western cultures who value
independence, openness and directness. The organization and foreign employees
will generally have a faster rate of accommodating each other if they are of
relatively similar cultures.
Even with the barriers to cross-cultural harmony, organizations that are
proactive in meeting the needs of both parties can speed up the integration. Many
corporations have taken to cross-culture awareness training programs to aid the
locals in interacting with their foreign coworkers. Cross-cultural training for
expatriate managers also help them get accustomed to their current working
environment. Furthermore, some corporations have implemented localization
operations to lessen the differences with the host-country management personnel.
Adjusting to the local culture is vital not just for harmonious relationships with
their workmates but also for job performance. However, the adjustment must not be
one-sided.

The

management

of

the

organization

itself

has

to

provide

accommodations for foreign cultures. For multinational groups, easing the

psychological effects of culture disorientation leads to enhancement of performance
and therefore success.

Conclusion

CROSS-CULTURAL MANAGEMENT: An Exploration in the Philippine Setting

Given the expansion of business and the market, and the globalization of the
worlds top companies, it is inevitable to have persons from various cultures to
engage and perform in the same workplace. The outcomes are a multitudethere
are many positive and negative possibilities. To address the negative outcomes,
cross-cultural management is an essential process that must be undertaken in order
for companies to prosper and be functional. With training and development of
appropriate cross-cultural knowledge and practices, regulation of the relationships
of the team members/company workers and their adaptation with each others
cultures will become the key factor necessary for success. Through the mediation of
employee engagement, cross-cultural management will lead to the employees
quality performance and in turn, leading to the companys excellent production and
outstanding reputation.

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CROSS-CULTURAL MANAGEMENT: An Exploration in the Philippine Setting

References:

Black, J. S. (1990). The relationship of personal characteristics with adjustment of

Japanese expatriate managers. Management International Review, 30, 119134.
Challenges of Doing Business in the Philippines. (2010, December 26). Retrieved
December 1, 2014, from http://www.communicaid.com/cross-culturaltraining/blog/challenges-of-doing-business-in-the-philippines/#.VIJiljGUdg9
Chen, T., Tsai, Y., & Liu, S. (2011). The Dynamics of Cross-Cultural Management
Knowledge Transfer: From Taiwan to the Philippines. International Proceedings
of Economics Development and Research, 14, 183-188.
Cross Cultural Awareness Training. (2012, August 25). Retrieved December 2, 2014,
from http://www.pascoph.com/events.php?events=Training
Multi-Cultural Team Management [Motion picture]. (2010). India: CommLab India
LLP. Retrieved December 2, 2014, from https://www.youtube.com/watch?v=9wxCH287Ws
Palthe, J. (2003, January 1). The relative importance of antecedents to cross-cultural
adjustment: Implications for managing a global workforce. Retrieved
December 1, 2014, from
http://isites.harvard.edu/fs/docs/icb.topic1230879.files/The Realtive
Importance of.pdf
Shieh, C. J. Wang, I. M. & Wang, F. J. (2009). The relationships among cross-cultural
management, learning organization, and organizational performance in
multinationals. Social Behavior & Personality, 37(1), 15-30.

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