Global Leadership and Cross-Cultural Teams.
- Leadership plays a significant role in managing businesses in cross-cultural setups. Variances between manager’s leadership styles may influence how organizations operate. Global leadership can build social capital that strengthens relationships based on trust. The difference in leadership styles between James and Sarah Brennan (previous owner of Ravinaki Resort) and Ross Griffins, the new owners is that the former could build trust and encourage cordial interaction with the local people. The contingency approach of leadership explains the significant difference in leadership approaches between the owners of Ravinaki Resort. The model appreciates the contribution of the people’s cultural makeup in enhancing business success. Accordingly, it emphasizes the role of a leader as an administrator whose characteristics resonate with the local traditions of the people to achieve growth. The previous owners of the resort implemented the contingency approaches that succeeded to win the trust of the local population, which translated into business success compared to the new owner who took the universal approach. Notably, the approach assumes that global cultures have constant and similar traits applicable universally with the location of the project notwithstanding. Hence, the relationship between local employees of the resort, populations, and leadership such as the Lomaiviti’s chiefs worsened leading to poor business performance.
- Cross-cultural variations are a source of conflict in businesses. Cultural differences were a major source of tension between the new owners of Ravinaki resort and the local workers. Cultural sensitivity creates awareness of other individual perception on issues, such as work, attitudes, practices, and behavioral traits. The previous owners engaged the local employee at work through mentorship, which led to enhanced productivity. Such relationship with the local workers was an incentive for success. This is evidenced from the James’ routine of helping workers in loading chains while Sarah assisted in kitchen staff with advice on menu and preparation of food. Furthermore, the previous owners managed their relationship with local stakeholders, such as the chiefs by spending time drinking kava with as a way of interacting. The move improved relationship building and trust among local population and the management. However, the new owner employed foreign divers, chef among other employees who gave out operational instructions, such as on menu but without support to kitchen staff, a move that to poorly served orders. Hofstede’s Value Dimensions demonstrates the tension between the local people and the managers. For instance, power distance culture attributes authority to hierarchical leaders, such as chiefs, in Lomaiviti’s case contrary to the culture of the new owners. Additionally, the uncertainty avoidance principle explains the tension, since employees are less responsive to their roles leading to disagreements. Hence, majority of workers would look for new opportunities elsewhere. The situations at the resorts create further disunity, leadingto more potential conflicts among the stakeholders.
- Recruitment and selection processes are important because they define operational success of an organization. The selection and recruitment criteria of previous and new owners of Ravinaki resort had several adjustments. The new owners prefered dealing with expatriate workers to deliver quality and value while previous owners appreciated local talent and workforce for cohesion and local stakeholder support.
| i. The local employees have an advantage of local experience and information beneficial to the business, such asexperienced local guides with the ability to navigate through the treacherous reefs.
ii. The high training costs of expatriate employees enables them to to deliver professional services to customers.
| i. Expatriate workers recruitment models fail to deliver success due to inability to integrate with local cultures and practices, leading to work place rebellion among employees.
ii. The model also fail when employees have poor orientation and training of how to deal with cultural variations at a new work environment.
iii. Expatriate workers are relatively expensive in regards to cost and allowances compared to locals.
- Making payments to local chiefs in order to access popular sites for diving, snorkeling, and kayaking has implications for Ravinaki resort. One of the significant effects is the enhanced operational and recurrent cost for business. However, avoiding making such payment has implications on the resort, since it encourages conflict from the powerful local leadership and the people, which might affacet the business. The decision by Ross Griffiths to sue the local chiefs for such threats is faulty. For instance, although the local leaders may not have judicial advantage of winning the case, the intolerant relationship between the two stakeholders will affect the business because the local communities may retaliate. Additionally, given that chiefs control local power, the courts could also rule in their favor, leading to an entire collapse of the business. The principle of universalism provides a perspective that certain people acknowledge their ideology as exclusively true and that those who hold dissenting opinions are heretics or misguided. Conversely, the concept of particularism accepts that truth is based on the listener and that various individuals hold a position that contrasting beliefs about a perceived truth. From the application of the dimensions of particularism and universalism to the case of Ravinaki resort, it reveals the misconception between the new owner and the local chiefs. Whereas Ross Griffiths believes that the only model to manage their challenges with the chiefs is through courts of law, he fails to acknowledge that dialogue and relationship-building applied by the previous owners can enhance collaboration.
- The current situation of Ravinaki resort requires a relook into its operational strategy to reclaim the previous position in the market. This is because irrespective of the significant improvement and accessibility, customers in the resort are limited in number. Additionally, the growing rifts between expatriate and local employees affect quality and reduce business opportunity. The Owner of Ravinaki resort should create harmony between expatriate employee and locals through mentorship, whilereducing attrition levels. Furthermore, he should establish a working and cordial relationship between the management and the local chief. By encouraging friendly affiliation with the local stakeholders, Ravinaki resort would gain more acceptability, enhance guests experience during visits, and inspire growth. Additionally, managing communication behavior between the cross-cultural teams will alleviate the challenges. For example, building trust between the chef and the kitchen staff would enhance work relationship and professionalism. Corporate social responsibility (CSR) strategies would enhance the participation. Hence, through CSR activities, local stakeholder would benefit and inspire acceptance of Ravinaki resort in the community. Therefore, supporting community cultural projects would enhance the participation of the members in the project and lead to growth.