Cross cultural management practices and performance of the Bank of Africa Kenya limited
Akinyi, Belinda K
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Increased globalization has led to the emergence of contemporary worldwide work places, characterized by cultural diversity of the workforce. This has awakened the need for Multinational Organizations to pay attention to cross-cultural management practices. In fact, it has become a necessity for managers to take this challenge by fully utilizing the potential capabilities of a multicultural workforce in order to achieve optimum organizational performance and effectiveness. Hence, management needs to pay strict attention to the diverse workforce. The main objective of this study was to establish the effects of cross cultural management practices on the performance of MNCs, with a specific reference to Bank of Africa Kenya, limited. The study examined the effect of managerial behavior on cross cultural management and the impact of culture on organizational performance. It purely employed primary sources of data collection. The findings revealed that managerial behaviors have effect on cross-cultural management of MNCs and also culture has impact on organizational performance. The study employed a case study research design which was considered appropriate since it enabled the researcher to conduct an in-depth investigation on the matter. Data was collected from high level managers and other respondents from various departments in the organization through an interview guide. Content analysis was applied in making inferences from the data that was collected. It was recommended that the management of various organizations should establish structures in their organization that will encourage good ethical behavior of all levels of managers and even employees as this has significant impact on the organizational performance. Also recommended was that BOA management should completely reshape the working culture that make possible the broad range of views and approaches of employees to be integrated and to define the new ways of getting work done. This will enhance the company‟s ability to access new markets and identify the ways of capitalizing the benefits of operating in and with diverse cultures. The major limitation of the study was that the respondents were cautious about revealing a lot of information on the strategies they use and also the decision making process by the group‟s head office. The scope of the study was also a limitation as this was a case study. The researcher recommended that further research should also be undertaken to determine what performance management strategies other companies in different but related industries use to build competitive advantage in so far as cross-culture is concerned. Also similar studies can be done in other banks or the Kenyan Banking industry to establish if the findings will be similar. The researcher also suggested a study to be done on several or all banks in Kenya to arrive at a generalization as it is difficult to summarize case studies into general propositions and theories. The study revealed that organizational culture is highly influential on the performance of the firm, and companies need to understand societal culture and align their internal cultures with those of the society they are investing and operating in so as to gain from the culture. The findings showed Bank of Africa, Kenya has been successful in managing the mix of cultures for organizational performance and excellence.
University of Nairobi