'Best practice' or 'best fit': transferring management knowledge in international consulting assignments.

• Author: Mahmood, Monowar

1. INTRODUCTION

   Management consultants are seen as experts who are professionally trained to identify organizational problems and suggest solutions in different organizational contexts (Furusten, 2009; Kipping, 1997; Pio, 2007; Sturdy, 1997). Usually management consultants generate, disseminate, translate, and implement modern management knowledge, ideas, and techniques to their clients (Merilainen, et al., 2004). They are called as organizational therapists, change agents, management experts or improvisers. Consultants sell their services in a 'fashionable way' by advocating the problems they will solve, the opportunities they will make available, and the benefits they will deliver (Legge, 2002; Sturdy, 1997) though the effectiveness of consulting services are not out of questions (Furusten, 2009). However, consultants working for international organizations, multinationals, or local organizations in other countries usually face different socio-economic and cultural contexts in their assignments (Kipping, 1997; Pio, 2007). They could face identical national cultural orientation of the host country different than that of their own country of origin, or there could be difference between organizational culture of the host organization and that of their parent organizations. In such situations, consultants face dilemma of applying standardized versus localized management knowledge in different cultural contexts (Amorim, 2000) which could make their services effective or ineffective and even lead to success or failure in international assignments. Therefore, management consultants are argued to identify and assess the impact of cultural differences of different national contexts in international assignments.

   In this paper, first we will look into the variations of national cultural dimensions of different countries as well as impact of corporate culture on managerial practices. Then we will look into the process of management consulting i.e., use of standardized or localized management knowledge to solve the clients' problems using consultants own ideas and previous experiences. And finally, will suggest a few guidelines how management consultants could implement their own ideas and knowledge more effectively in different national contexts.

2. MANAGEMENT CONSULTING AND CULTURAL DIFFERENCES

   Management consultants working on international assignments need to realize that organizations in different countries could differ in many aspects, such as social norms, traditions, dialects, political and economic systems, and religious denominations. Researchers argued that people in different countries have different values, attitudes and behavioral habits, and therefore, organizations need to consider the cultural variations of different countries in developing their management practices (Hofstede, 1980; 1986; 1999, Lane et al., 2000; Laurent, 1986; Trompenaars, 1993; Trompenaars and Hampden-Turner, 1997). Cultural differences are evident in nationally divergent work values (Redding, 1976), work ethics (Budhwar, 2000; Sparrow and Budhwar, 1997), entrepreneurial spirit (Tayeb, 1988; 1995), managerial attitudes (Laurent, 1986; Meyer and Rowan, 1977), and have implications for organization development and management practices (Child, 1981; Laurent, 1986; Welge, 1981).

   So far, Geert Hofstede (1980; 1991) provided the most extensive and systematic explanation of national cultural differences (in bi-polar dimensions), along which countries could be hierarchically ordered. These dimensions are power distance, uncertainty avoidance, individualism vs. collectivism, and masculinity vs. femininity. The 'power distance' index measures "the extent to which the less powerful members of organisations and institutions expect and accept that power is distributed unequally" (Hofstede, 1991:28; Hofstede and Paterson, 2000:204). The 'uncertainty avoidance' index indicates "the extent to which culture programmes its members to feel either uncomfortable or comfortable in unstructured and ambiguous situations"(Hofstede, 1991:113; Hofstede and Paterson, 2000:204).The 'individualism vs. collectivism' index measures "the extent to which individuals are integrated into groups in the society and organisational context"(Hofstede, 1991:51; Hofstede and Paterson, 2000:204). And finally, 'masculinity vs. femininity' index measures "the force of assertiveness and competitiveness of individuals' behaviour compared to modesty and caring to others in the society" (Hofstede, 1991: 82; Hofstede and Paterson, 2000:204). The cultural perspective explains why certain management practices tend to be more successful in one country than another (Bae and Rowley, 2001; Hofstede, 1991; Hofstede and Paterson, 2000) and also indicates why certain organizational structures and forms develop in specific societies (Sim and Panadan, 2003; Wilkinson, 1996). It also provides a useful critique of universalistic management theories when organizational effectiveness has been seen to be contingent upon adjusting management practices within varied cultural settings. The development of different forms of human resource management (HRM) systems such as hard/soft, or...