INTERNATIONAL MANAGEMENT

Cultural Challenges of International Management



Cultural Challenges of International Management

Introduction

The globalization of businesses has provided employees with the ability to work effectively across borders, which has become increasingly critical for the success of the business. In a rapidly changing environment, organizations constantly change goals and seemingly confront corporate cultural conflicts. The global economy has altered economic structures and social policies and cause communities to enter such a dynamic environment (Sorge, 1999). There are several issues in international business management which hamper the business practices that are being conducted in the organization. The biggest of all issues, that a global organization face, is the issue of culture difference. It is important for individuals and organizations to understand the concept of cross-culture, so that the organization can help its employees to eliminate their misunderstanding, which could harm the business and maximize the best attributes each business and nation have to offer (Yavas, 2003).

The studies have provided sufficient evidence that there are cultural differences that impact the efficiency of a business in various aspects, such as the quality of communication between the staff and management is affected. In addition to that, commitment and motivation of employees, and different management styles adopted by employers based on their specific culture. The challenges remains the urgent need to develop new social technologies capable of incorporating the informal sectors of the economy so that they can benefit from international business processes (Soderberg, 2002). This paper will use previously conducted studies and academic resources to get an insight about the cultural challenges faced by a global organization. These academic resources will help to develop an understanding regarding the cultural challenges.

Discussion

Globalization is a phenomenon that is in vogue nowadays. In this rapidly changing world, to succeed it is imperative for an organization to adopt the phenomenon of globalization. On one hand, globalization cultivates scores of benefits for the organization. On the other hand, it also generates various dilemmas for management. This phenomenon of globalization presents challenges of understanding and managing different facets of cross-culture. According to Stephen Roberts, “Culture is the framework in which we communicate” (Sackmann, 2004).

This paper addresses various problems and dilemmas within multicultural project teams. This paper also pays emphasis on the significance of leadership in the management of cross-cultural differences(Schein, 1983). The aim of this paper is to reveal different problems that managers face while operating business in multicultural teams. Some of the problems are discussed below:

Power distance

Power distance implies the extent to which less powerful employees accept an unequal distribution of power. This factor generally describes the nature of relationship of mangers and their subordinates. Countries that reflect high power distance subordinates tend to rely on their bosses so that they can make decisions for them and they rely on their bosses' decisions. The country that portrays high scores of power distance pays immense significance to the hierarchy within the organization (Redding, 2002). On the other hand, Countries that reflect low power distance subordinates conduct their own process of decision ...