What are cultural differences in management?

Cross cultural management is going to be considered in this paper. First of all, a definition of this term should be provided. In our opinion, one of the most appropriate definitions of this term is the following. “Cross-culture management techniques help managers contend with the challenges and opportunities of managing employees in a culturally diverse organizational environment. Increasing globalization has created more awareness of the need for managers to be sensitive to the cultural aspects of decision-making” (Cross-Culture Management Definition).The modern world is really globalized. Transnational corporations have become the leading players on international business arena. These companies perform in the different cultural and mental environments. That is why there is always a need to manage some processes in the different cultural environments.Today influence of internationalization, globalization and integration processes that cover the entire world is particularly felt. Increasing amount of companies carries out its operations in many countries simultaneously. That is why it is important today to identify and use characteristics of national cultures to create a unique competitive advantage in the international market. It is a task of cross-cultural management. Formation of cross-cultural management is a long historical process that is closely linked with the processes of formation of the world market and foreign trade, international division of labor, the development of transport, communications. Managers need to know that an effective cross-cultural management requires not only knowledge of traditions, etiquette, individual business culture of a business partner, but also cultural and mental features of the different countries. The difference between people is mainly in the external manifestations, customs, rituals, clothing, nonverbal communication, etc. Attitude to business is also one of such external manifestations.Construction of interpersonal relations in a multicultural team or management of organization located in different countries, cooperation with foreign partners – it’s always a clash of different cultures. A lot of problems and misunderstandings may occur because of such cultural differences. Therefore, the “cross-cultural” knowledge requires a manager to avoid such problems. Knowing mentality of an opposite side in international business negotiations is a key to success.Generally, cross cultural management does not pay the only attention to differences separately in different countries. It also prompts how to effectively use culturally conditioned knowledge to construct the mechanism of cross-cultural management as a joint multinational activity. The following elements and instruments of cross-cultural management may be defined:- A combination of different knowledge via interactive broadcast (IT) – integration of participants in the process of working in multicultural groups to develop a common approach to understanding and solving problems. IT facilitates the transfer of knowledge, values and experience and their integration into the production process;- To promote the formation of effective cross-cultural technology – common business language and communication networks;- Creation and maintenance of partner interaction.These instruments help to create a single cultural environment even in a large multinational and multicultural company.Successful use of the mentioned instruments of cross-cultural management can help a company to achieve synergetic effect when the intellectual potential of the collective is greater than the …
Posted by: Jeraldine Jankowski

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