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HRM Review Magazine:
Need for Cross-Cultural Management
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Today, managers have to deal with people coming from different countries, whose culture is completely different from that of the home country. To manage a diverse workforce, a manager has to have a proper understanding of the expectations and needs of each individual, which will ultimately give a happy workforce. Previously, it was thought that workforce diversity leads to garbled and distorted communications. Today, many organizations have realized that diversity can be an asset, which can enhance organizational effectiveness. Diversity not only solves different problems due to the emergence of diverse set of brilliant ideas, it also stimulates creativity. It has been seen that companies that believe in diverse workforce have a distinct competitive advantage over those who don't.

 
 
 

It is not that the world has suddenly become diverse or is getting affected by cross-cultural currents. If anything, the world is actually shrinking in terms of communication, ideology, cultural differences and politico-economic ideas, and in the process, getting substantially homogenized. Yet now, more than ever, people especially in the corporate world are feeling the need for better understanding of cross-cultural issues and its impact on the organization.

In any organization, individuals represent different cultural backgrounds depending upon the language they speak at home, the religion they practice or the country they belong to and so on. Culture has a strong influence on people as it dictates how we perceive, understand and communicate ideas. This can impact organizational transactions, both internal and external. Sometimes, situations can be perceived by two individuals coming from different cultures/countries in a totally different way. For example, laughing has a connotation, in most countries with happiness, whereas in Japan, it is a sign of confusion, insecurity and embarrassment. Similarly in India, avoiding eye contact or looking at the ground when talking to an elder is considered as a sign of respect. In contrast, these same actions are indicators of deception or shame in North America and Europe. Cross-cultural management helps us to interact, understand and deal with people who belong to other cultures.

Cross-cultural management is important today because the organizations of today are global entities, rather than the regional or national outfits they used to be in the previous decades. One of the most important outcomes of globalization has been the advent of MNCs.

 
 
 

HRM Review Magazine, Cross-Cultural Currents, Cross-Cultural Management, Organization Deal, Workplace Environment, Decision Making, Multicultural Tendencies, Diverse Environment, Cross-Functional Teams, Politico-Economic Ideas, Organizational Transactions.