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. |