It’s a given. Businesses need to work hard to survive in this world. Faced with complicated economies, businesses must – either directly or indirectly – explore markets that are no longer just right around the corner. The underlying assumption appears to have been accepted at this point, but an immediate consequence remains less understood, much less accepted, i.e. that everything changes right from the start, even the organisation’s culture, because it is essential to understand what one is faced with culturally when going international if one is to be successful.
A paper by Diwakar Singh at Gujarat University, which was published a few days ago in the Journal of Mechanical and Civil Engineering, can help to better understand this aspect of business management that is an issue for organisations both large and small.
“Managing Cross-cultural Diversity: Issues and Challenges in Global Organizations” diagrams the relationship between globalisation, the organisation and the cultural aspects of management.
“Advances in the field of information and technology and liberalization in trade and investment have increased the ease and speed with which companies can manage their global operations,” Singh writes. “Due to globalization, many companies are now operating in more than one country.”
All of this, however, leads to another experience for the organisation in addition to that of the new market. “This crossing of geographical boundaries by the companies gives the birth of [sic] multicultural organization where employees from more than one country are working together,” Singh continues. And the result? To this day, after years of globalisation, organisations are discovering both the profits to be made from this and also all of the challenges there are in entering into relations with other countries. As the paper states, “The global business is affected by a number of factors like differences in- socio, economic, cultural, legal and political environments. The global business is also prone to a number of risks like political risk, currency risk, cross-cultural risks etc […] [sic].”
All of this points to the fact that we need clear roadmaps so as not to get lost. Therefore, Singh provides a series of landmarks to help keep track of all of the intercultural aspects that an organisation may encounter when going abroad, but the study also comes to a more general conclusion. In globalisation, successful organisations are those that are able to “attract, retain, and motivate people from diverse cultural backgrounds”. This points to a rare talent that is to be developed: the ability to grasp aspects of business management that go beyond mere productivity and the search for new business outlets.
Managing Cross-cultural Diversity: Issues and Challenges in Global Organizations
MBA(HR), MA(Psy)[Gujarat University], UGC NET (Management), PGDHE(IGNOU)
IOSR Journal of Mechanical and Civil Engineering (IOSR-JMCE), e-ISSN: 2278-1684, p-ISSN: 2320-334X, PP 43-50