Cross Cultural Management and Organizations Performance

June 10, 2017/ Free Papers/ 0 comments

Human Resource Management Study on “Cross Cultural Management And Organizational Performance” Group Members: Dhrumit Punmiya (101312)Manan Pamani (10132) Nikita Goyal (101330) Acknowledgement Index Introduction: The world has become an integrated place- a person driving a BMW to his office in Hyderabad wearing an Italian suit, a Swiss watch, working for a client in U. S. This is a common trend that is now observed across majority of the organizations.

Many multinational companies providing high quality products and services need dynamic workforce to manage the activities of the organization. So, people from different cultures, backgrounds, interests, behaviour and values as proposed by their culture interact with each other and form a part of the organization. This has resulted into many multi-cultural challenges faced by the international organizations at employee level. So, it results into the need for management of such diverse workforce in the organization which gives rise to the concept of Cross Cultural Management.

Cross Cultural Management refers to the management practice of managing the cultural differences between the different people of the organization in order to ensure smooth communication for achievement of the organizational objectives. There are many strategic alliances in today’s global economy of the world which gives rise to the need of establishing intercultural competencies to form strong working relationships with subordinates, business associates and clients. There is a need for individuals of different cultures and nationalities work together as a team and share their knowledge and do not entangle themselves with cultural isputes and differences. For this, there has to be a harmony between them as well as understanding of and respect for each other’s culture and values. The organizational performance could be enhanced greatly if the varied knowledge pool of resources from people with different backgrounds could be integrated effectively by managing the differences between them. Literature Review In an interview on Global HR issues by Martin Moehrle, working as a Chief Learning Officer, he found the major challenge is bringing about the cultural integration in a multinational organization.

Further, he elaborated on the importance of culture across a global organization and its implications on its performance. He said that behaviour in the organization is guided by a strong culture which attracts and retains talent that fits with the organizational culture and thus drives performance. According to him, it is important for the successful performance of the organization to turn the cultural diversity into a source of inspiration by added ideas, approaches and perspectives by managing it well so that it does not become a source of conflict as conflict,[] if constructively handled, does not pose a problem. ] according to a research on cross cultural management in China, …… Again, one of the important criteria for organizational performance is the choice of an appropriate mode of entry in different countries as a part of its strategic decision. So, the organization has to take into consideration the risk assosiated with the cultural difference between the host and the target country, thus emphasizing the importance of creatively managing this cross cultural issue. [] Research Gap and Questions

Though considerable amount of study has been done in the subject of Cross Cultural Management, but there is a still a need to understand the importance of linkage between effective cross cultural management and the organizational performance, as not much study has been done in this context. Also, there is a need to identify some techniques which can lead to a model that can be applied, with some variations if needed, to multinational organizations for enhancing their performance. Thus, in the wake of the above identified gap, we would like to examine the following research questions: 1.

Can effective Cross Cultural Management lead to better performance of an organization? 2. Can some specific set of measures be defined for effective cross cultural management? 3. What are the implications for the managers for formulating the strategies for the organization? Conclusions and Learnings: On the basis of the above study, we conclude that managers should understand the importance of effectively and creatively managing the issues arising due to the differences in the culture of the various stakeholders of the organization, especially the employees.

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