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Intercultural Management

In: Business and Management

Submitted By hd340
Words 2139
Pages 9
Topic Review: General Management

Effective cross-cultural management has to be grounded in a detailed knowledge of individual cultures. Discuss using examples from two multinational companies.

I/ Introduction: In times of rapid globalisation and economic development growth, the environment of business has become more and more complicated as a huge number of firms want to globally expand their businesses. Subsequently, the managerial implications of cross-cultural management is the challenge of this development. As Abbe (2007) states, cross-cultural leadership has developed as a way to understand leaders who work in the global markets. Culture is the “software of mind” that can influence people’s patterns of thinking and behaving. (Hofstede, 1997). Referring to a work of He and Liu (2010), different characteristics of culture result in thinking, understanding and communication diversity. These diversities more or less make organisational development and management difficult. Therefore, multicultural managers should create cross-cultural training in their companies in order to increase effectiveness across culture. This essay will be discussing whether effective cross-cultural management has to be grounded in a detailed knowledge of individual cultures with examples of two multinational companies: Wal-Mart and Alfa Laval.

II/ The Debate on Cross-Cultural Management: Globalisation has increased the awareness of consumers, and made nations more inter-dependent. In these days, international corporations require managers who can adapt to various environment quickly and work with their partners as well as employees from other cultures (House et al., 2001). Today, business in different nations should increase their sensitivity and respect for one another’s cultural differences to gain benefits from the growth of international business. Mainly, intercultural...

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