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Managing Cross-cultural Diversity: Issues and Challenges in Global Organizations

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Managing Cross-cultural Diversity: Issues and Challenges in Global Organizations

  1. 1. Managing Cross-cultural Diversity: Issues and Challenges in Global Organizations Presented By: Rajz Crestha
  2. 2. Introduction • The companies are becoming global companies • Global companies leads to Multicultural organization • Managing and operating global business is tougher task • Human resources should be culturally sensitive
  3. 3. Culture • The social behavior and norms found in human societies • Learned and helps to interact and communicate • Helps to understand: How the members of the society live How the members behave Beliefs and values
  4. 4. Organizational Culture • When people join an organization, they bring with them the values, beliefs they have been taught • They need to learn that how particular organization functions and need to adapt to it
  5. 5. Characteristics • Observed behavioral regularities • Norms • Dominant values • Philosophy • Rules • Organizational climate
  6. 6. Diversity • Understanding that each individual is unique • Recognizing our individual differences • Dimensions of race, ethnicity, gender, socio-economic, status, age, physical abilities, political beliefs, other ideologies
  7. 7. Cultural Diversity • Cultural diversity is when differences in race, language, nationality, religion • Residents include members of different groups
  8. 8. Reasons for the emergence of diversity • Various groups of people are entering the workforce • Helps organizations in meeting competitive pressure faced by them globally • Helps in decision making process
  9. 9. Advantages of diverse culture in the work force • Improved Morale • Broader Perspectives • Global Impact • Community Relationships
  10. 10. Why culture matters in international business • Developing products and services • Communicating and interacting with foreign business partners • Screening and selecting foreign distributors and other partners • Interacting with current and potential customers from abroad • Preparing for overseas trade fairs and exhibitions • Preparing advertising and promotional materials
  11. 11. How cross cultural differences complicate workplace • Teamwork • Lifetime employment • Pay for performance system • Organizational structure • Union management relationships • Attitudes towards ambiguity • Managing culturally diverse workforce
  12. 12. Conclusion • The global business is affected by a number of factors like differences in socio, economic, cultural, legal and political environments. • People should be culturally sensitive.

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