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

1. Managing Cross-cultural
Diversity: Issues and Challenges in
Global Organizations
Presented By:
Rajz Crestha

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. 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. 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. Characteristics
• Observed behavioral regularities
• Norms
• Dominant values
• Philosophy
• Rules
• Organizational climate

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. Cultural Diversity
• Cultural diversity is when differences in race,
language, nationality, religion
• Residents include members of different groups

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. Advantages of diverse culture in the
work force
• Improved Morale
• Broader Perspectives
• Global Impact
• Community Relationships

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. 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. 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.