The rapid improvement in the technological sector and liberalization in the trade activities across the globe have given rise to globalization
Companies are expanding themselves in various developed and potential international markets
There are many issues which arises at the time of global operations because of several factors such as political circumstances, legal framework, communication and cross-cultural diversity.
To manage the issues, there is a need of efficient and effective Human resource Management.
HRM helps in managing operation both at global as well as domestic level
Among all the factors, the key factor which imposes negative as well as positive effects is cross-cultural
Objectives of the presentation:
To understand approach of Cross-Cultural Diversity
To understand Cross-Cultural Diversity Management
Benefits of cross-cultural diversity in Global Business
Issues & Challenges in Cross-Cultural Diversity in the Global Business
Overcoming the issues of Cross-Cultural Diversity
Strategic approach for managing the cross-cultural diversity
Cross-Cultural Diversity in Global Business
Culture can be explained as a specific set of assumption and anticipations that in what manner a business should be performed
There is a significant co-relation between the organizational culture and global business management
The set of different symbols, rituals, norms and values of the various individuals forms the diverse organizational culture.
The organizational culture has a direct impact over the behavior of the employees
Organizational culture supports in defining the organizational behavior of the employees as well as the their respective values and beliefs.
Cross-Cultural diversity affects the view points of the employees,
Diversity can be explained as the difference among the people on any aspect which leads in development of perception that another individual is diverse from oneself.
Dimensions on Cultural Diversity: Primary and Secondary
Primary Dimension: they are visible in nature and comprises of physical characteristics, race, age, sex and gender. They have highest impact on the behavior of the employees
Secondary Dimension: It includes factors of diversification such as work style, position, experience, education level, social class, geographical location, religion and language.
There are four major secondary dimensions which effectively demonstrates the diversity of the employees and the managers:
Femininity versus Masculinity
Collectivism versus Individualism
Cross-Cultural Diversity Management in relevance with Global Business
There is both negative as well as positive impact of cross-cultural diversity, thus it is necessary to manage it effectively
It is essential to have a suitable strategy for managing the cross-cultural diversity as it has a major impact on the decision making, communication, business processes and behaviour of the workforce.
Traditional strategies found to be inefficient in managing the challenges and issues cross-cultural diversity.
Benefits of Cross-Cultural Diversity in the Global Business
There are several benefits of cross-cultural diversity while performing global business:
Increased workgroup efficiency
Enhanced organisational performance
Offer high competitive benefits to the organisation
Skill development of the employees
Enhanced motivation and moral support among the employees
Improved community associations
Global benefits such as overcoming barriers related to language, helps international expansion, etc.
Development of the international business
Results into broader perspectives and development of innovative ideas
Ang, S. and Van Dyne, L., 2015. Handbook of cultural intelligence. Routledge.
Ang, S., Van Dyne, L., Koh, C., Ng, K.Y., Templer, K.J., Tay, C. and Chandrasekar, N.A., 2007. Cultural intelligence: Its measurement and effects on cultural judgment and decision making, cultural adaptation and task performance. Management and organization review, 3(3), pp.335-371.
Barak, M.E.M., 2016. Managing diversity: Toward a globally inclusive workplace. Sage Publications.
Bell, M.P., 2011. Diversity in organizations. Cengage Learning.
Chhokar, J.S., Brodbeck, F.C. and House, R.J. eds., 2013. Culture and leadership across the world: The GLOBE book of in-depth studies of 25 societies. Routledge.
Ewoh, A.I., 2013. Managing and valuing diversity: Challenges to public managers in the 21st century. Public Personnel Management, 42(2), pp.107-122.
Herring, C., 2009. Does diversity pay?: Race, gender, and the business case for diversity. American Sociological Review, 74(2), pp.208-224.
Horwitz, S.K. and Horwitz, I.B., 2007. The effects of team diversity on team outcomes: A meta-analytic review of team demography. Journal of management, 33(6), pp.987-1015.
Jackson, G. and Deeg, R., 2008. Comparing capitalisms: Understanding institutional diversity and its implications for international business. Journal of International Business Studies, 39(4), pp.540-561.
Jayakumar, U., 2008. Can higher education meet the needs of an increasingly diverse and global society? Campus diversity and cross-cultural workforce competencies. Harvard Educational Review, 78(4), pp.615-651.
Landry, C. and Wood, P., 2012. The intercultural city: Planning for diversity advantage. Earthscan.