Managing Cross-cultural Diversity: Issues and Challenges in Global Organizations (original) (raw)

2014, IOSR Journal of Mechanical and Civil Engineering

Today, globalization has become a reality. Advances in the field of information and technology and liberalization in trade and investment have increased the ease and speed with which companies can manage their global operations. Due to globalization, many companies are now operating in more than one country. This crossing of geographical boundaries by the companies gives the birth of multicultural organization where employees from more than one country are working together. It may be true that companies are finding these expansions as attractive and lucrative but operating and managing a global business is normally a lot tougher than managing a local company. The global business is affected by a number of factors like differences in-socio, economic, cultural, legal and political environments. The global business is also prone to a number of risks like political risk, currency risk, cross-cultural risks etc... Human resources are required to perform at all operational levels across all business units be it domestic or global. In such circumstances, the risk of cross cultural discrepancies is inevitable. The aim of this paper is to find out these discrepancies and then suggest some effective solutions to manage effectively the cross cultural aspect of human resources for the success of global business.