According to the World Bank, the hospitality industry revenue has been the largest contribution to the world GDP, for the sixth consecutive year, outdoing a total of 10.2% (US$7.6 Trillion) in the year 2016. The hospitality industry currently employs around 292 million of people, and that means that 1 in 10 jobs around the globe is linked to the hospitality industry (Oxford Economics for World Travel & Tourism Council, 2017)
In this era of Globalisation, cross cultural management is the biggest challenge that is faced by the organisations. Within the business context, cross culture refers to interaction between different cultures. Cross cultural management refers to managing the employees from different cultural background in one environment (Adler, 2008). Cross culture management is a significant issue within the organisations as the success of an organisation depends upon the smooth interaction of the employees. This paper is aimed at providing insight on the cross cultural management and the main issues and challenges relating to cross cultural management. For the purpose of this paper, two articles, “Cross-cultural Differences in Management”, by Amman & Jordan
Now days, the world becomes a one village. Although, there are different kinds of management styles and cultures impact on business management in the world, employees needs to increase their awareness to achieve the organisation targets. Awareness of cross-cultural management includes procedures and policies that are relate to the management of any organisation or workforce with different cultural and background. According
Since each national market has its own set of values and beliefs, that one has to appreciate in order to pursue a future in said globalized-world, it is no wonder we observe a constant rise in the demand for intercultural and cross-cultural trainings.
It is crucial for today's business personnel to understand the impact of cross cultural differences on business, trade and internal company organization. The success or failure of a company, venture, merger or acquisition is essentially in the hands of people. If these people are not cross culturally aware then misunderstandings, offence and a breakdown in communication can occur.
In multinational workplaces understanding how important the significance of cultural differences is larger than we might think. Organizations that are diverse have to work together because their functionality impacts the productivity of the workplace. It is vital to have an understanding the different cultures to develop a strong organization. Certain principles will help you acknowledge that different cultures exist within the organization. As a manager, you have to analyze the reasons for the development of the differences and
The complexity and diversity of cross cultural challenges in the international business world is reflected in the broad knowledge and skills of cross cultural consultants. Drawing on expertise gained through a variety of interrelated fields, the cross cultural consultant is now truly a specialist of great importance.
A third way to build a positive and successful intercultural relationship is to become educated on common business practices and cultural norms of the country of the prospective business partner. “Business people should learn how the other side approaches business and what the principles of hospitality are” (MacEwan, 2015, p. 156).” This quote demonstrates the importance of education in regards to other cultures business norms, because without a prior education a person could be doing something that the other country or culture finds offensive without realizing it. It could be the smallest of issues that ruins the business relationship and makes it unsuccessful.
Cross Cultural management explains the behaviour of people in organizations worldwide, helping managers and firms to understand how to act in business matters dealing with the different cultures. (Adler, 2008)
To achieve a merit grade the evidence must show that, in addition to the pass criteria, you are able to:
Dewald, B., & Self, J. T. (2008). Cross Cultural Training for Expatriate Hotel Managers: An Exploratory Study. International Journal Of Hospitality & Tourism Administration, 9 (4),
Considerable time is wasted by employees who find themselves in new environments where they work out in determining the interworking of different cultures. Different employees also depict different abilities and degrees to which they will adapt to the new culture, and this plays a huge role in hindering performance levels of the individual employee and hence the level of performance for the overall organization (Handin & Steinwedel, 2006). The low-performance levels will also lead to wastage of the organizational resources leading to the overall decline in the competitive advantage that is enjoyed by any firm in the business world. Different norms and expectations are brought to the front by any culture under study
Globalization has brought the world closer in communication, economics, politics, and especially business. The Internet and technological improvements have allowed instantaneous communication almost anywhere, and even poor women in India are using Smartphones to manage their banking portfolios. The idea of globalism continues to break down cultural barriers. As this continues it will be essential for organizations to not only understand, but embrace cultural differences and styles (Trebing and Estabrooks, 2005). Clearly, the changing demands of global stakeholders require new ways of approaching divergent customer bases. There are differences in style, skill, education and attitude in every organization now accentuated when we think of the multi-national organization. Correctly managed, this diversity can be a huge bonus to the organization. Organizations are far more effective once they understand and use diversity within their strategic and tactical planning process. Also, the new paradigm for global management includes creating and maintaining a diverse work environment in which cultural diversity is encourage and celebrated, rather than simply acknowledged (We need to identify and understand how our differences impact our relationships with other employees and customers. We also must create and maintain an inclusive work
The workplace has become one of the biggest multicultural settings. Almost half of the work force in the United States is made up of minorities. There are many advantages to having this percentage of people from different cultures throughout our workplace. One is the increase in creativeness. Not only in products that are being created but in the developing of an approach to solving problems. "Other cultures can offer insightful alternatives" (EthoConnect). Another way in which the workplace is affected by this is in productivity and attitudes. When people of all cultures pull together to reach a common goal there are less limited boundaries and there are more global understanding that are used to help reach the world's market place; creating a larger market for products. With this change in productivity in the workplace is more desirable and enjoyable for all employees. The market place has become more global based that workers having a diverse culture base is very important to break down barriers in language and knowledge of certain markets. This affects our lives by more companies hiring more international job seekers.
This paper is a report on cross-cultural management, with the issues related to cross-cultural management being discussed in the paper. Additionally, the report has produced the future way of cross-cultural management, including how it can be improved in offices relying much on this strategic approach.