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padmakumar pathiyil
من قبل padmakumar pathiyil , Marketing Consultant , Management Consultancy

The existence of a variety of cultural or ethnic groups within a society.

Amrut Desai
من قبل Amrut Desai , former Managing Director & Country Manager India & SriLanka , Hohenstein India Pvt Ltd-fully owned by Hohenstein Institute GmbH Germany

What is Cultural Diversity ?

Today, more than ever before, we are able to comprehend the various differences among nations as a fall out of  convergence of the world brought about by globalization

Though the world is claimed to be becoming culturally homogeneous, still very significant differences exist between different national cultures. The globalisation of economy has made the differences among nations more resonant than ever since now the uniqueness of a nation presents a challenge to the other nations of the world, making it a little hard to deal with it. There are certain factors in the national environment that distinguish a nation from another especially when it comes to doing business.

Distinctness in their political, social, economic, cultural and administrative environments etc give rise to dissimilarities in the nations. It is in accordance with the national environment that the firms, both national and multinational conduct their business. It is imperative for the multinational enterprise to get to grips with the substantial differences that exist between national cultures to develop an effective understanding of different norms, values and assumptions, which are prerequisites for successfully doing business in different nations. So, to be effectual, a thorough study of the national environment must be made by a multinational enterprise before establishing a subsidiary in a particular nation.

Culture has a strong bearing on business among the different aspects of national environment . Culture influences people’s behaviour in critical ways. This is so because culture plays a fundamental role in forming values, which interact with the needs, attitudes and norms of the individuals and groups and result in different behaviours.

As such a thorough understanding of culture is very important for international managers, especially where cultural differences exist between the host country and the home country of a  multinational enterprise. A thorough  understanding of the cultural differences enables not only effective management by ensuring that people behave in ways appropriate for the organisation but also correctly interpret the behavioural differences and thereby interact effectively to avoid misunderstanding and be accepted by others.

Apart from all the material resources, the human resource or the employees play a key role in the success or failure of the entity in a given different cultural environment as they are the ones who turn the plans into actions by the use of the physical resources like machinery, technology, finance etc.

A given national culture with its values, beliefs and attitudes lays down norms for acceptable social behaviour. It indirectly dictates the behaviour of people, their preferences and perceptions.

Owing to the differences in national cultures, the staffing  practices followed in the home country and host country may differ greatly.

To unravel the mystery of the world culture that has  such great bearing on the performance  of  an organization, it is important to revisit the subject to know what is culture

According to world renowned Professor Emeritus – Hofstede (1984),

Culture is the collective programming of the mind which distinguishes the members of one human group from another…Culture in this sense, includes a system of values; and values are the building blocks of culture.”

This implies that, A culture is particular to a group and not others and Culture includes a system of values, which are basis of culture.

It is in this context that individuals as employees and collectively as organization need to be prepared. The ones that cannot manage to effect smooth changeover are at risk of failing.

An individual is always worried if he or she is a proper fit in a given department/ organization and hence hesitates to decide if he or she is ready to work in a given  different organizational culture / national culture.  

However, the world of opportunities beckon  individuals and business entities to explore the possibilities of all round development and career advancement.   

Cultural diversity and the ability of  a multinational organizations to assimilate diverse  cultures and to harness the positives to achieve organizational goals spells success or disaster for any given organization

 

 

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