Table of Contents
Identifying cultural differences 5
The concept of cultural orientations of Kluckhohn and Strodtbeck 5
The concept of cultural context of Hall 5
The model “culture, status and function” 6
The concept of cultural factors of Hofstede 6
“The consultant model” of Trompenaars 7
Cross-cultural communications in the organization 7
Attitude to time 9
Culture and structure 9
Cultural factors of motivation 10
Cross-cultural aspects of organizational conflict 10
Cross-cultural aspects of recruitment, selection and adaptation of staff 12
Cross-cultural technologies in action: cases 13
Cases of failures in applying the principles of cross-cultural management 13
Positive experiences of managing cultural differences 14
Cross-cultural training of managers 17
Globalization can be understood as a gradual transformation of the global space into a single zone with free moving capital, goods, and services, free spreading ideas and their carriers, encouraging the development of modern institutions and polishing the mechanisms of their interaction (Elashmawi, 2001). Globalization thus implies the formation of an international legal, cultural and informational field, a kind of infrastructure of inter-regional exchanges, including informational. Globalization is making profound changes in the conditions of existence and development of all actors in international affairs. It means that none of them can develop in isolation, without engaging in economic, informational, political, cultural and ideological interaction with other participants in the global game (Soderberg & Holden, 2002; Anheier & Isar, 2008).
As a result, investment is no longer purely national or even mostly national affair; they become an international business. This is reflected both in nature and the scopes of investment. In modern conditions finding a certain amount of money is no longer enough for creating a competitive business. It is essential that these funds should come from a source that can bring modern technology, which possesses all the necessary information and links, which would allow not only producing but also selling the goods or services for the release of which the company was created. This, in turn, suggests entering the international arena, the exact knowledge of the world market, the ability to quickly maneuver the capital, production facilities and labor force (Søderberg & Holden, 2002).
However, along with all its advantages at the expense of market expansion, globalization has also brought problems to top managers.
International standardization increases, and at the same time so does the number of points that should be considered when releasing/selling products or services; foreign goods make tough competition, both in price and quality. Migration is growing, jobs are given if not always to staff from other countries, then to people from other cities and regions. And regional differences by themselves can become the basis of misunderstanding and conflict not only among employees but also among employees and customers. Another problem is the problem of orientation in an alien cultural environment and the necessity of building a system of management with the consideration of the growing multi cultural society (Elashmawi, 2001; Søderberg & Holden, 2002). This has determined the emergence of such a section of management as cross-cultural management (Mendenhall et al., 2000).
On a whole, the active involvement of companies and individual entrepreneurs in international operations requires from managers the acquisition of new knowledge and skills related to the implementation of strategies for interaction with individuals and companies, whose behavior is determined by values and cultural priorities other than their own. The paper is devoted to personnel management in cross-cultural environment and examines cross-cultural communication in the organization, mutual influence of corporate and national cultures, cultural factors of motivation and cross-cultural aspects of organizational conflicts, as well as describes the practice of MNCs in the selection, training, and adaptation of expatriates.