Professional Documents
Culture Documents
Globalization becoming present and having a great impact in every field of activity, economy
and market, has led to an imperative need for the management of companies of every scale to
focus on understanding and developing cross-cultural strategies in which concerns
communication, negotiation and decision-making processes. By doing so, the process of adapting
is increasingly facilitated for persons in managerial positions that are well trained and possessing
the knowledge and skills of cross-cultural communication and capabilities.
Multinational Corporations are economic structures that are built to adapt to the global economy.
They prefer to produce goods or services in foreign countries, because of a multitude of reasons,
most common being finances and labor force. They are structures that are multicultural and
require a different management approach to cope with cultural differences. Being multicultural is
about being positive and open to learn about other people’s backgrounds. It creates new ways of
communication that contribute to a better and more creative work environment.
We can find this type of companies in almost every sector of activity. It requires management
and work force that come from different cultures. Taking into consideration this aspect and the
fact that these people need to establish relationships with workers from the host country,
management of cultural differences is something imperative. This is why the activities of
multinationals are usually very different from local companies.
Managers coming from different backgrounds have different perspectives on how things should
be done. Understanding the host country culture should be the number one thing when it comes
to taking decisions in such teams. People are the most important resource of any organization,
and so if they are not correctly lead, achievement of objectives and a healthy work environment
cannot be achieved. Ignoring the human side of business leads to wasted resources and reduced
productivity. You have to be able to bring together people from different contexts in order to
achieve goals and create a strong corporate culture.
If we were to dissect multiculturalism, we would have different components: cultural self-
awareness and capacity for self-assessment, understanding other people’s perspective,
adaptability and adjustment to new cultural environments, openness toward intercultural learning
and to foreign people and adaptation to varying intercultural communication and learning styles.
The most important elements of multicultural management are:
Recruiting candidates that can be effective in cross-cultural environments
Handling differing regulatory environments for business
Training employees to handle intercultural communication issues
Facilitating cross-cultural teams
Aligning HR policies and procedures across corporate entities in different
nations
Taking into consideration the position the company holds in the industry and the fact that it
represents a multinational company, it comes naturally for a mix of cultures and nationalities to
blend together – the issue arises once the blending does not go as smoothly as it should or it is
not carried out completely. This is also the case with Deloitte, where some of the teams are
having as team leaders foreigners from all around the world – African countries, the Netherlands,
France, Poland, Pakistan, for example. Looking at the multitude of nationalities and cultural
backgrounds it is easily understandable that cultural issues are easy to interfere in both the
communication process and work environment, as mostly, the teams are made up of persons that
are Romanian at origins.