Managing Cross Cultural Ethics and Behavior in International Corporations example

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Managing Cross Cultural Ethics, Knowledge, and Behavior in Multinational Corporations

The concept of cross-cultural management has radically changed over the last decade. Today, due to advances in communication technologies, such as “video conferencing and Web-based telephony”, many global managers face the new leadership barrier of managing virtual cross-cultural relationship (Meyer, 2013). Meyer (2013) argues that even ten years ago global managers were required to interact with different cultures on a regular basis, through extensive business travel and physical presence. However, multinational corporations have come to rely heavily on downsized global virtual teams to correspond and collaborate across borders. Meyer (2013)
argues that the main problem of such virtual correspondence and collaboration is that team members are often left without any prior exposure to another culture, leading to misunderstandings of cultural differences. Thus, Meyer (2013) argues for a new way of managing cross-cultural border teams to be developed, which would also involve techniques that differ depending on the cultures, including leadership, trust, communication, decision-making, and communication. Meyer (2013) propose eight sliding scales in order to better understand how culture affects an everyday international collaboration, and to boost managers’ business effectiveness. The elements having the strongest impact on multinational corporations include communicating, evaluating, leading, deciding,
disagreeing, persuading, scheduling, and trusting.

It is vital for workforces of multinational corporations operating in a global economy to develop intercultural competence because it helps to utilize cultural differences. Without sufficient cultural knowledge, cultural differences will result in communication problems and unanticipated negative reactions. However, if workforce of multinational corporations possesses the cultural knowledge, the same cultural differences may be utilized beneficially. In particular, the potential for greater innovation and creativity may be realized in multinational
corporations. The article “Understanding workplace cultures globally” (2015) argues that managers of multinational companies also have to develop an awareness of workplace cultures in countries other than their own. The article (“Understanding workplace”, 2015) remarks that in past not all employees of the organizations that reach into other cultures were “global people”. That is because only organizations’ leaders and managers visiting other countries needed to have knowledge about the culture of those countries. Now, thanks to modern technology, all employees can work across borders. This means that a global mindset, including cultural knowledge, is necessary for all employees of multinational corporations.

Cultural knowledge is instrumental in the operations of multinational corporations because it provides the workforce with a necessary understanding of the foreign culture, which may help overcome different
problems. For example, cultural knowledge is a vital prerequisite for fighting corruption. Taylor (2015) argues that such situational and behavioral factors as prioritizing growth, complacent of leadership, local devolution, strongly hierarchical and directive authority, unrealistic targets, low transparency, secrecy, defensiveness, and a lack …

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