How Business and Management Might Operate Based on Cultural Diversity

How Business and Management Might Change and Operate Based on Cultural Diversity Name Institution How Business and Management Might Change and Operate Based on the Culture Diversity Executive Summary Hofstede’s framework for the analysis of cultural diversity and its influence on business operations and management of the same forms the foundation for sustainable growth and development of business organizations across the world. According to Hofstede, it is important to have an understanding of a wide range of factors defining the way of life of people within the region of business operations. The success of a business organization, especially at the global level, in a particular region, depends on the integration of cultural differences or diversity towards creating a favorable working environment for all. Failure to recognize and appreciate the cultural orientation of a region may lead to cultural collision between the management and employees or even among the latter. Provided herein is a comprehensive analysis of how both the management and business practices have to embrace the impact of cultural diversity as it forms an integral part of business organizations at both the local and global levels. Literature Review Societies across the world have their unique set of shared values, beliefs, customs, and traditions through which they form their equally diverse identities CITATION Men14 \l 1033 (Menezes, 2014). The collective identities formed through the common social background and heritage often shape or determine how individuals and society at large operates. The outlined aspects of society define its people’s way of life, which includes among other things its perception of various principles, ideologies, or concepts in life. Culture is a collective term referring to said sharing of customs, beliefs, values, and traditions among a group of people or what is simply known as a social group CITATION Men14 \l 1033 (Menezes, 2014). Hence, it suffices to say that people’s culture is integral to how they perceive various occurrences in life and how they carry out or perform their daily activities. The identity established from the culture of one’s social group further highlights their cultural orientation, which reflects their preferred way of life and that also doubles as a key determinant of how well they operate within a given organization. It is, therefore, evident that the culture of a particular region may have a great impact on how a business organization operates. It is an important factor to consider while developing the cultural organization structure of a business organization. Hofstede Geert defines culture as a synchronized system of thinking that distinguishes between members of a particular social group from another group CITATION Hof10 \l 1033 (Hofstede, 2010). The difference between the two groups or individuals from the social groups is the fact that members of each group uphold a unique set of values nurtured from their respective social backgrounds. The cultural differences witnessed in such a situation refers to one of the most common features of both global and local business organizations, cultural diversity CITATION Pie11 \l 1033 (Piepenburg, 2011). Overlooking the influence of cultural diversity on business operations and management practices can lead to adverse repercussions to the business organization and its prospects of sustainable growth and development in the global market. Cultural influence on business and management occurs or rather manifests through different levels including the national, organizational, occupational, and gender CITATION Kaw12 \l 1033 (Kawar, 2012). The culture of a nation forms around the country’s shared values and principles as a collective. Organizational culture, on the other hand, defines the set values and principles adopted by an entity towards the achievement of its business objectives CITATION Kaw12 \l 1033 (Kawar, 2012). Like in the social groups, organizations within the same region are bound to have different ways of carrying out their daily business operations based on their unique values, customs, or traditions. At the occupational level culture implies the set guidelines or framework for executing the assigned tasks and responsibilities. Culture at the gender level seeks to highlight the perceptions of both the male and female genders through the values held by a given social group CITATION Kaw12 \l 1033 (Kawar, 2012). Cross-cultural management attempts to bring harmony to business entities across the globe by enhancing cultural tolerance among employees of the organizations by encouraging the appreciation of the presence of different cultures within such entities CITATION Rey11 \l 1033 (Reynolds, 2011). The management of cultural differences may prove to be a challenge to effective business and management practices for business organizations across the world as different regions have different cultures. Thus, business organizations are today investing in ways to manage the cross-cultural differences witnessed in the international markets. The success of such entities depends on how well they manage the cultural diversity within their organization for a collective approach towards realizing the companies’ set objectives. Context of Topic in International Business A majority of business organizations around the world seek to establish their presence or rather business activities on the global platform. The increased competition within various industries of the global economy has seen business organizations making strategic development plans to get a share of the global market. The advanced information and communication technology further enhances the development of global business organizations as the international market gradually becomes a global village CITATION Nee15 \l 1033 (Neelankavil, 2015). Indeed, globalization promises bright future for b...