Cultural Differences Od

In today’s Globalised era, effective communication through the understanding of cross cultural

difference can be the key feature of competence and sustainability in the globalised market

(Matthews and Thakkar 2012). “As society becomes more globally connected the ability to

communicate across cultural boundaries has gained increasing prominence” (Matthews and

Thakkar 2012). To assist in positive building of international relations, cross cultural

management is essential. “Cross-cultural management explains the behaviour of people in

organizations around the world and shows people how to work in organizations with employees

and client populations from many different cultures.”

Businesses need to give importance in understanding cultural differences due to the benefits it

has in uplifting business success. ‘The method a company ventures from their home market to

new geographical markets is of great importance for how well the company succeeds with their

business’ ( Pehrsson 2008). Cultural understanding is vital as it has a direct effect on profitability

and international market stability. In the present work environment, interactions are made with

people regardless of their location and so it is important to have an appreciation of cross cultural

values in order to have a pleasant and harmonious environment along with a competitive

advantage. Moreover, encouraging workforce diversity can allow a competitive advantage by

benefiting through their skills, language and knowledge and thus increasing productivity and

innovation (French and Rayner 2008). Cross cultural differences manifest in general areas such

as in behaviour, etiquette, norms, values and expressions etc. Differences in culture may bring

about obstacles and challenges and thus understanding cultural differences helps in adapting and

therefore avoiding clashes and misunderstanding that may hinder successful performances (Raj

2008). For example, some signs and gestures may be a taboo...