Impacts of cross-cultural management on organizational effectiveness

Abstract - Impacts of cross-cultural management on organizational effectiveness

Managing any organization is itself a colossal task for the leaders of any company, even a small decision can cause a great impact, and when it comes to managing the people from various cultures, the responsibility becomes very immense. In today's scenario, the physical boundaries have somewhere diminished; it is very common for masses to cross these boundaries and move to different places for work purpose. Hence any organization has to deal with various cultures in multiple ways; firstly the employees from a different background, presently in any organization people are working from numerous countries and states, therefore, are following different cultures, then the clients and lastly the consumers who all are from various culture, country, and state. For any human the two things are most important; one is to earn a good livelihood for his family and second is to follow his primary culture. For this reason, any human will never compromise one thing for another. So to run any business efficiently and successfully it is crucial for any leader to learn cross culture management.

What is cross culture Management?

Cross Culture Management:

The world has now shrunk, gone are the days when the employees, clients or consumers were restricted to a particular area and therefore belonged to the same culture. There was no concept of cross culture. But today it is, employees, clients or consumers all belong to various cultures and backgrounds. Any organization has to deal with the different cultures. For any reason, the sentiment of any religion gets hurt it could create a big trouble for that organization. Hence the organization follows the cross culture management which is defined as managing the work teams considering their culture even if it leads to any change in the practice or policy of the organization.

Yes, the organizations sometimes even have to mold their approach to adjust the cross culture management. If they will not it could lead to the serious consequences.

Let's look at the impact of cross culture management on organizational effectiveness.

The impact of cross culture management on organizational effectiveness.

Any organization stands on the two pillars; one is the employees and second are the clients and consumers. If any one of them is unsatisfied, it creates the effect on the balance sheet of the organization. Below is the example which shows the importance of cross culture management.

An XYZ organization was started on a small scale by a group of people in a small town. They were the manufacturer of a fairness cream; the label of cream had a photo of the local model. The product was a big hit, and in a short span of time, the organization earned huge profits. The organization decided to expand its business. They set up a new firm in an another state and hired the local employees Ironically, here even after many months the sales figure could not reach to any level, and on another hand, the product was counting a lot of money in the previous state. To understand the situation, one of the prominent board members visited the new plant. During this course, he met with an employee who was the resident. On the conversation with him, he came to know that there was a vast culture difference between both the states. To control the situation, he applied the cross culture management. His necessary steps were; hiring a local model for the company label, Understanding the culture of the state and facilitate the local employees accordingly. As a result, an organization started getting results from the new state as well. So this shows the impact of implementing the cross culture management.

On generalized basis the impact of cross-cultural management can be summed up as:

The cross culture management allows any organization to expand its business in different countries and states. With a proper cross culture management an organization can make profits and can have the satisfied employees irrespective of the area or culture. It will give liberty to the organization to overrule the physical boundaries and expand its business without any worries. An organization just need to get itself bends with the new people and place. However, if a company ignores the cross culture management, it could lead to serious loss as when an organization penetrates into the different boundaries the impact of culture can be seen even in the way of thinking and talking about masses. 


Running an organization without considering the cultural difference will be like running an organization with a termite in it which will slowly make the roots hollow of any organization. Implementation of cross culture management is as important as the organization itself.

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