Corporations are currently enjoying the benefits of globalization. Companies now have a large consumer base and a wide supply of labor. However, globalization has resulted in a series of new challenges. Cultural conflict is one of the major challenges facing managers today. The issue of culture is a relatively modern problem arising from the rapid globalization of societies. Therefore, managers are required to adopt effective cross-cultural management style so as to reduce cultural conflicts and enhance business success. Cross-cultural management is detrimental to the success of a business. As a management style, this new method enables managers to develop innovative means of handling intercultural communication. Moreover, cross-cultural management enables companies to enhance their capacity to establish, develop and maintain their businesses in the constantly changing business environment (Velo 2011:3). Companies that effectively utilize cross-cultural management enhance their position to profit in the business field. The complexity and challenges resulting from globalization, managers need to comprehend how to work with other people and organizations around the world. Cultural competence is detrimental to the success of the business in the globalized world. There are various definitions of culture. Sigmund Feud defined culture as The construction that hides the pulsational and libido-oriented reality governing a society (Velo 2011:3). Herder defined culture as a way of being that members of a nation identify with. Kardurer contributed to the description by stating that Culture is the psycho-characteristic configuration of the basis of personality (Velo 2013:3). Hofstede’s definition of culture states that Culture involves the mental programming of the human spirit that prohibits distinguishing of members of one category in comparison with members of another category (Velo 2013:4).
Cross Cultural Management