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Globalization is a social process, in which have erased geographical boundaries of social and cultural systems, the process of transforming the world into a coherent whole. (Thomas, 2002, p. 124).
The development of globalization and internationalization of business spheres leads to changes in the techniques and methods of management, the transition from classical management to the concept of new approach of system management.
In large corporations, the content of management functions has changed considerably: these functions are systematically divided among departments and often are geographically scattered. The role of the middle and lower-level control is reduced only to the interim control the implementation of the established top management plans.
It is important to point out the so-called “corporate principle” – the established pattern of work, relationships, behavior, when workers are subject to certain established principles, rather than the influence of managers (Thomas, 2002, p. 119).
Economy has become a main cause factor and a tool of globalization. However, it brings not only benefits but also certain problems for top managers: a tough competition, both in price and quality, a growing migration to work employees from other countries and also from other cities and regions, so the regional differences can become the basis of misunderstanding and conflict, not only among employees but also between staff and customers. (Thomas, 2002, p. 128).
Another problem – a problem of orientation in the wide cultural environment, that requires certain knowledge and skills of behavior and communication in multicultural society. That’s why modern management now is the intercultural Management.
Intercultural management is a system of management of the company or organization, founded on the principles of multiculturalism and directed to work with representatives of various territorial, religious, social and cultural groups. (Mead, 2005)
Intercultural management affects all organizational structure of the company. Thus the presence of multi-culture is taken into account in preparing documents (translation into other languages), to conduct special training sessions, the formation of intercultural competence.
The theory of intercultural management began in 1950 in the U.S., from 1980’s it is actively developing in Europe. On the basis of certain traditions, have developed different designations intercultural management, sometimes referred to as cross-cultural management, trans-cultural management, multicultural management. Differences in definitions exist not only because of the diversity of sources of translation, but also because of individual scientific traditions. (Mead, 2005)
All countries have their national peculiarities of management, which are useful to take into account by managers of companies entering or planning to enter foreign markets. They are called by the generic term “cross-cultural management.” For example, in the U.S. business community will not understand if you can not name the mission of company, and in Japan – if your company has not at least a five-year strategic plan.
An international management faces many problems, one of the most important –is consideration of environmental factors. It must be remembered that the foreign environment is always aggressive with respect to the firm. Particularly relevant this problem is for companies intending to conduct business abroad.