Do you have multicultural employees, customers, or suppliers?
“Culture is the collective programming of the mind distinguishing the members of one group or category of people from others”
Dr. Geert Hofstede, Professor Emeritus of Organizational Anthropology and International Management
University of Maastrich, Netherlands
The advances in communications, logistics, and travel, have reduced the barriers between countries and people. Companies can sell to their customers across the street, as easy as across the world; and they can have their sales people locally, their manufacturing in China, and their customer service in India. Because of the recent changes in today’s interconnected world economy, public and private organizations are obligated to interact with employees, customers, and service providers from mixed cultural backgrounds.
What is Cross-Cultural Management?
According to Dr. Hofstede, the eminent worldwide researcher and practitioner on the impact of culture on business, “there is no such thing as a universal management method, or universal management theory across the globe”, and attempting to implement it on that way can substantially affect your organization ability to expand on a worldwide basis. Even linguistically the meaning of the word management has different connotations in different countries of the world. National culture can substantially impact the way employees, customers, and even executives behave, through their influence on their individual and collective sets of expectations and values. Management as a form of governance cannot be seen as a phenomenon isolated from their social and cultural environment, and attempting to ignore the local expectations can hinder an organization international success.
Do you know that a 1% increase in employee satisfaction can result in over 2% increase in contributions to a company bottom line?
The majority of the high performance employees living a company cite “disagreements with management” as their primary reason to leave the organization.
How many of those disagreements are based on cultural misunderstandings?
Employee happiness has a direct impact on productivity and revenue too.
- In a year, lost work days due to stress cost $30 billion
- Each year, lost productivity costs the U.S. $200 billion
- Maintaining happy employees could cost labour costs in the U.S. by over $2 billion.
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