Finance

Cross Cultural Management as a Form of a Business Environment

In the current years, there has been a vast increase in globalization and this has created responsiveness of the necessity for managers to be responsive to the cultural aspects of decision- making. Even though these cross-cultural differences are a way of helping embrace the diverse notions from different places they also act as a downfall for many mergers in business (Lane 67).The mergers and acquisitions activity as an aspect of business strategy in finance and management that deals with the integration of different businesses and comparable entities that can be of help to a corporation to develop its sector or location, without the creation of any subsidiary (Tjosvold 56). The corporate that is more sensitive to cultural differences in any of the cross-cultural environments are in a better form and well equipped to make better decisions. The managers who are well familiarized with cross-cultural management techniques enable smoother workplace relationships.In current years, there has been a rapid increase in globalization and diversity in the workplace and due to this cross-cultural management has become an extremely vital part of the organizational life. The many human races come with different backgrounds. This clearly states the way of doing things in one culture may not be the same way that things are done in the other cultures. also whatever is regarded as good in another culture may be disadvantageous in another (Lane 77).With all the many cultures that exist in the world, the question that arises is how many adaptations are needed for effective international business relationships. With the different use of time by the two mergers, there can be an introduction to cyclic time which shall encourage a certain degree of synchronization of schedules and targets. Employees can begin understanding other people’s cultures and also trying to learn foreign tongues and cultivating empathy with the views of others (Lewis 113)The human resource in the cross-cultural companies should be wellexperienced with multinational relations so that they can be capable of choosing the right people for each of the departments.

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