What is Cross Cultural Management?

What is Cross Cultural Management?

Cross cultural management is the study of management in a cross-cultural context. It consists of the study of the impact of societal subculture on managers and control practices in addition to taking a look at the cultural orientations of individual managers and enterprise members.

Cross cultural management includes managing work groups in methods that considers the variations in cultures, practices and alternatives of customers in a worldwide or worldwide enterprise context. Many groups should discover ways to adjust or adapt their tactics so as to compete on a degree in fields not certain through bodily geography with on-line interactions extra not unusual in enterprise and different situations.

Cross-subculture management occurs when a supervisor oversees employees from a subculture apart from her very own or when employees on a group are from special nations, as well. There are some approaches a multicultural group is probably set up. Organizations have places of work in special nations which can be controlled via the means of humans within side the head office. At different times, far flung personnel round the arena are controlled via the means of a person in any other country. Another state of affairs is when people have immigrated from different countries and work along others who've additionally traveled from elsewhere.

Example of Cross Cultural Management

Example − The Coca-Cola Company’s distribution strategy in African countries

An impressive example of a successful growth to new territories the usage of cross-cultural management is the multinational conglomerate The Coca-Cola Company.

Of course, Coca-Cola is renowned internationally and has prolonged its attainment to almost every United States on Earth. This fulfilment turned into now no longer guaranteed, however instead an end result of innovative and masterful global management.

When Coca-Cola entered the African marketplace in 1929 it became obvious that a whole lot of variation might be needed. Especially when it got here to distribution, the equal procedures and channels that worked in different markets might now no longer work in African countries.

Two big challenges were apparent −

  • Retail landscapes made up mostly of micro-businesses

  • Underdeveloped infrastructure (roads, urban areas, etc.)

One of Coca-Cola’s biggest franchise partners in Africa, Coca-Cola Beverages Africa headquartered in South Africa, has helped develop key distribution strategies in the region.

The Micro Distribution Center (MDC) version was released in Ethiopia in 1999, as a way to get merchandise to small mom-and-pop shops, road cart carriers and different micro businesses. Coca-Cola recruited marketers to run those distribution centers, who in turn hired devoted income human beings accountable for servicing outlets in the area.

Distributors would use any means necessary to supply the product to micro businesses. Small batches could be taken via way of means of hand, pushcart, or even canoe to their destinations. Salespeople were locals who had vital understanding and have been relied on via way of means of the community.

The MDC model has been very successful over the last twenty years and is presently utilized in 19 African and Asian countries. Coca-Cola’s willingness to evolve and contain new control practices that match the wishes of the nearby location has set it up as a strong brand even in difficult markets.

Steps to Execute an Impactful Cross Cultural Management

The following steps can be considered to create an impactful cross-cultural management:


Leaders who are thinking about bringing in skills from any other part of the arena to take an area at the senior government crew have already reached the primary milestone. They have a cognizance of the overall worldwide skills pool. While many Western enterprise worries have already evolved an appreciation for the overall variety of skills to be had worldwide, a few are lagging in the back of or don’t actually have it on their radar. These organizations don’t realize that they’re lacking out on opportunities.


Once aware of the idea of the whole worldwide skills pool, the subsequent step is to create an application for constructing the worldwide government bench. Expanding one’s horizons doesn’t imply neglecting the people right under one’s nose.

Progressive organizations have entire government-development packages that expand skills for nearby possibilities and appearance overseas for gifted folks who are equipped to pass borders for the subsequent step of their development.

Executive Selection and Integration

Any choice for international managers has to start with a clean knowledge of the elements essential to the assignment’s success. This consists of each international control competency - inclusive of adaptability, flexibility, consolation with ambiguity, inquisitiveness, etc. - in addition to function imperatives associated with the precise assignment. Because domestic and host USA expectancies may also range considerably, those will often want to be aligned. Often an outside evaluation with the aid of using an educated expert may be helpful.

Once the executive is in place, a strong attention on integration can lessen the time it takes for her or him to arise to hurry and supply results. Equally vital is the effective effect and powerful integration application has on long-time period retention. This is especially extensive with cross-cultural transitions, where “derailing” episodes can arise even greater regularly than usual.

Acknowledging the Challenges:

Once the right executive has been selected for a worldwide control position, unique interest ought to be paid to the problems of working in a brand new cultural environment. To optimize skills within side the multinational corporation, skills ought to be sourced each regionally and from across the world.

However, as visible in each the enjoyment of the colonial and expatriate levels of history, skills may be squandered and advantageous contributions minimized due to constrained recognition for nearby cultural norms and practices, bad communique and misunderstandings amongst people with specific cultural orientations. Cultural conduct which can be deeply ingrained and respected in one country can boost the ire of people in another. This can create strained running situations that undermine collaboration and the pressure in the direction of organizational goals.

Multicultural Team Building

Multicultural team building is a technique that addresses the desires of the worldwide group. Respecting that agencies move borders and their participants can also additionally hail from everywhere on the planet, the want to stabilize neighborhood custom with worldwide management traits is vital. This technique can decorate know-how amongst group participants and optimize group member communication and functioning.

Using a number of interactive processes, team contributors find out about themselves, the culturally primarily based totally assumptions that pressure their everyday conduct and judgments of others, and their team contributors’ corresponding views. By highlighting and clarifying those variations and supporting crew contributors examine their very own culturally derived warm buttons, groups are capable of creating their very own norms for conversation and develop more cognizance on how their conduct is impacting the ones around them. In doing so, executives learn how to assume and accurate troubles earlier than they develop, accurately alter their fashion with the aid of using target market and speedy separate intercultural strain from different organizational issues. In the first-class cases, the crew builds its very own particularly purposeful culture, entirely with its very own norms, behaviors and language, in which collaboration and consideration are foundations.


Cross-cultural management is the examination in which people with unique backgrounds and cultures work in an equal firm. People with diverse cultures work collectively in harmony in an organization. There are numerous elements to the idea because it isn't always clean to control multicultural humans.

Updated on: 19-Aug-2022

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