Essay on Cultural Differences

Economic, sociopolitical, cultural progress of mankind in last quarter of 20th century passes under the sign of globalization. Its economic component is connected first of all with sources, factors and forms of economic development. We mean investments and technology, labor, intellectual and financial resources, management and marketing, etc. International trade and investments grow, diversification of the world financial and labor markets have has reached unprecedented hitherto scales, the global competition has become aggravated, there have appeared systems of global strategic management (Day, 2007).

In the modern world, growing migratory mobility of the population of a planet becomes a bright display of economic globalization. As a whole, the world represents global migratory system which consists of regional migratory systems. Migration has always been an essentially important component of economic development and social progress in many countries. Labor migration becomes one of the major resources of regional integration where regulation of labor migration is carried out at common regional level, because only large integration unions using advantages of association of the markets, resource bases and labor potentials can stand in the conditions of an accruing competition of the globalized world.

From 1970 till 1990 the number of the countries using a foreign labor has grown from 42 to 90. The governments of the given countries realize necessity of acceptance and perfection of the legislation, carrying out a policy and creation of administrative structures for the purpose of immigration streamlining. Migration and globalization are so closely connected by difficult system of mutual relations that they act not only as mutually provoking but also as mutually problematized processes (Van den Noord, 1996).

Globalization and Management

The economy has become the reason, the factor and the tool of globalization. Globalization is necessary for economy and is important for it. However it brings not only advantage, but also problems to top-managers. The international standardization is growing, at the same time quantity of points necessary for considering at release / sale of products or services increases; the foreign goods make a rigid competition, both in the price, and in quality. Migration grows, employers hire workers not always from other countries, but from other cities and regions. And regional differences can become a basis of misunderstanding and conflicts among employees. Other problem lies in orientation in the alien cultural environment and necessity of forming control system taking into account increasing of multicultural characteristic of society. It has caused the occurrence of such section of management as intercultural management (Lee, 2000).

Intercultural management is a control system of the company or the organization, based on principles of multiculturalism and turned at work with representatives of different territorial, religious, social and cultural groups. Intercultural management considers whole organizational structure of the company. So, presence of multiculturalism is considered in preparation of documents (translation into other languages), in carrying out of special trainings, formation intercultural competence. The theory of intercultural management had begun to develop in 1950th in the USA, since 1980th it has been actively developed in the countries of Europe (Scholte, 2008).

Business and economy internationalization with all its advantages, nevertheless has turned into a global problem. The enterprises are gaining international character, and in business schools the requirement to internationalize sights of managers is underlined even more often. Concerning the operating organizations it means the necessity of wider account of distinctions of national cultures.

In multicultural collective factors of the cultural environment create the greatest complexities. For this reason the correct estimation of distinctions of national cultures and their adequate account become more and more important. Difficult and multilevel structure of culture which defines variety of its functions in a life of each society forces to take into consideration factors of the cultural environment (Canniford, 2005).

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