Importance of Intercultural Competence in International Business
Verified
Added on 2023/01/03
|5
|899
|30
AI Summary
This essay discusses the importance of intercultural competence in international business, including its benefits in terms of productivity, employee satisfaction, and financial growth. It also highlights the challenges that can arise in implementing this concept.
Contribute Materials
Your contribution can guide someone’s learning journey. Share your
documents today.
Is Intercultural Competence Important in International Business
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Contents INTRODUCTION...........................................................................................................................................3 MAIN BODY..................................................................................................................................................3 CONCLUSION...............................................................................................................................................4 REFERENCES................................................................................................................................................5
INTRODUCTION Intercultural competence refers to activities in which the effective and appropriate communicationtakesplacebetweentheemployeeswhobelongstodifferentcultures.It comprises of cognitive, affective and behavioral skills of the employees. It is considered as a crucial skill set in this contemporary business environment in which the employees interact with their other co workers or stakeholders who belong to some different background. This skill is necessary especially when a business goes international. This essay discusses about aspects of international competence, reasons about the importance of intercultural competence along with the problems which can be faced with this concept. MAIN BODY Intercultural competence can be defined as a skill or an activity which allows the organisation in performing the efficient functioning among the atmosphere of multicultural environment. The concept includes a satisfying environment and lasting relationship among the employees belonging from different cultures. The core purpose of this concept is to understandthe nature and characteristics of these various culture. The intercultural competence is very necessary when an organisation is playing it operation at international level (Sycara, Gelfand, Abbe, 2013) When talking with regard to internal environment the intercultural competence is necessary in managing leadership, team cooperation and providing satisfaction to employees. The intercultural competence also enable the organisation in getting an increase in their financials. The concept of intercultural competence includes various components like awareness, attitude, skills and knowledge. Awareness refers to be aware about the own biases towards another culture. If an individual is totally known about devices he perform towards another person belonging two different culture then respective steps a measures can be taken to bridge the gap. The attitude towards another culture a background should not be indifferent or negative. An individual should always carry a positive attitude towards the people of another background. People should have the knowledge about equality and they should also try their best to practice set. Research was conducted upon the human behaviour towards different culture or background and it shows that human does performs an unequal behaviour towards another person who belongsfrom different background or culture. Where skills are refers to practice equality in the behaviour of of an individual to what another individual who belong to different culture. The behaviour should get continue until it is not became the part of one's daily life. The importance about this concept is increasing with an immense speed from three decades. The businesses have notice the necessity of intercultural competence not only in their structure but also in their team performance.Globalisation although has given a chance to organisation operating in the international market but with that the organisation has to inculcate intercultural competence in their culture. Through the establishment of intercultural competence the organisation would able to give a
different competitive advantage when it operate at international level as all the employees working with the organisation would be satisfied by the environment they have set. It not only have inproviding full satisfaction but also in increasing the productivity and profit of the organisation. The company me also gets to gain long term benefits by the adoption of intercultural competence. Through this activity they also attract the talented workforce towards the organisation. A good goodwill is set in the market about the background and current practices of the organisation which increases the market value (Moll, 2012). The adoption of this concept gives a n number of benefits to the organisation which is uncountable that's why it had became mandatory for the organisations which are operating at International business market. This concept may not be needed when the organisation is operating at a domestic level only. It requires much time to properly establish this concept otherwise before rate it create many barriers to communication which result to ineffective productivity and finances. If the proper policy does not implement in the organisation it may lead to conflicts, misunderstanding, and losing of talented employees which may hamper the performance of company. CONCLUSION From the essay presented above, the briefing about intercultural competence has been mentioned. It is the activity in the multi functional activity and communication done effectively among the employees of different backgrounds. It provides various benefits to the organisation especially when it operates at a international level. These may includes increase in productivity, employee’s satisfaction, increase in finances, and retention of employees, good cultural and satisfied environment. Although it has various problems also that it requires time to get the policies well establish, till then the communication problem does organisation face. It also leads to misunderstandings among people.
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
REFERENCES Books and Journals Sycara, K., Gelfand, M. Abbe, A. (2013),pp. 67-95 Moll, M. (2012),pp. 1-13 Online [Online] Available <https://msed.vse.cz/msed_2018/article/162-Kuzminska-Haberla-Aleksandra- paper.pdf>./ [Online] Available <https://citeseerx.ist.psu.edu/viewdoc/downloaddoi=10.1.1.401.3386&rep=rep1&type=pdf>./