Importance of Leadership in Managing Cultural Diversity in International Business

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Cultural diversity has become important key driver in the international business scenario. Social,
economic, political and cultural aspects have become the important influencer in the business
practices (Moonjoo Kim, 2017). On the other hand, it is also true that leadership has become one
of the important concern after the introduction of diversified working culture in the international
market. Leadership is being considered as the important performance drive in the workplace as it
plays an important role for ensuring the job satisfaction as well as employee engagement. A true
leader contributes towards enhancing the skills as well as abilities of the employees and
encourages them towards achieving the business goals. It cannot be denied that in the current
business scenario, conflict has become common concern in case of developing the positive
organizational culture. In case of avoiding the conflicts as well as negative impact on the
organization, leader focused on avoiding the cultural issues, so that the future growth in the
company can be ensured. Therefore, it cannot be denied that in the global context the importance
of implementation of effective leadership practices in the workplace. Enhancing the universal
qualities as well as based on the abilities, the global leadership practice helps to increase the self-
efficacy, which makes a person to get the ability for adjusting with the people who are from
different cultural background. Some of the cases due to various cultural barriers Global
leadership practices get changed. In case of enabling the performance abilities of individuals
based on the knowledge transferring process the Global leaders contribute towards improving the
organizational performance. The purpose of this study is to develop a report based on the
emerging leadership practices and those impacts on the future growth.
Organizational behavior in different cultural context has become one of the important concerns
in the current business scenario. Due to increasing complexity in the case of managing the
emerging culture in the workplace, the cross cultural challenges have become common in the

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workplace. Based on different behavioral perception of individuals, it has become highly
challenging for the companies in terms of ensuring the positive attitude in the workplace. In case
of demonstrating the national culture in the workplace, it can be said that based on the
integration of both the socio cultural variables in the workplace, the cultural aspects are being
driven. By continuing this it can also be said that based on the multiple environmental forces, the
operational diversity as well as functioning process gets influenced (McLeskey & Waldron
2015). Organizational and national cultures are being considered as the quite different
phenomenon, which are useful in terms of ensuring the current challenges in the workplace. On
the other hand, it is also true that based on the multicultural behavior in the workplace, the
performance direction gets influenced.
The trade expansion can be considered as the major impact of globalization in the environment.
Emerging cultural challenges has created complexity in case of operating in the market. Due to
the rapid changes in trade processes, the cultural differences as well as changing behavioral
aspects have become the important concern in terms of ensuring the positive performance in the
workplace. The cultural differences create the emerging challenges in the international trade
field. Misunderstanding among the employees as well as improper management creates the
cultural barrier which demotivates individuals, which indirectly impacts on the organizational
performance. International company structure can be considered as one of the important cultural
issues faced by the employees. In this case, cultural diversity among the employees in the
workplace and improper management creates the unethical practices in the company.
As stated by Dong-Yeol Yoon and Seung-Hyun Han (2018), In case of gaining the
comprehensive understanding of the local regulatory frameworks, the behavioral aspects of
target market plays an important role. Trading laws as well as tax implications and eligibility to

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trade are being considered as the important elements for driving the workplace culture. In most
of the cases, lack of understanding regarding the requirements of the employees, the
communication gap increases the cultural barriers. In case of improving the situation the
investment towards sharing knowledge and experience can play an effective role for proving the
values in the workplace.
In the words of Younyoung Choi and Junghee Ha (2018), Physical distance plays an important
role in case of driving the negative communication in the workplace which can not only
influence the distribution process, but also it can create the internal conflict in the workplace.
Due to the increasing socio- economic opportunities in the market, the business expansion has
become normal in the foreign market. In this case due to unfamiliar cultural perspectives of the
citizen, companies face challenges in case of interaction as well as creating the social space. It is
true that based on the current challenges not only the employees are getting discouraged but also
these challenges negatively impacts on the organizational performance.
Effective leadership practices have become one of the important contributors in the case of
shaping organizational culture. It is true that based on the leadership practices it becomes easier
for the organization to survive in the changing conditions. Leadership and culture are being
considered as the two sides of a same coin. The assumptions of organizational culture gets
influenced based on the leadership implications that dominate in different aspects of the
organization. It is also true that in case of shaping the organizational challenges based on the
leadership strategies the individuals growth can be assured.
In other words it can be said that in order to determine the job satisfaction in the workplace the
leadership behavior plays an important role. A true leader shares the values as well as the leaves
the people who are associated with the organization and ensures the proper engagement of them