Importance of Leadership in Managing Cultural Diversity in International Business

This study focuses on the importance of leadership in managing cultural diversity in international business. It explores the challenges faced in creating a positive organizational culture and the impact of effective leadership practices on organizational growth. The study also discusses the role of leadership in knowledge transfer and improving organizational performance. The findings highlight the significance of leadership in shaping organizational behavior and ensuring job satisfaction and employee engagement.

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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

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towards achieving the organizational goals (Moonjoo Kim, 2017). In the changing organizational
context the role of leader cannot be avoided. Positive leadership practices in the organization
provides the proper strategic direction towards acknowledging the negative behavior by
understanding those impacts on the organizational context.
In case of ensuring the proper knowledge transferring process the leadership competencies play
an important role. 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.
Self-efficacy Global leadership and knowledge transfer are being considered as the important
variables that can ensure the positive organizational culture. In order to identify the behavioral
aspects of individuals for ensuring the greater probability towards sharing the knowledge with
the employees, effective leadership practice is very important to be adopted. It is also true that
based on the positive Association between self-efficacy and knowledge transferring process the
positive relationship between information transfer and creative skill development process can be
done. In the current business scenario human resource management practices are playing an
important role for highlighting the national skills of employees in the workplace. It is also true
that based on the ethical practices in the workplace it becomes easier for shaping the
organizational behavior. Due to increasing challenges in the Global market some of the cases
unethical behavior of the leader has influenced the corruption practices.

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Analyzing the ethical leadership aspects it has been identified that based on the interactional
justice informational justice distributive justice and procedural justice the organizational
performance is being driven. In case of enhancing the group performance ethical leadership
practice brings the significant impact on organizational productivity. In case of ensuring the
cross cultural motivation as well as positive attitude of national employees examining the role of
leader is very important. Based on different patterns of Organizational Management practices in
numerous countries the social behavior, attitude and personality of the employees get changed.
In case of ensuring the positive human resource practices between host country and home
country it can be said that with the interaction of effective leadership practices the international
managers can be able to develop proper functioning process in which cordial and shameless
Organizational Management across the numerous culture and countries can be practiced. in case
of bringing the positive impact in the organizational performance the international managers try
to bring the cross cultural environment in the workplace in which individuals can get the ability
to corporate with different culture and people. Some of the cases due to bad attitude as well as
bad behavior of the leader influence the Organizational Management process in negative manner.
By continuing this it can also be said that due to the negative leadership practices the Global
agenda for ensuring the diversify it working culture gets affected. Therefore it can be said that in
case of facilitating the Corporation as well as performance standard in the workplace the
managers should focus on increasing the confidence of individuals.
In order to ensure the positive team learning behavior as well as increasing the support towards
the organization. Transformational leadership can play an effective role. it is also true that
ensuring the team diversity Transformer leader helps individual 2 to contribute their decisions
for ensuring the increasing amount of productivity as well as performance standard in the

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workplace. in case of driving the achievements as well as contributing towards the efficiency
organizations focus on composite in the diversify at working culture with different behavioral
perspectives of the employees. it cannot be denied that based on the transformational leadership
style cultural management productivity as well as profitability can be ensured.
The contemporary business has become highly competitive due to the evaluation of human
resource management practices in the workplace. Due to the technological advancement and the
personal development process, most of the organizations have focused on achieving the
sustainable position in the market. In case of identifying the potential possibilities, the effective
strategic directions have been introduced in the market. By intensifying the emerging business
environment, the utilization of internal as well as external resources in proper manner has played
an important role in case of driving the organizational benefits. Analyzing different theoretical
approaches of strategic management, it can be said that based on the current business scenario,
operational responsibilities are being fulfilled based on the leadership initiatives adopted in the
organization. In order to initiative the managerial approach, initiating the skills and knowledge
among the employees is important so that the capabilities of individuals can be enhanced.
Analyzing the current business scenario, it has been identified that due to extreme dynamic
changes in the global business environment, the strategic initiative directions get influenced.
Analyzing the ethical leadership aspects it has been identified that based on the interactional
justice informational justice distributive justice and procedural justice the organizational
performance is being driven. In case of enhancing the group performance ethical leadership
practice brings the significant impact on organizational productivity. In case of ensuring the
cross cultural motivation as well as positive attitude of national employees examining the role of

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leader is very important. Based on different patterns of Organizational Management practices in
numerous countries the social behavior, attitude and personality of the employees get changed.
Analyzing the present corporate scenario, it has been identified that in the dynamically advanced
business environment, competitiveness has become one of the important challenges. In the global
economic situation, industry expectation are increasing day by day. In this situation funding the
suitable candidate for enhancing the profit opportunity has become necessary for achieving the
sustainability. By continuing this, it cannot be denied that increasing contemporary business
environment has escalated the unemployment rate. However, it is also true that due to increasing
talented manpower and better retention policies have influenced the lesser job opportunities in
the market. In the globalized business environment, the online trading has become highly
popular in the market. In this situation, the social networking platforms, internet and cloud
computing have become the chief booster in the business practices. In this case, most of the
organizations have started adopting the online business strategy that can play an important role in
terms of ensuring the positive business opportunity in the market. Due to increasing involvement
in the online business, the geographical boundaries of the organizations have got increased. On
the other hand, it is indirectly influencing the sales arte in the physical stores.
In the competitive business environment, ensuring the sustainability has become the important
concern. By continuing this, it can also be said that in the current business scenario, continuous
innovation has become the important concern for the organizations for sustaining in the business
environment. In order to ensure the longevity, the establishing standard infrastructure as well as
promoting positive culture in the workplace has become compulsory. Setting up the suitable
process and metrics for amalgamating the values in the workplace, the change initiatives have
become the important concern in the international business environment. Increasing business

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opportunities, the gaining the strategic initiatives has become an important agenda for every
organization. In order to gain the competitive advantage, sustainability is being used as the
important strategic tool in case of managing the emerging situation. On the other hand, ethical
practices has become one of the important key drivers in can of ensuring the positive
organizational culture in the workplace.
After the year 1960, the modern management practices have been introduced in the market. In
the modern management approaches, the human relations have been highly focused by the
company in case of ensuring the high productivity. In terms of adopting the extreme human
relation management, the modern business ideologies have focused on improving the cultural
aspects in an organization. After the 19th century, the management principles have also got
changed. Analyzing the theoretical aspects of modern management practices, it has been
identified that in these management approaches not only the productivity of the company has got
focused, but also values and beliefs of the organization have been selected as the important key
drivers for ensuring organizational sustainability. Due to the changing ownership patterns, it is
true that the company controlling the hiring process has become important concerns for the
management authority. On the other hand, the professional management approaches highly
depends on the society engagement.
The system approach in management was introduced in case of composing an independent
interaction proves for organizing the organizational functions in proper manner. Through the
system approach in management the interrelationship between the dependent and independent
variables in the market is being highlighted. In the globalized business environment the System
theory of management helps to improve the internal management system in the company.

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In the contingency approach, the management problems are being highlighted. Based on the
contingency management theory, the relationship with the company with environmental
elements are being described. In this theory it is mentioned that before introducing any change
initiative in the workplace, it is important to bring the changes based on situational needs. In case
of contingency approach depending on the situational context the adapting nature of management
gets influenced. In case of ensuring the effective interaction in the workplace the contingency
managers typically follow the situation as well as own style of Management practices. In other
words contingency approach can be considered as the process in which based on trait, the
leadership practices are being implemented. Enhancing the positive personality of individuals
this management pattern helps to predict the benefits of the organization.
Max Weber introduced the bureaucratic management approach. In this approach the adopting
nature of individuals regarding the fair policies opposed by the organizations are being
highlighted. in in this approach it is mentioned that based on the qualification of employees the
hiring process is being influenced. in this management approach different principles of
management have been highlighted. It is true that based on the capabilities for understanding the
responsibilities of individual the equal work distribution in the workplace can be effectively
done.
In this study it has been identified that improper ethical practices emerging challenges for
implementing the leadership strategies and organizational culture have become important
concerns in the workplace. Analyzing the situation in international market it has been identified
that due to increasing amount of competitiveness it can be say that ensuring the sustainability has
become one of the important concerns in the current business scenario. Human relations have
become an important part in in driving the strategic direction of an organization. In order to deal

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with the emerging leadership challenges and avoiding the negative impact of organizational
culture. Training and development process needs to be introduced. In the training and
development process a company can be able to ensure the diversify the cultural situations in the
workplace.
Reference list and bibliography
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