Global Management in Context: Intercultural Challenges Report

This report delves into the complexities of global management, focusing on the critical role of intercultural competence in today's interconnected world. It explores the challenges faced by managers in leading diverse, international teams, using IBM as a case study to illustrate real-world applications. The report examines key concepts like globalization, cultural differences, and the importance of adaptability in managing a global workforce. It also discusses the theories of Thomas Friedman and the leadership models of Dorfmann and Gupta, emphasizing the significance of power distribution, collectivism, and assertiveness. Furthermore, the report analyzes J. Bennet's Development Model of Intercultural Sensitivity (DMIS), contrasting ethnocentrism and ethnorelativism, and highlighting the stages of ethnocentrism. The study emphasizes the need for effective communication, tolerance, and an understanding of individual cultural differences to foster organizational success in the global market. The report concludes that developing intercultural competence is essential for managers to navigate the challenges and leverage the opportunities presented by globalization, ensuring sustainable competitive advantage and goal achievement.

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Global Management in Context
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1GLOBAL MANAGEMENT IN CONTEXT
From the last 30 years, the function of globalization is considered to be a more
significant factor pertaining in the economy. This particular phenomenon has created a
situation under which different countries, people and different firms that are speaking
economically have got interconnected (Thomas & Peterson, 2016). Under this respective part, it
is considered to be a proved part that as compared to the performance that are associated with the
organization on an international basis, managers are facing several issue that are associated
with the system of culture, behavior, norms and values. This respective part is considered to
be one of the core reasons why the mangers or leaders have to be intercultural competent in order
to manage intercultural teams and diversity factors.
As a part of example, the best part can be the bringing a comparison with the
management of organization IBM which operates in the international market on a complete
basis. It is considered to be one of the well renowned firms that have made adaptive performance
under informatics sector (Stevens et al., 2015). IBM in the market is considered to be
Multinational Corporation the core reason behind this respective part can be that, the business
operation function of IBM is present in many countries and the organization also has there
supply chain in the international market on a large basis. According to the functional aspects
that are associated with the manager of IBM, they generally have to perform with
employees who are from different part of world and along with those who rely on different
cultures.
Under this particular situation, for IBM software development is considered to be
the core challenging part where they have to operate as per the expectation of the different
behavioral prospective of management related to the organization on all aspects. This particular
situation faced by the management of the organization can be termed as the system of

2GLOBAL MANAGEMENT IN CONTEXT
globalization. It is a challenging part for a manager to lead the international team without
having a proper mode of intercultural competence.
As compared to the operational aspects that are associated with the respective
organization in the international market, it is important for the manager to have a core
tendency under the area of controlling and managing the system of diversity factor
pertaining within the organization among workforce (Sharma & Wu, 2015). In the global market
the major initiative or strategy adopted by the manager is to maintain a passive and impersonal
outlook in order to remain more competitive with caused situation among the employees of the
company. Apart from this, the key responsibility of the manager is to understand the organization
behavioral process on the basis of market competition along with analyzing and finding adequate
solutions to overcome the risk factor caused under international competition.
A manager in the globalized market generally operates on a collaborative basis, they
are considered to be the key responsible part which creates a better enhancement for the
people associated with the organization to achieve their goals and objectives. On a complete
basis, it can be said that a manger that operates in the international market along with managing
and controlling different cultures of workforce in the organization is considered to be the figure
head in the respective organization (Rees & Smith, 2017). They show actual direction for the
management and employees in gaining an adaptive mode of competitive advantage and
sustainability in order to remain more competitive and goal oriented in the market.
Secondly, it is considered to be a stated factor that in current globalized context as the
competition increases in the international market, the challenges and complications that
are related to the system of managing diversity can be one of the major issue that are faced

3GLOBAL MANAGEMENT IN CONTEXT
by the manager. In order to remain better system of sustainability within the company and ensure
better flow of organizational functioning on a systematic basis, a manager under this
respective part must have skills and attributes to encounter diversity by the method of
adopting different aspects of behavior, thinking or valuing (Mendenhall et al., 2017). This
gives a clear idea, for the purpose of making a well-defined and effective organizational
functioning through the system of preventing any kind of discrepancies in the organization, it is
important for the manager to a strong intercultural communicator on all terms. In order to
remain more competitive and efficient in the international market operations, in order to
understand different cultural prospective that are related to the people within the
organization, a manager must have a strong ability to be a strong communicator under
both intercultural and cross-cultural basis.
The first and foremost initiative and skill adopted by the manager, in order to
understand the system of controlling and managing diversity and cultural difference in the
international market operation is to optimize the process of communication function. They
must also have the core tendency to master the different basics of cultural prospective pertaining
within the organization which is considered to be the key effective aspect of communicating on a
cross cultural basis.
Apart from this, the other core responsibility required to be maintained by a manager
is to develop awareness about the system of individuality is related to different culture.
Under this respective part, it is important for the manager to develop a better system of
individual culture within the organization and must have the capability to bring strong harmony
among the employees through avoiding the issue of cultural conflicts in order to ensure better
sustainability and competitive advantage.

4GLOBAL MANAGEMENT IN CONTEXT
The other part that is required to be developed by the manager in the international
market operation is to develop the system of tolerance within the organization. It is
important for the manager to be more tolerant enough with the employees of the organization
and the culture associated with them (Stevens et al., 2015). A manager must maintain the quality
of accepting the people with different culture on the basis of how they actually are, this can help
in creating a strong positive impact under the area of profitability and productivity which makes
a clear understanding in the mind of employees that, they are respected and is equally treated in
the organization. This particular part can motivate them to work further on an effective basis
which may create a direct reflection on attaining the organizational goals and objectives.
Communication, on the other hand is considered to be the key effective part that is
required to be developed by the manager of the organization in the globalized market. They
must have the ability and capability to develop communication on a simple basis (van
Oudenhoven & Benet-Martínez, 2015). This can help the employees to develop better system of
understanding and coordination within the internal environment of the organization along with
preventing the issue of misunderstanding that bare related to cultural factors.
Theories and Concepts of Thomas Friedman
As compared to the organizational prospective, intercultural competencies are
considered to be the core major part that is required to be maintained in order to become a
strong and effective manager in the global market. This is because the systems of cultures and
understanding the cultural aspects can create an effective impact on success factor of the
organization. According to the theories and concepts designed by Thomas Friedman who
gives more emphasis on cultural prospective when it is under the area of economic success

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underlined a clear statement in his own book “The World is Flat, the concept of
Globalization”. Friedman demonstrates a clear example of culture which is related to the system
of acceptance and tolerance of other major cultures (Martin & Nakayama, 2015). According to
him, this respective cultural aspects can help in creating a positive impact for economic
success along with this respective part, this may also create a strong enhancement under
the area of benefiting the operations that are associated with the organization in the
international market on all terms. In order to adopt strong performance in the globalized
market, it is important for the managers to implement the quality of acceptance and tolerance to
gain better output in the market.
Theories of Dorfmann and Gupta (Key Skills of Manager in Global market)
As per the research conducted by House, Hanges, Javidan, Dorfmann and Gupta, they
generally gave more emphasis under the area of cultural differences that is associated with the
leadership function and also identified some major part of characteristics that is required
to be developed by the global manager on all terms. Some of the core characteristics as per
their finding s are mentioned below.
 The first part is associated with the factor of power distance this basically states
that it is important for the organization to develop the quality of equal distribution
of power within the organization.
 The second part is related to the process that is associated with the system of
institutional collectivism function. This is considered to be a degree under
which institutional and organizational practices encourage and offer collective
distribution of collective actions and resources.

6GLOBAL MANAGEMENT IN CONTEXT
 The other part is associated with the system of assertiveness this is the degree
under which the individuals are confrontational, aggressive and assertive in
their relationships and coordination with others.
 One of the core factors in the respective part is related to the system of in- group
collectivism (Hong et al., 2016). This is considered to be the degree under which
the individuals express cohesiveness, loyalty and pride in their families or
organizations.
Under this respective part, it can be stated that, controlling and managing the problems
that are associated with cultural and ethical basis are considered to be the major
prospective that is required to be developed by the manager who basically operates on an
international basis in the market to remain more competitive in the market in order to implement
strong competition and sustainability.
J. Bennet Model of Ethno Centrism and Ethno Relativism
The model developed and designed by J. Bennet in the year 1993 is considered to be
one of the major parts which are based on the system of DMIS (The Development Model of
Intercultural Sensitivity). This respective model is distributed in to two aspects that are based
on ethno relativism and ethno centrism (Grobelna, 2015). Under this respective part, it is clearly
demonstrated by Bennet that, a manger must develop the quality of ethno relativism within the
organization rather than giving more emphasis under the system of ethno centrism.
According to the operational aspects that are associated with DMIS Model, this
basically highlights some major important aspects which is related to the correlation between

7GLOBAL MANAGEMENT IN CONTEXT
cross cultural relationship and worldview construction that is associated with the system of
cultural difference. People can remain in a respective stage and not grasp the top stage.
People who remain ethno centric keep a belief that the culture associated with them
are dominant to reality. They don’t accept any kind of difference that is related to the systems
of culture (Feng, 2016). There are numerous signs introduced to recognize them: disrespect
towards the culture of other peoples, racist and differentiated attitudes. On the other the most
effective part of people who are ethno relative is that, they have developed an adaptive tendency
to recognize and understand the differences that are related to different cultures. They have the
positive capability under the area of accepting behaviors that sis completely different from them
on all aspects.
Different stages of Ethno centrism
The stage that is associated with the system of ethno centrism is divided in to three major
parts such as Denial, Defense and Minimization. Some of the major characteristics related to this
respective part are mentioned below.
 Denial is considered to be the introductory stage that is associated with the system of
ethno centrism. Under this respective part, people often maintain the quality of
differentiating the factors that are related to cultural prospective (Bird & Mendenhall,
2016). There can be issue that is related to discrimination racism and many others. Apart
from this, they don’t have the tendency to understand and respect the cultural aspects that
are related to others.
 The second stage related to the system of ethno centrism can be Defense. In this
particular part people have a clear knowledge that there are differences between the

8GLOBAL MANAGEMENT IN CONTEXT
cultures but they behave in a certain manner in order to protect their own cultures and
interest that is associated with them.
 Minimization is considered to be the third stage of ethnocentrism which has a close
relation with the defensive stage, but people try to minimize themselves by saying all are
same and are under the category of human beings.
Different Stages of Ethno relativism
Different stages of Ethno relativism is categorized in to three major parts such as
Acceptance, Adaptation and integration. Some of the major characteristic about this respective
stages as per the Bennet Model are mentioned below.
 Acceptance is considered to be the first part of ethno relativism under this respective
part it is believed that no culture is not considered to be superior to one another (Bennett,
2017). It provides a clear understanding that different types of culture have their own
cultural prospective, there is no any kind of cultural differentiation made in this
respective stage. The core belief is that a specific culture can be accommodated or can be
adapted.
 The stage that represents certain factors that are related to intercultural empathy is
the adaptation stage. This is also known as the process of acculturation which avails
people to move from a particular cultural lookout to another.
 As per the theories generated by Bennet, compared to the stages of adaption and
acceptance, integration is considered to be a more desired stage (Brière et al., 2015).
This respective stage is also known as the assimilation stage. Under this respective part,
it can be stated that the perceptions of an individual remain positive if they are

9GLOBAL MANAGEMENT IN CONTEXT
comfortable on identifying their own identity. On the other hand, it will remain
negative if there is differentiation made and created among different cultures.
Therefore, it can be concluded that ethno centrism acknowledges the diversity on the
organisations but this often leads to the conflict along the employees or the other
stakeholders. On the contrary, the ethno relativism leads to perfect understanding of the
situation and ten making the decisions so that all of the associates get proper recognition
and opportunity for growth.

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