The Global controlling and Global challenges in management are

Need for Leadership in global organisations: The work place in the present day context is increasingly multi cultural and diverse. Employees are required to work together with colleagues from different parts of the world with varied backgrounds, customs and practices.

Many products and services are produced for export. In addition, organisations are outsourcing their work to countries having low labour costs to stay competitive. As opportunities for global expansion increase, the workplace will have more diversity. Organisations are now hiring professionals with different backgrounds, cultures, styles and motivation. It is therefore necessary for organisations to expand the capacity for people to handle the challenges of working with other cultures if they are to participate successfully.

Leaders must be adaptive and flexible to manage this diverse work force. This requires an understanding of the historical, political and economic references of people who work in the organisations. Leaders must understand differences in world views, communication styles, ethics and etiquette of the people they deal with both internally and externally.

Understanding different cultures: According to Richard D Lewis, the different nations and cultures can be put into three groups:

  1. Linear-active: In these cultures, people focus on a scheduled time line and like to do one thing at a time. The people in these cultures are task-oriented planners.
  2. Multi-active: People belonging to these cultures are more focused on interactions and dialogues. Meetings are given priorities and discussions and dialogues help to build relationship and it is this relationship that determines what comes out of work.
  3. Reactive: People belonging to this type of culture are more introverted. They are respect-oriented listeners and concentrate on what people have to say without interruption and even if they interrupt it is rarely done. People in these culture susually express their ideas in a passive voice.

Leaders must understand different cultures when they work in an organisation which has employees belonging to different cultures. The grouping done by Lewis is a simple perspective that can help one to begin to understand basic differences in ways of doing business in foreign countries. However, we must be cautious and avoid working with unverified assumptions.

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Principles of Management and Organisational Behaviour Topics