The Importance Of Understanding Cultural Differences In Business

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1. Introduction

Culture relates to an attitudes, belief and behavioural patterns that distinguished an individual. In today’s business world, and cultural differences had been identified as one of the considerable factors that organizations are concerned (Groth 2013). As the culture of an organization has significant impacts on daily operations and future prospects, a good understanding of the complexity in cultural difference is a ‘must-have’ ingredient for the recipe for business to success (Hopkins 2009).

1.1 Importance of understanding cultural differences for business

As the world is advancing towards a new era, organizations around the world are focusing on uncovering opportunities and improving performances for globalization business
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To have a good communication, managers should look into the importance of understanding culture diversity which will be discussed in the next section.

1.2 Steps in developing greater cross-cultural awareness

In most organizations, managers shouldered the leadership role and responsibility on team member’s performance. Managing a team in a cross culture environment is tough and therefore, a manager should have a succinct plan in craving a ‘mutual’ culture among the team to promote cross cultural awareness (Moran 2015).

To begin with, managers may exercise the elements of Geert-Hofstede’s theory to identify dissimilarity in cultural differences that had entailed and understand how performance would be affected before developing plans on promoting awareness (Velo 2011).

Upon recognizing the overall variations of culture, managers can obtain a clear vision before planning. Taking a step further with a well-brainstormed plan, managers can provide useful educating tools in different channel by enhancing their knowledge and appreciation of cultures (Simon L. Dolan

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