20 Mar 2010
Abstract
The performance of modern companies operating internationally is highly dependent on their ability to adapt their management and leadership style to diverse cultural environment. Leaders of such companies need to take into consideration such factors as cultural differences, gender-related issues, power distance, future performance, individualistic or collectivist inclinations of employees, uncertainty avoidance and others. The extent to which leader succeeds in elaborating organization culture that meets all the factors mentioned above of all employees will define the success of the leader and the entire organization.
Modern companies operating internationally often face serious problems caused by cultural differences between employees who are working together within one and the same organization. Often, leaders of organizations operating internationally need to work in extremely diverse cultural environment, when employees from Greece, Singapore, Germany and Iran are working together. Cultural differences between employees can evoke conflicts within the organization and decrease the effectiveness of management and leadership if the leader proves to be unable to adapt his or her leadership style to a multicultural environment of the organization.
First of all, the leader needs to focus on cultural differences of employees. Greek employees get used to liberal leadership style and management, while German employees are more accustomed to discipline, though they still stick to a democratic leadership style, which allow them realizing their own potential. In contrast, Singaporean employees are more inclined to the authoritarian leadership style and they will hardly be able to accept the liberalism of Greek and democratic style of German employees. As for Iranian employees, their cultural life is, to a significant extent, determined by their religious views and often religious is primary for them compared to their professional work and career. For instance, they may have some religious holidays, such as Ramadan, and they may have special demands concerning respect of their religious views and beliefs from the part of other employees as well as the leader. Consequently, the leader should balance democratic and authoritarian leadership style and promote tolerance within the organization to meet cultural needs of all employees.
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