The Impact of Culture on Business and Management in Different Cultural Contexts

Identification of cultural diversity has opened up new avenues and challenges for business and provided wider space for management researchers and psychologists to understand human behavior in relation to business and management.&nbsp. On this concept, Dowling et al’s (2008) elaboration on international HRM deals with three perspectives. firstly cross-cultural management and human behavior. secondly, different HRM systems in various countries. and thirdly, aspects of HRM on multinational companies.&nbsp.

Hofstede (1980) refers to culture as a collective mental programming of a group of people belonging to one region, and is difficult to change. in such settings, specific culture becomes institutionalized in their family and educational structures, religious organizations, government, law, literature, and even scientific theories. This is highly apparent among people belonging to one nation, in the form of national culture, which manifests itself even in organizations. Through Hofstede’s and Trompenaars’ dimensions, it has been possible to understand how cultural differences impact management and leadership styles in different regions of the world. in addition, these analyses have helped in understanding why certain HRM practices and policies have differing impacts on employees of one multinational company operating from different regions of the world. One step further, House and his associates have extensively studied cultural variations and their impact on societal functioning and leadership based on a study conducted on 62 nations, resulting in the development of additional dimensions. House et al.’s (2004) project emphasizes the need for effective international and cross-cultural communication, collaboration, and cooperation for the effective practice of management and also the betterment of human condition in order to thrive in the globalizing world markets and cultures.