• Brunilda Mucollari
• Daniela Hallaci
• Jona Likskendaj
• Arli Barxhani
• Eraldo Bode

Date: 01/20/2014

Course: Organizational Behavior & Leadership

Instructor: Dr. Perparim Dervishi

Part I

“Culture is more often a source of conflict than of synergy. Cultural differences are a nuisance at best and often a disaster.” (www.uscivilizatio.com)

Globalization, the land on which Cross – Cultural Management was sawed

• Intro

Globalization is now becoming the future of the world. Humanity is now walking on the path that leads to, what we call “Becoming One”. Technology innovation is the main factor of this process. It brings people and cultures up together and by doing so they learn and enjoy each other’s way of living. The process seems to be long and basically changing us and bringing in front what we can consider positive or negative effects. People from different cultures in fact might have conflicts when working together, or they might share experiences and improve their selves. Cultures intercept each other to exchange knowledge, traditions and experience and history has taught this to us. On the other hand has also taught us that cultures exchange goods. At this point we come to the creation of a distinct concept; Cross – Cultural Management.

Cross-Cultural Management???

“Cross-cultural management explains the behavior of people in organizations around the world and shows them how to work in organizations with employees and client populations from many different cultures.” (Kawar, 2012)

Multinational companies existed as early as 2 000 B.C.; the Assyrians, the Phoenicians, the Greeks and the Romans – they all had their own version of globalize trading. Multinational

Management is getting more and more necessary for all kinds of branches as the global market is shrinking. In the past century operation between advanced industrial countries had it up and downs. Because of the two world wars this partnership came to a halt. This wars, on the other hand gave a boost later on to the global market. After and between the two wars the World Bank was Created, International Monetary Fund and General Agreement on Tariffs and Trade and after the Berlin Wall fall new markets were opened to the free trade. These new emerging markets gave chances and opportunities to the business sector to increase their revenues. In fact every country has its culture and makes them distinguishable from each other, as in fact every country has its middle class that was and is willing to buy more international products and services. The need to decrease the costs without affecting the revenue but on contrary increase them makes the global entrepreneurs to invest and construct their plants in locations that provide lower cost of production.

While companies grow and enter the international trade, their size increases with their earnings. When this happens the companies need to established their activity overseas and after than monitoring their activities across the border. This is in fact where cross-cultural management enters on the stage. Under these circumstances more and more the need for management is needed in the operations abroad. Managers often are part of the shareholder’s nationality, in other words an American business in Albania will definitely send an America citizen to manage their operations in Albania. The cultures are different between the two countries and this diversification brings up its problems.