Posts Tagged ‘culture’

Multicultural Management

October 15, 2008 Leave a comment

The ubiquitous management is at the core of every business organization. The 21st century has witnessed several huge business deals and acquisitions never would have thought by anyone. The nations are coming closer to each other using business as the tool; but as different cultures have different ideologies and perceptions, in the same way management too. When huge businesses come under one umbrella they need an approach which could govern all at a time without concerning any part of it. The concept is “multicultural management” where lessons pertaining to management of different business houses around the globe are dealt. The news of the Mergers & Acquisitions has become a common trend and is ubiquitously found in the newspaper headings. However the unison of two companies is not reflected only in the name but also in their management. Prior to unison the two companies had different approaches towards their customers and just imagine what would happen to all those strategies if they are discordant. What could be the way so that both the strategies exist together without intervening in other’s methods?

Tata’s acquisition of the “Land Rover” which is the international brand of luxurious cars is the quintessential of multicultural management. The latest in the trend is Malvinder Singh of Ranbaxy Laboratories selling his 37% stake in the company to Japanese company Daichi Sankyo. These days the companies are recruiting expatriates so that a multicultural environment of management could be established which is supposed to be a good strategy. The companies are sending their top officials to other countries to learn their management lessons and how they could become more proactive. Their strategy involves spreading their business in that country.

Selling cars is also about cultural considerations. Ask the French, who are focusing on the Indian cultural aspects to sell automobiles in the country. The management institutes of France are sending their students to top B-Schools of India to learn the management lessons which would come in handy while doing business in the country. Renault the French automobile manufacturer is sponsoring the trip. The main purpose is to understand the environment and get acclimatized with the scenario of the business in India. The students from the IIM-A are guiding the visitors who have come from the top-notch HEC School of Management and Ecole Polytechnique.

The rush to capture lion’s share and to monopolize the market is the dream of every business house and they are working hard to do it efficaciously. The implementation of newer thoughts and ideas have proved beneficent and an atmosphere where management of different countries gathers and discusses the future prospects of the company. Thus diversity in management is a boon in the present conditions where customer satisfaction is more than the numbers.