Role of cultural diversity: its application to manage human resources in global economy

Global business presents a tremendous opportunity but is also a challenge. Nowadays, in a totally connected world, it is not possible to have a successful business without being aware of cultural differences. It is important to have a multicultural work environment, because it allows the development of different perspectives and powerful brainstorms about the solutions of problems. It is important to keep an open mind and treating people fairly based upon what they do or don't do are the keys to bridging whatever cultural gaps exist.

Since the average workforce is much more diverse than twenty or thirty years ago, employers need to keep their employees’ cultural differences in mind. The Understanding cultural differences can mean success or losing the deal at the first meeting. It can create a huge impact on your reputation and the way your business is viewed by the rest of the world.

With the growth in global business, more attention is also being paid to cross-culture service encounters. This study helps to understand the effect of intercultural sensitivity on the cross-cultural performance of service employees. This paper focuses on how much it is important for organizations to understand and accept cultural differences, if they want to work around the world and experience working life in different countries. This paper discusses how to manage people in global economy.