Discuss the most common challenges faced by management in an international context - Essay Example

Besides the common challenges the management faces, globalization and the rise of multinational organizations have created challenges from communicational dimensions. In this essay, four main communication barriers will be discussed; they are cultural barriers, distance barriers, trust barrier (inner barrier), and the language barrier. In the process of international management, cultural understanding is a crucial factor to create opportunities for economic growth and development. To create cultural understanding, the manager is challenged with the task of learning and comprehending other cultures and contexts.

This serves to reduce as much cultural difference as possible, and avoid communication breakdowns wherever the company or organization may encounter it. For example, while Arabs treat their leaders as heroes and worship them as long as they remain in power, Iranians expect their leaders to exhibit power and strength. (Phatak, 2005, p.5) Most common cultural differences are broadly categorized based on the following factors- power distance, uncertainty avoidance, human orientation, collectivism, assertiveness, gender egalitarianism, future orientation, and performance orientation.

(Phatak, 2005, p.5) It is the management’s responsibility to analyze other cultures and minimize any cultural problems to maximize efficiency. This results in better business expansion, improved production and better image for the company. A manager who has a better understanding of the various cultural factors will be able to adopt appropriate management techniques and procedures that adapt to differing cultural values and beliefs. For this to occur, it is important that the manager accurately analyses the situation and acts accordingly or it may lead to a sharp decline in efficiencies.

In leadership at every level possible, the most important factor is ‘trust’. Without trust in