How Culture Has Become Very Important Topic Of...

â€Å"Culture has become very important topic of international business†. Lee, Y., Liu, W. (2012). Imagine a successful organization in the United State wants to enter to another country’s market like India. These two countries have many differences in their culture as general and their individuals are influenced by the national culture. It is important for a leader to know individual’s differences and cultures in order to have an effective leadership, and run a productive and successful business in other countries. Even in inside of a country which has multinational employees, culture differences would be challenging. Human diversity may cause many conflicts; a good leader is the one who knows all the diversities, and manages them toward the†¦show more content†¦(2011). His study is going to discover six dimensions such as: Power Distance which is the fact of inequality between all individuals in the society in every aspects of their lives, and it expresses the fact that different people based on their culture have different approach to this. â€Å"Power distance is used to measure the equality and inequality among people in a society†. Lee, Y., Liu, W. (2012) We all are aware of existing of inequalities in every society in some extent, in some countries there are more inequalities than others. In countries with high power distance, they accept this distance and they don’t have much desire to change this fashion because power distance is fundamental to their culture. They accept the hierocracy in their work place. To lead and direct individuals who are coming from this type of society, a leader should know that member of this culture are depend on their superiors and leaders. The high power distance people prefer to have an â€Å"authoritarian† management style. In contrast, in cou ntries and societies with lower power distance the leadership is decentralized, and the subordinates prefer to work and get reward based on their performance. There is neither hierocracy nor authoritative management style in those organizations. So, everyone carries on some part of responsibilities toward the goals of organizations. Lee, Y., Liu, W. (2012) Individualism versus collectivism is