What Are the Challenges of Intercultural Leaders in Contemporary Business?

Abstract

The growth of globalisation and international trade has led to increased contact between different cultures, revealing the limitations and problems that can arise in their interaction. Negotiations are often complicated by the cultural distance created by different behaviour patterns in business practice. Accepting and taking into account the presence of multiculturalism can sometimes mean changes in global strategies or can call into question management models that have been considered valid until now as standard management models. Recognising and managing cultural distance allows companies and organisations to secure critical competitive advantages by reducing communication time and avoiding misunderstandings. Successful organisations are made up of people with excellent leadership skills. The twenty-first century requires a particular type of leader who can deal with globalisation and the new era’s challenges. An experienced leader should be able to successfully manage changes, make good decisions in complex situations, respect cultural customs and differences, and inspire his environment so that people understand the more profound meaning and purpose of the work they do in accordance with the demands of a changing and unpredictable market environment. A company is competitive to the extent that it is able to understand, use and transmit information to others, which reflects the competence of leaders. There are increasingly multinational companies that include many people worldwide in their business and connect them to each other regardless of long distances. They control capital, technology and resources around the world. Leaders plan and supervise essential organisational functions, such as production, development, sales and procurement, accounting and finance, and human resources management. For daily business, they usually form a team of associates who lead specific segments of the organisation, such as the manager for finance, human resources, and marketing. With their help, they manage the business, delegate tasks and control the fulfilment of set goals. To coordinate and supervise the execution of tasks, managers work out rules related to the distribution of responsibilities and competencies, control mechanisms and information exchange. The paper aims to show how a modern organisation, in addition to all its characteristics, combines cultural differences and intercultural leadership, as well as what qualities and competencies are desirable for someone to be considered a successful intercultural leader.