THE RELEVANCE OF INTERCULTURAL COMPETENCE FOR INTERCULTURAL MANAGEMENT

The different changes in economic conditions such as the increasing interdependence of the world economy, the economic integration of Europe, the transformation of Central and Eastern Europe and the dynamics of the technological development have resulted in the fact, that the internationalization of business activities was inevitable. New businesses and firms were set up as a "conversion" of Western companies, as part of collaborations or linkages with Western organizations. The intercultural understanding cannot keep up with the pace of globalization. Business cooperation between different nations often fails due to the difference of the cultural values and attitudes. The economic imperative of globalization forces, on the one hand, more and more companies to expand their activities worldwide. On the other hand, companies are more and more exposed to cultural differences and their conflict-prone consequences without there being sufficient nation state or multinational mechanisms of control available. The failure of co-operation shows that purely economic conditions for success are necessary but not a sufficient condition for a successful collaboration. In addition to the necessary economic conditions, cultural aspects should be involved. Organizations should design and support organizational culture that maximizes the benefits of diversity, and use that culture to manage various groups of organizational members, project teams, business start-up teams, customer service response teams, and top management. Intercultural management intends to create and maintain a positive work environment where the similarities and differences of individuals are valued, so that all can reach their potential and maximize their contributions to an organization’s strategic goals and objectives. In addition, ensures that all employees have the opportunity to maximize their potential and enhance their self-development and their contribution to the organization. It recognizes that people from different backgrounds can bring fresh ideas and perceptions, which can make the way work is done more efficient and make products and services better. This paper discusses the importance and necessity of implementation of intercultural management approaches. Therefore, are listed examples that stress the contribution of the intercultural management approaches to the success of many western companies operating in different parts of the world, and to the success of mergers and acquisitions. In addition, an attempt is made to differentiate constituent elements of intercultural management, based on their representation in the largest number of authors, as well as pointing to areas of further research in the field of intercultural management.