Leadership Challenges in Multi-culture Companies in Europe

Topic: HR Management
Words: 5019 Pages: 18


Leadership challenges have increased in the modern world because of the different cultures globally. Despite the many actions that the European countries have taken, still, many companies have been affected by the challenges. The report has highlighted the key challenges that European organizations have been experiencing. More significantly, on the multilingual perspective of the culture and its impact on the organization’s productivity. To solve the issues, the current research studies were applied to suggest the existing policies to solve multicultural problems in business management. For example, many organizations have invested in workshops, training and other essential platforms that can help in providing sustainable remedies. However, in delivering the critical solutions, some cultural rituals have acted as barriers to implementing the primary keys in the existing region. Alternatively, the recommendations were made based on the firm’s challenges when they were faced with these issues. For example, creating time for solving critical leadership issues was one of the vital solutions for the organization’s stakeholders in the whole plan. Social intercultural times were suggested as the best way of increasing the social time of the employees. Finally, based on the study’s findings, many challenges were discovered. For example, multicultural leadership challenges have been a critical issue in the productivity of most organizations. Therefore, the report aimed at exposing the challenges and providing essential solutions to the problems they face.


Leadership is an important aspect considered in an organization or any setting that influences its development and growth. When we consider the cases of an organization, leadership goes past individual modeling to the whole employee in the organization. Leadership thus is referred to as the ability of individuals to influence employees while coordinating them into working to achieve the desired goal set by the organization. The aspect of management might get difficult with many challenges being experienced, which necessitate strong leadership to solve them (Baker et al., 2018). For example, with many organizations setting their goals to achieve global goals, many businesses have recruited employees from different backgrounds. Cultural diversity has positively and adversely impacted the nature of control in the economy. For instance, through the existence of any culture in economic background, some aspects of leadership in business can be supported while others cannot. As such, this organization benefits from the leadership structure while the other loses.

With many challenges increasing or being experienced in this sector, researchers have resolved into researching possible ways to solve these challenges. However, to solve a problem, one must always understand it, with more research to ascertain known facts while discovering other facts. This makes leadership an interesting topic, especially from a multicultural organization perspective. Leadership has drawn together many other significant facets of life into a better way of creating better communication structures. The intercultural communication perspective has played an essential role in reviving the various leadership models to create a better business in society. Thus, the challenges have opened opportunities for better leadership requirements in the evolving world.

Leadership does not always depend on one’s personality and leadership skills but also the organizational setting. The organizational setting will play a vital role in its success and smooth running, especially in multicultural organizations in Europe. Europe is open to a large workforce globally, which creates a diverse working environment. In such cases, the company’s success depends on its setting, which can make it easy or hinder the organization’s leadership. Europe is one of the continents that has supported many cultural groups and societies across the region (Baker et al., 2018). The fact that the economy has maintained the essential cultural aspects of communication implies that the specific leadership requirements are always met. Every organization has always targeted ensuring they promote the essential growth and business performance structures. As such, by embracing the cultural diversity aspect, the firms can solve the key business requirements. Therefore, in the process of growing and creating that cultural background aspect in business, many companies have received more challenges because of the difference in the rituals and communication requirements in the economy of Europe.


Often leadership has been considered the ability to control followers into doing or following a given course. On the contrary, leadership is the ability to influence others that will push them into achieving the desired goal. This approach will help organizations achieve their higher potential as the workers will work willingly towards a common goal. Willing workers tend to achieve higher targets while increasing their potential. To achieve these goals, leaders should have a vision, attract ideas, and be able to help their members achieve their potential. Many companies in the Europe region have grown because of the key considerations in the leadership requirements despite the organizations’ challenges in acquiring the best regard.

The task of leadership is not a simple process but a step by step approach which aims at solving a certain problem or achieving a desired goal at a given stage. Thus, effective leadership should result from a persistent course of parties involved to achieve a desired common goal. For example, when assessing the performance of the automobile companies in the Europe region, many key considerations must be put in place. But, more significantly, the companies have considered leadership elements essential for growth and performance in the market. As such, this explains why most automobile companies have maintained consistent productivity in the global market (Baker et al., 2018). Furthermore, the firms like Shell in the UK and Bp in the UK have held consistent leadership frameworks to increase their revenue streams in the market. Therefore, through the growth process followed, the companies have been slowly gaining potential since they started till they became multinational companies in the global economic market.


Throughout history, human beings have experienced collaboration and cooperation to ensure the continuity of a particular entity. This idea applies even in organizations where people from different backgrounds work together to ensure the companies meet certain proposals creating a multicultural system. The multicultural system is thus assumed to have people of diversity, and the difference in some ideas requires skills to unite them. The different cultures have to come together to achieve a common goal between the two backgrounds. Many requirements must be followed to ensure that people from different backgrounds will rule the organizations in a better way (Brems, 2018). However, many challenges have come as a result of this combination of various leadership cultures in business management. More significantly, in the situation where most people will always come up with significant goals that the companies will have to support. Many essential leadership theories have been created from a cultural dimension to help reduce leadership problems in companies. For instance, Europe is one of the continents that has supported many cultures globally. Many companies in the region have been formed from a cultural background perspective. There are situations where the current management is composed of people from different cultural spaces. Therefore, better control becomes a key challenge in the economy.

Diversity is a complex idea in many organizations, with studies suggesting that it has no predictable outcome. In the contemporary world, many organizations have failed because of the diversity essential in most requirements. When culture becomes a critical factor in leadership and management, the difference in the cultures applied in management creates more challenges in making better decisions. The other challenge is that many leadership aspects can be ignored because of many cultures. As such, the leaders are defeated in choosing or making the correct decisions for the company. There are many leadership requirements that a company can be exposed to because of having more than one culture (Burkiewicz, & Knap-Stefaniuk, 2018). However, in some regions of the world, the aspect of culture in leadership is not a significant element. As a result, it has become easy to balance the key requirements of the whole management structure when culture is put aside. The only culture that can be implemented is organizational culture. In the Europe region, business management is different because the individual community cultures have a vital role in key organizational decisions. The issues combined have created significant barriers to organizational growth and development as many organizations mainly rely on the expected outcome of multicultural leadership situations in the firm.

Situational Leadership

In organizational settings, diverse problems require different approaches to solve. This idea of multiple problems requiring multiple solutions with no single system to solve all problems is considered situational leadership. This indicates that every solution must be derived according to the situation. The same is depicted in management: all leaders are not perfect to suit or solve every problem in every organization. As a result, the organization’s situations lead to critical solutions that can be a remedy to a particular case. Every organization will have the essential leaders at the top management and in the other sectors (Chekalin et al., 2020). However, because every leader has their cultural requirement, there is a higher probability that the company will have various issues in the situations created by the leaders. Every leader will always have decisions that support the individual elements of their culture in the process. Based on the current business reports, many companies in the Europe region have been exposed to these situations because of the current value in their culture (Knap-Stefaniuk, 2020). Many companies in the Europe region value the role of culture in various cases that need more than culture. These differences have acted as critical barriers to organization growth.

Since one style cannot solve all problems, intelligent leaders should consider different approaches toward a given problem depending on the situation. Goleman’s emotional intelligence model explains six situational leadership styles that leaders should consider while practising leadership applicable in Europe, which has a diverse, multicultural organizational setting. A multicultural organization will always need the different phases of this theory as the key solution to all the challenges that the firms go through when creating developmental agendas. The approach has been applied in many other organizations that have been confirmed to work for a very long time. However, Europe has remained one of those economies that have ignored the change in culture and its impact on organizational growth. For example, when comparing an economy like the USA, there is so much difference in terms of diversity in communication. Therefore, the economy of Europe has remained in the case of culture and its impact on organizational principles.

The first leadership style explained by Goleman’s emotional intelligence model is the authoritative leadership style. This type of leadership is shared with leaders with higher experience and knowledge of a given issue. However, there are some situations in which a leader has to stand for the solution despite that they are not gunner sufficient support. The leader will have a significant challenge in balancing the needed decisions for a particular situation. However, the leader will have to choose one solution that will ignore the other cultural elements in place. More particularly, in many cultures in the European context, the leader will have to be authoritative and ignore other choices that will not work (Chekalin et al., 2020). However, it is one of the biggest challenges an organization can face in the management protocols. Thus, these leaders suggest their ideas authoritatively, knowing that their plan will likely solve a prevailing problem. The second style is the coaching leadership approach, where tasks and roles are well defined. This approach is possible if there is double communication between the leaders and employees who are guided on how to solve a problem.

Leadership Challenges in multicultural organizations in Europe

Ineffective Communication and Misunderstanding

Handling a huge number of employees will create some controversies in communication. These controversies affect communications as interpretation might vary from one group to the other depending on their culture or style of communication. Further, it will affect problem-solving and project setting, especially when using correct statements, which might sound ambiguous in other cultures. For example, submitting the project by the end of the day might be interpreted by a particular group at the end of the shift; others consider the future of daylight, while others submit it at midnight when a new day begins. These types of challenges have exposed many organizations to delivery issues at work. Especially in the organizations where the firms work well to achieve the outcomes as a shift. Many organizations in the UK have failed because of the many cultures, which exposes the organization to more miscommunication at work. Productivity has been a significant target for every organization, as such communication brings about good productivity (Karna & Knap-Stefaniuk, 2019). To create better opportunities in the job environment, most of the employees will fall because of the communication standards at work. It is, therefore, better for firms to create a better structure to avoid the poor information flow from one employee to another. Despite the critical benefits of many employees in an organization, there are still many challenges that every organization has been exposed to when planning everything. Therefore, communication is an essential tool in managing an organization.

Different Working Styles and Expectations

Working with a huge group will expose the leader to a more significant challenge where they will have to understand their subjects, working styles and expectations. This is because each subject will want to prefer a different working style (Chekalin et al., 2020). When we consider the working techniques, there may be a group of people who prefer full autonomy of their tasks. In contrast, others want to support or complete control and directions from the leader on performing specific tasks creating a variance in expectation. Most organizations will always hire an employee who comes from different cultures globally (Karna & Knap-Stefaniuk, 2019). More significantly, the employees will develop other working habits based on their background. Europe is an economy that has maintained the old cultures and rituals in leadership. The culture has affected many employees in power who have a higher stake in terms of the significant decisions they make in management. However, many requirements are followed for the employees to be appointed to the positions. In most cases, these requirements tamper with the culture of the officials. Therefore, every manager or leader will constantly develop a leadership style. These changes in management styles will always have an impact on the delivery of the estimated work of the employees. For example, every leader will come with their organizational culture perspectives, which both impact work delivery. Therefore, this is the primary cause of the existing issues in the management plans of many organizations.

Intolerance of Diversity

People have different tolerance abilities with others lacking the capacity to tolerate diversity. Different cultures have various aspects, such as beliefs and cultural norms, which vary significantly from others. In Europe, there are diverse cultures which means that most companies will hire people of different backgrounds hence variance in norms. Every employee will have different work habits as well as the delivery. The culture of the employees plays a significant role in the process of management of many employees (Cmielewski, 2021). For example, the organization cannot decide on the employees to hire based on culture. The considerable requirements are always the potential of the employees. As a result, an organization can end up hiring many employees that come from different cultures. As a result, the firm will have more organisational culture issues than the firms that have a limited number of employees. Every organization must create a change program to instill the corporate culture in the newly hired employees. Consequently, the management team will always incur a new budget geared towards training the new workers on the existing culture and terms of work. Thus, leaders will have challenges ensuring that these groups reach a consensus fast which hinders the company’s development speed.

Decision-making Difficulties

Leaders face a significant challenge when making decisions for a group. This is because companies in Europe embrace many cultures, especially those descending from other EU countries. When making decisions, leaders must consider all these cultures to ensure each decision suits their subjects. The combination of many cultures will create so many challenges in agreeing on the best choice (Dierckx et al., 2020). A group of many employees who have different cultures will always be mainly making management decisions for themselves. The employees will have on who will win the argument and how they will agree to it. The problem is not only in the Europe region but also in the world. More particularly for the big organizations that require the hiring of many employees.

Additionally, there is no single solution to all the company’s problems; thus, multiple solutions must be scrutinized. Hence, leaders always find it difficult to reach an agreement, and when they reach an agreement, they must figure out how to handle the problems which have not been addressed and the culture that the decision has not favoured. It is also time-consuming for the leaders to agree on the decisions that should be taken and those that won’t work. More significantly, they will have to consider all the decisions made and assess the impact (Cmielewski, 2021). Therefore, it becomes a major challenge for the management leaders as more time will be consumed in agreeing on the best choices.

Communication Styles and Tomes

In multicultural companies in Europe, leaders face challenges in understanding the communication styles of their subjects. Thus, some decisions might not favour all the cultures or might not be supported by many. Many cultures at work increase the chances of having conflicts in an organization. A higher number of data breaches that have occurred in Europe are the insiders. As a result, the internal management exposes the organization to the risk of accessing their data. The many cultures and different work styles will expose the company to more trouble for their data to be accessed (Lee & Schneider, 2020). The challenge can be attributed to the difference in communication styles and tones where a member who does not belong to the dormant group is fond of violating other cultures. These issues will multiply the disputes that occur, which will cause more conflicts in the critical management objectives of the company. It might further cause a communication barrier. When the employees cannot have good relationships and communication at work, the task delivery and productivity of the organization also go down. This affects the leader’s understanding and quick decision making. The leaders will have to consume so much time understanding each employee. Therefore, variation in communication styles and tones has created so many challenges in Europe because of the many cultures and heritage employees possess.

Difficulty in Motivating a Multicultural team

Motivating a multicultural group can be challenging for leaders, especially when considering situational leadership. This is because different cultures have different motivational approaches, which the leaders must consider. A leader will have to consume so much time trying to understand every culture in the firm. The learning process takes more time because the leader will have so many cultures in the motivation process. The leader in charge of the process must always ensure that all the employees are well motivated. In this case, where an organization has many cultures, it becomes hard to create a common goal for the whole project. The employers are either forced to take the time or leave the rewards. Secondly, some people might belong to the same group but have different motivational styles raising more challenges for the leader. Motivation style must rhyme for all the employees for the project to be a success (Lisak & Harush, 2021). The continuous challenges have lowered the potential of many organizations in the UK. Therefore, multicultural issues continue to be a significant barrier to business and leadership growth.


Stereotypes are often a significant challenge in the leadership of a multicultural organization. Thus, leaders must avoid stereotyping as it affects employee morale and productivity. Every leader will have their view and perception of culture in leadership. Some leaders will favour the employees and demean others based on their culture. There are many cases of stereotyping in many organizations in Europe. Employees and employers will always carry some perception about a given culture which can be wrong at times and make decisions based on acuity (Lisak & Harush, 2021). Thus, this doesn’t seem right because when one gains knowledge about a given culture, they might assume a given culture if they do not mind their language. The assumption is not only made by leaders by employees, which affects how groups coordinate and the expectations placed on others, leading to discrimination. There are also existing reports in the media that people can read about culture. Everybody comes across all the cases that have been reported outside here. The major challenge is that there will be more information out, and many employees and employees will carry such issues to work. Therefore, stereotyping has been an attribute of multiculturalism in the Europe region and the external world.

Solutions to Leadership Challenges in Multicultural Organizations

Embrace Diversity

All the involved parties in multicultural organizations must embrace diversity for the company’s success. Employees should also be trained or informed of other cultures and accept the differences while embracing the similarities to make leadership easy in the company. The major challenge in Europe, especially the business organizations, is that some cultures feel superior to others. More significantly, the cultures at the exceptional leadership levels will always feel more powerful than the low-class employees (Misoc, 2017). In most cases, some employees will feel ignored and discriminated against. By embracing diversity, every employee must be treated equally to others. However, the employees must understand that they should accommodate the culture of every employee to maintain good working ethics. However, it is the organisation’s role to create training that is geared towards. Therefore, awareness will increase diversity and create a better relationship between the many cultures in the Europe regions.


The aspect of desiring to learn will come from the organizations. For instance, the leaders at the top management level will have to advocate for equal employment rights. Despite cultural differences, there are always desirable skills that one should learn from different cultures. The leaders at the top management offices should be the first ones to learn from the rest because of the essential role model requirements. Acquiring new skills will narrow the difference-making leadership easily and manageable in the company. The new abilities will spread to the employees through training and other talent and social events (Misoc, 2017). Learning from others will promote unity and help the company, leadership, and employees growth of knowledge. Therefore, the region’s organisations must develop ways to train the employees and increase their social cycle.

Improve Communication Skills

There might be a huge variance in culture, but good leaders must always exercise good communication, which could be appreciated by most of the culture. Great communication skills will promote understanding despite the difference in communication styles and tones between the cultures involved. As per the research conducted, the major challenge that leaders have is that the leaders could have a joint agreement (Nadziakiewicz, 2018). A good leader must communicate well with the employees and the external environment of the business. Many essential factors must be established for an organization to have better productivity. However, the current trends in leadership have been as the perspective of cultural diversity has been changing. Communication skills can be taught in the major conferences and workshops that organizations have in Europe.

Balanced Decision-making Processes

Decision making is a difficult process in a multicultural organization; thus, well-articulated decision making will reduce the conflicts making leadership easy. With an implanted decision making procedure, each problem will be quickly addressed with each culture being informed of the procedure. Regions like Europe have created conferences and workshops addressing key business and society issues (Sogancilar & Ors, 2018). There is a need also for the organizations to make such events and talk about the issue of multiculturalism and its impacts on business organizations’ management. The problem is one of the most significant issues in the business sector as many firms have been affected. The critical discussion areas will be how the leaders will instill better organisational culture and improve the performance of the organizations in the market (Ors & Sogancilar, 2018). This will increase decision acceptance among the employees despite favouring other groups because they will understand that it’s the procedure that helped in arriving at a decision. Europe is one of the economies which have grown mainly because of trade, even in ancient times. Therefore, by concentrating on the critical cultural organization issues, there is a higher likelihood that the firms will increase their productivity.

Social Activities

Since different people have different motivational styles, leaders should consider approaching individuals directly to motivate them, unlike when generalized, which is not welcomed by all cultures. The approach will improve productivity as all individuals will be satisfied by the leader’s motivation (Sachdeva, 2020). For example, the leaders at the top management levels should be taught the essential ways of bringing up an equal communication flowchart that will balance all the critical information in the organization. Many organizations have been suffering because of the crucial issues in solving a wider variety of challenges facing the firms in Europe (Purwadi et al., 2020). The primary goal is to create a better working environment in most organizations in the region. However, the difference in the culture has been a significant issue; the investment will bring out the essential requirements in place.

Reduction of Stereotyping

To avoid stereotypes, leaders and employees should spend more time together to understand each other and cultural similarities, strengths, and differences. That will make involved parties understand that cultural differences cause differences in preference and how it does or doesn’t affect one’s behaviour. Instead of blindly solving multicultural issues, business organisations should aim at creating events that increase the time employees share. These suggestions will help develop the organization and ensure that the firm has achieved more in place for the employees (Rahman, 2019). Europe is a continent where people will always protect their culture. However, through education, workshops and significant events, the state is expected to change to modernity where culture is not prioritised. Thus, an increased number of social events and workshops will play a vital role in bringing together the employees for a common goal in the future.


Leaders should consider improving their base knowledge in understanding multicultural teams by learning, diplomacy and diligence. Training is the critical element toward creating sustainable solutions to the current issues in management and business. Having a broad base of knowledge on the current multicultural problems will help the leaders make the best solutions across all the organizations in Europe and the world. Cultural diversity is a major global issue that should be addressed well (Ridlwan et al., 2021). Therefore, if all the leaders develop sessions through training and learning, the challenge will be solved.

In case of an identified issue in leadership, it should be addressed immediately with the multicultural group being granted autonomy to make various decisions. This will help companies change multicultural challenges from a liability to an advantage. Organizational culture is a process that could be initiated through change. For example, project change plans should be created immediately to control further corporate failure when significant organisational challenges erupt. The business organization must invest in constant needs assessments to help discover the key issues affecting the organization’s principles (Tsolka, 2020). Therefore, many other factors have been detailed to have an impact based on cultural diversity. However, through the action of change and leadership, most of them will be identified as crucial organisational needs. Therefore, reducing the response time when the problem arises will help the firms create a better structure for quick solutions and reduce further productivity issues.

Team building exercises will help leaders and employees understand each other, embrace diversity, and help decision-making while reducing existing conflicts. Team building activities can be in the form of outdoor organization events. The events will help the firm further create opportunities that will help identify the key issues affecting organization management (Tabrizi & Rideout, 2019). Multicultural issues in organization management are the issues that should be looked at from a central perspective to help the organization in creating perfect solutions even for the future. Every organization should thus aim at creating more time together to solve the key issue affecting the continuous relationship and work environment ethics.

Multilingual culture should be encouraged in companies to help communicate while advancing communication skills for all stakeholders to avoid language and communication conflicts. Balanced organization management will involve better communication with the employees and the external shareholders. There are ways through which every organization will create a better flow of information from one department to another. A multilingual culture that does not favour any of the other rituals will help the organization in better organization management (Ridlwan et al., 2021). Many organizations in the USA have applied this approach, and it has worked for as many organizations as possible in the USA that are used to modern culture. The culture of having a common language will not impact the workflow and any relationships at work. However, this does not mean that the economy of the USA has the best organisational principles. Europe could implement such policies to ensure that employees can communicate with each other without any problem in the future. Therefore, the issue of multiculturalism will be over.


The fact that multiculturalism in leadership is the key leadership challenge in Europe cannot be ignored. More significantly, the significant role that the element has played in failing many industries in the region. Moreover, the issue of leadership and communication from a multicultural perspective has impacted many organizations’ productivity and revenue streams. However, there will be more changes by employing the idea of workshops, training and further enrollments in the project. Alternatively, the suggestions will create more open discussions to help in better leadership and communication in Europe. Thus, in the end, the problems will be solved by leaders’ communication and applying multilingual cultural perspectives in their respective work environments in their organizations.


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