In today's ever-changing and highly integrated world, companies have an increasing need to hire and retain an extremely diverse and multicultural workforce. With globalization, multinationals have a great opportunity to work with people from different cultures and with a diverse set of skills. However, working in a foreign culture comes with a significant cost. Several issues arise when managing a culturally diverse workforce; management must resolve them. Understanding different cultures improves employee efficiency and productivity. However, many problems in cross-cultural analysis arise due to a lack of understanding of other cultures and, sometimes, the very culture in which we live. This can cause confusion. This confusion results in distortions about the very cultures we are trying to understand. The article will highlight several theoretical and practical problems of intercultural management and recommend solutions. INTERCULTURAL MANAGEMENT PROBLEMS A culture is a set of values ​​that defines a lifestyle. It explains what a society considers good or bad, right or wrong. Therefore culture is a system of values. Using this value system helps you understand cultural norms, thought patterns, and the social aspect of people's lives. Understanding culture is a process and it is important to know that culture cannot be understood if you ignore the context in which it is considered. For example, above the age of 18, drinking is considered normal in American culture, however, in a Muslim society, it is generally not acceptable. However there are exceptions, for example an American may drink at a party if foreign delegates in a Muslim society, so context (foreign delegates party) is essential when studying cultures...... middle of paper. .....nce context for understanding a different culture. Causes of the cultural paradox include cultural myopia, lack of cultural experience, and the inability of schools to explain the complexities of other cultures. Among individuals, some factors lead to paradoxical behavior. It is not possible to understand a culture without considering the context. While sophisticated stereotypes and schemas are helpful in understanding a culture, they are not sufficient. We need attributional knowledge and factual and conceptual understanding to understand a culture. This simply means that one should have a clear understanding that any feature can be applied to anyone. This can be done through practice and using the cultural sensemaking model. With an in-depth understanding of our culture and considering context, we can better understand a different culture.