The effect of culture in projects involving multi-cultural teams has been apparent for many years. Managing projects nowadays demands sensitivity to the values and priorities of different national cultures and occupational groupings. Understanding and effectively interacting with different cultural groups is like walking through an arena of culturally diverse people. Being culturally savvy means much more than just understanding the culture of other groups or countries. It means understanding who you are and your own cultural dynamics. For example, consider what it means to say you are an Indian. The social environment in which you were born and brought up, and where you lived most part of your life has a lasting impression on you. This is what is called as inheriting values and traditions from your family and social environment. Same stands true for any other culture. If you were to compare someone from India with someone from Finland, you will find them culturally different. People inherit characteristics from their social environment. Even though cultures and traditions have an impact on an individual’s behavior, when we talk about organization culture, this tends to be unique and remains the same for all employees. The values, vision and mission of an organization do not change with location. However, the local culture still plays a part. Response to Cultural Differences How do people respond to cultural differences?