We live in a world with an abundant array of diversity. Diversity is evident in people, the environment, and all forms of life. Advancements in technology have made the world seem smaller and increased the interaction between people from different cultures. The rapid globalisation has a significant impact on the work, employees, and organizations bringing them frequently with clients, suppliers and peer that they never work before. In an era of globalisation, organization faces unique challenges in coordinating among clients, developers, designers’ workers from different countries. The major challenges are to develop practices, which balance global competitiveness, multinational flexibility and the building of a worldwide learning capability. This balance will require organisations to develop the cultural sensitivity and ability to manage and leverage learning to build future capabilities. While offering opportunities, globalisation also poses significant challenges to employees especially when different cultures are involved as a team. Multicultural teams have their culture as a set of shared values and beliefs. Beliefs are people’s perceptions’ of how things are done in their countries. They are reported as “practices” in a particular culture. Values are people’s perceptions about the way things should be done. They are their preferred practices and people’s beliefs. In a global context the management and development of people inevitably leads to considerations of diversity and related challenges. Attitudes towards working have changed dramatically in recent years and there is currently much more emphasis on multi-cultural working. Many organisations have found that multicultural team integration can be problematic and at times performance is not always at the level required or expected. With an ongoing increase of multicultural teams, leaders in multinational organisations must be aware of cultural diversity issues in order to function effectively and achieve high levels of team performance. This paper will focus on issues like Virtual team, communication in globalized world, resolving conflict and some effective tips for managing cross cultural diversity in the globalized world. Data has been collected from secondary sources.