This thesis aims to define multicultural team and conflicts and identify the essential competencies for a manager of multicultural teams. It is argued that a manager of a multicultural team should possess more skills and competencies than those who manage homogeneous groups. As a result, a manager of a multicultural team must be able to understand culturally diverse backgrounds, manage conflicts constructively, and comprehend different strategies to handle sensitive situations. The research begins by reviewing literature on culture, team performance and conflict. A survey was performed on 67 individuals from various cultural backgrounds, to analyze their attitudes towards multicultural teams and their managers. A second questionnaire was conducted on 18 managers from an international company in Coimbatore to collect more insightful opinions about managing multicultural teams. From both perspectives of the employees and the managers, different strengths and the weaknesses of now a day managers were examined and explained carefully. Some findings are in accordance with theories and some show different interesting opinions experienced pragmatically by the respondents. Eventually, a sucessful competency model was created by the author to combine all the results obtained from the empirical reseach and the theoretical literatures. The components of the model consist of different competencies and skills concerning cultural knowledge, conflict management, and team performance.