Why Is Cultural Diversity a Concept Diversity That Businesses Today Should Value - Term Paper Example

? Why Is Cultural Diversity a Concept Diversity That Businesses Today Should Value? Why Is Cultural Diversity a Concept Diversity That Businesses Today Should Value? Introduction Diversity is a variety of perspectives and experiences arising from differences in gender, race, culture, age, religion, physical and mental abilities, sexual orientation heritage etc. Cultural diversity can be defined as the cultural differences and cultural variety that exist around the world, society, nation, or an institution. It is important for business organizations to understand the role and challenges that cultural diversity plays in influencing economic success. In a World Report titled, investing in Cultural Diversity and Intercultural Dialogue, the UN Educational Scientific and Cultural Organization (UNESCO) explains the importance of diversity; in a highly globalized marketplace, the ability of organizations to diversify their products according to various consumers adds significant value to the brand image, and product value of the business. This paper, therefore, seeks to outline the benefits of cultural diversity to a business. Analysis Today, Cultural diversity plays a major role in the marketing strategies, brand image, and conceptions of products that successfully hit the global market. Multinational organizations that make it in the global market customize and diversify their products to meet the expectations of the various international markets they intend to capture. Cultural diversification is the answer to cultural isolationism, the development of intercultural skills in organizations, and the means to reducing imbalances in world differences. Business corporations need to understand the concept of cultural diversity and incorporate this concept into business operations due to its various benefits (Laroche, 2003). Advantages of Cultural Diversity in Business Business Communication Cultural diversity enables the organization to understand the cultural norms, taboos, biases in political, social and spiritual issues of other people, regions, countries, or continents. Business organizations must understand the cultural eccentricities of their competitors before making contact with foreign clients of other subcultures. Cultural diversity also enables businesses to understand verbal and non-verbal cues appropriate to various international business dealings; this is on the basis of subcultures relevant to the foreign countries (Ingram, 2013). Access to Domestic and International Markets Human beings are of various ancestries and languages. Cultural diversity, therefore; Opens up new market networks at a local, regional and international level Enables businesses to serve and understand an increasingly dynamic clientele. Provides the business with crucial language skills, cultural understanding and knowledge. Provides the business with vital information regarding protocols, and practices in overseas markets. Provides business with low cost intimate details regarding consumer tastes and preferences in overseas markets (Diversity Council Australia, 2013, 1). Productivity and Innovation A business can maximize the efficiency and productivity of its personnel through; Improving cross-cultural communication and understanding thus fostering cohesive efforts at work. Identifying and embracing the full range skills of employees, eliminating obstacles in the working processes, and capitalizing on the skills of the workforce. Research shows that, businesses that encourage innovative ideas from a cross-cultural workforce, meet their product launch dates 47% more often, and revenue targets 46% more often than their competitors (Diversity Council Australia, 2013, 1). People from India and China benefit companies in the United States with their stellar quantitative skills while European workers do very well in high-level jobs (Laroche 2003). Valuing Cultural Diversity Enables the Business to Capture the Best Talent Cultural diversity enables the business to harness the best talent from all over the world. This is essential as it meets the personnel skill deficiency; it enables the business capture the ageing population (Diversity Council Australia, 2013, 2). A culturally diverse workforce is also able to maintain its valuable staff, improving staff morale, and thus controlling staff turnover. Creativity Increases When a business diversifies its workforce, problem solving becomes manageable since the workforce can work together towards a common goal. Cultural diversity provides multiple answers to business problems; this translates to better and workable solutions for the business (Ethno Connect, 2013, 1). New Attitudes A diverse workforce brings a different approach/ perspective to business protocol and policies. The Americans believe that getting to the bottom line is, and time management is paramount in business. They believe that time is money and thus should not be wasted. Other nations and cultures all over the world believe that time should be spent on mending and building relationships. This concept of getting to know the business partner is very crucial in networking and fostering strong business relations. Language Skills Cultural diversity in business is very essential when expanding into non-English speaking territories. A diverse workforce offers the organization when they need to interact with the foreign clients. High-tech firms venturing into Asia, Latin America or even Russia need to understand the cultural values of these foreign companies. Communication is key when making this deals. An innocent gesture like a handshake or a greeting may be perceived as disrespectful in other communities. In China, a simple bow and smile substitutes a firm handshake; this could make a big difference on the proceeding of the business deal (Ethno Connect, 2013, 1). Asians also dislike a “straight to the point” approach to business; it is important for business to know how to communicate when faced with these situations. Hiring a diverse workforce from different cultures gives the business a competitive advantage. New Processes In a dynamic and ever-changing international market, businesses cannot afford to stagnate in their policy formulation. The business environment is ever changing; companies take up different technology and new ways of doing things. This means that businesses should think out of the box in their business operations, monitor the activities of their competitors and adopt technology as it comes. Diversifying the workforce provides the business with different ideas; these different ideas help the business formulate new ways of doing things (Ethno Connect, 2013, 2). However, for cultural diversity to be effective, the organization’s human resource department must be culturally aware and possess emotional intelligence. Cultural Awareness Cultural awareness is the understanding of a person’s cultural orientation, how their values, beliefs, culture and religion may influence the individual’s decision-making choices. Claudio Carballal – Benaglio (2013), suggests various tips for cultural awareness at the workplace; The corporation’s human resource department must be sensitive and experienced in working with personnel of various cultural and ethnic backgrounds. The corporation should foster a positive attitude towards other cultures since it improves relations between the company and its interior and exterior environment. The company should organize cross-cultural events that foster an interior environment of cultural competence. This enables the personnel to be aware of various international cultures; consequently, the personnel can serve foreign clients better. The corporation should develop mechanisms that disseminate and develop awareness of an individual’s own cultural worldview and various cultural practices. This transforms personnel into culturally sensitive individuals. Emotional intelligence This is the intellectual knowledge of identifying, assessing and controlling personal emotions, the emotions of others and that of the group. The managers of a business should possess emotional intelligence in order to understand what makes people different as humans (Benaglio, 2013, 31-32). Conclusion. This analysis shows that, cultural diversity is vital due to the global nature of business today. Globalization brings about change to the international market; in order to grow, businesses need to diversify their workforce, their ideology, and their policies. The most important aspects of cultural diversification are; networking, tapping into new markets, improving the quality of the workforce, creativity, innovation, and the development of new ideas as a result of a diversified workforce. Cultural diversity is, therefore, a concept that businesses today should value. References Benaglio, C. C. (n.d.). Cultural Diversity and its impact in Doing Business. Beirne, Maynard & Parsons. Retrieved November 28, 2013, from http://www.bmpllp.com/files/cultural_diversity_and_its_impact_in_doing_business.pdf Business Advantages of Diversity in the Workpace. (n.d.). Ethno Connect. Retrieved November 27, 2013, from http://www.ethnoconnect.com/pdf/9_business_advantages_of_workplace_diversity.pdf Cultural Diversity: The Benefirts for Business. (n.d.). Diversity Council of Australia. Retrieved November 28, 2013, from http://dca.org.au/files/file/Cultural%20diversity%20docs/ATOH2013_FactSheet.pdf Ingram, D. (n.d.). The Impact of Cultural Diversity on Business Communication. Chron. Retrieved November 28, 2013, from http://smallbusiness.chron.com/impact cultural-diversity-business-communication-3047.html Laroche, L. (2003). Managing cultural diversity in technical professions. Amsterdam: Butterworth-Heinemann. Read More