How Understanding of Cultural Differences Can Assist in Managing Employees - Essay Example

Why Understanding of Cultural Differences can assist in Managing People in the Workplace Introduction Human Resource managers believe that there are more similarities among employees than there are differences. Despite the many similarities, it is important to note the differences that exist, more precisely the cultural difference. As defined in a study by Baddar (2009), culture is ‘set of values, practices, traditions or beliefs a group shares, whether due to age, race or ethnicity, religion or gender (2009, p. 12)’. In addition, different work practices, educational levels, and disability are factors that can contribute to cultural difference in a workplace. This paper will critically appraise the extent to which an understanding of cultural differences can assist in managing people in the workplace. 2. Existing Cultural Differences There has been a good definition of culture in the above first chapter. It is important to note that culture is either generic culture or local culture (Alatas, 2009). Generic culture consists of shared culture among people in the world, whereas local culture entails schemas that are shared by the only specific social group in this world (Alatas, 2009). Globalization has made this world a global village. In broader terms, globalization has brought people in this world closer. That said, people from different parts of the world have found themselves working together in the same corporations. This is very interesting because it seems hard to deal with people from different cultures. It requires deeper understanding of cultural diversities such as things not to say to people from different cultures, and the ways of communication (Calveley, 2015). A good understanding of cultural diversities by managers will make it easy for them to motivate employees, structuring strategies, and implementing important strategies. As noted in a study by Connaughton (2007), there are many levels where culture works. The first level is national level. Here, the unconscious values of people bring the difference in national culture. These values are taught when people are young. National culture is normally stable but changes afterward in the practices, but the unconscious values do not change (Connaughton, 2007). The second level is organizational level. Here, the level of practices is the one that brings the difference and are often manageable. Organizational cultures usually differ from one company to another, but the firms need to be operating in the same country (Connaughton, 2007). The third is occupational level. This lies between organizational and national cultures. For example, entering an occupation such as service in the military needs a person to master social values required by a country and the practices of the service (Connaughton, 2007). The fourth level is gender level. Gender differences are common, and they lie within the same culture. In many cases, people may refer to some culture as ‘men’s culture’ and some as ‘women’s culture.’ Men and women can do the same jobs in firms, but the differences come in when responding to symbols used in society. According to experts, the differences in gender level are based on the national culture of a country (Connaughton, 2007). 2.1 Cross-cultural differences A study by Dewettink (2011) recommended four ways of discussing cultural differences in organizations. Power distance: In this type of culture, managers believe that power in organizations needs to be shared unequally. This culture is very common in Asian countries. The less powerful in this type of culture assume that power has been distributed unevenly. There are two types of power distance relationships; high power distance and low power distance. In China, for example, it is common for the relationship between managers and subordinates to be that of dependence. This is because China has a high power distance relationships. Countries with low power distance relationships such as Australia experiences an interdependence relationship between managers and employees (Dewettink, 2011). Individualism versus Collectivism: Some cultures emphasize on individuals while others emphasize on groups. Examples of countries that emphasize on individualistic culture are the US and most countries in Western Europe (Dorfman, 2009). Managers in these countries look more into personal achievements of employees and less into group goals. This leads to intense competition in firms. Countries that emphasize on collectivist approach include China, Japan, Korea, and most countries in Asia (Dorfman, 2009). Managers in these countries look more into family and group goals, and less on personal achievements. Uncertainty avoidance: As noted in a study by Hofdted (2002), some cultures easily accept change whereas some cultures are afraid of change. Managers can feel either comfortable or uncomfortable in unstructured situations, but this depends on cultural programs they are in (Hofdted, 2002). For instance, statistics indicate that managers and employees in Asia, notably Japan, are the most uncertainty-avoiding people in the world. This is validated by the fact that most countries in Asia experience natural disasters such as tsunamis and earthquakes (Dorfman, 2009). Therefore, business leaders and their employees are usually prepared to deal with any uncertain occurrence. With the high rate of uncertainty in Asia, it is very hard for changes to be realized in their organizations. On the other hand, organizations in Western Europe such as in Singapore, Denmark, and the US are not afraid of changes (Hofdted, 2002). This is the reason there are no strict rules for doing business in these countries because their leaders are not trying to minimize the possibility of uncertainty. Masculinity versus Femininity: There are male and female cultures in this world. Countries such as Japan, Austria, South Africa, Middle East Countries, Canada, Mexico, and the Great Britain are examples of masculine cultures (Glinow, 2004). In this type of cultures, there are different roles, different work practices, independence, financial status, competitiveness among male and female (Dorfman, 2009). Not all these factors stated apply in feminine cultures. Examples of feminine cultures include Thailand, Sweden, Denmark, Finland, Russia, Portugal, Costa Rica, and Norway (Dorfman, 2009). 2.2 Managing multi-cultural employees Companies inherit cultures, except start up operations. If a company has been in existence for long, its cultural map is complex. For these companies, managers outline their visions and values when explaining their company culture. The managers believe visions and values are guidelines for their organizations to operate (Dewettink, 2011). Technically, most managers derive their style of management from the culture that exists in the country that hosts their business. A Chinese manager working in the UK will apply England’s style of management rather than the Chinese style of management. Most companies in underdeveloped countries usually adopt the US culture because they believe the American way of doing things yield enormous success (Dorfman, 2009). Most companies usually emanate the US culture because; first, technology has enabled organizations to become much closer. This has enabled businesses and firms to grow faster, and companies in the US validate this. Second, American managers focus less on personal control. They use the geocentric type of leadership where they control their businesses through subsidiaries (Khilji, 2003). Following the US model can help firms reduce the challenge of managing employees from different cultural backgrounds. A workforce can include employees from different races, different age groups, different gender, and different languages (Connaughton, 2007). These differences can affect how organizations operate in this competitive world. Without proper management in place, multi-national companies may fail to succeed in diverse cultures (Bierstaker, 2009). Managers in charge of multicultural workforce require skills such as ability to recognize cultural differences and ability to coordinate and cooperate with employees from other cultures (Prime, 2008). International managers have found a challenge in managing a culturally diverse workforce. The easiest way to deal with this problem is for the managers to ensure motivation in the workplace. Motivation among employees guarantees success despite having a culturally diverse workforce. If employees are satisfied with their occupations, undoubtedly they will perform better, and they will show a positive attitude towards their work (Prime, 2008). Motivation experts argue that employees can perform better when employers fulfil their needs for personal growth. Even if employees come from different cultures, if their managers ensure job satisfaction, this would be an encouragement to work better. Managers need to provide a healthy working environment for all employees in order to ensure motivation and satisfaction (Chevrier, 2009). Ways of providing motivation include implementing policies that are favourable to all employees, paying employees fairly, ensuring good interpersonal relations, and giving right for promotions to new positions (Baddar, 2009). After motivation is guaranteed, it would be very easy to manage a multicultural workforce. Managing such a workforce is a real test for leaders. Successful leaders managing multicultural workforce share the following characteristics: good communicators, and ability to build trust (Maznevski, 2013). These two characteristics have enabled the leaders understand diverse customers, manage diverse teams with ease, recruit and develop cross-cultural talent, and demonstrate respect and empathy to the local culture (Maznevski, 2013). Leaders of multicultural workforce need to have cultural intelligence. They should have the ability to demonstrate some behaviours, skills, and qualities that are culturally accepted by others (McSweeney, 2002). Cultural intelligence is categorized into four groups: linguistic intelligence (managers need to be familiar with customers’ native language), spatial intelligence (space used during meeting and introductions), and intrapersonal intelligence (managers need to be aware of their cultures in order to make necessary adjustments), and interpersonal intelligence (managers need to understand other peoples’ cultures) (McSweeney, 2002). Leaders with cultural intelligence can balance between rigidity and flexibility. In broader terms, the managers can embrace the local culture, but also not forgetting their culture (McSweeney, 2002). Managers need to demonstrate intercultural sensitivity. They should be able to recognize and respect cultural differences (Bierstaker, 2009). An open-minded and flexible leader can engage in different cultures. One way of noting if a manager is intercultural sensitive is determining his/her willingness to change behaviours related to the individualistic or collectivistic backgrounds of others (Chevrier, 2009). To develop intercultural sensitivity, leaders need to undergo extensive training and education. Understanding cultural differences makes work easy for managers. Leaders need to acknowledge that there are differences between cultures. In fact, they need to acknowledge that a diversified workplace has many advantages. First, a diversified workplace provides a healthy environment for creativity (Matveev, 2004). When people from different cultures come together, they easily solve a problem. Secondly, productivity increases in such a workplace. A study by Silveira (2007) notes that people from different cultures working together can boost productivity when they work together towards a single inspiring goal. For instance, employees from Asia can bring in quantitative skills to a firm, and employees from European countries can bring in expertise in high-level jobs (Dorfman, 2009). Third, a diversified workplace has new attitudes brought by people from different cultures. For instance, a British manager working in China is guarded by the motto: time is money. In China, time is used to build relationships (Dewettink, 2011). Therefore, such a manager will incorporate two mottos in the work practices of his firm, and this will bring in new attitudes. Fourth, a diversified workplace boosts employees’ language skills. Language skills are critical in today’s competitive world. Having diverse workers can help improve language skills. For instance, if a UK company wishes break into China, it would need to hire foreign nationals for help. If the firm has a Chinese employee, he/she could be of assistance in understanding Chinese words and their meanings (Glinow, 2004). Fifth, a diversified workplace brings in new processes. People from different backgrounds can come with different ideas. This is a competitive world, and according to experts, there is no room for thinking. Therefore, firms need to bring in employees from different cultures in order to bring in multiple skills and be able to think cross-culturally (McSweeney, 2002). 3. Conclusion Understanding other cultures has broad benefits to the management of firms. Culture usually affects human behaviour in organizations. Good understandings of cultural differences build better managers and leaders. The world is experiencing globalization and companies have penetrated different markets in the world. This will result in interactions with different cultures across the world. Culture can be learned by human beings, and in order to be successful in other countries, multinational managers need to learn other cultures. The easiest way to understand another culture is good communication. As noted in a study by Connaughton (2007), communication is a way of coding and decoding language and symbols used in a language. This means that communication and culture are inseparable. Managers who can effectively communicate with people from different cultures can realize the benefits of having a culturally diverse workforce (Connaughton, 2007). References Alatas, V. (2009). Gender, Culture, and Corruption: Insights from an Experimental Analysis. Southern Economic Journal, 75 (3), 663-680. Baddar, F. (2009). Transferring Western HRM practices to developing countries. Personnel Review, 38 (2), 104-123. Bierstaker, J. L. (2009). Differences in attitudes about fraud and corruption across cultures. Cross-cultural management, 16 (3), 241-250. Calveley, M. (2015). Lecture 10: Leadership across cultures. Hertfordshire Business School. Chevrier, S. (2009). Is National Culture Still Relevant to Management in a Global Context: The case of Switzerland. 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