Challenges of Diversity in the Workplace - Example

ID No. Differences in cultural values INTRODUCTION As our telecommunications company is planning to globalize its operations, it is imperative that we should understand the culture of the people in the country we are going to operate in. It would help the business to operate efficiently if cultural diversity is understood. Culture, as defined by Liovonen, M, et.al. “is a framework to our lives, something which affects our values, attitudes and behaviour. In the process of our internalization, one of the challenges it is going to encounter is the differences in cultural values. Exploring these differences would help management set aside these prejudices in order to achieve a smooth flow of business both in its internal and external environment. Part One: Literature review on benefits, challenges and solutions on cultural diversity As globalization has dawned in our age, diversification will be predominant in the coming years, and there would be a need for our organization to recognize the need for immediate action and spend resources on managing diversity. 1. Benefits. Having the view of globalization in our forefront, study of Greenberg, Josh 2004 implied that the organization’s success and competitiveness depends on its ability to embrace diversity and realize its benefits. Accordingly, when it is able to handle workplace diversity issues thru an implemented strategy, benefits to be accrued are identified below: a. Increased adaptability benefits. An organization that hires employees with diverse cultures brings in talents and experiences that could offer solutions to a variety of problems in service, sourcing, and allocation of resources. b. Broader service range. The company benefits from a diverse collection of skills and experiences that allows it to provide service to global customers. c. Variety of viewpoints. The company can create inspiration from the variety of ideas and experiences of its diverse workforce to make a business strategy to serve its customers more effectively. d. More effective execution. A company that recognizes diversity inspires employees to perform more effectively resulting to higher productivity and better return on investment. 2. Challenges of diversity in the workplace. a. Communication. To sustain cultural diversity, certain challenges have to be met by the company. Studies of Lebaron, Michelle, and of Iowa State University put forward that inefficient communication becomes a barrier in understanding diversity, and that a good one opens the door for understanding of human behaviour, culture and values. Ineffective communication results in confusion, lack of teamwork and low morale. Lebaron, Michelle argues that progress will be achieved if there is self-awareness and self knowledge, meaning there should be communication that is clear enough to see, hear, understand, and interpret. She thinks that conflicts arise when there is no efficient communication that often becomes a deterrent to progress. Martinez, Jose (2013) contends that cultural misunderstandings may be costly, sales can be lost if customer values are not understood, and productivity decreases if global communication breaks down. Further, he said that solutions in conflict could be found by respecting religion, race, gender, age and language. Because of these characteristics, there is a need to treat diverse individual differently. b. Resistance to change. There are instances that employees refuse to accept that social and cultural make up of the workplace is changing and they still embrace the high context and low context culture. The theory of high context and low context culture as developed by Edward T. Hall, suggested that high-context culture (those belonging to the Middle East, Africa, Asia and South America) are relational, collectivist, intuitive, and contemplative. (Chapter 1...”) People belonging to this culture are in favour of inter-personal relationship, and trust should be established first before they commence business. As collectivist, they prefer group harmony and consensus than individual achievement. They are governed by intuition and feelings, and contexts are more important than words, so their audience must be conscious of the speaker’s tone of voice, facial expressions, and gestures. They are also mindful of family history and status. On the other hand, people that belong to the low context culture (mostly coming from the western side) are logical, factual, and action oriented. Their decisions are based on facts and not on intuition, and these decisions are translated into actions. [13]When communicating the information, they tell it in concise and straightforward manner explaining what is to be expected. Their negotiations are ended with explicit contract. This study further says there are two ways in communicating to people: the physical perspective for high context culture and the verbal form of communication in low context culture. In high context culture, information is relayed through the behaviour of a person that gives one a signal to behave appropriately. This indirect style of communication is used by members of this culture; Japan, Korean, China are best examples of high context profile. The low-context culture profile. Individuals tend to prefer the low context profile as instructions, rules, guidelines are put into verbal communications. Countries that prefer this type of communication are the European countries and the United States. 3. Implementation of diversity in the workplace policy. This could be challenging to implementers of cultural diversity as there are five dimensions of culture differences in every region. Dr. GeertHfstede that used scale models in her research claims that these are power distance, individualism, masculinity, uncertainty avoidance, and long term orientation. Each term is explained below. a. Power distance (PD) is a good measure in evaluating regions. It refers to the degree of inequality of power in the company that is accepted as a norm; family hierarchy in company owned businesses is set as an example. In comparing power among countries, Hofstede’s analysis found out that Germany has a cultural scale of 35, while power distance in Arab countries is very high (80) and Austria very low (11). Findings further show that Germany does not have a large gap between the wealthy and the poor, has a strong belief in the equality for each citizen, and gives the citizens an opportunity to rise; Arab’s cultural scale is very high at 80, and Austria a very low 11 in scale. Comparison shows Germany is in the middle scale that showed it does not have a large gap between the poor and the wealthy, and a strong belief in equality for each citizen; meaning, there is an equal chance for growth in this country. In contrast, the United States has a cultural scale of 40 that means a more unequal distribution of wealth. Salient characteristics of high PD countries are having strong hierarchies, centralized authority, large gaps in pay, authority and respect, while low PD is seen in flatter organizations where supervisors and employees are almost equal. 2. Individualism.(IDV) Again using score method, Hofstede defines individualism as the strength of ties people have to others in the community. A high IDV means loose connections, lack of inter-personal connection with families and friends. A low IDV society, is a big group, has a strong group cohesion, large amount of loyalty and respect for each members, and takes responsibility for each other’s well-being. A low IDV suggests importance of harmony and intrinsic rewards. 3. Masculinity (MAS). This refers how much society values traditional male and female roles. High MAS scores are found in countries where men are expected to be tough, assertive, and provider. If ever women work outside home, they will be found in other professions. In contrast, a LOW MAS score means men and women work equally in many professions, and women can work for professional growth. For instance, a country having a high MAS score is Japan, while a LOW MAS country is found in Sweden. Hofstede advises that if one is to open an office in Japan, or any other country with high MAS, they would most likely be successful if they hire a male leader and an all male contingent. This contradicts hiring in Sweden, wherein skills is more prescribed rather than gender classification. 4. Uncertainty or Avoidance Index (UAI). This classification refers to the “degree of anxiety felt by the members of society” when it faces a difficult situation. Nations with high UAI try to avoid unclear situations as much as possible. High UAI nations are presided by rules that are the opposite of Low UAI wherein people get pleasure from new happenings and appreciates differences. In low UAI countries, people are out to seek their own truths. 5.Long term application(LTO). This culture dimension shows how much people value its long term tradition. Hofstede contends that cultures are influenced by long term held values, such as what he observed in differences with Asian and Western behaviors. He viewed that to countries with high LTO, delivering social obligations and avoiding “loss of face” are very important. PART TWO PROPOSAL To minimize cross cultural difficulties thru understanding that the behavior of people is an indication of their cultural background, and that differences that are due to language and communication barriers. To acknowledge that sharing of information across cultural boundaries can happen. As we are envisioning a market entry into the Asian countries, specifically, Malaysia, we need to have a clearer view of Asian culture to gain the right perspective. Asian culture is an accumulation of various heritages from nearby countries, most prominent of which are the influences of beliefs and religion (Manalili, Oak). RECOMMENDATIONS Ensure that an environment exists where discrimination against all employees will not occur. Increased representation of qualified men and women in the company. Make special attempt to increase diversity understanding thru marketing efforts. 1. Malaysia demographics Malaysia as of 2014, has a population of 30,073,353 composed of mixed cultures of people from Malay, Chinese, indigenous, and non-citizen. As such, they speak eight languages, with Bahasa as official language. Most of the people are Muslims (61.3%), but there are also Buddhists, Christians, Hindu and other traditional Chinese religions.(CIA World Facts, 2014). It is interesting to note that Malaysia has a high literacy rate, with male having 95.4% and female 90.7%. Unemployment rate is 10.3% that is ranked 109 in world comparison; female unemployment (11%) is higher than male unemployment (9.8%.) 2. SWOT ANALYSIS Based on information gathered, we have identified the strength. weaknesses, opportunities and threats in our plan to globalize operations in Malaysia, Strengths. 1. Company will be located in a large diverse area. 2. Hiring plans of company are intended to attract diverse population 3. Company has strong record of hiring men and women Weaknesses. 1. Power distance and high context culture are strong 2. Masculinity culture exists 3. Individualism is high Opportunities 1. Globalization ushers in profitability and a bigger ROI for the company 2. Development of a large group of internet and cellular users and on-line marketing 3. Can take advantage of language skill, and high literacy in hiring people 4. Availability of workers to hire. Threats. 1. High context culture can be a barrier to progress 2. Communications barrier 3. Adaptability of the low context approach to the new environment. Recommendations. 1. Assessment and development of a diversity plan. 2. Implementation of the diversity plan in the workplace a. Ward off change resistance b. Foster an attitude of openness in the organization c. Promote diversity in leadership positions d. Utilize diversity training 3. Develop marketing plan to attract loyalty to the company brand Rationalization 1. Since our company will be entering a new geographical location, it should review the diversity process of the company. For instance, an employee satisfaction survey can be done. This can help management team determine which challenges and obstacles to diversity are present in the work place and which policies are needed to be added or removed. Result of survey will begin the restructuring of the diversity plan in the work place. In doing the restructuring, company should make certain that employees are less favoured based on cultural characteristics. It should have specific rules to eliminate discrimination, harassment and victimization, to move on equality of opportunity and to promote good relations between people regardless of differences in culture . In hiring, society has accepted equality of roles of men and women in working environment in many parts of the world today, yet in high context culture, masculinity culture still exists. This means they prefer to hire all men team as leaders. Know that our company adopts a low context culture and a genderless procedure, so this policy would most likely result to conflict. To avoid argument and create a harmonious relation, company should form a team that is balanced according to skill and not to gender. Company should make an ethics guideline to avoid discussing emotions and emotionally-based decisions and arguments. In order to avoid gender conflicts, company must ensure that job descriptions and designs are not discriminatory to either gender. Rules of ethical conduct should specify treating men and women, equally. Rules of conduct are company policies that are being imposed to both employees and officers, non-conformance of which would mean reprimand or dismissal. Today, there are government regulations that prohibit discriminations. An example is the U.S. Anti-Discrimination Act that prohibits discrimination to sex, among others. (U.S. Dept. of Labor) 2. Implementation of the diversity plan will ward off resistance because every employee will be included in formulating and carrying out diversity schemes in the workplace. It will foster an attitude of openness in the organization since employees will be persuaded to express their ideas and opinions thereby creating a sense of equal value and a feeling of importance to all. In effect, this will dispel the threat of high context culture barrier in operations. It will promote leadership positions as diversity maximizes employees’ potentials and contribution to the organization. Utilizing diversity training becomes a tool in shaping diversity policy. 3. Developing a marketing plan. Since we are going to a launch a campaign that needs to promote our product to a large body of people, we need the low IDV approach. Our IDV approach will focus on large base of people to gain acceptance. Our marketing campaign will spotlight on the benefits to the community so that loyalty to the product is achieved. Company will motivate people to appreciate the intrinsic rewards that our company will bring to the country. Our company will work in harmony, respect traditions and introduce change slowly. Different marketing strategies could be done to achieve the purpose. Public relations and advertising could be prepared to make people aware of our company and products. We will take advantage of Internet presence as it is a good vehicle for information. Miniwatts Marketing Group (2014) estimate of internet users around the world as of June 2014 is 3, 035,749,340, forty-five percent of which comes from Asia. Social media such as facebook, instagram and twitter are among the favourites of internet population; besides website advertisements are a lot cheaper and faster than traditional sites. We can duplicate the e-commerce efforts of e-bay, Amazon, and do our own internet sales by developing our own web site and ordering system on line. This will avoid direct clashes on culture diversity because face to face encounter is avoided. Implications/ Conclusions To avoid conflict in cultural diversity, communications and business relations must be classified according to high context and low context culture. When dealing with high context culture regions, be reminded of power distance as they tend to work in hierarchy. In this set-up where power distance is high, it is important that our company acknowledges the leader, and there is a need to go to the top for an answer. For instance, if we would transact business of setting up a telecommunication branch in Malaysia, there is a need to send offers to the top management and closed door conferences between top management is done. Malaysia, according to Hofstede’s score system, is a high power driven country that recognizes top-down organizational set-up or a tall organization. In organizational set-up, tall or centralized system is common in small ones where only one person gives direction to the company and oftentimes responsible for the company’s business operation. In the low context culture of an organization, power distance is low. This means organizational structure is flat and supervisors and employees are almost equals. Strategy to be done by the company is to set up teamwork and to involve as many people as possible in decision making. Flat organizations are composed of many departments and managers and have support from other employees. Flat organizations empower employees to take charge of responsibilities for the success of the company. In this set up a great deal of communication goes on that is generally faster. The method of dealing with one another is democratic and innovative. With regards to decision making, flat structure is easier and could be done as needed whereas; in a tall structure decision has to be referred to the higher ups before approval is reached.(Vitez, Osmond) Flat organization works best with qualified and competent staff so that workers are happy and there are fewer turnovers. Relating the high context and low context theory to communications, company should consider the form of communication it should adapt. For high context culture, such as those belonging to the eastern and southern side, our company should be prepared to pay attention to non-specific clues, and non-stated rules of their communications. As they are particular with inter-personal relations, company should try to win their trust that includes establishing relations. Company should be able to adapt to its culture that favour verbal communication than written words. It should pay attention to non-specific clues, and non-stated rules of their communications. We should remember that building good relationship can lead to effectiveness later on. In considering diversity in hiring personnel, we find out that with the introduction of technology, gender equality will soon fade out as we see more women are women getting equally skilled. In Forbes report, women’s participation in the workforce all over the world has reached 74% while the percentage gap of working women and men plummeted to 13% in other countries, and 30% in US(Francine D. Blau & Lawrence M. Kahn. 2013) We recall that individualism is about personal ties of people, and that a high IDV means loose inter-personal connections, conversely, a low IDV means cohesion of a big group and loyalty. Company should motivate people to appreciate the intrinsic rewards that our company will bring to the country. Our company should work in harmony, respect traditions and introduce change slowly. As a marketing strategy, our company could also enter the e-commerce marketing where ordering system is done on line. This will avoid direct clashes on culture diversity because face to face encounter is avoided. We also found that motivation moves people into loyalty if there is an intrinsic reward attached to it. People are bound to patronize a product if they find something beneficial, like convenience or health. Our telecommunication will bring The topic of cultural diversity has vital significance in our day-to-day activities so much so that several studies, researches and laws have been devoted to this. We see that recognizing its specific attributes would clear barriers that otherwise hampers relationship. We find out differences are due to assimilated beliefs and traditions coming from heritage that together are built in as culture. As culture is developed and changes are introduced, new ones will be introduced and consequently accepted, and the high context will mix with the low context culture. Finally, we should see if globalization, with all the communication barriers, would satisfy our stakeholders and sustain its profitability. REFERENCES Cia World Factbook. 2014. Malaysia, People and society. Viewed 23 December 2014 < https://www.cia.gov/library/publications/the-world-factbook/geos/my.html> Geeret Hofstede Cultural Dimensions 2009. Five dimensions of culture. Clearly Cultural viewed 12 December 2014 Greenberg, Josh.2009. Diversity in the Workplace: Benefits, Challenges and Solutions. Viewed 23 December 2014 < http://www.multiculturaladvantage.com/recruit/diversity/diversity-in-the-workplace-benefits-challenges-solutions.asp.> Iowa State University of Science and Technology 2014. Cultural Differences. Viewed 12 December 2014 Iiovonen, Mirja, Sonnewalduch , Dianne H., Parma, M. 1998. Analyzing & Understanding differences cultural: experiences from education in library and information studies. 64th IFLA Gen. Conference Aug. 16-Aug. 1998. Viewed 23 December 2014 Lebaron, Michelle. June 2003. Cultural diversity. Communication Tools for understanding cultural differences. Viewed 12 December 2014 ...... Ibid. Progress. Martinez, Jose-Pedro. 2013. Cultural Diversity: How to Manage Workplace Interactions. viewed 23 December 2014 Manali Oak, 23 Sept. 2011. Cultures of Asia. Viewed 12 December 2014http://www.buzzle.com/articles/cultures-of-asia.html Miniwatts Marketing Group 2014. Internet Users in the World. Distribution by World Regions. viewed 23 December 2014 Osmond Vitez. 2014. Centralized vs. Decentralized Organizational Structure. Viewed 12 December 2014 United States Dept. of Labor. 2009. Anti-Discrimination Laws. Viewed 12 December 2014http://www.dol.gov/oasam/programs/history/herman/reports/futurework/conference/staffing/9.7_discrimination.htm Read More