Multicultural Organizations - Essay Example

Multicultural Organizations Rapid economic globalization insists that organizations have to have the capa to operate in diverse cultural settings. Community ceased to labor in a narrow-minded marketplace. Organizations and organizational processes are part of the worldwide economy. Competition is coming from all continents. Organizations are being compelled to be open to change and creative in order to remain competitive. This can only succeed through embracing diversity. Modern day management entails taking maximum advantage of workplace diversity. Managing diversity remains one of the challenges facing organizational leadership. Organizational managers must get acquainted with the skills necessary in a multicultural environment. The setting entails competitors, employees, partners and consumers. This paper seeks to look into the characteristics of multiethnic organizations and its competitive advantages. Inter-and intra-organizational connections are growing in terms of complexity and scope. Traditional organizational model and competence needs to be extended to include cross-cultural competence. Cross cultural competence becomes an organizational competitive advantage. This is clear when an organization is operating in different cultural settings. The business environment is changing rapidly. According to Lucia and Lepsinger, the rapid change is being fuelled by cost management, downsizing and intensified competition. People are viewed as the key to organizational success. The role of people in the globalization context cannot be enhanced without focus of a multiethnic or multicultural approach. Individual competence becomes useful in organizational models because they determine the organizational alignment and internal behaviors (Earley & Mosakowski, 2000). Individual competence leads to organizational competence. The changing realities of mean it’s important and timely to investigate the effect of managerial customs on multicultural organizations (Adler, 1991). Globalization efforts and consequent shift are demographics have created a state where multicultural organizations are to be accepted as norms. In the global environment, employees are able to work in person or virtually. Globalization thrives through the creation of a digital or virtual space where people from all continents adopt a global culture in the online platform. This has brought together people of different races, ethnicity and cultures (Dodd 1998). Organizations are beginning to appreciate those conventional methods of management or business may not make much difference. Organizations have been forced to look for ideas that offer a competitive advantage. Multicultural organizations are a response to the growing need for globalization and profitability (Williams &O’Reilly, 1998). There are organizations where the disabled are given preference, and the voice of the minority is protected through organizational structures. A multicultural organization is heterogeneous in nature. In a global and pluralistic society, all groups in a multicultural organization must be seen to be integral parts of the organization. Diversity is managed and accepted as part of the organizational culture (Earley & Mosakowski, 2000). Multicultural organizations deal with employees as individuals with unique sets of strengths and weaknesses as opposed to members of certain groups. This minimizes generalizing and stereotyping within an organization. These organizations take advantage of the abilities and exceptional skills with an aim of developing the organizational processes. Support groups are helpful is maximizing the benefits from the special groups within an organization. Multicultural organizations maintain their effectiveness through sharing responsibilities equitably. All employees are involved in review of the organizational practices and norms. The approach means that all employees are supportive of the organizational goals. Shared responsibility has implications of the behavior change and may require organizations to declare that addressing the needs by some subgroups serves the organizational interests. Planned change is inevitable for the concept of multicultural organization to be effected. Effective multicultural practices in organizations must be managed professionally through resource allocation (Williams &O’Reilly, 1998). Multicultural organizations must have strong problem analysis structures in order to analyze interpersonal conflicts and facilitate accountability (Morgan, 1989). It is crucial for an organization to define how being multicultural enhances achieving of its business goals and objectives. Special groups or minorities must not be seen to be taking advantage of their lowly status to demand unnecessary attention. The major competence in most organizations is a complexity that involves the entire organization. International competition and globalization form one of the most influential factors that affect organizational transformation in to a constituent (Morgan, 1989). Organizational cross-cultural competence is one of the most is one of the most prominent competences. Relationships with people from different countries are based on the different management concepts and experiences (Cox, 1993). Cross cultural interaction integrates both national and organizational cultures. Cross cultural approach in the running of organizations affects business issues and divergence in cultural knowledge. The convergence potential in a multicultural organization brings with it doors to new market and ease of access to fresh markets. According to Robinson and Descant, multicultural approach makes good business sense. According to Williams & Barsade, a group is diverse if it consists of individuals of different characteristics upon which they base their social identity. Multicultural organizations tend to show the diversity through primary or secondary dimensions. Primary dimensions include gender, race, and age ethnicity, mental and physical disabilities. These are known to shape fundamental self-image and identity. Secondary dimensions of diversity include family status, location, language, educational background, religion experience, organizational roles and communication style (Earley & Mosakowski, 2000). They have an impact on self esteem and definition. Multicultural organizations tend to have an even mixture of these dimensions in all levels of the organizational structure. Multicultural organizations have a competitive advantage. They have the possibility of matching the workforce with diverse customers. Multicultural organizations have a unique ability to connect with the represented organizational cultures. This can give organizations an advantage in entering new markets, which are multicultural by nature. Multicultural organizations are known to have a better decision making mechanism compared to other organizations (Dodd 1998). They are also known to have a superior problem solving techniques through the incorporation of diverse ideas. Problem solving in organizations is key to achieving targets and increasing revenues. Diversity fuels open mindedness, and kills monopolizing of ideas. Multicultural organizations have an edge when it comes to innovation and creativity. Most organizations are paying significant attention to innovation as a way of overcoming the challenges arising from stiff competition. The nature of competition is cross cultural meaning that multicultural organizations stand a better chance than other organizations. Multinational companies have learnt that understanding new markets demands cultural flexibility and willingness to learn (Earley & Mosakowski, 2000). Successful multinational companies have adopted a multicultural approach. The competitive advantages of multicultural organizations are pegged on the abilities and competences of the individuals in the organizations. A strong personal ability to handle the unexpected plays a significant role in multicultural effectiveness in an organization. Individuals in a multicultural organization must be trained to broaden their perspectives when having issues of cross cultural nature. The strength and competitive advantage of multicultural organizations lie in the ability of individuals to harmonize their cultural differences for the sake of organizational benefit (Cox, 1993). This calls for tolerance and accepting differences which are of a cultural nature. Great flexibility in communication and personal behavior among the workers of a multicultural organization leads to effective marketing. Overcoming marketplace challenges and dynamics becomes easy. Different market place cultures require different approaches (Litvin, 1997). A prerequisite of approaching the new markets is thorough research on the needs to the new markets. Multicultural approach has a competitive advantage is that they are used to flexibility and divergent views in the business world. The nature of competence required for a multicultural society entails skills and knowledge. According to Howard-Hamilton, the multicultural organizations face the anxiety from the comfort in working with others and self. Multicultural organizations have to have strategies for minimizing tension between workers from different cultures (Morgan, 1989). This makes it enhances the ability of multicultural organizations to have strong leadership and conflict management model. Multicultural competence must be perceived to be a lifelong process. Anticipatory anxiousness in multicultural organizations is high. There is an excitement that accompanies the birth of new ideas. In a global market place where the intensity of competition is growing fast, innovation is being encouraged and moving from known to the unknown is seen as a strong organizational advantage (Williams &O’Reilly, 1998). Multicultural organizations reflect the diversity in terms of race, age sex, and status among other noteworthy things. According to Holden, all the cultural communities in an organization must coexist and works towards a unified goal. Multicultural organizations must exploit the diversity and transform it into organizational strength. Multicultural organizations are known to have both merits and demerits. Most researches indicate that multicultural organizations have advantages they outweigh homogeneous organizations. Multicultural organizations are known to attract and retain best talents (Cox, 1993). The wide labor pool generated from both women and other minority groups enhance the capabilities of cross cultural or multicultural organizations. Organizations, which attract and keep qualified minority group members through equitable career development avenues, are known to have a massive competitive advantage (Blau, 1977). They also deliver high quality dividends with regard to human resources. The concept of globalizations has had a phenomenal impact in organizational practices (Litvin, 1997). Organizations have to grapple with a global market place. Multicultural organizations are well suited to handle diverse clientele in the context of globalization. Multicultural organizations are known to have a precise understanding of the socioeconomic, cultural, legal and political requirements necessary from the global market operations. According to Adler, it is essential to understand foreign markets before launching products and services. According to Morgan, creativity grows through diversity. A broad base of talents in an atmosphere of ethnic and gender diversity can turn out to be a priceless advantage. In internal positive competition within a multicultural organization fuels the desire for all the groups to remain on top. In the overall, the organizational revenues increase. When it comes to dealing with complex issues, multicultural organizations are known to extract expanding meanings and perspectives which are vital is establishing solutions is the global marketplace (Dodd 1998). This advantage overcomes groupthink or mass psychology. As a result of organizational flexibility in multicultural companies, they are able to adapt to changes with relative ease. According to Rotter, women are known to tolerate ambiguity better than men. Diversity in the workplace is an outright reflection of a changing marketplace and the world. The concept of globalization has changed the approach to marketing by overcoming the geographical barriers. Research shows that multicultural organizations have a high value which is enhanced by diverse work teams (Morgan, 1989). The culture of respecting individual differences benefits multicultural organizations by giving them competitive advantage and increasing their productivity. Multicultural organizations are known to create an atmosphere where there are equal opportunities the diverse workforce (Blau, 1977). This creates an atmosphere of safety and fairness. Organizational management needs to embrace the concept of cultural diversity in order to meet the challenges posed by globalization (Williams &O’Reilly, 1998). Management tools need to incorporate diverse cultural understanding and empower everyone on the cross cultural issues and laws. Organizations with high levels of cultural heterogeneity and everyday communications are likely to involve interracial members or members from different age/gender groups. According to Blau, inter-group pressures that affect social interaction are substantially reduced. Management groups with heterogeneity are not likely to practice discrimination (Earley & Mosakowski, 2000). Multicultural organizations tend to reflect more professionalism in terms of image and procedures that homogeneous organizations. Organizational management, which is multicultural in composition, is not likely to attract subgroup formations, which are ethnic in nature. According to Cox, processes that add value due to diversity are fully maximized in multicultural organizational context. According to Early and Mosakowski, multicultural organizations tend to gain from a pool of resources. Social identity processes do not pose a considerable threat to multicultural organizations since the workforce tend to have out-group contacts. Organizations like HP have been using training to enhance the multicultural practice within the organizations. Other organizations are using mission statement and strategies that reflect inclusivity and diversity. Language training and creation of advisory groups are methods being used to facilitate multicultural and divergent organizational needs. In conclusion, multicultural organizations are emerging as a response to the growing need of embracing the widening marketplace. Globalization demands that the needs of diverse groups must be addressed through strategy for organizations to expand their influence through the information technology platform. Multicultural organizations are proving to have a competitive advantage over homogeneous organizations within the context of globalization. In order to be effective in the new and diverse market places, cross cultural and multicultural approaches are being considered as the only alternative. The perception is that multicultural organizations have a stronger and wider appeal than homogeneous organizations. References Adler, N. (1991). International Dimensions of Organisational Behaviour, PWS._Kent. Blau, P., (1977). Inequality and heterogeneity. New York: Free Press. Cox, T., (1993). Cultural Diversity in Organizations: Theory, Research and Practice. San Francisco: BerrettKoehler. Dodd, C.H. (1998). Dynamics of intercultural communication (5th edition). Boston: McGraw-Hill. Earley, P.& Mosakowski, E., (2000). Creating hybrid team cultures: An empirical test of Transnational team functioning. Academy of Management Journal, 43, pp. 26–49. Litvin, D.R., (1997). The discourse of diversity: from biology to management. Organization, Vol. 4, No. 2, pp. 187–209. Morgan, G., (1989). Creative Organization Theory. Sage Publications. Williams, K. &O’Reilly, C., (1998). Forty years of diversity research: A review [in:] Staw B.M. Read More