Managing Cultural Diversity in Order to Gain Competitive Advantage Within the Hospitality Industry - Assignment Example

 Analyzing The Importance Of Managing Cultural Diversity In Order To Gain Competitive Advantage Within The Hospitality Industry Table of Contents Introduction 2 Discussion 4 Why Manage Cultural Diversity 4 How It Benefits not only for employees but also ensure competitive advantages for organisations 9 Conclusion 11 References 13 Introduction Global hospitality industry is becoming highly competitive as well as saturated as several leading organisations within this hospitality industry are adopting and implementing unique strategies in the business operation process in order to gain potential competitive advantages. Cultural diversity has become one of the important aspects that have been considered by the organisations within the hospitality industry quite frequently. Culture can be defined as the customs, ideas and different types of social behaviours of particular people within a society. In simple words, cultural diversity can be defined as the existence of various ethnic or cultural groups within a particular society. Now-a-days, several leading hospitality organisations are implementing cultural diversity management strategies in the business operation process in order to gain competitive advantages. It is true that the diverse workforce has become veracity today. Each and every organisation is trying to integrate diversity management processes in the corporate environment of the organisation in order to ensure positive business outcome. Diversity generally includes all possible group of individuals at all the organisational levels within a particular organisation. Workplace diversity generally requires a particular organisational culture type in which all the employees can peruse their career aspiration without being colonized by race, gender, religion, caste, nationality and other several factors that are irrelevant to organisational performances. Diverse workforce or workplace diversity can be referred to the co-existence of several individuals from different socio-cultural backgrounds within a particular organisation (Kundu, 2001, p.1). The practice of cultural workplace diversity management process in several multinational hospitality organisations has been increased rapidly due to globalisation. Each and every profitable and potential organisation is adopting global business diversification strategy in business operation process in order to increase global market share. Therefore, it is quite general that each and every organisation needs employees of different socio-cultural background. It is quite impossible and difficult to recruit and appoint employees of similar socio-cultural background in several countries. Therefore, managing diverse workforce in different countries is not an easy deal for the management of the organisations within the global hospitality industry. Generally, the organisations within the global hospitality industry are trying to implement cultural diversity in workplaces in order to ensure good relationship between the employees of different cultures within the organisation. In addition to this, the management of several organisations consider workplace diversity in business operation process in order to improve the decision-making process as the adoption and implementation of cultural diversity in workplaces helps to enhance knowledge sharing process. In addition to this, effective implementation of cultural diversity management in workplaces can help an organisation to reduce business operation costs regarding turnover, recruitment and lawsuits. It helps to increase productivity and quality of customer service management (Groschl, 2011, p.226). It is true that the global hospitality industry can be regarded as service providing industry in which effective customer service management process have been regarded as major business growth driver for the organisations within this particular industry. Therefore, it is highly important for the organisations motivate the employees of different cultural background in order to ensure conflict free workplace environment. Effective customer service management process can be ensured through the enhancement of conflict free workplace environment. Therefore, it is highly important for the management of the hospitality organisations consider the significance of cultural diversity in workplaces in order to gain potential competitive advantages. Looking into these aspects, several leading multinational and domestic organisations within the hospitality industry are implementing cultural diversity in business process. This essay will critically analyse the importance of managing cultural diversity in workplaces in the organisations in order to gain competitive advantage within the hospitality Industry. Discussion This part of the essay will discuss why an organisation should consider cultural diversity in business operation process. In addition to this, this discussion part will also highlight that cultural diversity not only benefits employees of an organisation but also helps organisations to gain potential competitive advantages. Why Manage Cultural Diversity Several leading hospitality organisations are trying to adopt and implement cultural diversity in workplace management in order to overcome the possibilities of workplace conflicts. It is true that each and every organisation tries to develop and implement innovative business strategies to gain potential competitive advantages. Diverse and inclusive workforce has become a critical success growth driver for the hospitality organisations. The globalisation has developed a complex, sophisticated and critical business environment. Therefore, it has become necessary for the organisations within the global hospitality industry to develop creative and innovative strategies so that the organisations can maintain their competitive position within the global hospitality industry. Diversity can be considered as an important driver for innovation. Innovation and creativity in the developed strategies can be ensured through the knowledge sharing between the employees of different cultural backgrounds and senior management level executives (Boller, 2005, p.21). Diversity is vital to encourage various key ideas and perspectives that foster innovation and creativity. An inclusive and diverse workforce is important for the organisations within the global hospitality industry that want to draw and retain experienced and talented employees. Competition for experience and talent is vicious in this present era of globalisation and intense market saturation. Therefore, it is highly important for the organisations within the hospitality industry to develop effective recruitment and retention plan to enhance effective cultural diversity in workplace (Forbes, 2011, p.3) The Diversity Continuum The diversity continuum can be considered as an important cultural diversity strategy that can be utilized by the hospitality organisations in the workplaces in order to gain competitive advantages. This strategy can be divided into three parts, such as acknowledging diversity, valuing diversity and managing diversity (Friday and Friday, 2003, p.871). According to the diversity continuum theory, it is highly important for the organisations within the hospitality industry to acknowledge the significance of the implementation of cultural diversity in workplace (D’Almedia, 2007, p.59). Being a part of service providing industry, the management of these hospitality industries should try to acknowledge the effective care of needs and demands of global consumers is the major objective of the organisations. Only effective knowledge sharing process and development of innovative strategies can help an organisation to take care of the needs and demands of the customers of the organisations (Diller, 2010, p.34). Therefore, it is highly important to acknowledge the importance of diversity. Valuing diversity is also important under this cultural diversity strategy as it helps an organisation to gain effective and potential competitive advantages. It is true that the employees are the major assets for a service providing organisation (Berger and Huntington, 2002, p.93). It has been mentioned earlier that the hospitality industry can be regarded as an important service providing industry in which the business performance of organisations effectively depends upon the effectiveness of the customer service management process (Davis, 2008, p.17). Therefore, it is responsibility for the management of the organisations within the hospitality industry to enhance valuing cultural diversity in workplace. Valuing diversity includes effective appreciation and respect for employees of different cultural background. Each and every employee can be regarded as important growth driver of an organisation within the hospitality industry. The tendency of recruitment of multicultural employees in workplace has been increased among the management of the organisations due to the adoption and implementation of global business expansion strategy in business process (Lauby, 2005, p.72). The possibility of workplace conflicts, such as language barriers and cultural conflicts between employees of different culture always remains in workplaces due to the different socio-cultural background of employees in different global market places. Therefore, it is the responsibility of the management of the organisations appreciates the thoughts and views of employees of different cultural backgrounds. In addition to this, the management should give respect to the personality and existence of employees of different cultural background in workplaces (Pearson, 2008, p.48). These will help the organisations to enhance effective valuing diversity. As a result it can help the organisation within the global hospitality industry to gain potential competitive advantages. Most importantly, valuing cultural diversity can influence the employers or the management of the organisations to maintain good relationship with each and every employee of different organisational level. This process can help to reduce the possibility of several threat factors, such as employee poaching and high employee turnover (Doyle, 2005, p.62). Managing diversity is the last step of this diversity continuum model or strategy. According to this step, it is highly important for the management of the organisation to make sure high motivation and self-confidence level of employees. The managers of the hospitality organisations should try to adopt and implement democratic and supportive leadership style in order to motivate the employees of different cultural background to ensure collaborative workplace performances (West, 2012, p.28). In addition to this, effective management of cultural diversity in workplaces can help an organisation to modify or change the unacceptable characteristics and behaviours of employees. It can automatically reflect in the performance level of employees. Last but not the least; effective cultural diversity management process can help an organisation within the hospitality industry to ensure healthy interaction between the employees of different cultural backgrounds (Cox, 2004, p.70). Most importantly, employees of different cultural backgrounds can easily communicate with the top level management regarding any kind of issue (Ludden, 2007, p.55). Effective knowledge sharing and innovative strategy development are the major consequences of effective cultural diversity management process. It actually helps to maintain good and healthy workplace environment. These are generally reflected in the positive business outcome of a hospitality organisation. Systematic management of Cultural Diversity Management of cultural diversity can be divided into three parts, such as ignoring, minimizing and managing cultural differences. According to the systematic approach, it is highly important for the organisations to ignore cultural differences. It is an important part of cultural diversity management process (Caldwell, 2003, pp. 285-293). This process influences the management team of an organisation to forget about the cultural background of the employees and motivate them to act collaboratively. As a result it helps to improve the workplace as well as business operation performances (Conger, 2004, pp. 136-139). According to the minimization of cultural differences, the managers generally recruit employees of similar cultural background in different countries. It eases the management process of the managers or organisational leaders within the hospitality organisations. Last but not the least; effective management of cultural differences helps a hospitality organisation to motivate its employees to perform effectively (Kent, 2005, pp. 1010-1017). According to this strategy, the organisational management gives respect to the views and thoughts of each and every employee through the implementation of effective leadership style. It motivates employees of different cultural background to work collaboratively and effectively in a group. How It Benefits not only for employees but also ensure competitive advantages for organisations It is clear from above discussion that why an organisation within the global hospitality industry should adopt and implement cultural diversity management in business operation process. Now, this part of this essay will discuss about why it will ensure competitive advantages for the organisations. Understanding cultural diversity management Effective understanding and implementation of cultural diversity management process not only benefits employees but also helps organisations within the hospitality industry to gain potential competitive advantages (Hallinan and Jackson, 2008, p.81). First of all, effective cultural diversity management process helps an organisation to gain potential competitive edge over its competitors. It is true that effective customer service management process is the major business growth drivers for the organisations within the hospitality industry (Kerr and Jermier, 1978, pp. 374-403). . Therefore, it is highly important for the management of organisations to take care of the needs of employees of different cultural background. It is a part of cultural diversity management. The management of the organisations within the hospitality industry should try to consider developing innovative strategies in order to meet the demand and needs of potential target customers (Raisch and Birkinshaw, 2008, pp.375-479). Being a part of service providing industry, it is important for the organisational leaders to motivate employees of several cultural backgrounds to work collaboratively. This cultural diversity management process will help the hospitality organisation to take meet the customers’ demands, needs and expectations quite effectively (AMF, 2010, p.8). According to several industry experts, it can be stated that effective cultural diversity management strategy is quite difficult to acquire or imitate. It is clear from above discussion that global hospitality industry has become highly competitive and several organisations within this industry are trying to implement unique strategies to ensure potential competitive edges over their competitors (Edberg, 2012, p.98). In case of effective cultural diversity management process, employees of different cultural background always try to stick with the existing firm. As effective cultural diversity management strategies attract talented and experienced employees to be with the organisations. Moreover, increasing competition and complexity in global hospitality job market always influences the job seekers or job applicants to gain employment opportunity from such kinds of organisations that possess conflict free workplace environment (Hogan, 2012, p.66). Each and every employee expects effective social recognition and rewards against their full potential and hard work (Hugman, 2013, p.33). Therefore, adoption and implementation of effective cultural diversity management strategy can help an organisation within the hospitality industry to motivate employees of different cultural backgrounds to perform effectively. As a result, it will help the organisations to ensure effective customer service management process that can lead to positive business growth rate. Conclusion It is clear from above discussion and mentioned facts that cultural diversity management should be considered as an effective growth driving factor for the organisations within the global hospitality industry. Now-a-days, each and every organisation is implementing global business diversification strategy. Therefore, they are recruiting and appointing employees from different cultural backgrounds in the organisation for specific job roles in different global market places. It is true that, each and every customer requires effective customer service from the organisations against their paid tariff or money. Therefore, it is the responsibility of the management of the organisations to ensure effective workplace performance in order to meet the customer demand and satisfaction level. Each and every employee from different cultural backgrounds in a multinational hospitality industry expects appropriate recognition and reward from his or her management against good performances and hard work. Cultural workplace conflict in an organisation generally affect entire workplace environment. It reduces the level of motivation and self-confidence of each and every employee within the workplace. Therefore, it is important for the management of the organisations within the hospitality industry to implement effective cultural diversity management strategy to reduce these types of workplace conflicts. Effective implementation of the diversity continuum strategy in organisation will help the managers or the organisational leaders to understand the significance of the cultural diversity management process in a multicultural workplace. This strategy will influence the managers to acknowledge the diversity programme and give respect to the employees of different cultural background. As a result, it can enhance effective implementation of democratic and supportive leadership style that can guide each and every employee within a hospitality organisation to work collaboratively and meet the developed goals and objectives comprehensively. At the end of the day, it can ensure effective knowledge sharing and innovative strategy development process by which the needs and expectation of target customers will be met successfully. References AMF., 2010. Managing Cultural Diversity: Training Programme Resource Manual. [PDF]. Available at: < http://amf.net.au/library/uploads/files/MCD_Training_Program_Resource_Manual.pdf>. [Accessed on May 31, 2014]. Berger, P., and Huntington, S., 2002. Many Globalisations. London: Oxford University Press. Boller, S., 2005. Teamwork Training. New York: ASTD. Caldwell, R., 2003. “Change leaders and change managers: different or complementary”? Leadership and organisation development journal, 24(5). pp 285-293. Conger, J. A., 2004. “Developing leadership capability: what’s inside the black box”? Academy of management executive, 18(3), pp. 136-139. Cox, T., 2004. Cultural Diversity in Organisations. London: Berrett-Koehler. D’Almedia, C., 2007. The Effects of Cultural Diversity in the Workplace. London: ProQuest. Davis, J., 2008. Interpersonal Communication Skills in the Workplace. New York: Amacom. Diller, J., 2010. Cultural Diversity: A Primer for the Human Services. Stamford: Cengage Learning. Doyle, S., 2005. The Manager’s Pocket Guide to Motivating Employees. New York: HRD Products. Edberg, M., 2012. Essentials of Health, Culture, and Diversity. London: Jones & Bartlett. Forbes., 2011. Global diversity and inclusion: Fostering Innovation through a Diverse Workforce. [PDF]. Available at: < http://images.forbes.com/forbesinsights/StudyPDFs/Innovation_Through_Diversity.pdf>. [Accessed on May 31, 2014]. Friday, E., and Friday, S. S., 2003. “Managing diversity using a strategic planned change approach”. Journal of Management Development, 22(10), p.871. Groschl, S., 2011. “Diversity management strategies of global hotel groups: A corporate web site based exploration”. International Journal of Contemporary Hospitality Management, 23(2), p.226. Hallinan, C., and Jackson, S., 2008. Social and Cultural Diversity in a sporting world. New Jersey: Emerald. Hogan, M., 2012. The Four Skills of Cultural Diversity Competence. Stamford: Cengage Learning. Hugman, R., 2013. Culture, values and Ethics in Social Work. London: Routledge. Kent, T. W., 2005. “Leading and managing: It takes two to tango”. Management decisions, 43(8), pp. 1010-1017. Kerr, S., and Jermier, J., 1978. “Substitutes for leadership: Their meaning and measurement'”. Organisational behaviour and human performance, 22(2), pp. 374-403. Kundu, C. S., 2001. “Managing Cross-cultural Diversity: A Challenge for Present and Future Organisations”. Delhi Business Review, 2(2), p.1. Lauby, S., 2005. Motivating Employees. New York: ASTD. Ludden, M., 2007. Effective Workplace Communication. New York: JIST Publishing. Pearson, D., 2008. Diversity. New York: Xilbris Corporation. Raisch, S., and Birkinshaw, J., 2008. “Organisational ambidexterity: Antecedents, outcomes and moderators”. Journal of management. 34(3), pp. 375-409. West, M., 2012. Effective Teamwork. New York: John Willey & Sons. Read More