Benefits of Managing Cultural Diversity in the Hospitality Industry - Term Paper Example

 Leadership across Cultures Introduction Hofstede (1991) defines culture as a way of distinguishing one group from another through the mind’s collective programming. He further defines culture as mental programming and thinking patterns and feelings of potential acting (Hofstede, 1980). Diversity refers to individuals and people possessing different socioeconomic foundations and physical potentialities. These people engage in various languages, values, attitudes, religions and colors from multiple nationals. Parties of different ages, sexes, races, ethnic backgrounds, and sexual orientation experience some courtesy at one instance, or another in their lives. They experience it either as guests or as employees in the hospitality industry. Hospitality industry is becoming one of the fastest growing and most diversified businesses in the world. It gives both its clients and employees services of top quality that is full of satisfaction. The industry deals with various areas such as travel agencies, restaurants, excellent hotels, and airlines. All these sectors are vital to the economic development of the country. It, therefore, means that their managements must have a comprehensive way of handling the diversities that come with its complex nature of cultures. Hospitality industry operates based on human beings. It is for the people, run and managed by people of unique and special characters from across the borders of different backgrounds. The actual potential for the hospitality industry, therefore, lies in the workforce of the industry and its management. The management must identify, appreciate, adopt, and accept with dignity the growing populations of people from cultural diverse of groups. It is these groups of unique cultural backgrounds and skills that when well utilized contributes immensely to the success of the hospitality industry. Importance of managing cultural diversity in the hospitality industry Cultural diversity is imperative in managing a workforce. It is a significant challenge for the leadership of hospitality industries to manage employees from diverse cultures because of the different backgrounds each worker possess. However, when the management finds proper cultural flexibility blend and rigidity among workers, cultural knowledge will emerge as an advantage. Keeping hospitality values as well as embracing local customs of the people, is important in achieving cultural intelligence from the diversity. Alongside cultural intelligence, intercultural sensitivity is another importance of cultural diversity in the hospitality industry. Cultural sensitivity is the sufficient capacity to which management recognizes, acknowledges, and respects diverse cultures. The ability to engage in different cultures is because of the people’s flexibility and open-mindedness. It is through people’s willingness to develop an ability to search for new attitudes and awareness that the management determines their knowledge and behavioral change (De Bono, 2011, p. 258). Diversified collective background and individualistic backgrounds play an important role in achieving this kind of flexibility and knowledge of the workforce. Education is vital in further boosting individual or group intercultural sensitivity. Culture greatly affects people's way of thinking because it includes knowledge, morals, art, laws, customs, and beliefs of an individual. Human behavior, habit, and other capabilities are, therefore, a product of culture manipulation. Culture is also a determinant of individual’s values and patterns that influences human manners and actions. The management of the hospitality industry, therefore, should not take for granted the cultural diversity of the workforce. Individuals acquire values from the lessons they get right from childhood, which is a representation of how they behave. Their social behavior is a factor dependent on fundamental values. Cultural diversity provides the hospitality industry with global organization competitive advantage. Diversity provides for substantial benefits that boost productivity and effectiveness. The tangible benefits expand the hospitality market size as well as improving patterns of communication in the hospitality industry organization. However, industry must take care to avoid conflict and misunderstanding that it can create. Multicultural labor force expressed through culture demonstration is clear in various languages, values, attitudes, and beliefs are a characteristic of the hospitality industry. Understanding cultural diversity in the hospitality industry emanates from observing the behavior of at least one individual or a group of a particular culture working in the industry. Cultural diversity is evident particularly in areas where individuals not only still adopt and stick to their culture but also possess familiar multicultural social heritage. Understanding workforce helps hospitality industry to give equal opportunities and avoid any form of discrimination to employees. Conflicts may also characterize any industry that embraces cultural diversity and hospitality industry is not an exception. Multicultural groups speak different languages and face the challenge of a language barrier to effective communication. Confusion and ambiguity may occur at the workplace because of differences in preferences and behavior. Working the same way to achieve a common goal remains a challenge to the industry with such diversities and underperformance becomes unavoidable. Social norms have an outstanding influence on how people interact across different national and international boundaries. Social norms affect how people interpret personal cues and even relate socially. Similar circumstances attract varied values and attitudes from one country to another. Another key player in creating cultural differences is religion. Various religions across the world have diverse belief structures and values that define the differences in culture of people who belong to them. Holidays and practice structures also differ in many cardinal ways that hospitality industries must put into account and try shaping organizational culture. It is also important for the hospitality organizations to note that education systems also differ across national borders. A key importance of cultural diversity is that it breaks down individual’s intrinsic motivation giving people a sense of belonging by the realization of collective identity. Individuals in the hospitality industries learn to appreciate their differences and similarities. Those people with different cultural backgrounds learn how to accommodate, appreciate, and work with collogues in the organization. Likewise, those with similar cultural fundamentals identify themselves with one another creating a community and a sense of belongingness in the working place. Many managers from the hospitality industry should believe that employing people from diversified cultures comes with the importance of multi-skills. Different culture backgrounds have the richness of varied skills that workers have in a hospitality industry. Multi-skills do not only make it easy for the firm to embrace division of labour but also provides a soft landing for specialization. Specialization and division of labour will always result in high productivity among employees. Further, a hospitality industry that incorporates specialization and division of labour enjoys both high output and high quality of their products. There exist dynamics in various cultures of the world. The hospitality industry should aim at tapping such dynamics that automatically leads to inclusion of new behavioral patterns of ideologies. The value of egalitarianism assumptions prefers that employees and their seniors live life cooperatively to living competitively. Cooperation in the hospitality industry is exceptionally a good tool of achieving excellence in the organizations set objectives and goals. However, the competitiveness of cultural diversity should not be underestimated. The reason is that competing cultural foundations in a hospitality industry will always try to defeat each other when it comes to achieving excellence. Each department got its distinguished cultures that they compete to make the best performing for the industry. Competition in commercializing labor shows enthusiasm for work status as well as high salary status. Hospitality industry, therefore, should try moving values and behaviors on the competitive direction in order to enjoy the cultural diversity in the firms. When hospitality industry exposes its workers to cultural exchanges with its guests, they get increased opportunities for developing vital hospitality and tourism industry goals. The cultural exchange is very essential when it comes to business globalization. Understanding cultural diversity helps employers and employer associates to the idea of equal opportunity for employment and overcome stereotypical concepts. Corporate leaders can neither separate nor readily manipulate the new organizational culture. The most vital thing leaders need to know is the existing organizational concepts and see how to improve and synchronize them into their new cultures (De Bono 2011, p. 226). Such organizational cultures have so much diversification and require careful handling. Most of them existed through early leaders’ beliefs as well as behaviors. They, therefore, exist as organizational assumptions that all organization members must share. In hospitality industry, therefore, new leaders must understand such organizational cultures and give them a priority rather than eradicating them. Hospitality sectors promoting diversity among cultures select appropriate candidates to recruit for the opportunities in the firm. Recruiting staff of the right talents matches the industry’s competitiveness with potential candidates who possess the most needed skills and knowledge. Understanding the cultural diversity of the hospitality industry also enables the management to envision its future expectations thus employing candidates with skills compatible to the future goals of the industry. Industries, therefore, must mirror their surroundings with new leaders capable of proceeding with the industries needs. Benefits of Managing Cultural Diversity in the Hospitality Industry Cultural diversity has significant benefits to the hospitality industry, both internally and externally. Some of the benefits enhance success of the industry, other benefits help in boosting the morale of the employees while others modify working environments. Cultural education awareness and sensitivity at the workplace and its social environment play very vital roles in increasing the worker's morale. When workers have boosted morale, productivity of the firm increases both quantitatively and qualitatively. Hospitality industries with cultural diversities attract the best candidates. Because of the ability to recruit and employ from different backgrounds, such sectors attract the best talents without discriminating based on religion, color, age, attitude and values. The industry acquires what it is looking for from all cultural diversities without any restrictions or limits. Diversification provides an environment that incorporates white people versus black people, Muslims, Buddhists, Christians, Hindus, males, and females, young and middle old aged persons. These personnel enable the industry to enjoy varied skills and professionalism. According to the research carried out by Cox and Balke, diverse cultures entailing inclusion promotes a cheerful reputation among employees besides enhancing creativity and efficient problem solving among employees. Avoidance of suffering from lawsuits related to discrimination of race, religion, age, or sex. Many hotels, airlines, restaurants, and international agencies face lawsuits from both their clients and employees. Managements of the companies who fail to either treat people of diversified cultures equally or discriminate during interviews often face legal actions from those affected (O'Fallon & Rutherford, 2011, p. 4). However, companies within the hospitality industry that embrace cultural diversity in their operations do not experience complications. Instead, executives of such industries enjoy many benefits of cultural diversities at the expense of frequent summons by law courts and associated consequences. Discrimination generates management confusion alongside being costly to the management. The study recommends measures to eliminate instances of discrimination if the hospitality workforce has to be effective and efficient. The industry leaders must acknowledge individual differences and promote extensive business cultures and diversity. Successful results and greater future would be eminent to the business. Effective management of cultural diversity in the hospitality industry increases in customer satisfaction. Hospitality industry without doubt receives clients from various cultural backgrounds with different tastes and preferences. Each customer derives satisfaction from distinct perspectives. Customers from different cultural backgrounds appreciate and feel comfortable when they see a representation of their cultures in the company. Clients father derive satisfaction and entertainment when they get opportunities in the hospitality industry to observe and appreciate cultures from other parts of the world. The industry, therefore, receives massive numbers of clients into their premises creating success in the industry. Multiculturalism provides competitive advantage over other companies. Businesses operating within the hospitality industry that incorporates diverse cultures enjoy competitive edge over other firms in the industry. Clients view it as an all-inclusive firm that takes into account the interest of every person irrespective of their cultural background. Products from a multicultural sector enjoy larger market base with wide acceptability than one restricted to a particular culture. The various cultural firm enjoys wide acceptance because it shares identity with many cultures across the borders. The industry appeals to rising numbers of diverse clientele because of its diversified cultures of workforce that mirrors the entire society (O'Fallon & Rutherford, 2011, p. 4). Cultural diversity enhances job motivation and loyalty among employees. When employees understand comprehensively the culture of the company and the company employs from all cultural diversities, workers will always feel that they belong (Love, 2009). Once an employ has felt the sense of being part of the company, he or she will be motivated to produce the best for the company. The employee will also strive to work harder towards achieving the objectives of the hospitality firm. The re-energization is a result of a feeling of belongingness where the employee feels to be part owner of the company. Employee defends the policies and believes that he or she should achieve the best for the company since the company belongs to them. Management of any hospitality and tourism industry, therefore, must accept a wide range of cultural diversity into the industry for high productivity. Culturally diversified workforce creates creativity and innovation in the hospitality industry. Firms within the industry find it easy to understand customers’ needs because for a culturally diversified sector, there is a representation of the clients expected to utilize the facility. The firm, therefore, launches and distributes new products that increase its market share making it a corporate. Hospitality Company with diversity of culture also enjoys good decision-making and problem solving within it. The cultural diversity presents opinion diversity as well leaving management with many opinions from which it picks or combines the best options. Conclusion McDonald’s should adopt different theories and strategies to gain competitive advantage in the hospitality industry. McDonalds should incorporate market segmentation theory to meet culturally diversified customers’ needs besides solving their problems. McDonald’s, a globally recognized restaurant, will edge out its competitors if it redesigns and improves its menus to expand internationally in hospitality industry (Hills et al., 2014, p. 68). Tex-Mex or Latin especially Oriental that contains both Indian, and Russian flavors are some of the menus that McDonald should spice up aggressively. The move will take care of the intercontinental diversities and help in outdoing the competitors. The second theory on management strategy that McDonald’s should not underestimate is theory of the marketing mix. McDonald’s restaurant needs to study the surrounding habits, desires and the potential customers focusing on their cultural diversities. The restaurant should analyze its products design, characteristics, and its competitors offer (Onkvisit & Shaw, 2009, p. 12). Price plays a vital role in influencing demand. McDonald should, therefore, observe the diversity of its customers’ purchasing power and regulate it in manners that do not compromise the profit margin. Affordable prices will boost its market share above its competitors in the hospitality industry. Marketing mix should be implemented alongside their products promotion and placement. To capture the trends of business in the current cultural diversities, McDonald’s should adopt the theory of lifecycle. The current hospitality industry has evolved, and McDonald’s should cope up with this trend to capture all cultures from the young generation to the aged one. Its traditional methods of product promotion require abandoning or improvement to online marketing. Reaching the target clients should go through social media and print media using various languages to reach all races, genders, religions, and ethnic groups. In the process of communicating to customers the features and product benefits, McDonalds will as well be fulfilling the demands of the alignment theory. References Csaba, N. (2014). Managing a Culturally Diverse Workforce in the Hospitality Industry. Hospitality industry. Retrieved on October 3, 2014 from: http://www.fse.tibiscus.ro/anale/Lucrari2013/Lucrari_vol_XIX_2013_086.pdf De Bono, S. (2011). Managing Cultural Diversity. Maidenhead, Meyer & Meyer. Gong Yi. (12-2008). Managing Cultural Diversity In Hospitality Industry: UNLV Theses/Dissertations/Professional Papers/Capstones. Paper 480. Las Vegas. Retrieved on October 3, 2014 from: https://www.google.com/search?q=http%3A%2F%2Fdigitalscholarship.unlv.edu%2Fthesesdissertations&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a&channel=sb#rls=org.mozilla:en-US:official&channel=sb&q=managing+cultural+diversity+in+hospitality+industry Hills, C., Jones, G. & Schilling, M. (2014). Strategic Management: Theory: An Integrated Approach. Cengage Learning: Stamford. Love David, (March 24, 2009). The Importance of Culture and Diversity in Successfully Building an Organization: The Fordyce Letter: Straight Talk for the Recruitment Profession. Retrieved on October 9, 2014 from: www.fordyceletter.com/2009/03/24/the-importance-of-culture-and-diversity-in-successfully-building-an-organization/ O'Fallon, M. J., & Rutherford, D. G. (2011). Hotel Management and Operations. John Willy and sons Onkvisit, S. & Shaw J. (2009). International Marketing: Strategy and Theory. Routledge: Califinia. Read More