Managing Cultural Diversity in the Hospitality Industry - Term Paper Example

 Managing Cultural Diversity in the Hospitality Industry Introduction The objective of this paper is to thoroughly analyze and discuss cultural diversity management in the hospitality industry, focusing mainly on the concepts of culture, cultural diversity, managing cultural diversity—criticisms and opportunities, managing culture shock, and training. A genuinely multinational company is one that is capable of exploiting cultural diversity as its source of competitiveness. Cultural diversity arises from people of diverse backgrounds, with diverse ideals and experiences. The task is to act in response to the demographic changes in the labor pool, gain knowledge of the cultural context of the human diversity, and successfully use it to boost the competitiveness and success of the company. Unfortunately, few companies view cultural diversity as a tool to acquire competitive advantage (Saee, 2006); hence this paper is significant for it can formulate solutions to challenges and opportunities posed by cultural diversity in the hospitality industry. Culture Scholars offer several definitions of the word ‘culture’. Basically, ‘culture’ is the common ideas, attitudes, and beliefs shared by members of a group. Generally, people view cultures as referring to places of national origin or indigenous groups (Clarke & Chen, 2009). It is a reality that ethnic and regional cultures upholding shared beliefs, ideas, and attitudes are existent. The beliefs of a particular culture could be dissimilar from the beliefs of another culture. When people disapprove of or misinterpret the beliefs of other cultures, conflict happens. American culture has been influenced by numerous world cultures, ethnic groups, and races. Hence, the American culture could be described as having been influenced by diversity, which classifies such culture as ‘heterogeneous’ (Brotherton, 2012a). Like the American culture, the hospitality industry is heterogeneous and in view of this, people in hospitality organizations should be trained to respect cultural diversity. This is the core purpose of cultural diversity management. On the other hand, there are cultural structures that are developed by small groups of people who come together to fulfill a shared goal. For example, there are cultures for industry sectors, social groups, business organizations, as well as particular forms of institutions. Such cultural structures are the same as social cultures; yet, they exist or function on much smaller scales (Kusluvan, 2003). ‘Organizational culture’ refers to the culture for a business organization or company, which is the set of shared beliefs, attitudes, and values for members of the organization. Individuals become a part of an organization and carry with them diverse cultural values and attitudes (Brotherton, 2012a). According to Wood and Brotherton (2008), behaviors, as well as buzzwords, internal gossip, dress codes, and so on are indications of the organizational culture. Cultural Diversity The notion of ‘cultural diversity’ can be described in a number of ways. However, a simple definition of cultural diversity is “differences in race, ethnicity, nationality, religion, or language among various groups within a community, organization, or nation” (Reisinger et al., 2010, p. 32).Due to cultural diversity, the management of organizations involved in the global hospitality setting may have problems dealing with the employees’ ethics, expectations, and work ideals and attitudes. Conflicts could develop due to differences in work ethics and attitude and absence of open communication. The beliefs and ideals of a person may inhibit the acceptance of the beliefs and ideals of other people (Madera, 2013). Numerous of the misunderstandings among individuals from culturally different backgrounds could be because of ethnocentrism, which is ascribing dominance to one’s own cultural ideals and evaluating other cultures in accordance to them. Ethnocentrism and insufficient awareness of the culture of other people could hinder unbiased evaluation and acceptance of culturally diverse individuals (Brotherton, 2012b). Such limitation can bring about severe problems for the organization. In the hospitality industry, cultural conflict or misunderstanding usually takes place when providing services to clients. Usually clients are dissatisfied with service due to their cultural prejudice. For instance, a European tourist to the U.S. dislikes a glass of water bursting with ice cubes, while an American tourist in Europe dislikes a glass of water with very few ice cubes (Tesone, 2012). Cultural misunderstanding could also have an effect on service employees. For instance, American waiters could be disappointed with European travellers who refuse to give a tip. In European countries, giving tips is basically uncommon. Hence, asking for a tip from European tourists may form a negative impression of American waiters (Nickson, 2007). Numerous of these cultural errors and misunderstandings can be prevented if industry employees, locals, and tourists are informed of the cultural dissimilarities among them. Since the value of the customer-employee interaction and relationship affects customers’ satisfaction and opinion of the quality of services, hospitality professionals must give greater importance to managing cultural diversity in personal interactions between customers and employees (Hayes &Ninemeier, 2009). Being well-informed of cultural diversity and knowing how to manage them is an important means toward success in the hospitality industry. Managing Cultural Diversity Managing culural diversity is a considerably valuable part of global hospitality operations. Perceptions of service providers and managers, as well as work styles and job attitudes, are influenced by cultural ideals. Since the hospitality industry deals with and serves people, global hospitality managers should manage, interrelate, and cooperate with individuals of diverse cultural backgrounds (Buhalis & Crotts, 2013).In addition, they have to gain knowledge of and appreciate the customers’ culture so as to deliver quality services. Misunderstanding or lack of knowledge of the cultural ideals of the local service staff and managers will adversely impact the competence of the operations of global managers or even result in expatriate problems (Gamio & Sneed, 1992).Yet, when perceptively managed and appropriately understood, cultural diversity can result in improvements and innovations in organizational processes and viable sources of success. Global hospitality managers have to gain knowledge of the host cultural ideals that affect the perceptions and attitudes of employees and host managers in the workplace. Such attitudes and views are usually observed in the relationship between managers and employees, team work, individual accomplishment, work ethics, and loyalty (Weiermair, 2000). An appropriate and sufficient knowledge of these attitudes and perceptions as shaped by the host cultural ideals will improve the cultural responsiveness of the global hospitality manager to cultural diversity management. Because of the rapid expansion of globalization and the fast changes in the labor composition and processes in local companies, it is evident that cultural diversity management is becoming a crucial, imperative part of businesses in the U.S. today (Mwenda, 2014). Without a doubt, the hospitality industry should carry out measures to deal with the challenges and trends. As an outcome of culturally diverse workforces, organizations are obliged to become more advanced in managing cultural diversity, like creating effective communication within the organization in order to prevent conflicts. Numerous hospitality firms have put into practice particular techniques to cope with the demands of cultural diversity within the workplace. For example, since 2001, MGM Mirage has raised its number of minority workers through the corporate diversity agenda. In 1998, Hilton implemented the Elevator General Manager Program with the objective of creating a pool of talented, globally competent managers in its global market (Mwenda, 2014). Aspirants should be bilingual and knowledgeable of different cultural practices and backgrounds (Madera, 2013).These well-known cases substantiate the belief that cultural diversity management is now an indispensable part of business operations, especially in the hospitality industry. Criticisms Diversity management has received some valid criticisms from academics and professionals. Furnham (1998) claims that in the United States, “a country that once celebrated the melting pot concept, where assorted immigrants become good Americans, now encourages native-born Americans to become cultural foreigners” (Brotherton, 2012b, 100). He further claims that “having spent time and money on recruitment and selection to ensure a clear, distinct, homogeneous corporate culture, the human resource people are now trumpeting diversity of heterogeneity” (Brotherton, 2012b, 100). He then explains several limitations of diversity training. First, diversity training usually stresses use of ‘politically appropriate’ language that diverts focus from corporate unjust practices to stress on quite unimportant word rules, even though it is assumed that naming and language dilemmas can be essential to a large number of employees. Second, diversity training is usually based on doubtful ideas of what corporate prospects may look like, instead of addressing important current dilemmas and challenges in the workplace (Benet-Martinez & Hong, 2014). Third, diversity training at times aims to be ‘value free’ or unbiased, which, unfortunately, it is not. As argued by Furnham, the essence of acceptance of individual differences and cultural diversity is a form of ambiguous relativism when, simultaneously, it subtly recognizes that behaviors and attitudes related to specific groups are somewhat morally inappropriate (e.g. Anglo-centric masculine attitudes) (Brotherton, 2012b). Fourth, a great deal of diversity training can be motivated by guilt, placing emphasis on actual or previous wrongs to the point of formulating and implementing policies for tackling current and probable future dilemmas of organizational unity. Guilt-motivated training can potentially inhibit ideals and attitudes that diversity training aims to eradicate, concealing them instead of preventing and eradicating them (Lim & Noriega, 2007). Fifth, trainers are usually picked from ‘outgroups’, or from minority groups on the misguided idea that their own success over victimhood and harsh conditions will motivate trainees. Furnham reports that there are instances where ‘insiders’ impose greater control over trainees and are more capable of interacting with, and surpassing, their biases and fears (Brotherton, 2012b). Sixth, normally, diversity training aims at certain groups viewed as particularly hostile or unfavorable to the execution of diversity strategies; an example, according to Furnham, are white males promoting the very forms of bias that diversity management training is designed to eliminate (Nickson, 2007). Maxwell and colleagues (2000) argue that there are several conflicts and disagreements between proponents of diversity management. According to Reisinger and colleagues (2012), these debates focus on the incompatibilities, if any, between diversity management models and equal opportunities, including concerns about theright impact in organizations of the interests shared by members against individuals and the way through which any base advantages of diversity management could be assessed. Opportunities Cultural diversity holds challenges and opportunities for companies. Nevertheless, without a doubt, this diversity would not be regarded as risks but instead opportunities if they are managed correctly and competently. Opportunities include reduction of labor cost; improved recruitment and retention outcomes; greater appeal to minority customers; knowledge transfer; higher competitive advantage; and, innovation (Barker &Hartel, 2004). Effectively managing cultural diversity can also benefit organizations in diversifying their supply base by building corporate venture with minority-held merchants to raise quality and reduce cost, and assist companies in improving their reputation (Clarke & Chen, 2009). Primarily, diversity frequently encourages new innovations. Workers with culturally diverse experiences and knowledge can provide the industry with greater innovation by presenting new insights from their diverse perspectives. Numerous studies report that if an overall workforce or a team involves people with diverse cultural experiences and knowledge, more productive strategies can be formulated (Ball et al., 2009).Moreover, cultural diversity can be useful in knowledge transfer. In the workplace, apparently, it is faster and much simpler to transfer and communicate knowledge and information if several workers speak a similar language, act or think the same, and have similar cultural ideals. Efficiency improves obviously because misunderstandings and conflicts can be significantly lessened by eradicating communication hindrances from cultural diversity (Boella& Goss-Turner, 2013). This faster and simpler transfer of knowledge significantly improves the working productivity and competence. Furthermore, appropriately managing cultural diversity enhances the competitiveness of organizations. The hospitality industry is very competitive. In order to successfully cope with the competition, firms in this industry will have to regulate the costs of labor and raise the number of customers. In order to attain these objectives, organizations should become skilled at motivating employees, attracting a larger number of customers, and reducing turnover or enhancing retention (Walker & Miller, 2009). Competent diversity management will certainly contribute to the achievement of this. In the current competitive markets, companies are obliged to deal with and serve culturally diverse customers (Mwenda, 2014). Thus, cultural diversity training of employees can assist companies in enhancing their ability to understand the needs of customers and maintaining sustainable business operations. Managing Culture Shock Any global service company, especially hospitality firms, normally will include service interactions and transactions with customers from various cultures. Lack of knowledge of important cultural sensitive ideals usually results in mistaken belief leading to dissatisfied customers and failed business operations (Buhalis&Crotts, 2013). Hence, one of the goals of cultural diversity management is managing cultural shock. Cultural shock is defined as “the process of initial adjustment to an unfamiliar environment” (Benet-Martinez & Hong, 2014, p. 268).Sizoo and colleagues (2005) stressed that intercultural understanding, or a behavior that allows a person to interrelate successfully with individuals from various cultures, can be evaluated and learned. Studies show that inter-culturally sensitive workers give their foreign clients higher quality services. Managing culture shock is very valuable for any hospitality business for it can raise higher profit through the employees’ impression on customers. Numerous American companies are unable to make the most of intercultural training although it is easily obtainable. For instance, Ritz-Carlton hotel group encountered problems when they attempted to launch a westernized total quality management program in their Hong Kong hotel (Tesone, 2012). Culture shock is also discovered to be influencing the capability of expatriates in the workplace, since the expatriate may experience difficulties adapting to his/her new environment and generating positive outcomes for the company. Thus, multinational companies (MNCs) have to perform all measures to reduce failure of their staff in job tasks abroad (Clarke & Chen, 2009). Both the employees and organizations transferred to foreign operations are in charge of dealing with the unfavorable consequences of culture shock. Per se, it is essential for the multinational to evaluate whether the individual has the suitable character to adjust successfully in the new cultural environment (Hayes &Ninemeier, 2009).Companies can help expatriates by implementing cross-cultural training associated with the host country. To prevent possible failures, companies actually should implement measures even prior to the hiring of an executive or employee. In this case, according to Kusluvan (2003), the process of recruiting and selecting can be employed as a useful instrument to evaluate the emotional intelligence and cultural quotient of the prospective employee. Training Alongside continuous globalization and the heightening employee diversity, an absence of abilities to manage diversity has been believed as a major cause of lower productivity and reduced retention in hospitality industry. As the organization is filled with individuals of diverse cultural backgrounds, the criteria of effective leadership have consequently transformed over time (Madera, 2013). To retain competitive advantage in the marketplace, managers in the hospitality industry should have higher responsiveness and understanding of cultural diversity in their customers, stakeholders, and employees. Because these leadership capabilities do not develop without help, to satisfy the demands of the industry, programs for cultural diversity training must be developed in hospitality firms to train those who are managing, or will manage, a culturally diverse workforce in the international marketplace (Walker & Miller, 2009). Educational organizations also have to integrate the training program into the set of courses to train students who are planning to occupy senior administrative or top management positions. Lim and Noriega (2007) define diversity training as “a means of establishing respect and developing sensitivity for all of the differences among employees and customers” (p. 67). These trainings, according to Nickson (2007), in cultural diversity can offer trainees a medium of communication. An increased eagerness to discuss cultural diversity helps members of the organization to make productive decisions, create trust, and reach effective compromises. Conclusions The hospitality industries have to cope with the culturally diverse reality of its workforce; if not, the customer-employee interactions and relationship could be endangered. For instance, cultural diversity in communication or expectations could result in disappointments among employees and discontentment among customers. Hence, cultural diversity training may be needed.Because tourists nowadays comprise a multicultural group of prospective customers, a culturally oriented marketing strategy and service provision will be needed. It will be vital for hospitality executives, managers, and other employees to know how their customers are different from one another. The hospitality industry is focused on the people. The success of hospitality companies depends on their members or people. Cultural differences among customers and personnel can be an advantage or disadvantage to the industry. If success is desired, the managers of hospitality companies have to be resilient, adaptable, and responsive to the ballooning population of people from multicultural groups. The representatives of the hospitality industry have to be capable of recognizing distinctive, inimitable cultural and personal capabilities and use them properly. Reference List Ball, S et al (2009) Contemporary Hospitality and Tourism Management Issues in China and India. UK: Routledge. Barker, S &Hartel, C (2004) “Intercultural service encounters: An exploratory study of customer experiences,” Cross Cultural Management, 11(1), 3-14. Benet-Martinez, V & Hong, Y (2014) Handbook of Multicultural Identity. Oxford, UK: Oxford University Press. Boella, M & Goss-Turner, S (2013) Human Resource Management in the Hospitality Industry: A Guide to Best Practice. UK: Routledge. Brotherton, B (2012a) Introduction to the UK Hospitality Industry: A Comparative Approach. UK: Routledge. 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