Managing Cultural Diversity - Essay Example

INTERNATIONAL MANAGEMENT BEHAVIOR Topic 2: Managing Cultural Diversity Contents …………………………………………………………………….2 2. Purpose………………………………………………………………………..2 3. Theories / Literature Review………………………………………………….3 4. Hypotheses……………………………………………………………………7 5. Methodology………………………………………………………………….7 6. Results and Contributions…………………………………………………….8 7. General Critique / Implications……………………………………………….9 8. Meta Cognition………………………………………………………………..9 References…………………………………………………………………….10 1. Abstract This article on “Managing Cultural Diversity” offers interesting insights and perspectives about the significance of comprehending and assessing the influence of cultural diversity on organizations in the present times. Starting with the basic definitions of the term, which lays the foundation for the reader to understand the underlying concept in great depth, the article gradually unfolds the various aspects of the term including crucial aspects such as - reasons for the existence and expansion of cultural diversity across organizations, various facets and dimensions of cross cultural presence in organizations, ways to manage cultural diversity as well as the resultant implications on organizational competitiveness. Finally, the article by using a combination of tools, approaches and methods guides the reader to analyze and implement the aspects learned in managing the diverse climate of their organizations in an effective and efficient manner. 2. Purpose Organizations, today, are increasingly becoming multi cultural given the large presence of culturally diverse workforce. In the light of this fact it has become essential and inevitable for the leaders and managers to understand the various implications of such diversity and adapt to the rapidly changing workplace scenario by adopting policies and measures to suit the requirements that such situations demand. This article presents opportunities for the managers to learn and understand the concept and successfully cope with the pressures and challenges that circumstances arising out of the presence of such factors, demand. 3. Theories / Literature Review Managing a culturally diverse workplace is rapidly emerging as a new challenge for the management which is evident from the vast amount of studies carried out by various authors and researchers to analyze and understand this emerging trend. Some of the key concepts, theories and approaches included in this article are discussed below. In order to understand the actual essence of the concept of managing cultural diversity it is essential to study the diverse theories put forward by various authors which attempt to define the word diversity. Thomas (1991) believes that workplace diversity has a deeper meaning which transcends beyond race and gender and tends to engulfs within its gamut several other elements such as lifestyle, tenure, sexual preferences, etc among others. Cultural diversity is commonly found in almost all organizations and it is essential to understand and learn to manage such diversity in order to manage the organizations in the best possible manner. Adler (1991), states that “because cultural diversity does exist and affects the ways in which we operate within an organization” it is essential to recognize the fact that differences do exist. Having explained the concept of cultural diversity, the article further stresses the significance of managing it by stating the works of various authors and theorists. According to Beardwell and Holden (1994) “Managing diversity is concerned with recognizing and valuing different talents within the workforce, rather than trying to get everyone to be the same. Thus one can value the different contributions of full-time and part-time workers, male and female managers, different ethnic groups, and so on”. Cox (1994) on the other hand suggests that managing cultural diversity is a skill that leaders and managers of present times must acquire or possess in order to sustain organizational performance. Although the fact that organizations today are increasingly becoming culturally diverse has been established and discussed, the primary reasons behind such rapid growth in diversity was explained by Griffin (1993) who stated such factors as changing demographics in the labor force, increase in awareness that diversity in workforce can improve the quality of workforce, legislation and legal action and globalization as the driving force behind such a phenomenon. Several authors have claimed that such an increase is beneficial for the organizational growth leading to better marketing of products or services by reaching out to a wider market and catering to a diverse target audience. According to Lane and DiStefano, (1992) improved cultural awareness helps in obtaining a high product acceptance in light of the fact that culturally rooted differences have a significant impact on a products success in a global market, understanding the fact that an older consumption pattern hampers the consumption pattern of a global product, and recognizing universal themes by segmenting according to similarities instead of differences. Lack of appropriate awareness about the cultural aspects of the product or service could lead to disastrous results damaging the organizational credibility and ruining its competitive standing in the industry. Hence the managers today must be able to grasp the cultural connotations prior to launching their product or services in an international market. Some examples of such negative repercussions of failure to understand cultural diversity are discussed below. Nike, one of the world’s most successful and widely known footwear brands faced several controversies in Asian countries on account of the advertisements being culturally offensive. The advertisement which featured a popular basketball star slaying a dragon and a kung fu master was banned in China and Singapore as it suffered severe backlash from the angry and hurtful audience who regard dragon as a cultural symbol. Although advertisement was taken off air following a public apology by the management however, such incidents highlight the fact that in an era of growing globalization where the marketplace has shrunk irrespective of geographical boundaries, basic knowledge about cultural aspects of the target audience is a necessity. Similarly the sports brand faced controversy over the use of its logo which was deemed offensive by Muslims. Such incidents further confirm the fact that understanding and embracing of cultural differences is of utmost significance as it directly affects the organization’s economic prosperity. In order to combat such situations which often call for drastic corrective measures it is often recommended that the management team must have a concrete plan or effective strategies to deal with such situations or prevent them in future. Lane and DiStefano (1992) have put forward certain interesting insights to deal with issues surrounding cultural diversity and to tackle them in a resourceful manner. According to the authors, in order to manage diversity either domestic or global, a modern human resource strategy requires some minimal orientations which includes – an explicit recognition by headquarters that its own way of managing reflects the home culture values and assumptions, an explicit recognition by headquarters that foreign subsidiaries may have different ways of managing people, which may be more effective, a willingness to acknowledge cultural differences and to take steps to make them discussable, and thus usable, and building a belief that more creative and effective ways of managing people could be developed as a result of cross-cultural learning. The article includes research papers by popular researchers such as Haslberger which deals with Facets and dimensions of cross cultural adaptation, utilizing samples obtained through surveys which demonstrate that a more refined measurement of adaptation results which differentiates between cognitive and affective factors is much favorable and fruitful as compared to the conventional measurement based method. The article also stresses the significance of socialization of employees to encourage learning and understanding of diverse cultures. Such socialization provides a platform for the employees belonging to various cultural backgrounds for intellectual interaction and helps in increasing and improving cultural sensitivity amongst its workforce. In the words of Overman (1991) if organizations are to be successful the individual and cultural threads must be woven into the corporate fabric. In conclusion the article effectively communicates the importance of encouraging and understanding the concept of cultural diversity and suggests that transnational organizations must incorporate proper models and approaches to address such a grave issue since ignoring it would prove to be detrimental for organizational success. 4. Hypotheses On the basis of various theories put forward by authors and the past researches conducted in this regard the following hypotheses are put forward for the purpose of this study: (i) Management apathy towards a culturally diverse workforce affects employee morale, productivity, competitiveness and ultimately economic prosperity of organizations. (ii) Increased cultural sensitivity helps in promoting and marketing the products / services across diverse cultures and ensures organizational success in the global marketplace. 5. Methodology The research methodology used here is descriptive documentary research whereby the author has used and presented articles of prominent theorists and researchers to put across his thoughts and beliefs concerning the significance of management of cultural diversity in organizations. The research articles used for the purpose of this study, such as Managing Cultural Diversity: Implications for Organizational Competitiveness by Cox and Blake (1991) offer valuable data on the impact of current trends in globalization, the rise in ethnic diversity in organizations, and the increasing need felt by the management to manage cultural differences. The article also discusses the various areas of management which tend to benefit from cultural diversity which includes cost, resource, acquisition, marketing, creativity, problem solving as well as organizational flexibility among others (Cox, Blake, 1991). 6. Results & Contributions The results derived from the studies and researchers included in the article are insightful since they offer a whole new perspective of looking at the concept of cultural diversity and suggest interesting inputs which can help in managing a culturally diverse workforce in the best interest of the organization. The cost – resource acquisition arguments put forward by Cox and Blake (1991) which propagates the ideology that diversity brings net added value to organizations and that it helps in problem solving and improves the competitive positioning of the organization is a valuable source of information which paves way for the management to adopt meaningful models and approaches to deal with various aspects concerned with dealing with a culturally diverse workgroup. The staffing strategies provided by Solomon (1990) provide a detailed understanding of the fact that in order to promote successful achievement of organizational goals, it is obligatory for the management to ensure provision of a hospital work environment, and develop and nurture talents of its workforce. Another interesting observation derived from this study is that encouraging employee participation through socializing helps in addressing the issue of cultural differences a theory which is proposed and confirmed by Overman who believes that encouraging individual and cultural interaction helps in achieving corporate success. 7. General Critique / Implications Studies suggest that cultural diversity in organizations is imperative for ensuring corporate success since the very essence of diversity refers to the interaction of culturally diverse group of individuals in an organization across all levels. Thus the management of diversity is by far the most challenging task faced by the human resource personnel especially issues such as staffing, recruitment as well as training. Studies have also shown a direct correlation between the effective management of cultural diversity and the corresponding rise in financial performance of organizations (Kahl, 2001). 8. Meta Cognition This article deals with the existing trends and issues faced by organizations in the process of managing diversity and provides insightful contributions in the form of approaches which the leaders should adopt and implement to embrace the phenomenon, at the same time alerts the human resources about the probable negative consequences the organization may have to face on account of lack of awareness regarding cultural sensitivity. The article probes us to delve deeper and seek solutions to basic questions such as ‘How acute is the problem of dealing with culturally diverse workforce?’ ‘Is multiculturalism a mere tool for business growth or is it a sociological experiment for maintaining a harmonious work environment?’ and lastly ‘Does an organization’s effort to be culturally appealing lead to a compromise with its core business principles or vice versa?’ References Adler, J. J., (1991). International Dimensions of Organizational Behavior, Boston: PWS – KENT Publishing Company, Pp.96 Beardwell, I., Holden, L., (1994). Human Resource Management: A Contemporary Perspective, London, Pitman Publishing, Pp. 225 Cox, T. (1993). Cultural Diversity in Organizations: Theory, Research and Practice. San Francisco: Berrett-Koehler Publishers. Griffin, R. W., (1993). Management, Houghton Mifflin Company, Canada, Pp. 576 – 578 Lane, H. W., DiStefano, J. J., (1992). International Management Behavior, 2nd Ed., Boston, PWS – KENT Publishing Company, Pp.52 Solomon, J. (1990). As Cultural Diversity of Workers Grows, Experts Urge Appreciation of Differences, The Wall Street Journal, P. B1. Thomas, R. R., (1992). Beyond Race and Gender: Unleashing the Power of Your Total Work Force by Managing Diversity, AMACOM Div American Management Association, Pp. 43 – 45. Overman, S., (1991). Managing The Diverse Workforce, HR Magazine, Pp.32 Read More