MBA 646: Cross-Cultural Management (CCM)

Module 1I
Prol'. O.A. Ogunbameru
08051s32070
CRO SS-CULTURAL DIVERSITY
Broad Overview
Cultural diversity is not by itself a hindrance for sharing a We-world. Cultural diversity implies cr-tlturai fi'ecdom,
which provides alternative ways of living. Cultural freedom leaves us free to choose ways and means in defining
our basic needs to survive as a society. Cultural freedom allows us to inject meaning to our existence; it also
acknowledges the right of any society as culture bearer to choose its or.vn way of life. It is in the atmospl-rere o{
cultural freeclom thaicultural diversiiy contributes to the aclualization of creative cliversity (UNESCO, 1996). Il
is, therefore, a fallacy to perceive culture as an inhibiting force in the pt'ocess of social change and development,
'I'he
clynamic of every living culture is that it is a preservative as well as progressive force.
Examples of cultural diversity in the workplace
'I'l-rere
are some diversity recommended. The recommended diversity in the workplace solutions
irrclude:
I
l. IVut tl olf chonge resistance with inclusion: Involve every employee possible in formulating and executing
cliversity initiatives in your workplace.
,2.
I-oster on attitucle oJ'openness in your organization.' Encourage employees to express their ideas and
opinions and attribute a sense of equal value to all.
3. Irrumote diversity in leuclersltip positions.' This practice provides visibility and realizes the benefits of
divcrsity in the workplace.
4. Lhitize tliversity training: Use it as a tool to shape your diversity policy.
5. Lttnnclr a customizable employee sutisfactiort survey that provides coruprehensive reportirg.'Use thc rcsuhs
to build and implement successful diversity in the workplace policies.
Why the interest in cultural diversity
I
Diversity in the workplace is an inevitable result of globalization. In the era of diverse workforce, managers are
primarily concerned with obtaining high levels of perfcrrmance,
Diversity and inclusion affect not only the businesses' people and operations internally but also their custotncrs.
sr-rppliers, and other external stakeholders.
Some advantages of diversify in the workplace
r
Some o/'the advantages of diversity in the workplace are:
1. Increased Productivity
2. Increased creativity and Problem solving
3. Attract and Retain talent that add a competitive edge to any organization
4. Help to build synergy in teams and enhances communication skills that brings in new attitudes
processes that profit the 'ul'hole team
5. Applying the proper diversity and inclusion management strategies does not only save money
litigation expenses generated by discrimination lawsuits but is the right thing to do for the business.
6. It increases market share and create a satisfied diverse customer base by relating to people from different
background
I
1 . Diversity in the workplace encompasses a range of elements
ti. Diverse Experience
L).
Learning And Growth:
10. Communicationlssues:
i
1 l. Integration Issues:
Some disadvantages of diversity in the workplace
t. Communication: Communicotion barriers leod to problems in a compony attempting to create o diverse workploce.
2. Opposition to Change: Although workplace diversity benefits an organizotion as a whole, some employees and
managers may not react positively to changes made.
3. Implementation: Although on paper workplace diversity may seem like a good idea, many
companies experience challenges when attempting to implement changes. E[nPloVers must
develop strategies for implementation, analyze results and make necessary changes if
results do not meet the established
goals. The implementation process may present
challenges to everyone involved, and frustrations may arise because implementation is not
las smooth as expected.
4. Managing Diversity: Challenges in managing workplace diversity can stem from several
reasons, such as taking the wrong approach to solving diversity issues, Many companies
offer training programs to managers to help them effectively manage their newly diverse
departments.
5. Beyoncl Diversity: Despite the powerful advantages possessed by the multicultural organization, diversity is
nevertheless not a panacea and not without its drawbacks. With the benefits of diversity cqme organizational
costs. Too much diversity in problem-solving groups can be dysfunctional.
I
6. Diversity increuses ambiguity, complexity, and confusion.
and
orl
7 Negutive Dynumics: In many <lrganizations, diversity can produce negative dynamics such as ethnocentrism,
stereotyping and cultural clashes. These negative dynamics can in turn combine with
{mbalanced
power
structures to create work disadvantages for women and minorities. In traditional, assimilationist-oriented
organizations, cultural differences between majority and minority group members create barriers to full
participation of minority members.
|
8. Turnover and Absenteeism
9. Cost
1 0. Revers e D is c r imincfiion
1 1. Miscommunication
Challenges of Cultural f)iversity
There are challenges to managing a diverse work population. Managing diversity i. Joor. than simply
acknowlcdging clifferences in people. It involves recognizing the value of differences, combating discrimination,
ancl promoting inclusiveness. Managers may also be challenged with losses in personnel and work productivity
due to prejudice and discrimination and complaints and legal actions against the organization
(Devoe, 1999)'
iNegative
attitudes and behaviors can be barriers lo organrzational diversity because they can harm working
relationships and damage morale and work productivity (Esty, et al., 1995). Negative attitudes and behaviors in
the rvorkplace inclucle prejudice, stereotyping, and discrimination, which should never be used by managemen{
for hiring, retention, and termination practices (could lead to costly litigation).
Myths and realities of diversity
Myth
Myth 1: Diversity
Myth 2: There
cliversity.
Realities
Reality Check: Diversity can bring about harmony to
the company's environment if
I
communicated
properly. It will help to promote unity, bringing
emolo her for common
goals.
a single business case str.rdy for
Every situation is unique and requires its own
analysis and custom implementations/solution.
fhis
is due to the differing cultures of the various races or
countries. Gender may also play a par1.
Myth 3: The hardest part about creating a diverse
workforce is recruiting.
Reality Check: The hardest part abolrt creating a
diverse workforce is retention. This is especially sl
when managing the increasing number of Generation
Y employees. Contrary to popular beliel, monetary
benefits are not the key to retaining emplol'ecs.
Benefits like networking sessions and sharing
sessions that make employees feel supported and
valued are the ones thq!_g{9-Sg!Lli-b-y1!}g--L-o-
htg!
Diversity requires lowering standards.
Myth 5: If the CEO is onboard, diversity
succeed.
Requirtd tools for managing diversity
1. Managers must understand discrimination and its consequences.
2. Managers rnust recognize their own cultural biases and prejudices (Koonce,2001). Diversity is not about
i diflerences among groups, but rather about differences among individuals. Each individual is unique and does
not represent or speak for a particular group. Finally, managers must be willing to change the organization if
necessary (Koonce, 2001). Organizations need to learn how to manage diversity in the workplace to be
sticcessful in the future (Flagg, 2002).
3. Another vital requirement when dealing with diversity
communicate (Koonce, 2001). Social gatherings and business
have the chance to speak, are good ways to create dialogues.
is promoting a "safe" place lor associates to
meetings, where every member must listen and
z[.
Communication - Perceptual, cultural and language barriers need to be overcome for diversity programs to
succeed. Ineffective communication of key objectives results in confusion, lack of teamwork, zfnd low morale.
5. Resistance to change - There are always employees who will refuse to accept the fact that the social and
cultural makeup of their workplace is changing. The "we've always done it this way" mentality silences ncrv
ideas and inhibits progress.
6. implementation of diversity in the workplace policies - This can be the overriding challenge to all diversitY
advocates. Armed with the results of employee assessments and research data, they must build and implement
I
clrstomized strategy to maximize the effects of diversity in the workplace for their particular organization.
retention rates.
Reality Check: Diversity brings out the best
performance in everyone. Despite the assurnption that
employees of minority races are of lower calibre and
are inferior performers, if it is managed properly, the
same productivity as a homogeneous
[vorkforce
can
be achieved without compromising on the standards-.
-
Reality Check: If the rest of the senior management is
not as committed, diversity will fail. Yes,
commitment to diversity and inclusion practices
starts right at the top, but it should be spread to all
levels in order for it to become part o1 an
organisation's culture. Everyone must leel the
ownership and accountability in order for diversity t<;
succeed
10
7. Sr-rccessful Management of Diversity in the Workplace - Diversity training alone is not
organization's diversity management plan. A strategy must be created and implemented to
divcrsitl' thert perrreates every department and function of the organization.
flow to manage Cross-Cultural diversity
No comprehensive solution to the problems of cultural diversity has yet been conceived. It is doubtful if a
sohrtion will ever be found since diversity implies the fact that, what is true for one, might be wrong for another.
fherefore, a management style might be efficient in a certain situation but totally ineffective in a ditfercnt
context.
I
'l'l-rtrs.
unclerstanding might be the key word for managing intercultural differences. Besides, this
"understanding" of the other is not
just
a matter of training but also of experience and personal
"reconsideration". Preparation for the successful management of such diversity in all its ramifications will be a
vital component of long-term success in the global market. For while business is already global, management
rcmains culture-bound.
Understanding the importance of managing cultural differences is the key to building successful relationships.
Cultr-rral clifferences do not
just
refer to relationships with other countries.
l'en Key Cross-Cultural Management Skills
I'he 1cn winning skills for managing in a culturally diverse environment are:
i SelJ-lrnonrrnrlge: understanding your own cultural values and how they affect your attitlfdes and
behaviors.
2. Glohal thinking: staying informed on global trends and events.
3. Ctlturctl curiosity: observing cultural behaviors in a non-judgmental way.
1. Flexibility: adapting gracefully to a wide spectrum of operational practices, business styles, and social
envirorunents.
5. Inclusivity: making people of different backgrounds feel at ease, understood, and valued for their
perspectives.
6. A,tanaging cliversiQ: getting people who are from different backgrounds to work together effectively as
urrified teams.
7 . Interpersonal comntunication'. expressing yourself persuasively while genuinely hearinp what others are
communicating to you.
8. Motivational leadership: leadrng in ways that inspire employees to take responsibility and initiative,
collaborate, and contribute the creativity of their differences.
9. Credibility: exercising integrity, openness, trustworthy behavior, and candor in all your interpersonal
dealings.
sufficient for your
create a culture o{
11.
I
10. Patience'. working with other people's needs and timetables, keeping your focus on long-term goals. and"
not wasting your goodwill capital on getting immediate results (Schomer, 2000).
i
l'.u..rr., of overcoming Cultural Differences
t. Goott knowledge oJJbreign cttlture
'['l-rc
first stcp mcans acknowledging and admitting the existence of differences betw-een culttues. This mainly
inclr-rcles cliff-erences in perceptions, interpretations and evaluations of social situations ancl people r,rho ct'catc
them and act within them. These differences than have to be named, described, explained and understood.
Recognition of the culture of a partner is considered to be the first condition of mutual r-rnderstanding and good
cooperation. This step is definitely neither common nor easy.
l
2. Respect of u
foreign
culture
r
Respect of a foreign culture means most of all accepting their differences without any
jrhdgement. It isnot
possible to claim that a certain culture is more perfect,
-better-
than another culture. Cultures are different ancl
fbr their members they represent optimum to manage life situations in conditions they have been living in for a
long time.
' 3.Iletpful steps in the relationship to uforeign culture
'fhe
last stem of the recommendecl process should be the effort to find common solution, mutual understandinq
and simplification of the complicated and demanding process of behaving in different cultural oonditions.'fhesrl
helplul iteps in no case mean that the parlicipating partners should give up their cultural background, but it
suggests that they should use their knowledge of own culture to gain knowledge about the partner's cttlture,
u,hich can be qr-iite easy after all. Very often it is enough to sacrifice something that is not too important for us,
but it mcans a lot for another culture. The main condition is a very good knowledge of pafiners and their cultural
environment, though. The main condition of a successful international cooperation is then uncierstancling. respect
ar-rd getting closer to the culture of foreign partners. Workers operating in international environment shoulcl be
introduced to this procedure and through these simple steps they should try to avoid possible misur-rderstandings
ancl conflicts in their everyday working lives. The mentioned recommendations can be us$d in cor-rtact with
members of diff-erent cultures operating in international environment in both local and foreign environment.
PITOCESS OF ASSIMII,ATION WITH A FOREIGN CULTI-IRE
'I'he
process of assimilation with a foreign culture should be introduced especially to those workers who operate
in a fbreign cultural environment on a long-term basis. According to Weber and co. (1998) this process is very
similar for many workers operating in multicultural conditions and it can be described by four phases:
1. Observation phase
2. Collision phase
3. Consolidation phase
4. Departure phase
12