Cultural Diversity in the workplace
Introduction
In the contemporary world,
corporate entities are adopting several strategic approaches so as to gain
competitive advantage, enhance market share and accommodate all and sundry. It
must be noted that our societies comprise of diverse people with specific skills,
needs, sexual orientation (preferences), talents, religious doctrines and
interests among others. Thus, it is imperative for any modern business to
recognize this and make the necessary modification(s) on company policies for
the inevitable. A healthier understanding of cultural diversity amid dissimilar
cultures, creeds and life experiences would to a large extent help make our
world a more even, peaceful and develop for the human race.
Cultural diversity is an
ever-present paradigm in the evolution of humanity and has in recent years
command more respect in politics, academia and our social activities. Whilst affirming the essential role of
cultural diversity in our daily lives, Prasanna, (2021), defines the term as:
‘different forms of cultures co-existing within the same society.’ Per the
definition, my inference is that cultural diversity justly opposes
mono-cultural practices that have greatly decay our world for several decades
if not centuries. In the opinion of Rosado, (2010), cultural diversity is ‘a
system of beliefs and behaviors that recognizes and respects the presence of
all diverse groups in an organization or society, acknowledges and values their
socio-cultural differences, and encourages and enables their continued
contribution within an inclusive cultural context which empowers all within the
organization or society.’ Building upon the aforementioned, this essay shall
attempt to discuss cultural diversity in the workplace, its necessity for
multinational companies, and evaluate possible challenges leaders in such
companies are presented with.
Cultural diversity in the workplace
The workplace is characterized
by personnel with dissimilar demographic traits i.e. norms and principles and
this sometimes induces boundaries between the labour force. In order to
strengthen unity within the workplace, companies are to juxtaposed policies
that promote a better understanding thereby creating a desired environment for
everyone. Cultural Diversity was first recognized by UNESCO in 2001 to promote
a ‘common heritage of humanity’ and is now celebrated on 21st May
each year as directed by the United Nations (UN) General Assembly (Prasanna,
2021). Survival International is among numerous organizations advocating for
the safeguard of people with diverse interests within the workplace.
For multinational companies, embracing
cultural diversity in the workplace is critical for every business to establish
its unique brand value. This implies hiring employees with different
backgrounds irrespective of their gender, culture and or race (Gayan, 2022).
Employing people with different talents provides numerous benefits for
multinational companies whereas degrading one’s background, race or culture has
grave consequences. ‘Ignorance of cultural differences within multinationals can
result in weak market share, low or negative return on investment, missed
opportunities, and reputational damage, as well as legal challenges,
productivity losses, expatriate failure, and the premature termination of contracts,
joint ventures, and partnerships’ (Cox, and Blake, 1991; Hofstede, et al.
2010). Any form of disregard to these misunderstandings, tensions, and biases
caused by cultural differences could even lead to outright failure.’
Promoting cultural diversity in the workplace
Religious beliefs: Multinational companies should diligently promote and tolerate religious
equality within its workspace. This can be achieved through dietary requirement,
dress code and observing religious holidays just to mention but a few (Gayan,
2022).
Race or colour: Race is mostly used by multinationals to identify
an individual’s skin colour, geographic region and genetic inheritance.
Unfortunately, there have been instances where people of certain skin colour
face discrimination during interviews and promotion within the workplace. The
executives of multinational corporations should ensure scenarios such as those
mentioned here and more do not exist within the company (Gayan, 2022).
Sexual orientation: The emergence of the LGBTQIA+ has faced mixed
emotions across the globe. Though individuals may choose to associate or
discriminate against these people, multinational companies as part of their corporate responsibility is to ensure their personnel
within the said community are supported and protected from public persecution.
Despite their sexual preferences these persons are humans and deserve equal
opportunities within the labour force (Gayan, 2022).
Ethnic background: This is used to refer to a group of people in a
social group sharing similar interests, culture and ancestral lineage. The tendency of interacting
with people of diverse ethnicities could result in language barriers. For the
purpose of cultural diversity, a company must ensure from several ethic groups
are part of the team thus easing the adaptation process in a new market.
The incapacitated (disabled): The human race is made up of people
with vision impairments, bipolar disorders, learning deficiencies etc. and as a
result; companies must give equal opportunities to candidates with
disabilities. This will do wonders to ensure diligence towards such workers.
Gender: Data from the World Economic Forum reveal a significant
disparity with respect to gender roles between men and women in various
industries and suggest the world may need over 200 years to attain gender
equity. Unfortunately, people do not hold the power to determine their gender
at birth. In this regard, multinationals are expected to persistently promote
gender equity in their selection procedures.
The importance of cultural diversity for multinational companies
Increase employee engagement: Employees ask and learn from each
other during lunch breaks as well as after work meetings. Through these
engagement experiences from previous engagements, festivals, education etc. are
shared thus building trusting relations among colleagues. Despite their social
variances, employees’ engagement tends to enhance motivation, job satisfaction
and overall company’s performance (Reynolds, 2018). Instead of trying to break
these engagements, leaders in multinational companies should seek to improve
employees’ wellbeing.
Unique reputation: Certainly, another benefit of cultural diversity
in multinational company is the unique reputation that the company receives.
Recruiting and inspiring individuals from a wide range of backgrounds generally
allows a multinational company to gain a unique reputation for being a good
employer. Potential patrons
(clients) can see themselves reflected in the staffing of such company
(Reynolds, 2018). This can make them feel more valued, which in turn would
drive more business traffic to the company.
Furthermore, a diverse
collection of skills and experiences also allows a company to provide services
to customers on a global basis since the company is able to relate and
understand their clientele better, and some even on a personal level.
Creativity and innovation: Cultural diversity has influenced the
way in which we see and relate to the world. A variety of viewpoints along with
the wide-ranging personal and professional experience of an international team
can offer a new breed of creative and innovative workforce. This then helps in
problem solving as multinationals seek to meet customer needs in new and
exciting ways. Impressively, a recent study from Forbes echoed this notion,
concluding that “the best way to ensure the development of new ideas is through
a diverse and inclusive workforce” (Ainomugisha, undated).
Increased profits margins: Owing to foregoing submissions, it is
evident that increased cultural diversity in a multinational can lead to
greater profits for the entity. Arguably, a survey carry out by think tank in
2013, posits that 48 per cent of companies in the United States practicing
cultural diversity at senior management level improved their market share the
previous year, while only 33 per cent companies with less diverse management
reported similar growth (Ainomugisha,
undated)..
Competitive edge: A culturally diverse workforce gives a
multinational company a competitive edge when penetrating new markets. Often,
personnel need to adapt overseas, hence being cognizant of domestic laws,
protocols, and customs, as well as the competitive landscape, helps a business
to thrive. Likewise, local networks, native language skills, and cultural
understanding can boost international business development exponentially
(Reynolds, 2018).
Possible challenges leaders in multinational companies are presented with
It is assumed that when people from
different backgrounds meet, the working relationship is likely to become
complex. The adaptation process driven by cultural diversity is a daunting task
for any company across the globe. If not properly managed, this diversity could
hinder a company’s sustainability and reputation. Satisfying employees, customers and
stakeholders with heterogeneous social backgrounds comes with a few challenges.
Empirical investigation reveals that leaders in a multinational company are
likely to face the under mentioned challenges.
Communication barriers: Communication is definitely one of the
challenges in multicultural teams. Intercultural communication often leads to
miscommunication and communication between diverse group members becomes more
difficult (Caldwell, 2012; Lane, 2019). In such a scenario, the willingness to
cooperate with fellow group members diminishes and group cohesion decreases
which in turn result in higher turnover and absenteeism. If nit curbed, job
dissatisfaction would increase whereas out declines over time.
Business Protocols: There are cultural differences in business
modus operandi (etiquette) during and after business meetings. Some gestures
considered thoughtful gifts in one culture are inappropriate or even considered
as taboos in others. For instance, sending a clock (as a gift) to a Chinese
business counterpart is considered a bad omen (wishing the person dead) yet it
is normal to exchange such in the case of Ghana. Multinational leaders are to
follow strict protocol at meetings and defer to the highest-ranking members
during discussions.
Attitudinal issues: Globalization
affects the dynamics in the workplace by changing individual and group behaviour,
team composition and team dynamics as business are working with a more and more
culturally diverse workforce (Dong and Liu, 2010). An attitude changes when it
no longer serves its function and the individual feels blocked or frustrated
(Katz, 2008). That is, attitude change is achieved not so much by changing a
person's information or perception about an object, but rather by changing the
person's underlying motivational and personality needs. Influencing the
attitudes of personnel from multicultural backgrounds is an uphill task for
leaders in multinational corporations.
Impact of culture diversity on decision making process: Multicultural teams are an essential part of
every organization. People are in search of better economic opportunities which
make them to move from villages to cities, cities to metropolitans and
metropolitans to cosmopolitans. To enhance decision making, a reduced group
size is essential for obtaining a degree of unity, as larger team sizes lead to
lower interaction as well as less cohesion between members and this could
derail the decision making process for various groups within the company.
Business schedules: Some cultures treat time as limited. For
example, employees in developed economies such as the United States typically
complete one task at a time and schedule appointments that dictate when and where
they meet with other people. For other cultures, such as Sub-Saharan Africa,
time as abundant. They may be reluctant to end one conversation just because
it’s time to go to another meeting. However, chronic lateness might be
perceived as a performance issue by another culture. Setting team expectations
at the start of any project can minimize any misconceptions and avoid conflict
for leaders in multinational companies.
Summary
Cultural diversity entails
recognizing our diversity in cultures and make conscientious efforts to respect
these differences. That being said, we need to acknowledge our cultural
variances by valuing what they offer and at the same encourage their
contribution. This will go a long way to empower people as we constantly seek
to strengthen our potential by celebrating our differences rather than
tolerating it.
Conclusion
Despite the said challenges, the
implementation of cultural diversity in multinational companies comes with
advance benefits.
References
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