Managing Cultural Diversity

Managing cultural diversity involves learning to identify differences in values and perceptions and using that knowledge to optimize performance. Businesses that do not address the issue of cultural diversity risk falling behind because of the realities of the modern workplace. For example, the average age of the American worker is increasing, white males now make-up less than 50% of the workforce while women, and people of color make up an increasing number of new entrants into the workforce. The diversity umbrella includes sex, age, race, physical ability or disability, marital status, parental status, cultural background and lifestyle. All of these groups expect to be treated with dignity, sensitivity and fairness. And this is just within the United States. With businesses becoming ever more global we are increasingly dependent on trade with other countries. In fact most manufactured goods contain components from more than one country. Increasingly in order for leaders to be effective they must be culturally sensitive to appreciate cultural differences.

Why manage diversity well? Here are some of the reasons:

· Managing diversity well results in a lower rate of employee turnover and absenteeism as well as making minorities feel that they are being treated well.

· Managing cultural diversity may provide a marketing advantage. A culturally diverse group of decision makers may make more savvy decisions about how to reach various groups than a less culturally aware group of decision makers.

· Companies with a good reputation for managing cultural diversity are at an advantage when it comes to recruiting and retaining talented people.

· By providing workers from all groups with the tools, resources and opportunities necessary for success, a company unlocks its potential for distinction.

· Cultural diversity may provide a company with a creative advantage as well as an improved ability to solve problems and make decisions.

There are a number of factors which influence leadership practices based on cultural values. These include:

· Whether the individual or the group takes top priority. The US, Canada and Great Britain are examples of individualistic cultures; Japan, Hong King, and Mexico are examples of collective (group-centered) cultures.

· The power differentiation employees are willing to accept in an organization. In high-power-distance cultures the boss makes the decision because they are the boss and the employees accept the decision. In low-power-distance cultures the employees do not automatically accept the concept of a power hierarchy. France and Japan are examples of high-power-distance cultures while Israel, Germany and the US are examples of low-power-distance cultures.

· Whether uncertainty is well tolerated or avoided. Cultures that tolerate risk and unconventional behavior are considered to be low in avoiding uncertainty while those that value certainty and predictability are considered to be high in avoidance of uncertainty. For example, workers in the US and Australia demonstrate low avoidance of uncertainty, while workers in Italy, Japan and Israel value predictability more highly and are uncertainty avoidant.

· The acquisition of money and material goods vs. a concern for other people and a high quality of life. The US, Japan and Italy are examples of materialistic countries while Sweden and Denmark are examples of concern for others cultures.

· Long-term perspective vs. short-term perspective. A culture with a short-term perspective is characterized by a demand for immediate gratification and a tendency not to save. The US is an example of short-term orientation. A long-term orientation keeps the long-term view and do no demand immediate returns on investments and encourage saving. Pacific Rim countries are known for their long-term orientation.

· Formal vs informal. A formal country considers tradition, social rules, rank and ceremony to be very important. An example of a culture that values formally are workers in Latin American who value things like processions and lavish public receptions. On the other hand, US workers take a more casual attitude toward tradition, ceremony, rank and social rules.

· The presence or absence of an urgent time orientation. People who have an urgent time orientation consider time to be a scarce resource and are apt to be impatient. Those with a more casual time orientation consider time to be limited and are more patient. Asians and Middle Easterners are examples of patient negotiators while Americans are noted for imposing deadlines and are eager to get down to business.

In spite of some differences most successful European firms share four common manager/leadership characteristics. These are:

· A tendency to be more people oriented. Most European managers feel they share a common inclination to promote the satisfaction of people. The United States is viewed as putting profits ahead of everything else.

· More internal negotiation. Europeans invest a great deal of time to negotiating within a firm whether between different levels of management, management and workers, with unions, between division, etc. In the United States management tends to be more top-down in making important decisions. Japanese, in contrast, typically seeks consensus management.

· Greater skill in managing international diversity. European managers have the ability to recognize diversity. They respect the host country and are likely to “export” their way of thinking. (This advantage is minimized when Americans take courses in leadership and recognizing and dealing with cultural diversity.)

· European managers tend to manage between extremes when it comes to management philosophies and styles. For example the United States is often seen as taking a short-term perspective and the Japanese a long-term perspective. If there is an European style it is more moderate, for example, adhering to a time perspective that falls halfway between that advocated by the United States and that advocated by Japan.

Expectancy theory can help provide guidelines for leader and manager attempting to understand cross-cultural motivation. Of particular importance in understanding cross-cultural differences in motivation are the individual’s perception of environmental control and the suitability of rewards. In other words, what is the expectancy that workers believing that they have control over their fate and how likely are they to have faith that their leaders will deliver rewards? In culturally independent countries employees may believe more strongly that they can influence performance and outcomes. In more collective cultures employees commit themselves to their organizations because of associations with managers or coworkers rather than their own self-interest. Managers also need to be aware that there are individual and subcultural differences as well as the cultural generalizations. For example, while many workers from large US cities may be more self-centered and recognition hungry, employees from rural areas may be more collectivist. At least that is one of the many reasons behind the Saturn Motors plant being located in a rural area in Tennessee—workers were viewed as being more harmonious and loyal than their big city counterparts.

It is also important for leaders to try and determine the perceived value of rewards for individual employees also taking into consideration the effectiveness of the rewards in a particular culture. Sometimes American managers have mistakenly assumed that since a reward is highly rewarded by American workers it will likewise be highly valued by workers from other cultures. For example, raising the salary of a particular group of Mexican workers resulted in their working less hours rather than more because they could now afford to work less and enjoy life more than was previously possible. After a minimal level of comfort is reached other factors become more important in many cultures than in the United States when more is most often considered better, even if one doesn’t have time to really enjoy what can now be purchased.

Leaders who are trying to influence a person from a different country must make themselves aware of possible cultural differences. An effective cross-cultural leader needs to be patient, adaptable and alert to cultural differences. Ideally they should also be willing to passably speak the language of the other country. This kind of effort and awareness is part of what is known as cultural sensitivity. Below are a few protocol do’s and don’t adapted from Andrew Dubrin’s table of cultural do’s and don’t in his chapter on cultural diversity from his book Leadership: Research Findings, Practice and Skills. This information may give you an idea of what a culturally sensitive leader would learn.

· Outside of the United States and Canada it is a big mistake to try and get down to business too quickly. Most other countries and even Americans in small towns like to build a relationships before getting down to business.

· In Great Britain you hold your fork with the tines pointed down in the left hand and the knife in the right hand throughout a meal. You are expected to say please and thank you often. It is considered rude to ask personal questions.

· In France punctuality is expected at appointments. A brief handshake is appropriate when greeting, being introduced, and departing. Kissing checks occurs only between close friends. Don’t expect to complete work during the French two-hour lunch and don’t try to do business during August because it is vacation time. (Remember some cultures value “quality of life” issues above merely making more money as quickly as possible.)

· Be sure to have your business cards and stationary printed without black borders if you are working with Chinese businesses. This is because black is associated with death in China.

· Do not say “no” when talking with Koreans. Say, “yes,” “perhaps” or “I will think carefully about your suggestion.” This is because it is important to Koreans that visitors leave having good feelings.

· In Mexico it is customary to meet two or three times before a deal is completed. It is inappropriate to fly into a Mexican city in the morning and expect to close a deal over the midday meal.

· The official language of Brazil is Portuguese, not Spanish. You will not impress Brazilians trying to speak a few words of Spanish.

· In Spain write business correspondence in English unless your Spanish is impeccable. Do not expect punctuality. Your appointments will arrive 20-30 minutes late. Also do not use the American sign to signal ok; in Spain this sign is considered vulgar.

· Italians will appreciate your writing business correspondence in Italian. They expect you to take the time to establish personal contacts before conducting serious business. Also don’t count on your business plans being judged solely on their merits. Also don’t eat too much pasta because it is not considered to be a main course.

· In Scandinavia treat all workers as equal and don’t make a big issue about your rank or position because Scandinavians pay little attention to a person’s hierarchical place.

· Etc., etc.

In order for workers to work well within a culturally diverse organization:

· It is important to have both minority and majority group members influence the establishment of behavioral norms, values and policies. One way to achieve these objectives is to value and respect diversity training. Employees can also be encouraged to become conversant in a second language spoken by co-workers, customers or both.

· An attempt should be made to achieve a culturally heterogeneous group of leaders.

· There should be no correlation between culture-group identity and job status, i.e., no one should be assigned a particular job just because of their gender or ethnicity

· An attempt should be made to include minorities in informal networks using company-sponsored mentoring programs, social events that encourage minorities to attend and creating employee networks that do not create a majority against minority attitude.

· Creating a task force within the organization that monitors policy and practice for evidence of bias or prejudice resulting in discrimination.

· Encourage an organizational identification, using the steps above, so that minorities are able to identify with the organization as well as white males.

· The best way to minimize conflict among various cultural groups is to share information that is collected about sensitive issues. For example employees should be provided information to reassure them that a diversity program will not negatively affect their promotion rates.

There are several important initiatives that are necessary in order to achieve cultural diversity. These include:

· Managers must be held accountable for achieving cultural diversity

· Minority recruitment and retention programs should be in place

· Training in cultural diversity is vital

· The development of employee networks should be encouraged

· Group characteristics (race, sex, ethnicity, physical status) should not be the criteria when assessing person-organization fit. Rather focus on traits that best serve the organization. For example Microsoft emphasizes hiring bright people because they traditionally fit the needs of the company. Intelligence is an individual difference, not a group characteristic.

WORKING WELL WITHIN A DIVERSE GROUP

As a majority member in a multicultural organization it is your obligation to take advantage of diversity training to become more culturally aware and acceptant of individuals differences. Take the opportunities presented to learn about your own feelings and attitudes about people who are different from your. Pay special attention to information from the organization that explains the advantages to having a diverse workforce and work hard to succeed when assigned to multicultural teams. Request information about diversity policies and promotion opportunities or other areas of concern to you if they are not directly addressed by management. Most importantly, try and keep an open mind.

As an employee who is a minority member in an organization for whatever reason, one has several responsibilities in trying to make the placement work These include:

· If you are seeking a position it is wise to carefully research companies for whom you are interested in working. At the very least the information will help you during the interview process; it might also help you pinpoint organizations where you might feel most comfortable and find more professional success and opportunity. Look particularly for any information concerning the company’s treatment of your particular minority group.

· Take advantage of mentoring and other opportunities at your workplace to help you fit in better or advance promotion prospects.

· While it is reasonable to expect the organization to make certain accommodations for you, it is also realistic for you to understand and fit into the work environment. For example, if English is your second language, you might want to continue to work on becoming more fluent. Your co-workers may not say it aloud, but they will appreciate and admire your effort.

· Keep alert for opportunities to brainstorm or otherwise give input, especially concerning diversity issues. Try to think how your goals as a minority member might be presented to those of the majority in a manner that changes provide a win-win opportunity. The idea is for everyone to be enriched.

· If you think you are ready for a leadership role, prepare yourself to take advantage of opportunities to advance. Many companies strive to have a diverse group of leaders in an effort to improve marketing strategies and expand the population served. Be aware of what is going on within your company/organization, but also think through how your special insight could better the company/organization. Take your good ideas and develop materials to share when an opportunity arises. Your effort could well pay off not only for you but also for your company/organization.

· Take advantage of all the opportunities the company offers as to mentoring, or social events or other opportunities to be included in the informal, but important, networks that are a part of the business. If given an opportunity to help with a task force to develop policy or investigate claims of bias or prejudice try and find the time to assist.

· As you become more comfortable in your position try to think of yourself as an important part of the organization—not just as an important, minority member of the organization. You may have had to work harder because of your minority status, but once achieved your accomplishments speak for themselves.

· Your willingness to mentor those that come after you speaks volumes about you as a person and a professional.

Conflict Management

Tensions and misunderstandings are inevitable. However, if they occur in the workplace and go unresolved they often result in stress, hostility and wasted resources. Eventually unresolved workplace conflict has a negative impact on the bottom line of a company. It any case it is a time-consuming problem for managers and a source of job dissatisfaction for employees.

Workplace conflicts can result from limitation of resources, personality clashes, miscommunications, perceptions of hidden agendas, dirty politics and backbiting (real or perceived), or disagreement about in the direction and goals of the company. When examined closely workplace conflict is often the result of a significant disagreement over goals or needs of different employees, and behaviors such as hostility, avoidance, gossip and the like.  Unresolved workplace conflict may result in a drop in productivity. Creativity and innovation are significantly damaged in an environment of workplace conflict.

The traditional view was that all conflict at work is bad. More recently the human relations view has replaced the traditional view in that conflict is considered natural and inevitable when people are involved in any enterprise. Managed properly by both leaders and by employees, conflict can become a positive force and actually result in improved performance of the group.

In the workplace three types of conflict occur:

• Relationship conflict
• Task conflict
• Process conflict

Relationship conflict focuses on interpersonal relationships. Such conflicts are often very nasty and almost always do significant damage. Task conflicts are about what the work goals should be and about achieving those goals. If properly managed this kind of conflict can help the group perform better. Process conflict is about the best way to get the work done. Again when properly managed this kind of conflict can be productive. The key is keeping the conflict level under control and creatively managing the conflict to assure that organization goals are served. Both supervisor and employees must play a constructive role in resolution of conflicts at work.

There are a five ways that conflicts are commonly resolved.

Competing – a style of conflict management in which the effort is to resolve conflict by dominating the opposition. There is a winner and a loser.

Collaborative – a style of conflict resolution which involves an effort to satisfy at least some of the desires of all sides so all get something.

Compromising – a style of conflict management in which a third party may negotiate with each party to get them to give up something in the interest of a solution.

Avoiding – a style of resolution in which one party simply abandons their position in the service of a solution.

Accommodating – a style of conflict resolution in which one side changes their position to permit the other side to gain something of significant importance and this resolves the conflict.

The best way to avoid conflict is to promote team work. Some tactics that foster teamwork are:

• Clarity in organizational mission and goals
• Employees see themselves as team members
• Employees understand why what they is doing is important
• Employees can voice how they feel about projects and express concerns they have
• Consensus decision making or at least participation

• Constructive outcomes including achievable timelines
• Employees know what is expected of them and where they stand

MANAGING CONFLICT IN YOUR STAFF

Conflicts between teams or departments may be handled using various strategies. The most important factors in determining how to handle a conflict are the relative importance of the issue and the relative power of the disagreeing parties. The more important the issue the more likely a supervisor will be to act authoritatively. In less critical situations it may be more appropriate to be more accommodating to the needs and demands of both sides.

Various types or combination of conflict resolution strategies are helpful in various situations. The following information may be helpful:

Competing – Competition between departments or executives can significantly weaken and damage a company. Thus competition (dominance) should be reserved for emergency situations; for unpopular but necessary demands or changes such as employees being required to work during a hurricane or a holiday in order to be able to satisfy customers; or when inter-organizational competition is a good thing, for example, in an auto service shop, where having competitive teams encourage employees to be more productive and reduces absenteeism. Use the dominance strategy only when the winning policy is in your own best interest and when you can afford for the conflict to arise again.

Collaborative – Collaboration is helpful to allow an opportunity to learn and to benefit from the insights made possible from having different perspectives available. For example, if a company is trying to market its goods to a new group of customers, input from potential customers is extremely important. Collaboration also offers an opportunity to get people to work together by integrating concerns. Collaborative solutions tend to last

Compromising – The goal is to reach a middle point. Compromising is useful in the workplace when the initial goals of an individual party aren’t worth disrupting the workplace; when the two parties compromising are of relatively equal power; to provide a temporary solution for a complex problem, especially under time constraints; and as an option when other strategies fail.

Avoiding – Avoiding may be appropriate when an issue is not very important, and you have no chance of resolving an issue to your advantage. Avoiding also allows time for feelings to become less inflamed and for both sides to have a clearer perspective on the issues at hand. For example, while a supervisor should get involved in major conflicts between employees, minor problems are often left to the employees to solve on their own.

Accommodating –Sometimes leaders will use accommodation when the issue is more important to the other side than to their side in order to promote goodwill, cut losses when there is no chance for success, to encourage harmony, and to allow an opportunity to learn if mistakes have been made. For example, it is often wise to give an irate customer a full refund in order to maintain customer loyalty and to quiet the unrest caused by their anger.

Once you, as a supervisor, become aware of a conflict it is essential that you meet with the people and attempt to define the facts of the situation. Consider these guidelines:

• Ask about the problems they are having but don’t look for or offer solutions at this point. Remember most people are frightened by conflict and don’t know how to handle it. You need to have a clear overview of the issues before you can offer recommendations.
• Encourage people to look at the positive. Ask them information about their shared and individual goals. Then ask more information about problematic areas.
• Once you have a better understanding of the problem and what each side wants you will be more likely to come up solutions with which they are most likely to comply. Brainstorm options with them. Point out the actions and objectives that the two individuals share before you address the problem areas. Help them to distinguish between real and perceived problems. Is it possible that a perceived slight was not intended?  Help them move from, “I am tired of my ideas being stolen. I never get credit for anything I do,” to “You give me credit sometimes; I wish you would do it more often.” Focus on positive strategies to improve the situation and get them to commit to trying them.
• Try to gauge a sense of the individuals’ willingness to comply with the suggestions being made. It is especially important that they understand that the outcome is ultimately their responsibility. Also be sure that they understand the possible impact to the company if they do not resolve their dispute.
• Establish a date when you will re-evaluate the decisions that have been made and the progress that has or has not been made. Remind them again that that they are accountable for making these changes.
• End the meeting on a positive note. Offer a brief summary of their positive goals, what each wants and what you and the company expects of them.

Supervisory mediation can result in one side “winning” and obtaining the lion’s share of resources or in both sides obtaining some things they want and a share of the resources. Remember the ultimate goal of mediation is to satisfy the fundamental interests of both sides. “Winning” it all may work in a one-encounter or short-term relationship,  but a “win-win” solution  is more important in long-term relationships. For example, it might be worth renegotiating an extremely valuable employee’s contract to give them more money if you discover that another company is interested in them and willing to pay more. In this case your employee gets more money, the company keeps an asset and the overall costs are less than would be the case if you lost the employee and had to search for and train a replacement.

Managing conflict with co-workers

If you are having significant conflicts with another employee it is often wise to seek help in achieving a negotiated settlement either through your supervisor or human resources. However, if you are wise you will get prepared to present your side of the issue before you make your move. This preparation will involve doing some homework. You need to think through and document:

• What has lead up to the current problem? Do you have or can you develop a factual timeline of the problem’s evolution? (This is particularly true in the case of a sexual harassment or other such claim.) Are there other employees who will back you up?
• Is there a company policy or a set of procedures to follow for the problem you are experiencing? Will you elect to use this option?
• Who are the other people who are involved and what is your perspective on their role in the problem and its resolution? What would each of them think about the situation? Would your viewpoints differ substantially? Can you see any truth in the other side(s) perspective?
• How do you want this problem to be resolved?
• What goals are important to you?
• What do you expect the other side to ask for?
• How entrenched are your demands and those of the other party or parties?
• Can you tell if there are  hidden  agendas that  your co-workers might have, such as wanting you job?
• What do you think each side might be willing to settle on?

Once you have some understanding of your adversary’s position you will be better equipped to predict their arguments and to prepare for them. Once you have gathered this information use it in developing your own strategy.  If your issue is serious you need to establish a track record of having tried to resolve the problem within the organization unless the problem is so serious that you fear for your safety and immediate outside intervention seems imperative.

The following information may be helpful in preparing yourself for some of the possible strategies that might be used in an attempt to resolve your problem.

Competing – In this country we are proud of being competitive and thus we may use this approach too often. It is the strategy of dominance. There can be only one winner. Keep in mind that the losers may stay around to fight you another day. Use the competitive approach only when winning is very, very important to you. Use it when you core values are at stake. And since you may lose be sure you have a back up strategy for recovery. Competing is the high risk conflict resolution strategy so use is sparingly.

Collaboration– In this conflict resolution strategy you seek a win-win strategy by discussing the conflict directly with whoever may have the opposing point-of-view. The best way to approach it is to say, “I would like for both (or all) of us to get something worthwhile rather than a winner take all approach.” You must identify what the goals or aims of your opponent may be and then frankly tell about your own. If there is a way for both of you to win, then take that pathway.

Compromising – Use this method of resolving conflict when you and you opponent are of roughly equal power. You might find it useful to ask a third party to become involved as a mediator or negotiator to help work out the details of an approach somewhere in between your position and that of the opposition.

Avoiding – One of the principles of the Art of War by Sun-Tzu is to avoid losing by avoiding the battle all together. All great generals know this. You might be better advised to live beyond this battle to fight another day. Look at the risk of losing and consider carefully whether going down in a blaze of glory is worth the risks. With this strategy you have complete control, you just do not show up for the fight.

Accommodating –Changing your position to come closer to a resolution of the conflict is to take an accommodating approach to the conflict. The opposition may very well hold to their position. But you modify your own in an effort to move toward resolution. By using this approach you still hold out for the possibility of a resolution that might be a win-win alternative.

“Winning” at All Costs vs. a “Win-Win” Solution

Negotiations can result in one side “winning” and obtaining the lion’s share of resources or in both sides obtaining some things they want and a share of the resources. Remember the ultimate goal is to satisfy the fundamental interests of both sides. “Winning” it all may work in a one-encounter or short-term relationship,  but a “win-win” solution  is more important in long-term relationships.

Regardless of the track you follow to have your grievance/problem with another employee heard, knowledge of possible negotiating strategies is to your advantage, especially if you can think of ways to frame what you want so that it fits into several of these strategies. In any case it is always to your advantage to:

• Not begin a negotiation with completely outlandish demands

• Focus on underlying interests, not disputed positions, i.e.,  how can your solution benefit the workplace and its environment

Above all remember that a short-term win may be exciting but if it perpetuates the conflict or delays a future battle it may be a Pyrrhic victory.

You can serve your organization better by making every effort to avoid making any conflict with other employees a relationship conflict. Those kinds of conflicts are most difficult to redress. If you feel you have fallen into that sort of pattern and you believe the conflict could have a damaging effect on work performance or productivity you may want to bring the matter to your supervisor. If you do so be open to taking your share of the blame. Do not go in pointing fingers or you may find yourself unemployed.