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.
