Managing cultural diversity in the workplace
By Vjollca Alherz, Lecturer in Business and DMU Course Coordinator, LSST Elephant and Castle Campus.
In an increasingly globalised world, managing cultural diversity within workplaces is paramount. Effective management of diverse cultures not only fosters a more inclusive environment but also drives organisational success. Hence, organisations must learn to manage and adapt to these diverse cultures, recognising that cultural differences can differ greatly. Culture encloses people’s knowledge to interpret experiences and shape social behaviour.
The benefits of forming diversity in the workplace
Some may think diversity might be a drawback for an organisation, but it offers many benefits. It can make an organisation more effective (Thomas & Robin, 1996). In fact, having a diverse workforce can increase productivity and is generally good for business.
There are other benefits that diversity can bring to a workplace:
When individuals from different origins get together, they bring a range of experiences and points of view with them. This collection of views fosters uniqueness and creative approaches to problem-solving and decision-making (Page, 2007). Interacting with colleagues from diverse backgrounds enhances cultural competence within the organisation. Employees gain exposure to different customs, languages, and ways of thinking, which better prepares them to navigate diverse global markets (Earley & Mosakowski, 2004). Managing diversity demonstrates that organisations value people’s differences in values and behaviour, recognising these differences as an asset to the company.
Strategies for maintaining diversity
Cockburn (1989) presents a detailed framework for managing diversity that encloses the creation of equal opportunities through liberal policies, the implementation of fundamental changes to ensure equitable reward distribution, and the incorporation of these changes into the organisation’s long-term objectives to promote a diverse and inclusive culture.
There are three primary approaches to effectively manage diversity within organisations:
The Liberal Approach: This approach ensures that every employee is given equal opportunities and fair treatment within the organisation. It emphasises the importance of having policies and measures in place to prevent and address any instances of discrimination. The liberal approach upholds the principle that all employees, regardless of their background, should have a fair chance at employment and advancement within the organisation (Cockburn, 1998).
Fundamental Changes and Balanced Reward Distribution: The second approach dives deeper into structural organisational changes. It looks to ensure that the outcomes of these changes outcome in a reasonable distribution of rewards between all employees. This involves re-evaluating and potentially improving the organisation’s reward systems to ensure fairness and equity (Cockburn, 1989).
Integration of Changes into Organisational Objectives: The third approach focuses on the long-term incorporation of diverse proposals into the organisation’s objectives. This involves not only implementing changes but also embedding them into the organisational goals and culture. By setting both short-term and long-term objectives, organisations can ensure that diversity and inclusion become whole with their vision. This approach helps in building the organisation’s reputation for cultural diversity and shows a commitment to maintaining these values over time (Cockburn, 1989).
Looking at Hofstede culture dimension model which sets out a framework for understanding characteristic patterns of workplace behaviour (French, 2010). Hofstede primarily put forward four dimensions of culture:
Power distance: The level of inequality that members of a culture both expect and tolerate.
Uncertainty avoidance: The extent to which members of a society feel intolerable with uncertainty and doubt.
Individualism/ Collectivism: Individualism looks at people in cultures that learn to act as an individual, whereas collectivism interdependence with wider groups and sustains group harmony.
Masculinity/ Femininity: Masculine societies value competitiveness, confidence, drive, and the collection of wealth and material properties. Feminine societies place more value on relationships, quality of life, and the environment.
(French, 2010)
Hofstede’s later work located the fifth- and sixth-dimension: long-term orientation vs short- term orientation and restraint vs indulgence. According to Hofstede (2019), cultural dimensions and values can change significantly from one country to another. This means that diversity management strategies that work well in one cultural context might not be as successful in another. As a result, organisations must always provide training and development programs designed to the specific cultural dynamics of their workforce.
To improve diversity in the workplace, it is essential for organisations to first understand the unique aspects of their own organisational culture and the broader cultural context in which they function. This understanding can help identify potential cultural clashes and areas where diversity efforts might need to be modified.
In conclusion, effectively managing cultural diversity is essential for fostering innovation, enhancing employee engagement, and achieving organisational success. By understanding and adapting to cultural differences, organisations can create a more inclusive and productive work environment.
Reference list
Cockburn, C. (1989). Equal Opportunities: the short and long agenda. Industrial Relations Journal, 20 (3): 213-25.
David A. Thomas Robin J. E. (1996). Making Differences Matter: A New Paradigm for Managing Diversity. [Online] Available: https://hbr.org/1996/09/making-differences-matter-a-new-paradigm-for-managing-diversity. (Last accessed 23/05/2024).
Earley, P. C., & Mosakowski, E. (2004). Cultural intelligence. Harvard Business Review, 82(10), 139-146.
Foster, J. (2015). Hofstede’s dimensions of Culture as a tool for global marketing. [Online] Available at: https://www.linkedin.com/pulse/hofstedes-dimensions-culture-tool-global-marketing-jeffrey-foster (Accessed 30 July 2024).
French, R. (2010). Cross-Cultural Management in Work Organisations. 2nd ed. London: CIPD House. pp.53-59.
GBR. (2022). Hofstede’s Dimensions of Culture on Intercontinental Hotel Group. [Online] Available at: https://www.george-business-review.com/hofstedes-dimensions-of-culture-on-intercontinental-hotel-gro (Last accessed 15 July 2024).
Hofstede. (2019). The 6 dimensions of national culture. [Online] Available: https://www.hofstede-insights.com/models/national-culture/. (Last accessed 15/07/2024).
Kochan, T., Bezrukova, K., Ely, R., Jackson, S., Joshi, A., Jehn, K., … & Thomas, D. (2003). The effects of diversity on business performance: Report of the diversity research network. Human Resource Management, 42(1), 3-21.
Page, S. E. (2007). Making the difference: Applying a logic of diversity. The Academy of Management Perspectives, 21(4), 6-20.