MULTICULTURAL
SALES TEAMS
2
MASTERS DISSERTATION
How to manage the multicultural sales teams in
interdependent environment to get competitive advantage?
Dissertation submitted in partial fulfilment of the requirement
for the degree of International Masters in Business
Administration at Dublin Business School & Liverpool John
Moores University.
Submitted by: Jagjit Singh
Student No.: 1224667
Supervisor: Dr. Catherine Rossiter
Word Count: 20950
April 2010
3
Table of Contents
List of tables/Illustrations……………………………………………………06
Declaration……………………………………………………………………07
Acknowledgement……………………………………………………..08
Abstract…………………………………………………………………09
1.
Introduction.…………………………………………………….10
1.1
Background of the issue…………………………………………11
1.2
Need for the present study…………………………………13
1.3
Research Aim………………………………………………14
1.4
Research Question…………………………………………14
1.5
Research Objectives……………………………………….15
1.6
Research Hypothesis………………………………………15
1.7
Research Methodology……………………………………15
1.8
Organisation of the Dissertation…………………………..17
1.9
Scope and Limitations of the Research……………………18
2.
Literature Review……………………………………………….19
2.1
Introduction to literature review…………………………..20
2.2
What is Culture?…………………………………………………………21
2.3
What is cultural diversity?…………………………………23
2.4
Diversity Management……………………………………25
2.4.1 Why is it important to manage diversity?………….27
2.4.2 What is the present scenario of managing diversity..32
2.5
Cultural diversity in Ireland……………………………….34
3.
Research Methodology…………………………………………37
3.1
Introduction……………………………………………….38
3.2
Research Philosophy………………………………………39
3.2
Research Approach………………………………………..40
4
3.4
Research Design……………………………………………42
3.4.1 Research Problem area……………………………..42
3.4.2 Research Question………………………………….43
3.4.3 Research Objectives…………………………………44
3.4.4 Research Hypothesis………………………………..44
3.5
The Research Purpose………………………………………45
3.6
Research Strategy………………………………………….46
3.7
Time Horizon………………………………………………47
3.8
Credibility of the Research Findings………………………47
3.9
Population and Sampling/Sampling Design……………….48
3.10 Data Collection methods…………………………………..50
3.11 Framework of the Questionnaires………………………….52
3.12 Pilot Test…………………………………………………..53
3.13 Secondary Data…………………………………………….54
3.14 Conclusion…………………………………………………55
4.
Data Analysis…………………………………………………….56
4.1
Introduction………………………………………………..57
4.2
General Questions…………………………………………58
4.2.1 Employees’ response regarding working within a
multicultural team…………………………………………59
4.3
Performance related questions…………………………….61
4.4
Objectives related questions………………………………63
4.4.1 Objective 1: Positive impacts of multicultural teams
on performance……………………………………………63
4.4.2 Objective 2: Negative impacts of multicultural teams
on performance……………………………………………65
4.4.3 Objective 3: Key factors and competencies to increase
participation, energy and productivity of multicultural
teams………………………………………………………66
5
4.4.4 Hypothesis 1: Multicultural teams can be a source of
competitive advantage when it is well managed……………67
4.4.5 Hypothesis 2: Individuals from different cultures
experience the same behaviour in multicultural teams
differently………………………………………………….69
4.5
Conclusion…………………………………………………70
5.
Conclusion……………………………………………………….71
5.1
Discussion………………………………………………….72
5.2
Conclusion…………………………………………………74
6.
Self Reflection on Own Learning and Performance………….75
6.1
Introduction………………………………………………..76
6.2
Learning Style……………………………………………..76
6.3
Background………………………………………………..80
6.4
Development of Skills……………………………………..81
6.4.1 Academic research and report writing………………81
6.4.2 Cognitive Skills…………………………………….83
6.4.3 Critical Skills……………………………………….83
6.4.4 Numeric and Quantitative Skills……………………84
6.4.5 Working in Diversified Teams……………………..84
6.4.6 Time Management and Personal Organisation……..85
6.5
Future Application of Learning……………………………86
6.6
Conclusion…………………………………………………87
7.
Bibliography…………………………………………………….88
7.1
Books………………………………………………………89
7.2
Journals……………………………………………………94
7.3
Websites……………………………………………………96
8.
Appendix…………………………………………………………97
8.1
Questionnaire for Employees……………………………..98
8.2
Questionnaire for Managers………………………………101
6
List of tables/Illustrations:
1. Work permits issued by Department of Enterprise, Trade and
Employment………………………………………………………36
2. The Research Process Onion……………………………………..39
3. Questionnaire respondents- Employees………………………….58
4. Questionnaire respondents- Managers…………………………….59
5. Enjoy working within multicultural team………………………..60
6. Managers’ feeling about working with multicultural team………60
7. Efficiency of the team……………………………………………61
8. Communication with peers……………………………………….62
9. Relationship with peers…………………………………………..62
10.
Individual’s contribution to team performance………………….64
11.
Opportunity to share ideas with peers……………………………65
12.
Multicultural teams provide competitive advantage…………….68
13.
Members from different cultures respond differently to same
event………………………………………………………………69
14.
Kolb’s Experiential Learning Styles…………………………….77
15.
Honey & Mumford learning style as applied to researcher……..79
7
Declaration
I hereby declare that no portion of the work referred to in this dissertation has been
submitted in support of an application for another degree or qualification of these or
any other university or other institute of learning. Further, all the work in this
dissertation is entirely my own, unless referenced in the text as specific source and
included in the bibliography.
Signed: __________________
Date: __________________
8
Acknowledgements:
A thesis is a complicated piece of work that requires the support and direction of key
individuals. I was fortunate enough to have the support and guidance of some very
special people throughout this research and I would like to acknowledge their
contributions.
First and foremost, I offer my heartfelt gratitude to my supervisor, Dr. Catherine
Rossiter, who has been a great support throughout my thesis. It is only because of her
patience, knowledge, suggestions and directions; I was able to complete this piece of
work. I really feel fortunate for having her as my supervisor. I would also like to
thank my lecturer Mr. Alan Graham for the support and input to this research.
The Masters course at Dublin Business School has given me a lot of confidence and
has tapped the hidden potential latent within me. I feel indebted to the lecturers, staff
and professors at Dublin Business School.
I am grateful to individual participants and organisation who gave their time and input
to this study. I would also like to thank all my well wishers and batch mates who have
directly or indirectly helped me to complete this dissertation with their suggestions,
feedback and prayers. It is being a long enjoyable time and your support, help and
friendship will not be forgotten.
My deepest gratitude goes to my mother and father who always supported me not
only for my studies but all through my life. I am ever grateful for the generous
support given by my family members in terms of my ambition to do my Masters
abroad and helping me cope up with life. Therefore I dedicate this dissertation to my
parents.
Last but not the least, I humbly thank the almighty God who has been with me
constantly guarding, guiding and helping me sail smoothly through this ocean of life.
Jagjit Singh
9
Abstract:
Over the last decade, organisations have started to change the way they do business.
Every day more and more companies are trying to cover different markets and
establish their brand globally. In the current business environment, cultural diversity
is rapidly becoming a day to day reality for more and more managers. Many scholars
like Hofstede, Lewis, Parker, Rouse & Rouse etc. have founded that presence of
culturally diverse workforce brings up two fold impacts on an organisation. If
managed efficiently, it could do wonders and mismanagement of cultural diversity
might result in failure. The research undertaken as part of this project may help to
develop a management style in order to improve the overall results of an organisation.
The purpose of this dissertation is to answer the question of how to manage the
multicultural sales teams in interdependent environment to get competitive advantage.
In order to answer this question, research was undertaken to analyse various factors
that influence the team performance both positively and negatively. The other
objective of this research is to identify the key factors and competencies that will
increase participation, energy and productivity in multicultural teams. Once these
objectives were met, researcher proposed the optimum management style and
required factors for managing culturally diverse teams. The population selected for
this research project is made up of managers and employees from multicultural teams
employed in well known Retail Sector Company in Ireland.
In short, the results from the questionnaire showed that cultural diversity can have
both positive and negative impact on team performance and ultimately on
productivity.
The reader(s) would be able to understand the fundamentals of cultural diversity
management in an organisation at the time finding some interesting but important
aspects cultural diversity invites in an organisation.
The researcher concludes with quite interesting conclusion and some special
recommendations.
10
CHAPTER – 1
INTRODUCTION
Contents:
1.1 Background of the issue
1.2 Need for the present study
1.3 Research Aim
1.4 Research Question
1.5 Research Objectives
1.6 Research Hypothesis
1.7 Research Methodology
1.8 Organisation of the Dissertation
1.9 Scope and Limitations of the Research
11
1.
INTRODUCTION
1.1 Background of the issue:
With the increasing trend of globalisation, the impact of globalization has lead to a
fast changing environment. The boundaries for business are diminishing day by day
and so is the movement of people between different countries and cultures. With cross
border mobility becoming much easier, the number of people moving from one
country to another has grown significantly. This has also led to more people from
different cultural and ethnic backgrounds intermarrying. Their children could be born
and grow up in different countries and have hybrid cultural identities. Globalisation
and advances in communication and transportation technology have reduced trade
barriers and increased interaction among people. Diversity is one of those few things
that do not need any explanation as we can see it and feel it at every moment in the
reality that surrounds us.
Cultural Diversity: UNESCO (2005) defined cultural diversity as “Cultural diversity
refers to the manifold ways in which the cultures of groups and societies find
expression. These expressions are passed on within and among groups and societies.
Cultural diversity is made manifest not only through the varied ways in which the
cultural heritage of humanity is expressed, augmented and transmitted through the
variety of cultural expressions, but also through diverse modes of artistic creation,
production, dissemination, distribution and enjoyment, whatever the means and
technologies used”.
Multicultural Teams: According to Adler (1997), a precise definition of
multicultural teams does not exist but generally the term multicultural refers to teams
where three or more cultures are represented among members. Multicultural teams
have become very common in recent years due to increased globalisation and
diversity in the workplace, and the clear trend is towards even more of them in the
future.
The question is not whether we are diverse or not, it is whether we are capable of
understanding what this means and more importantly, taking advantage of it, so that
the diversity can become a major asset for this century. Diversity, meaning putting
12
different people in different positions, does not necessarily guarantee success. If the
different points of view and opinions are not handled well, then the decision making
process can become enormously difficult. Diversity has to be managed in such a way
that differences are transformed into a catalyst of business success. Investigations
show that multicultural teams face significantly greater hurdles than culturally
homogenous teams. So the question is whether multicultural teams are curse or
blessing. With this challenging question, Roembke (2000) presents in a rather drastic
manner the spectrum of the possible outcomes of multicultural teamwork. What
makes this remark so powerful is that it applies not only to missionaries, but to any
groups which may include members from several cultures or nations: diplomats,
soldiers, consultants, marketers, sportspeople, flight attendants, scientists, or
engineers. Indeed, managing multicultural teams can be a tightrope walk: on the one
hand, when not handled properly, such teams can turn into extremely irksome
stumbling blocks for a company or a project. On the other hand, companies and
leaders who recognise the potentials of cultural diversity and find the right cultural
mixture among the team members can achieve some substantial comparative/
competitive advantage.
In their study of 70 global teams, Govindarajan and Gupta (2001) found out that only
18% of multicultural teams perceived their own performance as ‘highly successful’,
while a third felt that their cooperation had been utterly unsuccessful. Obviously, the
ambiguity related to multiculturalism does not prevent managers from employing it
extensively, constituting more and more multicultural global teams and continually
increasing their diversity. The rationale behind such enthusiasm is usually one of hope
for outstanding results, be it in knowledge creation, creativity, or innovation. Hence
the whole issue is crucial for research. Many studies have shown that diversity in
human capital actually leads to increased creativity and efficiency in many cases.
Studies have also shown that the failure to successfully integrate diverse workforces
has negative implications for organisational performance. Managing across cultures is
not an easy task and it has been a challenge for the companies to manage across
different geographic boundaries and with multi-cultural teams.
It is above all the increasing globalisation of business that requires employees from
various cultures to work together. Shaw and Power (1998, p1308) states that even in
13
purely domestic operations, firms are being forced to form cross-functional, inter-
departmental, cross-divisional, and inter-organisational alliances in order to make
maximum use of scare resources and thus increase their competitive advantage.
1.2 Need for the present study:
Cox T. (2001) emphasises on planning and implementing organisational systems and
practices to manage people so that the potential advantage of diversity are maximised
while its potential disadvantages are minimized. Our communities are like rainbows,
every colour is unique, every colour is pretty when used right but it can appear quite
ugly when misused. A diverse, multicultural work environment is the same; it needs
to be handled well to be effective just as the rainbow looks pretty in the order it is, but
if you put colours together without considering their individuality or their role in the
whole, the end product would be signify chaos instead of perfect beauty.
A people driven business, the retail industry defines the needs of its consumers.
Populations in many countries today are culturally, socially, and demographically
diverse. Understanding consumer diversity is one of the greatest challenges. In order
for retailers to attract diverse customers, they must work to establish a relationship
with those customers. Companies are trying lots of things to achieve their targets and
retain their customer base. But even with the right merchandise at the right time, price
and location, companies that lack diversity in their employee base or ineffective
diversity management will remain a step behind their competitors who have built
diversity into the framework of their corporate culture. Customers/Consumers are
more likely to shop and spend where they feel most comfortable and welcomed,
which is reflected not only in the merchandise displayed but also in the environment.
But this doesn’t mean that just employing diverse workforce is enough to get the edge
in competition. So to get benefit of employing diverse workforce, managers within the
organisation must be capable of capitalizing on the mixture of genders, cultural
backgrounds, ages, and lifestyle present in the workforce to respond to business
opportunities more rapidly and creatively. Investing in a diverse leadership team will
help retailers recruit and retain a diverse employee base, as well as connect with a
rapidly growing, diverse consumer-base.
14
This study is also investigating the factors that boost the performance of multicultural
teams along with the negative impacts of such teams on the business. In the present
literature on multicultural teams, researcher found that the suggested approaches and
models are only applicable to managers who need to deal with just one culture at a
time, which is generally external to organisation. The literature fails to address the
manager’s approach and management style needed when managing a multicultural
team consisting of employees with more than five or six nationalities. This study will
highlight all those issues that create obstruction to the success of such teams and
provide solutions to those problems as well.
1.3 Research Aim
The aim of this research is to identify all those factors that affect the performance of
multicultural retail teams and outline a strategy to manage the team effectively. With
the ever increased market globalisation and increased competition from corporations
around the world, the strategic importance of diverse teams becomes more critical for
success. So this study is going to contribute to the existing store of knowledge.
1.4 Research Question
According to Saunders et al (2007), the key criteria of research success will be
whether a set of clear conclusions could be drawn from the data collected. The extent
to which this could be done is determined by the clarity with which initial research
questions are posted. The research question of this dissertation is defined as:
“How to manage the multicultural sales teams in interdependent environment to
get competitive advantage?”
Managing across culture is not an easy task and it has been a challenge for the
companies to manage across different geographic boundaries and with multicultural
teams. Studies have shown that failure to successfully integrate diverse workforce has
negative implications for organisational performance
15
1.5 Research Objectives
According to Saunders et al. (2007), objectives are more generally acceptable to the
research community as evidence of a researcher’s clear sense of purpose and
direction. The research objectives are likely to lead to greater specificity than research
or investigative questions. With these ideas in mind, the researcher defines the
following objectives:
• To get a better understanding of those factors that influence group
cohesion in culturally heterogeneous teams.
• To investigate how cultural differences within multicultural teams impact
positively on the effectiveness and innovation.
• To investigate how cultural differences within multicultural teams impact
negatively on the effectiveness and innovation.
• To identify the key factors and competencies that will increase
participation, energy and productivity in multicultural teams.
1.6 Research Hypothesis
Kumar (1999: 64) explains that hypotheses bring clarity, specificity and focus to a
research problem. They tell a researcher what specific information to collect and
thereby provide greater focus. On the other hand, Brannick and Roche (1997) explain
that hypothesis is designed to develop, extend or refute an already established body of
knowledge.
The hypotheses presented by the researcher are:
• Individuals from different cultures experience the same behaviour in
multicultural teams differently.
• Multicultural diversity can be source of competitive advantage when it is
well managed.
1.7 Research Methodology
Aiming to answer the objectives and research question of this research involves use of
both primary research and secondary research. Although there exist many approaches
16
to consider the research methodology, the approach proposed by Saunders et al.
(2007) seems quite logical. Saunders et al. compares the research process to an onion
by highlighting the layered approach to research. The empirical method in this
research is based on survey. Utilizing survey as the research method enables to collect
quantitative data which provides more control over the research process. Survey will
be performed using questionnaires method to determine the employees’ satisfaction
regarding diversity in workforce.
The researcher aims to adopt a positivist approach as the source of data for this
research has existed before the research and would continue to exist. During the
course of research, data was collected and analysed to arrive at an answer to the
research question. Data was collected from both secondary sources and primary
sources. More emphasis was given to primary data; however secondary data was used
to access the current scenario. The researcher has decided to follow the deductive
approach for the design of his project. To test the research hypothesis, quantitative
data will be collected. Data analysis will be done based on the data collected through
survey method using questionnaire. So the researcher is using deductive approach
because it is more specific on task in terms of findings answer to the research problem
area.
This dissertation is done for academic purpose and the research carried out is cross-
sectional in approach. In this dissertation, the population selected is retail sector
company’s employees. The sampling strategy for this research is largely modelled
around the various constraints on the availability of data likes the access to the
respondents of the selected company, the time respondents would like to spare to
participate in the research and discomfort towards sharing sensitive information.
There are 10 stations of company in Dublin city and the target population would be
150. Considering the research objectives, research questions, sampling frame and time
constraint, researcher has decided to choose the non probability sampling for this
study. In non probability sampling, the sampling technique to be used is Convenience
sampling technique.
Data collection method to be used is quantitative and questionnaires are used as a data
collection tool. The researcher has created two sets of questionnaires with different
17
questions: one for managers and the other one for employees. In order to promote a
less influenced response and to maintain respondent confidentiality, the researcher has
decided to leave the questionnaires anonymous. These questionnaires will be self-
administered, with both open and close questions. Secondary data came from the
various sources available to the researcher such as books, journals and industry
reports etc. To analyse the quantitative data, the researcher will use Excel
Spreadsheets to create tables and diagrams which will show the frequency of
occurrence through establishing statistical relationships between the variables. A brief
of the research design is as follows:
Research Philosophy
:
Positivism
Research Approach
:
Deductive
Research Purpose
:
Descriptive
Research Strategy
:
Survey
Time Horizon
:
Cross-sectional
Data Collection
:
Questionnaires
Sampling Design
:
Convenience sampling (non-probability)
Sampling Unit
:
Employees of retail sector company
Sample Size
:
Total sample size is 95
Employees- 83
Managers- 12
1.8 Organisation of the Dissertation
This dissertation is divided into the following chapters:
Chapter 1: Chapter one is the introduction to thesis. This chapter contains
background and need of the study along with the overview of research question,
objectives, hypothesis and research methodology.
Chapter 2: Chapter two is concerned with the literature review. In this section a
significant number of authors are introduced in order to identify and examine the
different areas that are relevant to this research study.
18
Chapter 3: Chapter three outlines the research methodology that will show the
research approach, research philosophy, and research strategy used in this
dissertation.
Chapter 4: Chapter four presents the data analysis and the findings from the primary
research. The findings are a combination of the perceptions of managers and
employees in relation to team work, communication and relationship in diverse
environment.
Chapter 5: Chapter five is the conclusion of this dissertation. Here, the researcher
answers the initial question and addresses the objectives by summarising the results
obtained and drawing conclusions from the findings of the primary research.
Chapter 6: Chapter six is a self reflection on own learning and performance. This
chapter reflects the personal learning achievements and their application to his
personal and professional life.
Chapter 7: Chapter seven is Bibliography mentioning all the references from books,
journals and internet websites as per Harvard referencing style.
Chapter 8: Chapter eight is Appendix containing the Questionnaires for employees
and managers.
1.9 Scope and Limitations of the Research
The research study presented in this dissertation was conducted with the aim of filling
the gap which the researcher considers to exist throughout the literature reviewed. The
researcher has addressed how managers approach culturally diverse teams consisting
of employees with more than five different nationalities. This research gives an
overview of the current management situation of culturally diverse teams, which the
researcher believes could be useful to any manager who would like to approach a
culturally diverse team.
The main limitation of this research was the sample size used which was primarily
due to tight time constraint.
19
CHAPTER – 2
LITERATURE
REVIEW
Contents:
2.1 Introduction
2.2 What is Culture?
2.3 What is Cultural Diversity?
2.4 Diversity Management
2.4.1 Why is it important to manage diversity?
2.4.2 What is the present scenario of managing diversity?
2.5 Cultural Diversity in Ireland
20
2.1 Introduction to literature review
In a global context the management and development of people inevitably leads to
considerations of diversity and related challenges. Experts discuss the challenges
facing organisations which are intending to work effectively across borders. They
identify the major challenges as being able to develop practices which balance global
competitiveness, multinational flexibility and the building of a worldwide learning
capability. They maintain that achieving this balance will require organisations to
develop the cultural sensitivity and ability to manage and leverage learning to build
future capabilities. For global organisations there is an increasing needs to get groups
of managers from different nationalities to work together effectively either as
enduring management teams or to resource specific projects addressing key business
issues. Many organisations have found that bringing such groups of managers
together can be problematic and performance is not always at the level required or
expected. Multinationals see the cultural diversity within their operations as an area of
difficulty rather than as an opportunity to build competitive advantage. Laurent and
Adler (1983) illustrated this point in their exercise that International executives
attending management seminars in France were asked to list the advantages and
disadvantages of cultural diversity for their organisations. While 100 percent of
participants were able to identify disadvantages less than 30 percent could identify
any advantage. Frequently understanding the nature and value of cultural diversity is
not well embedded within company thinking and practice. In many ways thinking in
this area has not developed in line with the trend to globalisation. In an article in the
Financial Times in April 1995, Houlder commented on the apparent inability of
organisation to develop managers with cross-border capabilities and points out that
making someone aware of cultural diversity is something that has to start at day one
when they join the company. However, it is important not only to understand
differences between cultures. It is essential to identify the potential advantages and
disadvantages likely to be brought to a team by managers
The literature review section will examine recent or historically significant research
studies, company data, or industry reports that would act as a basis for the proposed
study. The literature review provides a solid background for the research investigation
as it is totally based on academic sources. The literature review includes culture,
21
cultural diversity, and diversity management, cross cultural management and
intercultural competence.
The literature told that diverse teams have a lot of potential. Diversity is one of those
few things that do not need any explanation as we see it and feel it at every moment in
the reality that surround us.
2.2
What is culture?
The word ‘culture’ derived from Latin word cultura means “to cultivate” (Cox T. :
1994). The phenomenon of culture doesn’t have a single definition. Culture may be
defined as the values, beliefs and behaviour shared by a group of people. A group
may be identified by many criteria such as nationality, religion geography or
language. Although nationality may include several cultures it is the most commonly
used notion of culture. Culture plays a significant role in workplace assumptions,
behaviour and organisational cultures. As the culture represents a particular
characteristics that develop within a group of people over a period of time- it means
that any person over his lifetime becomes a part of a multitude of cultures: family
culture, school culture, professional culture, national culture, etc. Each time a person
becomes a part of a certain community, he/she brings along a load of his/her own
beliefs and values gained throughout his life. By bringing in his own culture a person
contributes to the formation of a new culture and to the changing of his own.
According to Rouse and Rouse (2002), Culture is regarded as the combination of
behaviours, norms, attitudes, values, beliefs and basic assumptions that differ from
society to society. They believe that culture can look different depending on who does
the looking, when they look and from what direction. Black and Porter (2000) further
add to this definition by explaining that culture begins to form when a group of people
face a set of challenges. The assumptions, values and behaviours that are successful
are taught to newcomers.
Briscoe and Schuler (2004) explain that every country has at least some differences
compared with others, such as its history, government and laws. They define the
culture as a way of behaving and something that a group of people in a country or
region have evolved over time and share. To further clarify they quote Schell and
22
Solomon who believes that culture is learned and absorbed during the earliest stages
of childhood and is reinforced by literature, history, and religion. They believe that,
expressed in instinctive values and a view, culture is a powerful force that shapes our
thoughts and perceptions. They explain that culture affects the way events and other
people are perceived, judge, and how they are interpreted.
Throughout the literature researched there is a considerable emphasis placed by
authors, such as Briscoe and Schuler (2004) and Rouse and Rouse (2002), on the fact
that culture, with all of its implications, differs in every society and that these
differences might be profound or subtle; they might be obvious or invisible and that
while an individual can be a carrier of culture, one person can not create culture.
Culture is a powerful group or social phenomenon.
Freeman and Browne (2004) explain that according to anthropologists Kluckhohn and
Kroeber, the essential core of culture consists of traditional ideas and their attached
values. They add that culture is a way of life based on a system of shared meanings
that are passed on from generation to generation. In other words, culture defines the
values that lead people to prefer certain states of affairs over others. These values
influence how people judge behaviour or situations and shared values direct people of
same culture to react in a similar way to a certain situation. They also refer to culture
as a collective programming of the mind which distinguish members of one group
from another and explain that the programmes people have in their minds affect the
way in which they process any new information that they receive.
On the other hand, Harrison et al (2000) introduce the nature of culture explaining
that the basis of any business activity whether domestic or international, is to satisfy
human wants and needs. They believe that people around the world share the same
basic wants and needs, but the manner in which they try to fulfil these wants and
needs and the order in which they rank them vary significantly, even between
individual members of the same society.
Hofstede (1983) identified four key dimensions which impact on national cultural
differences. These are:
23
• Individualism/Collectivism: This dimension reflects the extent to which
individuals’ value self-determination as opposed to their behaviour being
determined by the collective will of a group or organisation.
• Power-distance: At the core of this dimension lies the question of involvement
in decision making. In low power-distance cultures, employees seek
involvement and have a desire for a participative management style. At the
other end of this scale, employees tend to work and behave in a particular way
because they accept that they will be directed to do so by the hierarchy of the
organisation.
• Uncertainty avoidance: This dimension is concerned with employees’
tolerance of ambiguity or uncertainty in their working environment. In
cultures which have high uncertainty avoidance, employees will look for
clearly defined, formal rules and conventions governing their behaviour.
• Masculinity/Femininity: This is possibly the most difficult dimension to use in
an organisation context. In practice, the difficulty is more to do with
terminology and linguistics. In highly “masculine cultures” dominant values
relate to assertiveness and material acquisition. In highly “feminine cultures”
value focus on relationships among people, concern for others and quality of
life.
2.3
What is cultural diversity?
Cultural diversity is not just a natural fact that we need simply recognise and respect.
It is about plurality of knowledge, wisdom and energy which all contribute to
improving and moving the world forward. The United Nations Education Scientific
and Cultural Organisation (UNESCO) (2001) define cultural diversity as fact. In a
Convention on the Protection and Promotion of the Diversity of Cultural Expressions;
UNESCO (2005) defined cultural diversity as “Cultural diversity refers to the
manifold ways in which the cultures of groups and societies find expression. These
expressions are passed on within and among groups and societies. Cultural diversity is
made manifest not only through the varied ways in which the cultural heritage of
humanity is expressed, augmented and transmitted through the variety of cultural
expressions, but also through diverse modes of artistic creation, production,
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dissemination, distribution and enjoyment, whatever the means and technologies
used”. UNESCO (2001) states that the world has approximately 6000 communities
and as many distinct languages. These differences naturally lead to diversity of vision,
values, belief, practice and expression.
Farrer (2004) said that the world diversity is increasingly becoming integrated into
management and human resources circles and organisations of all sizes and types are
discussing the benefits of embracing diversity within their policies and procedures.
Holt and Wigginton (2002) argue that diversity encompasses differences in human
characteristics that arise from national origin, gender, race, ethnicity, religion,
language, age, socio-economic status and cultural values.
According to Cox (1994), cultural diversity means the representation, in one social
system, of people with distinctly different group affiliations of cultural significance.
He defines diversity as the variation of social and cultural identities among people
existing together in a defined employment or market setting. He believes that the
increase in diversity presents a double-edged sword; hence the challenge of managing
diversity is to create conditions that minimise its potential to be a performance barrier
while maximising its potential to enhance organisational performance
Morley et al (2004) introduce diversity as something that has existed throughout the
world from the beginning of time. They explain that ethnic, cultural and racial
differences were found within tribes and among other groups of people across the
continents before recorded history. They add that the history of humankind is a story
of multiculturalism and diversity.
Kandola and Fullerton (2000) explain that people are different from one another in
many ways such as age, gender, education, values, physical ability, mental capacity,
personality, experiences, culture and the way each approaches work. Gaining the
diversity advantage means acknowledging, understanding and appreciating these
differences and developing a workplace that enhances their value to create a
motivating and rewarding environment. They believe that managers need to
understand that there are differences among employees and these differences are an
asset to work being done more efficiently.
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To define cultural diversity, Hodgetts and Luthans (1997), state that there are many
ways of examining cultural differences and their impact on international management.
They add that culture can affect technology transfer, managerial attitudes, managerial
style and ideology, and even business-government relations. Bell and Smith (1999)
explain that when there is a meeting of diverse cultures and the different people’s
backgrounds from different cultures come into contact, something new emerges, a
middle ground. In this new middle ground, sensitive and often un-stated rules and
understanding guide behaviour result.
Emphasizing the positive side of diversity, Schuler et al (2004) add that other forms
of diversity are associated with membership in various demographic groups. They
believe that in any organisation, differences in individual personality and behavioural
style contribute to cultural diversity. They further say that the content and structure of
cultural diversity are viewed as a determinant of the way people feel and think about
themselves and each other. They expand on this by explaining that the content of
cultural diversity simply refers to the specific values, norms, languages and other
elements of a culture. Multiple levels of cultural content will be relevant in most
situations. Societal, organisational and industrial cultures are particularly salient.
However they believe that demographic cultures are also likely to play an important
role in shaping the interactions between individuals and groups within an
organisation. Therefore the structure of cultural diversity refers to how cultural
differences are distributed within the different organisational teams.
2.4
Diversity Management
Diversity management refers to the voluntary organisational actions that are designed
to create greater inclusion of employees from various backgrounds into the formal and
informal organisational structures through deliberate policies and programs. It is a
strategy to promote the perception, acknowledgment and implementation of diversity
in organisations and institutions. The globalising economy and the increase in the
number of multinational corporations make diversity management a necessity for
companies that want not only to survive but thrive during this time of economic,
social and cultural changes. The reason for implementing diversity management
