Managing Cutural Diversity Maastricht University

Assignment môn Managing Cutural Diversity tại Maastricht University. Bài assignment được 85100, đánh giá High Distinction. Bao gồm gần 40 references, peer review paper, ... etc. Năm học 2023, chương trình đào tạo thạc sĩ quản lý. Master in Management.

Managing Cultural Diversity Assignment

Paper Submitted for the course:

Managing Cultural Diversity

Academic Year: 2023–2024 Submitted: 21/10/2023 Word count: 2541

Table of Contents

Table of Contents 1

I Introduction 2

II Discussion 3

1 The benefits of "Managing Cultural Diversity" and "Diversity and Inclusion" 3

2 The limitations of "Managing Cultural Diversity" and "Diversity and Inclusion" 5

III Conclusion 6

IV Recommendation 7

V Reference 9

I Introduction

In recent years, with the impressive advances in technology and broadening in international cooperation, the world is becoming a more connected and independent place This process refers

to a common term: “globalization”, which is widely applied in many different fields, from information technology, economy to politics and culture In ‘Global Transformation: Politics, Economics and Culture’, Held and his partners defined globalization as the process by which there are increasing global ties in almost every field of endeavor While some of these links’ result in global integration or unity, others do not Global interconnections and the links they create together constitute an extraordinary historical phenomenon that is quickly changing the setting of numerous activities (Held et al., 1999)

Together with the rapid process of globalization, the work context all over the world becomes more and more dynamic and complex The rise of multinational corporations, the ubiquity of digital technologies, and the interconnectivity of markets have fueled the need for a diverse and inclusive workforce Moreover, the risks present in the contemporary globalised world exhibit significant differences from those observed in the past These disparities encompass their potential for inflicting harm, their mutual interdependency, their capacity to cause social unrest, the irreversibility of their potential damage, their geographical reach and their temporal scope (Arpe, 2013) As a result, organizations have recognized the tremendous value that globalization and cultural diversity can bring

Culture, according to Kluckhohn & Strodtbeck (1961), is made up of “patterned ways of thinking, feeling and reacting”, which are primarily conveyed through symbols, form the unique accomplishments of human societies, encompassing their material representations The

fundamental essence of culture revolves around longstanding, historically shaped ideas and the values inherently connected to them Cultural diversity, also known as multiculturalism, encompasses a range of principles and actions that demonstrate recognition and acceptance of various social groups within an organisation or society It involves valuing their unique sociocultural characteristics and promoting their ongoing engagement in an inclusive cultural environment that uplifts everyone in the organization or society (Rosado, 2012) Diversity is the existence of distinctions in a certain environment In the work context, it refers to the disparities

in age, gender identity, race, ethnicity, and so on Meanwhile, inclusion is the practice of ensuring that individuals experience a feeling of support and belonging inside the business (Stone et al 2020) In general, a diverse and inclusive workplace is one in which all employees feel equally supported in every aspect of the business, regardless of who they are or what they

do

So, in essence, diversity and inclusion can bring about a variety of benefits for organizations However, counterarguments also exist, claiming that there are still several limitations in a cross-cultural working environment From my point of view, "Managing Cultural Diversity" and the associated fundamental idea of "Diversity and Inclusion" are a necessary and legitimate strategic imperative for organizations This essay will delve deeper into this topic, critically examining the cases for and against Diversity and Inclusion (D&I) and Managing Cultural Diversity (MCD) as strategic requirement in organizations Based on that analysis, some recommendations for organizations, managers and individuals as well would be provided so as to take advantages from the unreversible globalized trend and minimize the limitations in a cross-cultural working environment

II. Discussion

1 The benefits of "Managing Cultural Diversity" and "Diversity and

Inclusion"

On the one hand, the benefits of praticing a diversive and inclusive working environment is obvious It directly impact organizations’ from top to bottom line, enhancing their innovation capacity, broaden the talent pool and improve the working environment as well as the levels of sastisfaction of the employees in general

First of all, a diverse workforces provide more space for creativity and innovation On the individual’s perspective, working in a diverse and inclusive team, regardless of industries or fields, can make them feel more comfortable to create and propose novel ideas, which in many cases, help business overcome complex issues and bring back extreme high revenue growth Also, individuals who have the freedom to express themselves tend to exhibit higher levels of productivity and be able to build stronger bonds with clients and coworkers, which is beneficial for company (Ghete, 2014) For instance, research of Johansson and Hastwell (2023) show that thoroughly diverse workplaces showed better revenue growth compared to their counterparts who have less diverse work environment: 11.1% for those in the top quartile and 8.6% for those with notable differences in the proportion of white and minority personnel Meanwhile, if employees experience uncomfortable disclosing personal information, such as their disability status or sexual orientation, those organizations witness a decline in the levels of employee camaraderie, pride and trust, which are all vital for productive innovation within the workplace Furthermore, globalization and the increase of diversity and inclusion in the working environment is a great opportunity to acquire more competitive talents with a more reasonable

expense from different backgrounds Take the case of Tata Consultancy Services for example Based in Mumbai, Tata Consultancy Services Limited (TCS) is an Indian multinational corporation that specializes in providing IT consulting and services (Wright, 2022) The organization a member of the Tata Group and has a presence in 46 countries and 150 locations (Chaudhary, 2023) According to Sen (2022), TCS had a workforce exceeding 600,000 employees across various nations worldwide as of July 2022 TCS, as a global prominent IT service provider, has leveraged globalization to build a diverse and inclusive workforce They have tapped into a vast global talent pool while maintaining cost-effectiveness They recognized that global expansion and diversification of its workforce were essential for sustained growth They established a significant presence in countries worldwide, from North America to Europe and Asia By doing so, they gained access to a broad spectrum of global talent Also, by setting

up operations in different regions, TCS has managed to access skilled workers in markets where the cost of living and labor is often lower than in Western countries This strategy allows them to maintain a cost-effective global workforce while acquiring top talent According to a report of Tata Consultancy Services in FY’ 2020, the innovative acquisition process of TCS bring back them a reduction of 66% in recruitment cycle, an increase in prospect applicant pool from 80K to 336K and a 80%-cut-down in classroom training Also, it contributed to the rise of TCS, moving into the “Global Top 10”

Another advantage that organizations can take from applying Managing Cultural Diversity and Diversity and Inclusion at workplace is that it fosters a positive corporate culture where employees feel valued, respected, and included This results in higher engagement, motivation, and job satisfaction, contributing to increased productivity and overall employee well-being According to a Deloitte survey (2012), 62% of executives think that having "clearly defined and

communicated core values and beliefs" is crucial, and 94% of executives hold the belief that workplace culture plays a crucial role in determining the business success Also, the case of IBM reinforces that a strong emphasis on Diversity and Inclusion can significantly improve employee engagement and contribute to a harmonious workplace According to the IBM 2020 Diversity & Inclusion Report (IBM, 2020), many programs and policies have been executing with a view to mitigate the disparities in benefits of female, LGBT+, Latinos, Black employees and so on All these efforts resulted in the positive indexes of IBM hiring diveristy in 2020 and 16 prizes and awards regarding Diversity and Inclusion in the U.S, Japan, Brazil and other countries in the same year

2 The limitations of "Managing Cultural Diversity" and "Diversity and

Inclusion"

On the other hand, while there is a growing consensus on the positive impacts of Managing Cultural Diversity and fostering Diversity and Inclusion in the workplace, some the limitations and counterarguments associated with these practices still exist

One of the primary limitations of Managing Cultural Diversity and Diversity and Inclusion initiatives is the risk of tokenism Tokenism occurs when organizations prioritize diversity for the sake of appearance or meeting quotas rather than genuinely valuing and including diverse voices This can result in surface-level diversity, where individuals from underrepresented groups may be present but not truly integrated into the decision-making processes or company culture One notable case that exemplifies the risk of tokenism in organizations is the "Wells Fargo Account Fraud Scandal" that was revealed in 2016 The Wells Fargo scandal included allegations of the bank engaging in the creation of several unauthorized accounts and credit cards

in clients' names, with the intention to fulfil ambitious sales objectives (Tayan, 2019) And as a part of their response to the crisis, Wells Fargo hired a new Chief Diversity Officer, and the bank's leadership publicly emphasized their commitment to diversity and inclusion However, many employees reported that the high-pressure sales culture at Wells Fargo was at the root of the fraudulent account openings Sales targets were so demanding that employees felt pressured

to resort to unethical practices to meet them (Tayan, 2019) The case of Wells Fargo illustrates how organizations can use diversity and inclusion initiatives as a veneer to appear committed to societal expectations without genuinely valuing and including diverse voices

Besides that, resistance to shift into a cross-cultural and diverse working environment can be a significant obstacle within organizations Some employees, particularly those from the majority group, may feel threatened or uncomfortable with the changes these initiatives bring This resistance can manifest as backlash, where individuals perceive such initiatives as reverse discrimination or as compromising merit-based hiring and advancement In 2017, James Damore, a former Google engineer, filed a lawsuit accusing Google of discriminating against conservative political figures and white men He criticized Google's diversity efforts, arguing that the company's approach to diversity and inclusion was flawed and that it created an environment where open discussion of certain topics was stifled (Moore and Milord, 2017) Moreover, some diversity advocates at Google even say that their colleagues are pursuing them

in an attempt to stifle conversations on gender and racial diversity

Finally, it is also a huge challenge for international managers to find the balance-point between a variety of different groups, especially in large-scale organizations The first and foremost barrier

is the disparity in language The coexistence of individuals speaking two mutually unintelligible languages sometimes leads to social isolation While it is true that most immigrants ultimately

acquire proficiency in the language of the host country, it is important to note that language barriers are often temporary in nature However, the division that results can last a lifetime, as seen in ethnic ghettos and segregated neighborhoods In addition, the difference also exists in rooted customs, religions and beliefs in various region For example, while in some Orient countries such as Japan, South Korea or China, the collectivism is highly appreciated, with thousands of rules and etiquettes among seniors and juniors that need to be followed in the workplace Meanwhile, Western organizations often prioritize the individualism, with more freedom and flexibility for employees All these kinds of disparities, then, easily lead to conflicts and misunderstanding within the cross-cultural workforce

III Conclusion

To sum up, due to the fast-paced globalization process, it is undeniable that organizations should recognize the reasonability and importance of prioritizing "Diversity and Inclusion" and

"Managing Cultural Diversity" as a strategic imperative Based on the case analysis and supporting data, it can be seen that adopting diversity influences in a positive way on an organization's innovation, attracts top-tier talent, and shapes the overarching corporate culture However, there are still several limitations and controversies related to the application of diversity and inclusion in the working culture These obstacles require suitable policies and supportive programs from organizations as well as the agreement of each individual in order to attain the overall goals To overcome the associated limitations and controversies, it does not only require organizations to enact suitable policies, but they also need to cultivate a culture where diversity is celebrated, inclusion is embraced, and every individual is valued for their

unique perspective and contribution It is in this environment that organizations can truly harness the power of diversity to thrive in a globalized and interconnected world

IV Recommendation

Shifting to a diversive and inclusive working environment is definitely a necessary process However, managing the diversity within the organizations so that it would not result in negative impacts such as tokenism or the resistance of employees is a great challenge for international managers Despite the vast array of cultural distinctions, the following factors are indispensable when managing cultural diversity in the workplace

Firstly, it is vital that the policies related to Diversity and Inclusion are well-communicated and explained to every single member in the organizations Accurate and timely information sharing

is essential for productive work and successful teamwork, especially when project challenges arise, and immediate solutions are required Also, there are cultural differences in how individuals react when they hear bad news Certain Asian cultures tend to be reluctant to communicate negative news to bosses, whereas other cultures might overstate it Some training programs, workshops or face-to-face conferences within the organizations can be effective methods to deal with the fault and gap in communication, especially at large-scale organizations with a variety of levels

Another common solution for the disparities in culture aspects that many organizations from small to large scale have been applying successfully is team-building However, not all the time and every organizations can hold an effective team-building There is often a misunderstanding that building activities have always be dynamic, monumental and costly In fact, a team-building can simply be a cozy dining with small talks among co-workers about their daily life