Executive summary

The number of businesses that operate globally has increased significantly. The world is opening to new destinations and foreign firms. Because of globalization, managers are faced with different issues, and one of them is cultural diversity within the workforce. Therefore, it is important for managers to handle unfamiliar and new challenges that the organization has experienced before.

Introduction

The 21st workplace environment is characterized by differences in genders, ages, races, religions, ethnic groups and lifestyle changes. The management has the responsibility of fixing differences into a coordinated and harmonious way and using talents and abilities of the employees extensively. If well managed, diversity can contribute to a competitive advantage. However, if it is ignored, the organization can be affected negatively, and the work environment proves unwelcoming. Most firms have realized that workforce is drastically changing; hence management is embracing diversity (Phillips & Gully, 2011). Consequently, management is handling all issues related to cultural diversity on significant business factors such as communication and the impact of cultural diversity on it. However, dealing with workplace diversity is still a problem for managers in the international business set up.

Workplace diversity is defined as the division of workforce into different categories, which are regarded as commonality in a given national or cultural context and might be harmful or beneficial to employment outcomes such as promotion prospects, job opportunities and general interactions among employees and employers (Brislin, 2008). Organizations and cultures define diversity differently. A view of literature on the organization, business, and human resource had three forms of diversity. The categories were: broad-based, narrow-based and conceptual rule. The categories might have a positive or adverse effect on the job prospects or employment in different nations (Mazur, 2010). Despite the different definitions, workplace diversity encompasses differences and similarities that individuals bring into an organization. The definition is usually broad and entails the different dimensions that influence the perspectives and identities that employees possess such as geographical location education and profession. Citing Gilmore (2012), conceptually, diversity includes everyone. Diversity initiatives lead to organizational culture and workplace environment, hence resulting in differences in work. It involves not only teaching but also learning from other people who are different. Also, it entails respect and dignity for all and establishment of workplace practices and environment that encourage learning from others. According to Brislin (2008), workplace diversity uses employees skills fully, hence contributes to the overall prosperity and growth of the entire organization. It is built on the basis that identities should not be ignored or discarded but instead valued and maintained.

Culture is significant on the global business environment via different angles. The 21st century is characterized by globalization where trade, as well as other forms of business barriers, have been discarded or supported due to rapid technological advancement (Brislin, 2008). The flow of information is more than ever, markets are expanding and are more approachable. Firms with the right products and environment attract different employees and customers.

As firms expand or relocate to regions or countries with different cultures, it experiences various setbacks such as different beliefs, language, preferences, tastes, and norms. If the firm and its management fail to align with the prevailing culture, then the organization might not benefit from the expansion process (Brislin, 2008). Gilmore (2012) points out that cross-cultural communication can only occur if managers and employees understand the communication context.

 Managing Workplace Diversity

Increased cultural diversity is making organizations and managers not only to learn but also motivate individuals with wider value systems. To successfully manage a diverse workforce in the multinational organizations, managers should learn about cultural similarities and differences among individuals from diverse cultural backgrounds (Kühlmann & Heinz, 2017).  Additionally, managers should remain sensitive to the cultural differences, which can contribute to a positive cross-cultural communication within the organization. In the present international business environment, it is important for a manager to clearly understand employees’ cultural differences and their importance in business relations. The managers of the organization should also appreciate that diversity is inclusive; hence every employee is involved.

Despite the fact that it is a challenge for employees to effectively apply commitment, energy, and skills to improve the organization, it is essential for the manager to understand the cultural values and beliefs.  Both the values and beliefs create a supportive work environment for employees. Within every environment, there are culturally non-supportive and supportive policies, informal structures and people. Therefore, it is important for managers not only to plan but also implement organizational practices and systems to effectively manage employees so that potential disadvantages of diversity are minimized while the benefits are maximized (Martin, 2014). Consequently, organizations should have a policy in place that prevents harassment or discrimination against individuals based on gender, race, nationality, religion, sex or age. The policy should apply to all organizations and employment practices including selection, recruitment, training, salary increment, separation, demotion or transfer.

Consequently, it is important for an organization and its management to understand and incorporate communication clearly. Also, they should consider cultural difference, empathize and show respect and remain flexible to the communication issues present within the workplace. The management should also be knowledgeable about the values and ethical issues and communicate decisions on the same to all employees. More importantly, all communication channels should be open so that employees should readily provide feedback without fear of victimization. Firms should also adopt policies, which indirectly or directly impact on the diversity issues. Organizations should also handle, address or respond to any diversity issues promptly and professionally. Additionally, the organization should reflect and state its stance on diversity in its vision and mission statement so that managers can adopt it. Citing Brislin (2008), if the firm’s mission statement has a direct and clear commitment towards diversity, all partners involved who come into contact with the mission statement should not only understand but also accept the significance of diversity. Kühlmann and Heinz (2017) further add that through different on-going values and practices, it is possible for managers to manage diversity successfully.

It is important to note that if diversity is not effectively managed, it can result in different problems. Some of the negative impacts of diversity within the workplace include unhealthy relationships between workers or with the management; reduced productivity, internal conflict and inability to retain or attract talented employees. Additionally, the firm might face legal actions and complaints. The mentioned can interfere with the organization’s financial ability regarding compensations and spending a lot on recruitment and training (Martin, 2014).

Conclusion

In conclusion, it is evident that managers should have skills to handle the ever-growing cultural diversity in the international business environment due to globalization. Therefore, taking advantage of the diversity although it has its benefits and limitations. Perpetual language and cultural barriers should be managed effectively. Unclear communication of the organization’s objectives results in the lack of teamwork, confusion and low morale. Additionally, some employees might fail to embrace cultural diversity. This can further make it challenging for the management. However, the fact remains that cultural diversity is present in the 21st century and managers should adapt to it and manage it effectively.

References

Brislin, R. W. (2008). Working with cultural differences: Dealing effectively with diversity in the workplace. Westport, Conn: Praeger.

Gilmore, S. (2012). Human resource management. Oxford: Oxford University Press.

Kühlmann, T. M., & Heinz, R. (2017). Managing Cultural Diversity in Small and Medium-Sized Organizations: A Guideline for Practitioners. Springer.

Martin, G. C. (2014). The effects of cultural diversity in the workplace. Journal of Diversity Management (Online), 9(2), 89-91.

Mazur, B. (2010). Cultural diversity in organisational theory and practice. Journal of Intercultural Management, 2(2), 5-15.

Phillips, J. M., & Gully, S. M. (2011). Organizational behavior: Tools for success. Cengage Learning.

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