How does managing cultural
diversity affect organizational
performance?
New Advances in Business
Mohsin
15
Contents
1.
Abstract ........................................................................................................................................... 2
2.
Introduction .................................................................................................................................... 3
3.
Purpose/ Rationale of Study ........................................................................................................... 4
3.1.
Aim .......................................................................................................................................... 5
3.2.
Objectives................................................................................................................................ 5
4.
Literature Review (Academic theories, models) ............................................................................. 6
4.1.
Organizational subfield ........................................................................................................... 7
4.2.
Approaches ................................................................................................................................. 7
4.3.
Strategies .................................................................................................................................... 8
4.3.1.
Acculturation Strategy ........................................................................................................ 8
4.3.2.
Instrumental and Terminal Values ...................................................................................... 9
4.3.3.
Assimilating Strategy ........................................................................................................... 9
4.4.
5.
CD Link with Organizational Performance ................................................................................ 10
4.4.1.
Cost & Resource ................................................................................................................ 11
4.4.2.
Marketing & Creativity ...................................................................................................... 11
4.4.3.
Values and Problem-Solving ............................................................................................. 11
Methodology (Case studies: success & failure cases) ................................................................... 12
5.1.
Success Case of HP ................................................................................................................ 12
5.2.
Success Case of IBM .............................................................................................................. 13
5.3.
Failure Case of Walmart........................................................................................................ 14
6.
Critical Analysis/Evaluation ........................................................................................................... 15
7.
Recommendations ........................................................................................................................ 17
8.
Conclusion ..................................................................................................................................... 18
9.
References .................................................................................................................................... 19
1. Abstract
This piece of paper has addressed a popular topic of managing cultural diversity in
organizations and its impact on organizational performance. Both theoretical
perspectives and practical case examples included in this study have revealed that
effective management of cultural diversity can certainly lead to greater financial
benefits and gains for organizations and inadequate approach towards cultural
diversity management can lead to ineffective performances, bad reputation and
financial burden as well. This study has presented some effective approaches of
managing cultural diversity for organizations and has identified potential benefits that
organizations can gain by effective cultural diversity management. Cultural
awareness, diversity related initiatives, respect to other cultures and effective
communication are some attributes that are found to be vital for managing cultural
diversity with positive effect.
2. Introduction
The topic under consideration in this study is contemporary in nature i.e. managing
cultural diversity in today’s complex business organizations. Managing cultural
diversity in an organization is becoming an important phenomenon due to increasing
competition, advancement in technology and global business expansions (Jones &
George, 2011). It is considered to be challenging in workplace, however it is not
recognized as impossible task to manage cultural diversity. According to Johnson &
Johnson, (2006) interdependence has been increasing between managing culture of
an organization and diversity of its workforce. Thus, diversity in any workplace is
increasingly becoming certain. It has also been observed that increasing
globalisation in business environment is resulting in a more diverse workforce that
also assists in driving high performances (Jones & George, 2011).
In order to regard diversity management, the existing social, political and business
procedures encourage entrepreneurs, managers, and politicians to set the diversity
management as a priority of their agenda and also incorporate in their strategies.
Managing diversity is defined by Konrad, (2011) as development and implementation
of such systems and procedures in an organization that aims to manage
organizational employees. In such manner, the biggest advantage that organizations
get is to maximize potential advantages of diversity while minimizing its potential
disadvantages. Organizations develop and implement diversity management
practices. These procedures are consisted of a set of formalized practices to achieve
diversity efficiently amongst all organizational stakeholders (Konrad, 2011). In other
words, managing diversity is referred as the acknowledgment of people's differences
and recognition of these differences.
It not only increase good management practices in an organization but also helps in
preventing discrimination and encouraging inclusiveness. It is realized that good
management practices alone could not help employees to operate efficiently with a
diverse workforce therefore it is often challenging to examine the specific role of
diversity in an explicit area of management (Lundrigan et al, 2012). This study will be
following a structural flow for conducting this interesting piece of research i.e. started
by brief introduction of the topic followed by aims & objectives for defining the route
of this study. After that detailed literature review will be conducted followed by
discussion and analysis, and in the end stating key points in conclusion and
developing concrete recommendations.
3. Purpose/ Rationale of Study
The core purpose of this study is to investigate and discuss in detail the very concept
of diversity management and its management in organizational context. Another
attached purpose of this study is to analyse and explore the effects of managing
cultural diversity on overall organizational performance. Therefore, the purpose of
this study is twofold. This is important because different researchers have discussed
this topic differently such as, diversity management has been considered as a
method for managing individual employees.
This management happens to be in the light of their uniqueness in terms of output/
contribution and attributes possessed by each individual and importantly in the light
of their distinct backgrounds so that support can be provided for them to operate/
behave efficiently as a group and to enhance their interpersonal associations along
with communication (Elder, Lister & Dauvergne, 2014). The rationale behind this
research is also simple and following a visible trend caused by severe changes in
how organizations operate and behave. Such as, the rise of globalization in
increasingly demanding improved and frequent interaction between varied
backgrounds, value systems and cultures which has helped the emergence of
managing cultural diversity aspect and has diverted the attention of organizations
and researchers toward extracting positives out of culture diversity. This strong
rationale is the backbone of this study and efforts will be made to evaluate the
effects of cultural diversity management on organizational performance as it is a
serious need of the time for organizations operating around the world. Moreover,
organizations today need cultural diversity for keep moving ahead with creativity and
adaptable to frequent changes (Maier, 2008).
This is reflecting that the purpose of this study is quite comprehensive and different
from traditional or simple management of people. Therefore, the focus of this study
will be to analyse this particular context of research area under consideration so that
adequate conclusion and recommendations can be reached. For making this study
logical and structural below are given set of aims and objectives that will guide the
path of this study is a coherent manner.
3.1.
Aim
The basic aim of this research is to investigate and examine that how cultural
diversity management does affects the performance of organizations so that
recommendations can be provided for enhancing the positive effects of cultural
diversity for organizations.
3.2.
Objectives
1. To review and analyse the contemporary literature pertaining to theoretical
concepts of cultural diversity and managing cultural diversity in organizations.
2. To review literature regarding models and approaches of cultural diversity
available for organizations.
3. To identify and evaluate the real life case studies of organizations with
success and failure in managing cultural diversity.
4. To discuss and analyse the linkage of cultural diversity and organizational
performance.
4. Literature Review (Academic theories, models)
Diversity management is considered to be a strategic approach to the management
of human resources in an organization. It is publicized by members of an
organization and being supported by programs, events and tools. Such programs,
tools and techniques aims to the integration and development of diversity. According
to various researchers, the adoption of diversity management practices by
organisations is voluntary and is not being imposed. Human resource management
with a diversified approach is more specific to create a comprehensive working
environment for the employees. Diversity management practices in an organization
help in promoting the participation of all members in working activities. Moreover, the
Indic dual characteristics of every member are also supported by good diversity
management (Cuomo and Mapelli, 2007).
In diversity management literature, the main subjects being studied are the
advantages of diversity management, diversity management as a procedure of
creating an efficient workforce, problem solving and decision making processes and
the study of performances of different work groups at large (Ely and Thomas, 2001).
Organizational culture is considered basic building block for any organization. It
plays a significant role in the implementation of diversity management practices. It is
revealed that if the culture of an organization is integration-oriented or if it has not
incorporated with integration values, the potential results of diversity management
will not provide better results to the organization (Cox, 2001; Pless and Maak, 2004).
So in order to make an efficient diversity management system, the essential desires
are integration values, organisational culture, and management competencies.
Moreover, the diversity management practices are not only applied to HRM within
the organization operating in one country but these practices also deal with the
management of human resources of the branches of an organisation operating in
different countries.
Based on this approach, the diversity management practices are divided into two
extensive categories that are intra-national and cross-national (Tung, 1993). The
intra-national diversity management is made up of foreigners that have emphases on
the integration of new members into a traditional standardized workforce. On the
other hand, the cross-national diversity management is referred as the management
of relationships and communication between among employees in order to keep a
dynamic and efficient workgroup. In cross-sectional diversity management approach,
the employees having different cultural backgrounds and coming from different
nations are managed (Iles, 1995).
4.1.
Organizational subfield
It is observed that across national as well as organizational contexts, the scope of
diversity management initiatives and various programmes differ. This indicates that
uncovering changes that are found to be hidden under diversity management
platform in organizational settings are very important. The major areas of diversity
management sub-fields in an organization are HRM systems and internal
employees’ demographics (Han, Han & Brass, 2014). The other constituents include
organizational diversity management structure and incorporation of diversity goals in
corporate strategies and in different operations and levels of an organization. The
internal employees’ demographics have a noticeable effect on the content of
diversity management strategies and practices. These demographics provide a
framework in which diversity goals are set. Moreover, the assimilation of diversity
goals and objectives into Human Resource Management systems of organizations is
very important for successful management of workforce diversity. Moreover, the
importance of assimilation of diversity goal in HRM practices can also be seen in
attribution of diversity management to other operational areas of an organization.
Therefore, it is revealed that diversity management processes and HRM operations
are closely related (Fine, 2003).
4.2.
Approaches
There are several approaches found in literature regarding management of cultural
diversity in organizations. It is important to note that varied focuses are possessed
by both intra- national and cross- national approaches of managing diversity;
however similar processes of acculturation can be embedded in these approaches.
This refers to the process using which a different culture can be adapted by the
employees/ individuals representing a separate cultural base (Rieger & WongReiger, 1991). Within this process of acculturation there exists four unique
techniques i.e. integration, assimilation, separate and deculturation. However,
integration practice is endorsed minimally by deculturation and separation
techniques in this regard (Cox & Beale, 1997).
When it comes to interacting with people having cultural diversity, the functioning of
separation technique is not sufficiently efficient i.e. within organizational culture
context. However, the approach of separation derides all the related cultures
included in the organizational ethnic groups during work. However, with the
implementation of deculturation technique all the related cultures included in the
ethnic group of organizations gets proper respect and practices their unique
behaviours according to their norms and ignores the aspect of integration (Mujtaba
2010). Therefore, organizations do have options for managing cultural diversity in
effective ways and this discussion in providing valuable points that organizations
should consider while managing cultural diversity so that positive affect can be
obtained on organizational performance.
4.3.
Strategies
4.3.1. Acculturation Strategy
Acculturation is referred as a procedure which is used to change the cultural norms
and this cultural change is often occurred as a result of association between cultural
groups. Acculturation at an individual level is referred as the alterations in one’s
attitudes and behaviours resulting in an association with another cultural group
(Berry et al., 1987). It is observed that in assimilation, sub groups of non-dominant
cultural groups follow the values and norms of the dominant group. In this specific
mode of acculturation, people are often preferred to be separated geographically
from their own cultural group and are found to be non-willing to follow the dominant
culture. On the other hand, integration is comprised in the cultural change in which
all parties to be involved.
It can be explained as the conformation of cultural sub-groups on certain dimensions
while keeping considerable parts of their own cultures (Berry, 1984). It has been
proposed by several researchers that an acculturation strategy is being followed by
most of the organizations while managing diversity. The strategy is usually based on
one of the four acculturation approaches to incorporate numerous groups of
individuals they engage (Cox & Finley-Nickelson, 1991).
4.3.2. Instrumental and Terminal Values
Instrumental values are referred as those values that are being guided by human
behaviours to realize correct and anticipated end-state. On the other hand, terminal
values are considered as to the desirable end-states themselves, which human
beings struggle to achieve (Rokeach, 1973). If these concepts are applied in this
specific selected context, it is revealed that companies may hold diversity as an
instrumental value or may be as terminal value. Managing Diversity is observed as
instrumental in realizing and achieving of business success. The firms that focus on
diversity management approached exert their focus on leveraging diversity in order
to achieve business related outcomes and these firms hold diversity as an
instrumental value. On the other hand, the company that reveals a diverse workforce
in their company as an objective and not considers it as a means for attaining better
business results hold diversity as a terminal value (Pitts et al, 2010).
4.3.3. Assimilating Strategy
In an assimilation strategy, the participants of each ethnic group familiarize their
behavioural norms to those of the leading group. The companies that are accepting
diversity management realize and show respect for demographic differences while
recruiting their employees. However, the policies and strategies set by those
companies and their practical application generally normalize standards and
behaviours across all employees resulting in encouraging conformity to a dominant
culture (Bendl, Fleischmann & Walenta, 2008). Such as, many large organizations
prefer to hire women and they focus to attract female employees for their firms.
However, later one, in these organizations it is expected that women follow a
working culture and career trajectory that has been established by men. The working
culture set by men is based on the values and rewards characteristics seen as
masculine and that little does to accommodate for an exceptional workplace of
women (Ely & Thomas, 2001).
4.4.
CD Link with Organizational Performance
Considerable evidence exists in the literature regarding the linkage of cultural
diversity and organizational performance. Several reasons and factors related to
cultural diversity have been identified that effects on the organizational performance
and various researchers have conducted comprehensive researches on finding out
the kind of link cultural diversity possess with organizational performance.
It has been stated by Kossek, Lobel & Brown, (2006) that enough theoretical
foundation exists that reflects the capacity of diversity towards developing
competitive advantage with the help of its adequate management in organizations. In
this context, two studies have been popular i.e. Catalyst, (2004) and Cordeiro &
Stites-Doe, (1997). Both these studies were conducted in large organizations
operating in US and found that cultural diversity have affected positively on the
financial standing of both organizations i.e. in the context of return on assets and
return on equity which is an encouraging sign for this particular study. However, it
will be interesting to identify that which factors allowed this positive affect to occur.
Similarly, Horwitz & Horwitz, (2007) also conducted comprehensive research study
by analyzing 35 cases of cultural and team diversity that happened within the time
period of 1985- 2006. Their findings indicated that diversity in terms of task
(educational or functional) facilitates productive implications on team performance
which identifies one prime supporting factor. Apart from this, diversity in terms of biodemographic was failed to provide positive effects and it also reflects that quality of
tasks can be enhanced using task- based diversity. This discussion is indicating a
positive factor contributing for productive impacts of cultural diversity on
organizational performance and at the same time it is indicating that not all sorts of
diversity drives organizational performance. Below given are range of other aspects
and factors due to which cultural diversity is seen as driver of organizational
performance and which aspects are need to be taken care of while managing
cultural diversity:
4.4.1. Cost & Resource
It is important to note here that increased costs can be faced by organizations when
cultural diversity is not managed adequately and effectively i.e. for organizations
possessing diverse employees and teams. This is vital because various resistant
factors can be faced by organizations regarding managing cultural diversity which
can lead to increased conflicts among workforce, ineffective communication and
increased employee turnover (Pitts, 2005). In this context selection of right talent
representing culturally & socially diverse groups and retaining it for longer period of
time is a key element for attaining financial gains and competitive advantage in terms
of unique human capital. Therefore, a challenge in this regard is to hire capable
diverse individuals from the available diverse labour market because possessing
diverse competent and creative individuals will drive organizational performance.
4.4.2. Marketing & Creativity
Another perspective present in literature is that effective marketing strategies,
creativity in designs and increased sales are some major drivers of cultural diversity
for organizations (Allen et al, 2008). This can be done by understanding range of
ethnic groups and cultures and capitalizing on the insights of cultures which
ultimately leads to expanding into markets containing greater diversity of consumers.
Therefore, in a way organizations can enhance their sales and product line by having
culturally diverse workforce. Extensive outcome of productive, innovative and
creative ideas prevails in organizations having diverse employees which ultimately
enhance the overall performance of the organization.
4.4.3. Values and Problem-Solving
The ability to solve complex problems and hurdles gets higher in organizations
having culturally diverse individuals/ employees. Therefore, effective problem
resolution and identification of problem root cause provides assistance for
organizations in excelling and eliminating resistant factors efficiently. Another driver
that urges organizations to maintain cultural diversity is the development of fair and
transparent value system within the organization which ultimately strengthens the
employment relations as well (Brammer, Millington & Pavelin, 2009). These factors
then enables workforce to develop comfort zone among each other and work
towards progress of organization overall.
5. Methodology (Case studies: success & failure cases)
5.1.
Success Case of HP
HP is a leading software and personal computer seller company operating with staff
of over 150, 000 employees across the globe (HP, 2008). From the very start HP
initiated a corporate culture of new kind which is known as “the HP way” (Groeger,
2009). With an open corporate policy HP introduced their policy of managing
diversity in its early days. An environment of mutual understanding and trust was
developed by HP as part of their diversity management policy and encouraged every
individual to perform optimally (Menke et al, 2006). HP adopted cultural synergy
strategy with the help of which HP valued other cultures and at the same time
sustaining with own- culture. HP tried to solve their market related problems by
obtaining different viewpoints from individuals having varied frames of mind which
helped in developing cultural synergy (Laroche, 2003). For keeping pace with
business world, HP redesigned their diversity management policy for assisting
success in business. HP developed separate diversity management policy for their
offices in different parts of the world for assuring adequacy. They appointed
Work/Life & Diversity managers for Asia- Pacific, Africa, Europe and Middle East for
managing cultural diversity aspects. HP also developed diversity council consisting
of senior executives for championing and directing initiatives related to diversity
across the globe (Fiske & Lee, 2012).
Overall HP included several key points in their diversity management policy i.e.
emphasize on respect and integrity for individuals and achieving innovation because
they perceived diversity as vital driver towards innovation (Dong, 2002). HP has
connected every individual by injecting their diversity into work. Non- discrimination
policy of HP is also strict which includes work environment free of harassment,
employee network groups, equal opportunity, no discrimination based on disability,
gender, religion, colour, race or sexual orientation (HP, 2008). HP’s key to success
has been the development of cultural synergy. Based on this diversity management
HP has gained financial benefits consistently and has attained increasing market
share.
5.2.
Success Case of IBM
Managing and understanding cultural diversity has been a key business focus and
success factor for IBM. This company employs above 390,000 employees in more
than 100 countries. Based in US, IBM is considered as leading organization in
supporting and valuing their large number of diverse employee base (IBM, 2014).
Diversity task forces were created by IBM during the late 90s by covering
demographic groups i.e. Native Americans, transgender individuals, Asians, men
and women and individuals with disabilities. The responsibility of understanding and
making sure home like feeling for each constituency at IBM was given to higherlevel managers, seasoned executives and members. Surveys and meetings were
undertaken for identifying vital factors regarding each cultural group working in IBM.
Asian employees were more inclined towards stereotyping, work- life issues and
male dominance in cultures were concerns for women, and limited opportunities of
training were issues for African employees etc. (Diversity Workforce, 2008). IBM
then addressed these and many other issues related to diversity by implementing
significant initiatives. One initiative included the availability and access to mentors for
employees using the official website of the company for obtaining advice and
support. Enhanced communication was adopted by IBM as part of their address to
certain women related issues that were identified via meetings. Significant part of
IBM cultural diversity strategy is that they conduct follow ups on their surveys and
initiatives for finding out which program provided most productive results so that they
are aware of issues that are completely eliminated or that are still viewed as problem
(Thomas, 2004).
Positive and healthy results were obtained by IBM in response to all the diversity
related initiatives that helped them in improving their overall performance. For
example, the number of women executives got three times higher globally for IBM
and increased the number of minority executives two times as a result of their
initiatives. In addition, the number of executives having disability also increased
along with executives having transgender tendencies. By the end of 2009, 1.3 trillion
USD market is represented by minorities and women in IBM and this feature of
endorsing and respecting diversity embedded in IBM’ culture has become a key
aspect of facilitating competitive advantage for IBM (Bauer & Erdogan, 2009).
5.3.
Failure Case of Wal-Mart
Wal-Mart a giant in the retail sector has been an example of failure in the context of
cultural diversity management and has been criticized extensively for this reason.
The performance of Wal-Mart also got affected during the last decade of so because
of their poor diversity management approach. Against women associates working in
Wal-Mart, gender discrimination occurred on which heavy criticism also emerged. A
lawsuit action of 1.6 million women was implemented against Wal-Mart for
discriminating against women employees in the context of promotions and
compensations. Therefore, in the history of USA this lawsuit is the biggest one. WalMart faced danger of paying 10 billion USD fine/damages if they proved guilty which
is equal to their complete one year profit (Wal-Mart Watch, 2007).
Moreover, another lawsuit occurred against them which stated that employees are
being forced to work by skipping short breaks, performing off the clock, and
tampering with records of wages. As many as 80 lawsuits were witnessed against
Walmart by the end of year 2008 including issues related to labour (Wal-Mart Watch,
2008). On top of that it was found that managers appeared to be careless regarding
these issues and were not able to implement any action. In response, many
organizations formed union against Wal-Mart including environmental associations,
religious groups and labour unions for putting pressure on Wal-Mart regarding
changing their existing diversity management approach. Especially, the Christian
groups also claimed of inequality and unjust practices of Wal-Mart towards their
employees which was a serious damaging concern for Wal-Mart (Sellers, 2005). It
was also found that overall women are being underpaid in comparison with their
male colleagues (Wal-Mart Watch, 2007a). Landler & Barbaro, (2006) also stated
that the approach of Wal-Mart towards diversity management is proving insufficient
and it does not fit into every culture around. This case is a good example of how
careless attitude and inadequate approach towards diversity management can lead
to financial setbacks and bad reputation in the market and among consumers.
6. Critical Analysis/Evaluation
The above presented literature and discussion has cleared various aspects related
to the topic under consideration which will be analysed in this section. It is evident
that diversity management consists of several vital building blocks with core
objective of extracting optimal benefits out of human capital possessed by
organizations. Three building blocks of DM includes a) making sure that attainment
of organizational objectives is not being resisted by the presence of culturally diverse
workforce, b) enhancing the variety of individuals possessed by organizations on
specific terms, c) making sure that effective attainment of organizational goals is
made possible with the help of culturally diverse human resources. Cultural diversity
is of no use if these three building blocks are not being developed and ensured.
Moreover, for organizations the cost of ignoring diversity can be heavy i.e. in terms
of efficiency, money and time.
Falling short of achieving long term sustainability and inability to capture increased
market share are some other costs that organizations will have to pay depending on
the nature of their products and services (Saji, 2008). Decreased productivity due to
rising conflicts and unhealthy tensions are some other negative implications that
improper attention to cultural diversity can pose to organizations. Inability to match
the level of creativity and innovation needed in today’s modern and well-paced
business world is another negative implication that organizations may face as a
result of ignoring cultural diversity aspect. For example, not hiring and retaining
competent individuals having diverse cultural and functional backgrounds. The
presence of globalization is a crucial factor that has pushed organization to respond
to these changes going around otherwise negative implications is at the doorstep. It
is observed that cultural diversity is becoming inevitable for organizations and its
management has direct effects on the overall organizational performance one way or
the other. It is compulsory for organizations these days to formulate diversity
management strategy along with strategies and practices of HR. For obtaining
positive effects of cultural diversity it is vital that organizations must possess such
codes of conduct, values and norms that addresses and governs the diversity issues
(Bendl, Fleischmann & Hofman, 2009).
It has been observed that certain individual and organizational factors are needed to
be considered and approached strategically for managing diversity effectively. In the
context of individual factors cultural differences, inter- conflicts, stereotyping and
personality attributes are some key factors that needs special consideration while
managing diversity. In the context of organizational factors practices of human
resource, mixing of networks informally, power distribution, cultural environment and
method of acculturation are some key factors that need special considerations while
managing diversity.
Therefore, it is evident that managing cultural diversity does not simply affect
organizational performance positively, but it has to be earned by organizations with
the help of above mentioned approaches and considerations in the right direction.
The above discussed examples of three different organizations is reflecting that
adequate cultural diversity management is an essential component for organizations
that helps them in achieving unique competitive position in the market and it requires
from organizations to take care of range of factors and aspects with the help of
strategic and suitable approaches available. Factors are similar to a large extent that
needs to be taken care of when it comes to diversity management.
7. Recommendations
On the basis of above detailed discussion and analysis following presented are
some set of concrete recommendations that will enable organizations to extract
positive impacts of managing cultural diversity:
1. Cultural competence is a highly demanded skill in the context of managing
cultural diversity because it directly addresses the issues related to crossculture management and allows managers and employees to avoid potential
conflicts. Cultural competence refers to a skill possessed by individuals with
the help of which individuals effectively interact in a pool of diverse workforce.
However, it is important to note that this skill can only be developed when
cultural awareness is facilitated, know- how of different cultural values is
present, attitude of respect and patience towards cultural attributes of different
cultures is present and effective communication skills are present.
Therefore, organizations should take these steps serious and ensure their
availability at individual and group levels for managing cultural diversity
properly entailing towards increased organizational performance.
2. Organizations should value and recognize cultural diversity and different
existing cultures officially so that a positive vibe and intent is conveyed across
the organization. Cultural synergy will be developed by implementing this
recommendation which is most important for organizations. In addition,
organizations should celebrate their achievements; exhibit pride on cultural
diversity possessed and celebrates the differences as well. This will provide
competitiveness and flexibility within the organizations and ultimately impact
positively on organizational performance.
3. Providing understanding of diversity management notions, self- awareness in
the context of understanding own stereotypes and cultural values across the
board. Most importantly, the organizations should inject openness to
experience, positive intent towards altering such organizational practices that
can or are creating hurdles for particular working groups or individuals.
4. An official statement regarding no- discrimination holds immense vitality for
organizations willing to managing cultural diversity effectively for driving
organizational performance. This statement should include all the necessary
points that can help in managing cultural diversity and eliminate fears of
culturally diverse individuals working in the organization. For example, a
statement exhibiting policy of the organization towards strictly not engaging or
supporting any type of harassment, discrimination against any member of the
organization. it should be made clear in the statement that organization will
strictly not involve and will go against any kind of discrimination/harassment
including gender, mental, education, religion, color, national origin, sexual
orientation, geographic location and race etc. And this statement shall apply
on all the organizational functions including training, promotions, interviews
and demotions.
8. Conclusion
It can be concluded that cultural diversity can be a unique benefit or cost depending
on how organizations manage and utilize it. However, it is clear that basic and
embedded benefit of cultural diversity is to drive breakthrough performances and
giving balance to an organization. Developing cross- cultural skills and raising
awareness are two main points that organizations need to implement throughout
groups, teams and individuals working in organizations. It is concluded that for
embracing this concept of managing cultural diversity organizations need to invest
on three basic components i.e. focus, time and people. Acculturation approach has
been a considerable option organization in the context of managing cultural diversity
(Cox & Finley- Nickelson, 1991). Effective communication has found to be imperative
tool for driving adequate diversity management practices for organizations. The case
study examples have also made it clear that separate strategy and policy regarding
managing cultural diversity is the need of time for organizations if positive affect is
intended to obtain on performance aspect. Moreover, damaging outcomes can be
faced by organizations if not given proper attention towards management of cultural
diversity. It is also concluded that importance of organizational culture has increased
with considerable effect with the arrival, emergence and existence of cultural
diversity issues in organizations across the globe.
9. References
Allen, R., Dawson, G., Wheatley, K. & White, C., (2008) Perceived diversity and
organizational performance. Employee Relations, 30 (1), pp. 20-33.
Bauer, T., & Erdogan, B. (2009) Organizational behavior 1st Ed, New York: Flat
World Knowledge, Based on information from Ferris, M. (2004, Fall). What everyone
said couldn’t be done: Create a global women’s strategy for IBM. The Diversity
Factor, 12(4), pp. 37–42
Bendl, R., Fleischmann, A., & Hofman, R. (2009) Queer theory and diversity
management: Reading codes of conduct from a queer perspective. Journal of
Management and Organization, 15(5), pp. 625-638.
Bendl, R., Fleischmann, A., & Walenta, C. (2008) Diversity Management Discourse
Meets Queer Theory, Gender in Management 23(6), pp. 382–94.
Berry, J. W. (1984) Cultural relations in plural society: Alternatives to segregation
and their socio-psychological implications. In N. Miller & M. B. Brewer (Eds.), Groups
in Contact. New York: Academic Press
Berry, J. W., Kim, U., Minde, T., & Mok, D. (1987) Comparative studies of
acculturative stress, International Migration Review, 21(3), pp. 491-511
Brammer, S., Millington, A., & Pavelin, S. (2009) Corporate Reputation and Women
on the Board. British Journal of Management, 20(2), pp. 17–29.
Catalyst (2004) The bottom line: Connecting corporate performance and diversity,
New York: Cenage
Cordeiro, J., & Stites-Doe, S. (1997). The impact of women managers on firm
performance: Evidence from large U.S. firms. International Review of Women and
Leadership, 3(1), pp. 1-20.
Cox, T. (2001) Creating the Multicultural Organization, Jossey-Bass, San Francisco.
Cox, T., Beale, R.L. (1997) Developing competency to manage diversity, BerrettKoehler Publisher, Inc., San Francisco.
Cox, T. H., & Finley-Nickelson, J. (1991) Models of acculturation for intraorganizational cultural diversity, Canadian Journal of Administrative Sciences, 8(2),
pp. 90-100
Cuomo, S., Mapelli, A. (2007) Diversity management, Guerini e Associati, Milano
Diversity
Workforce,
(2008)
Diversity
[Online]
Available
at
http://www-
07.ibm.com/ibm/au/corporateresponsibility/pdfs/GL_9833_diversity_nocov.08.pdf
[Accessed 02-03-2015]
Dong, J. (2002) The rise and fall of the HP Way, Palo Alto Weekly, Online edition,
April 10, pp. 4-5
Elder, S. D., Lister, J., & Dauvergne, P. (2014) Big retail and sustainable coffee: A
new development studies research agenda. Progress in Developmental Studies,
14(1), pp. 77-90
Ely, R.J., Thomas, D.A. (2001), “Cultural Diversity at Work: The Effects of Diversity
Perspectives on Work Group Processes Outcomes”, Administrative Science
Quarterly, 46(6), pp.229-273
Fine, M. G. (2003) Building successful multicultural organizations: Challenges and
opportunities, in Ely, J.R., Foldy, E.G., & Scully, M.A. Ed, Reader in Gender,
Work and Organization: Oxford: Blackwell
Fiske, S. T. and Lee, T. L. (2012) Stereotypes and prejudice create workplace
discrimination. In A. P. Brief (ed.), Diversity at Work, Cambridge University Press,
Cambridge, pp. 13-52.
Groeger, M. (2008) The HP Way - an example of corporate culture for a whole
industry
[Online]
Available
at
http://www.silicon-valley-story.de/sv/hp_way.html
[Accessed 03-03-2015]
Han, J., Han, J., & Brass, D. J. (2014) Human capital diversity in the creation of
social capital for team creativity, Journal of Organizational Behavior, 35(1), pp. 5471.
Horwitz, S. & Horwitz, I., (2007) The effects of team diversity on team outcomes: A
meta-analytic review of team demography. Journal of Management, 33(6), pp. 9871015
HP,
(2008)
Timeline
[Online]
Available
at
http://www.hp.com/hpinfo/abouthp/histnfacts/timeline/hist_00s.html [Accessed 03-032015]
IBM,
(2014)
Diversity
&
Inclusion
[Online]
Available
at
http://www-
03.ibm.com/employment/us/diverse/ [Accessed 02-03-2015]
Iles, P. (1995) “Learning to work with difference”, Personnel Review, 24(6), pp.44-60
Jones, G. R., & George, J. M. (2011) Managing in the global environment,
Contemporary Management, New York, NY: McGraw Hill
Konrad A. (2011) Understanding Diversity Management Practices: Implications of
Institutional Theory and Resource-Based Theory, Group Organization Management,
36 (1), pp. 6-38
Kossek, E., Lobel, S. & Brown, J In Konrad, Prasad & Pringle, Eds. (2006)
Handbook of Workplace Diversity, London: Sage Publications.
Landler M & Barbaro M, (2006) Wal-Mart Finds That Its Formula Doesn’t Fit Every
Culture
[Online]
Available
at
http://www.nytimes.com/2006/08/02/business/worldbusiness/02walmart.html?pagew
anted=all&_r=0 [Accessed 03-03-2015]
Laroche, L. (2003) Managing Cultural Diversity in Technical Professions,
Butterworth-Heinemann: Elsevier Science, USA, pp.18.
Lundrigan, M., Tangsuvanich, V., L., Wu, S., and Mujtaba, B.G. (2012) Coaching a
diverse workforce: The impact of changing demographics for modern leaders,
International Journal of Humanities and Social Science, 2(3), pp 40-48
Maier, C., (2008) Leading Diversity – A Conceptual Framework. St Gallen: Institute
for Leadership and HR Management.
Menke, M., Xu, Q., & Gu, L. (2006) An analysis of the universality, flexibility, and
agility of total innovation management: a case study of Hewlett–Packard, Journal of
Technology Transfer, 32(3), pp 39-62.
Mujtaba, B.G. (2010). Workforce diversity management: Challenges, competencies
and strategies 2nd Ed. ILEAD Academy: Florida
Pitts, D., (2005). Diversity, representation, and performance: evidence about race
and ethnicity in public organizations. The Journal of Public Administration Research,
15, pp. 615-631.
PITTS, D. W., Hicklin, A. K., Hawes, D. P., Melton, and E. (2010) .What drives the
implementation
of
diversity management programs?
Evidence from
public
organizations, Journal of Public Administration Research & Theory, 20(4), pp. 867886
Pless, N.M., Maak, T. (2004), “Building an Inclusive Diversity Culture: Principles,
Processes and Practice”, Journal of Business Ethics, 54 (2), pp.129-147.
Rieger, F. and Wong-Rieger, D. (1991) “The application of acculturation theory to
structuring and strategy formulation in the international firm”, Strategic Management
Society Annual Meeting, Toronto: Canada
Rokeach, M. (1973) The Nature of Human Values, New York: The Free Press.
Saji, B., (2008) Workforce diversity, temporal dimensions and team performance,
Cross Cultural Management, 11 (4), pp 40-51
Sellers, J. (2005) Deliver us from Wal-mart? Christianity Today Magazine, pp. 1-6
Thomas A, (2004) Diversity as strategy, Harvard Business Review [Online] Available
at https://hbr.org/2004/09/diversity-as-strategy [Accessed 02-03-2015]
Tung R.L. (1993), “Managing cross-national and intra-national diversity”, Human
Resource Management, 32(4), pp.461-477
Wal-Mart Watch, (2007) Gender discrimination at Walmart, [Online] Available at
http://walmartwatch.com/issues/discrimination/ [Accessed 03-03-2015]
Wal-Mart Watch, (2007a) Gender discrimination at Wal-mart [Online] Available at
http://walmartwatch.com/issues/discrimination/ [Accessed 03-03-2015]
Wal-Mart
Watch,
(2008)
Issues
-
Labor
Relations
[Online]
http://walmartwatch.com/issues/labor_relations/ [Accessed 03-03-2015]
Available
at