Managing Cultural Diversity

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Businesses that do not address the issue of cultural diversity risk falling behind because of the realities of the modern workplace. For example, the average age of the American worker is increasing, white males now make-up less than 50% of the workforce while women, and people of color make up an increasing number of new entrants into the workforce. The diversity umbrella includes sex, age, race, physical ability or disability, marital status, parental status, cultural background and lifestyle. All of these groups expect to be treated with dignity, sensitivity and fairness. And this is just within the United States. With businesses becoming ever more global we are increasingly dependent on trade with other countries. In fact most manufactured goods contain components from more than one country. Employees and leadership must be culturally sensitive and appreciate cultural differences.

Companies save money when they see to it that minority members feel like they are well treated. The bottom line is that absenteeism and turnover rates are reduced while the company gains a good reputation in this important area, which leads them to be more successful when it comes to recruiting and retaining talented minority members. A cultural diverse group also uses marketing dollars more wisely as they are more savvy about what various groups want and how to reach them. If a company provides workers from all groups with up-to-date tools and resources necessary for achievement they maximize their potential for success. And, finally, the creative process is expanded when culturally diverse groups share their ideas and knowledge when it comes to solving problems and making decisions.

Individual cultures influence the work place based on what is expected within their culture. Knowledge of these different practices is critical in our ever-expanding global marketplace. For example, some cultures value the group more than the individual, Japan is an example, while others, such as the United States, value individual attainment more that of the group. Neither is right or wrong, however an understanding of this difference is important when a company has global ambitions.

Another major area of concern is how employees view management. In some cultures there are wide power differences between the worker and the boss and in such situations the employees are willing to accept whatever the boss dictates. In societies in which there is not such a clear demarcation between employee power employees do not automatically accept the idea of a power hierarchy. Again, Japan is an example of a society with large differences in power between management and employees while the United States is an example of a country in which such a discrepancy is not automatically accepted.

In business there are few things that can be counted on absolutely. In the United States the tolerance for eccentric or unconventional behavior is high as is the tolerance for risk. Workers in Israel and Italy hold predictability to be more valuable than in the United States, which results in their being less tolerant of risks. They prefer to keep things safe.

In business there are few things that can be counted on absolutely. In the United States the tolerance for eccentric or unconventional behavior is high as is the tolerance for risk. Workers in Israel and Italy hold predictability to be more valuable than in the United States, which results in their being less tolerant of risks. They prefer to keep things safe.

The United state is also an excellent example of a materialistic society which values the acquisition of money and material things more than a concern for the general well being of its citizens and a high quality of life for everyone. Sweden is an example of a country that has great concern for their citizens and place less value on the attainment of individual success and material gain.

Another area that makes the United States distinctive is our short-term perspective and associated demand for immediate gratification. Informality is also more accepted in the United States than in many other countries. While these perspectives seem perfectly proper to us because of our urgent time orientation, it is not the way that much of the world expects things to develop. Indeed, in many cultures a long-term perspective is the norm. A certain formality is expected, social rules are expected to be followed, business deals take time to develop and short-term returns on investments are not expected. These differences are quite important. Societies like ours consider time to be a scarce resource and we are impatient when it is wasted. However, in cultures in which time is considered to be unlimited, business relationships and deals move more slowly and negotiations are more patient. This is very important for us, as Americans, to understand as our eagerness to get an agreement over lunch or to impose deadlines is very off-putting to those with a different time perspective. If there business is important we need to learn how to be more willing to allow the time for things to develop.