Organization Behavior Module 5

Multiculturalism
Introduction

The whole globe village has become one melting pot of common culture where diffusion has become
a reality, today. In this context, one needs to understand that holding on to values does not hold good
if societies wish to make a movement towards becoming a member of the globe scenario. It become
essential to examine the effects of cross – culturalism in various societies and organizations which
operate within them and whether a common set of cultural norms can be devised to create a yardstick
for measuring multiculturalism, particularly in organizational context. Multiculturalism is becoming a
norm in the global companies. It brings some difficulties but the results demonstrated that cultural
diversity does in fact add value and, within the proper context, contributes to firm competitive
advantage. It is argued that diverse groups make better decisions. A diverse workforce enhances
creativity and understanding of customers. In some industries, tight markets make it important to find
the best workers and then utilize them to do the best in the organization. These best workers have
very diverse backgrounds, which should not be a limiting factor a recruitment process.

The Concept of Multiculturalism

One also needs to understand that there are number of factors which determine the issues of
managing multiculturalism especially in relation to organizations. Specific cultural traits which
individuals develop as a result of socialization process embedded in their own country's culture is one
such factor. Managing cultural diversity in organization perhaps lies in understanding and unleashing
the moral commitment on these different subcultures that are consistent with those of the
organization. A research by the well-known theorist Geert Hofstede has concluded with the help of
Geert Hofstede Model (1990) that societies may differ along four major cultural dimensions:

Power Distance

The degree to which society accepts inequalities in organizational relationship. The concept assumes
that ethical or unethical behavior in organizations is learnt through the process of interacting with
peers rather than the superior. The practical implications stemming from the results of the application
of this concept is that, in cultures where the degree of power distance is low or moderate, individual
look more to their peers than to their superiors for guidance in terms of ethical conduct. This is
demonstrated in table 1:

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 Organization Behavior Module 5

Power Distance Characteristics in Organizations:

Low Power Distance Culture High Power Distance Culture

Employees are less afraid to disagree Employees fear disagreeing with their
with their managers. managers.

Close supervision negatively evaluated Close supervision positively evaluated by

by subordinates. subordinates.

Managers more satisfied with Managers more satisfied with directive or

participative superior. persuasive superiors

Uncertainty Avoidance:

The degree to which Individuals in a society feel threatened by situations that is unstructured, unclear
or unpredictable. Due to differential norms and conducts of behavior or the absences of formalized
codes of conduct in a given culture, individuals may experience ambiguity in organizations when
faced with different culture and value system. it has been found that individual from high uncertainty
avoidance cultures are more likely to consider organizational code of ethics when forming their own
de-ontological norms than those hailing from low uncertainty avoidance cultures. This is
demonstrated in table 2

Uncertainty Avoidance Characteristics in Organization

Low Uncertainty Avoidance Cultures High Uncertainty Avoidance Cultures

Employee optimism about motives behind Employee pessimism about motives

company activities behind company activities

Company rules may be broken for Company rules should not be broken for
pragmatic reasons any reasons

Loyalty to employer is not seen as a Loyalty to employer is seen as a virtue

virtue

A stronger achievement motivation A weaker achievement motivation

Acceptance of foreigners as managers Suspicion towards foreigners as a

manager

More employee risk taking Less employee risk taking

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 Organization Behavior Module 5

Individualism/Collectivism

The extent to which individuals in a society view themselves as individuals or a part of a large group.
The concept assumes that ethical or unethical behavior in organizations is sometimes determined by
the extent to which individual consider the group as being more important than themselves or vice-
versa. Hence employees from individualistic culture propelled by their own self interest will tend to be
influenced less organizational code of ethics. This is demonstrated in table 3

Individualism/Collectivism Characteristics in Organizations

Individualistic Culture Collectivist Culture

Employees are emotionally independent Employees are emotionally dependant on

from the company. the company.

Freedom & challenges in job given more Training & use of skills in job given more
importance. importance.

Manager aspires to leadership. Manager aspires to conformity.

Individual decision seen to be better than Group decision seen to be better than
group decisions. individual decisions.

Employees' initiative is encouraged. Employees' initiative is frowned upon.

Employees attracted to small companies. Employees attracted to large companies.

Masculinity/Femininity

The extent to which a society's dominant values stress assertiveness and materialism versus concern
for people and quality of life. The concept assumes that individuals from highly masculine cultures
may be less likely than those from highly feminine cultures to be to be influenced by organizational
codes of ethics. This is demonstrated in table 4

Masculine/Feminine Characteristics in organizations

Masculine Cultures Feminine Cultures

Greater value differences between men & Smaller value differences between men & women
women in the same jobs. in the same jobs.

Achievement defined in terms of Achievement defined in terms of human contacts &

recognition & wealth. living environment.

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 Organization Behavior Module 5

Employees prefer more salary to shorter Shorter working hours to more salary are
working hours. preferred by employees

Stronger achievement motivation. Weaker achievement motivation.

Managers more interested in leadership, Managers less interested in leadership,

independence & self-realization. independence & self-realization.

Earning, recognition, advancement & Relationship with managers, cooperation, friendly

challenge relatively more important work environment &employment security more
important.

How to Manage Multiculturalism

1. Selection must be Task Related
2. Facilitate a better understanding of cross-cultural Differences
3. Develop Cooperation & mutual respect among team members
4. Distribute power according to each person's ability to contribute to the task
5. Minimize early judgments based on ethnic stereotypes
6. Trust the collective judgments of the group

Work Force Diversity

Today's labor pool is dramatically different than in the past. A single homogeneous group no longer
dominates that. People now overwhelmingly represent the workforce pool from a vast array of
backgrounds and life experiences. It has become now a resource imperative for companies to have a
diversified pool of talent. That's why Organizations are becoming increasingly diverse in terms of
gender, race, ethnicity, and nationality.

Workforce Diversity has changed in recent years .Not long ago, diversity referred to a person's
gender or ethnic group. Diversity today encompasses differences in age, tenure in an organization,
educational background, sexual or affectional orientation or preference, physical abilities or qualities
and social status, economic status, lifestyle, ethnicity and gender among many other characteristics.

Generally speaking, the term "Workforce Diversity" refers to policies and practices that seek to
include people within a workforce who are considered to be, in some way, different from those in the
prevailing constituency.

Why encourage Diversity?

Diversity is not about counting heads, but making heads count!

Organizations that mange their diverse workforce can increase their productivity substantially through
many ways. Some of which are mentioned below: -

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 Organization Behavior Module 5

* As a Social Responsibility

Because many of the beneficiaries of good diversity practices are from groups of people that are
"disadvantaged" in our communities, there is certainly good reason to consider workforce diversity as
an exercise in good corporate responsibility. By diversifying our workforces, we can give individuals
the "break" they need to earn a living and achieve their dreams.

* As a Legal Requirement

Many companies are under legislative mandates to be non-discriminatory in their employment

practices. Non-compliance with Equal Employment Opportunity or Affirmative Action legislation can
result in fines and/or loss of contracts with government agencies. In the context of such legislation, it
makes good business sense to utilize a diverse workforce.

* As a Marketing Strategy

Buying power, particularly in today's global economy, is represented by people from all walks of life
(ethnicities, races, ages, abilities, genders, sexual orientations, etc.) To ensure that their products and
services are designed to appeal to this diverse customer base, "smart" companies, are hiring people,
from those walks of life - for their specialized insights and knowledge. Similarly, companies who
interact directly with the public are finding increasingly important to have the makeup of their
workforces reflect the makeup of their customer base.

* As a Business Communications Strategy

All companies are seeing a growing diversity in the workforces around them - their vendors, partners
and customers. Companies that choose to retain homogenous workforces will likely find themselves
increasingly ineffective in their external interactions and communications.

* As a Capacity-building Strategy

Companies that prosper have the capacity to effectively solve problems, rapidly adapt to new
situations, readily identify new opportunities and quickly capitalize on them. The range of talent,
experience, knowledge, insight, and imagination available in their workforces can measure this
capacity. In recruiting employees, successful companies recognize conformity to the status quo as a
distinct disadvantage. In addition to their job-specific abilities, employees are increasingly valued for
the unique qualities and perspectives that they can also bring to the table.

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 Organization Behavior Module 5

* Increased Market share

Increased diversity among the workforce fosters large marketshareof diverse customers and those
who intentionally buy from organization that promote diversity. Therefore, a diverse workforce can
tackle increased diversity in the customer base effectively.

* Increased Market share

Encouraging diversity saves the cost of unwanted turnover by providing non-monetary reason to stay
with an organization. It reduces recruitment costs because companies with diversity policies and
programmes are sought out by those who have such policies; And by reducing discrimination
lawsuits. A company that makes employees of diverse background feel good could offset the decline
in organizational loyalty.

* Increased Productivity
People who enjoy coming to work generally produce more. They believe that their work will be valued
and leave to advancement. The research also indicates those diverse groups are generally more
creative and innovative than homogeneous group.

* Improved Management Quality

Including all employees in consideration for managerial position improve the pool of applicants .It also
unblock some highly qualified individuals who may have been unable to advance due to written or
unwritten policies that discriminated against them for one reason or another.

* Improved Recruiting Efforts

Support shortage in labor appears from time to time. Recruitment of a diverse population can offset
shortage because many workers are drawn to companies that embrace diversities.

* Other Reasons
Increased Competitiveness through ease in recruiting scarce labor, increased sale to minority-culture
groups, increased creativity and innovations, enhanced problem solving, enhanced organizational
flexibility, increased ability to acquire resources and enhanced social responsibility-contribution to
society.

How to Manage Diversity

1.Clarify Your Motivation

None of these are bad reasons, but none of them are business reasons, and given the nature and
scope of today's competitive challenges, only business reasons will supply the necessary long-term
motivation.. In business terms, a diverse work force is not something your company ought to have; it's
something your company does have, or soon will have. Learning to manage that diversity will make
you more competitive.

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 Organization Behavior Module 5

2. Clarify Your Vision

It doesn't say, "Let us give them a chance." It assumes a diverse work force that includes them and
us. It says, "Let's create an environment where everyone will do their best work."

3. Expand Your Focus

Managers usually see affirmative action and equal employment opportunity as centering on minorities
and women; the diversity here includes race, gender, creed, and ethnicity but also age, background,
education, function, and personality differences. The objective not to assimilate minorities and women
into dominant white male culture but to create a dominant heterogeneous culture.

4. Audit Your Corporate Culture

If the goal not to assimilate diversity into the dominant culture but rather to build a culture that can
digest unassimilated diversity, then you had better start by figuring out what your present culture
looks like.

5. Modify Your Assumptions.

The real problem with this corporate culture tree is that every time you go to make changes in the
roots, you run into terrible opposition. Every culture, including corporate culture, has root guards that
turn out in force every time you threaten a basic assumption.

6. Modify Your Systems.

The first purpose of examining and modifying assumptions is to modify systems. Promotion,
mentoring, and sponsorship comprise one such system, and the unexamined cream-to-the-top
assumption

7. Help Your People Pioneer

Learning to manage diversity is a change process, and the managers involved are change agents.
There is no single tried and tested "solution" to diversity and no fixed right way to manage it.
Assuming the existence of a single or even a dominant barrier undervalues the importance of all the
other barriers that face any company, including, potentially, prejudice, personality, community
dynamics, culture, and the ups and downs of business itself. Maybe they needed some kind of
pioneer training.

9. Continue Affirmative Action.

The reason you then want to move beyond affirmative action to managing diversity is because
affirmative action fails to deal with the root causes of prejudice and inequality and does little to
develop the full potential of every man and woman in the company. In a country seeking competitive
advantage in a global economy, the goal of managing diversity is to develop our capacity to accept,

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 Organization Behavior Module 5

incorporate, and empower the diverse human talents of the most diverse nation on earth. It's our
reality. We need to make it our strength.

Final Thought…

For whichever of these reasons that motivates them, it is clear that companies that diversify their
workforces will have a distinct competitive advantage over those that don't. Further, it is clear that the
greatest benefits of workforce diversity will be experienced, not by the companies that have learned
to employ people in spite of their differences, but by the companies that have learned to employ
people because of them. In Short management philosophies and practices are culturally conditioned;
it stands to the reason that there is much to be gained by including cultural studies in all management
or professional development.

Dr. Ankit Gandhi