SHIPPING AND HUMAN RESOURCE MANAGEMENT

CULTURAL DIVERSITY AND ITS IMPACT

ON EMPLOYEE ENGAGEMENT;
A CASE STUDY ON A MULTINATIONAL ORGANISATION.

By

Evgeniya Philippou

CIM MBA Shipping Scholar

This Research Paper is part of an MBA degree in Shipping dissertation submitted at the

Cyprus Institute of Marketing. The dissertation received a Distinction.

88
1. Abstract

The world is full of confrontations between people, groups, and nations who think, act, and feel dif-
ferently. Due to globalisation and multinationalism, many international or domestic organisations are looking
to expand outside their residential country and operate around the globe. Consequently, the establishment of
multinational organisations leads to the need to embrace diversified working environments.

While numerous studies have been dedicated to the interconnection of cultural differences and em-
ployees’ performance, productivity or communication, not much attention has been paid to the aspect of
employee engagement.

The present study focused on the examination and evaluation of cultural differences and their impact
on employees’ level of engagement in a particular multinational organisation, specialising in oilfield services,
drilling and well construction, and operating around the globe. The aim was to understand how cultural diver-
sity and geographical disparity may influence employees’ interaction, driving them to experience less or more
engagement in the working process.

The research data was collected through a survey containing closed questions assembled into five
sections. The purpose of the questionnaire was to identify the relevant correlation between employee engage-
ment and both cultural diversity within the team and organisational practices, in terms of culture. A total of
116 employees from departments in Cyprus, Russia, Uzbekistan, United Arab Emirates and the Czech Republic
participated in this study.

The correlation analysis of the collected data revealed that employee engagement was affected by
their interaction with coworkers from other cultural backgrounds. It also demonstrated a ‘strong’ correlation
between the organisational environment, in terms of culture and business practices, and employee engage-
ment.

These findings provide valuable information to the management of the organisation, experiencing
issues in performance, efficiency and communication between employees of different geographical locations.
Based on the results, they can integrate new practices and improve existing practices to enhance employee
engagement. It can also be used as a model for further exploration in this area of interest.

Keywords: Employee engagement; Cultural Differences; Multinational Organisation; Diversified Workforce;

Organisational Environment

2. Introduction

Workforces are increasingly culturally diversified, due to globalisation and the expansion of businesses
internationally (Olsen, 2012). Employee diversity is being recognised as a competitive advantage and strategic
capability (Darwin, 2015).

However, several organisations experience challenges with the performance of their workforce due to
barriers arising from cultural diversity or difficulties in cross-culture communication. In some cases, this oc-
curs as a result of limited knowledge, insufficient due diligence or a lack of intercultural communicative skills,
and leads to uncertainty, ethnocentrism, and a lack of team cohesion. For this reason, the establishment of a
comfortable and inclusive working environment and proper management of a culturally diversified workforce
is essential for the well-being of any multicultural organisation.

89
 Employees’ cultural diversity brings challenges to cooperation between workforce groups with varied
cultural backgrounds. Undoubtedly, organisational performance and economic results depend on the involve-
ment and engagement of individuals and groups within their workforce. Differences in mentality, set of values
and beliefs, ideology, understanding of social concepts within the workforce, and even different views and
expectations of the leader could result in frustration and damage to commitment or engagement within an
organisation. Moreover, organisations are expected to establish an appropriate organisational culture to pro-
mote diversity and encourage the cooperation of employees from different backgrounds, something that is
beneficial for all parties.

By conducting this study, it was expected that two hypotheses would be confirmed or rejected:

Hypothesis One is that employees’ cultural diversity impacts their level of engagement.

Hypothesis Two is that there is a correlation between employee engagement and organisational practices
in terms of culture.

The aim of the present study was to identify the correlation between cultural diversity and employee engage-
ment within an international organisation. In this regard, there were three main objectives:

Objective One was to identify which underlying aspects related to cultural diversity impact employees’ levels
of engagement.

Objective Two was to investigate the effect of cultural differences on employees’ levels of engagement.

Objective Three was to analyse the impact of the organisational environment in terms of culture on employee
engagement.

3. Literature Review

Definitions and Classifications of Culture

There are two main types of cultural terminology. The first one is national culture, concerning differ-
ences between groups in geographical or national regions, and the second is organisational culture relating
to different employee practices and values within organisations. National culture is defined as ‘the collective
programming of the mind that distinguishes the members of one category of people from another’ (Hofstede,
2010). It means that even though humans, in general, have similar universal characteristics in behaviour, they
are distinguishable in accordance with their national or regional culture. The categorisation and distinction of
cultural groups becomes necessary in order to predict how employees generally behave, to comprehend the
reasons behind their actions and decisions, and to manage to unify and standardise policies for the avoidance
of offence. Various factors, such as religion, language, race, nationality, political affiliations and educational
background are associated with different cultures.

One of the most recent studies has been completed by a group of scholars led by Robert House and
called GLOBE (Global Leadership and Organisational Behaviour Effectiveness). The group developed nine cul-
tural categories based on the results of their research, which include: Power Distance, Uncertainty Avoidance,
Assertiveness, Institutional Collectivism, In-group Collectivism, Future Orientation, Performance Orientation,
Humane Orientation, and Gender Egalitarianism. It is argued that, although the GLOBE study focused on 61
societies, the results can be fairly applicable for all regions around the globe. The nations grouped into the
same cluster demonstrate high cultural similarities. In contrast, countries in distant clusters illustrate signifi-

90
cant cultural differences. According to Figure 1 below, Greece (and presumably Cyprus) and Russia belong to
the same Eastern Europe cluster. Uzbekistan and the United Arab Emirates are most likely to belong to the
Middle East cluster, and the Czech Republic could either belong to Eastern Europe or the Germanic cluster.
Therefore, even though some countries share some similar cultural dimensions, they can also demonstrate
significant culturally distanced characteristics.

Figure 1. Country Clusters (GLOBE – House et al. 2002)

One of the most popular, comprehensive and widely used studies concerning national values and cultures
at the national level, was conducted by Geert Hofstede. This quantitative cross-cultural study categorises
‘country culture scores’ into dimensions that influence the actions and values of a person:

• Collectivism versus individualism

• Power distance
• Uncertainty avoidance
• Femininity versus masculinity
• Long-term versus short-term orientation

These dimensions were used as a tool to define how culturally close or distant populations in the present study
are. Each country was categorised according to its dimensional score, which is based on Hofstede and other
researchers’ data, and cross-compared in a chart, presented in Figure 2.

91
 Comparison - Hofstede’s Cultural Dimensions
IDV
120

100

80

60

LOT 40 PDI
20

MAS UAI

Cyprus Russia UAE Uzbekistan Czech Republic

Figure 2. Countries comparison based on Hofstede’s Cultural Dimensions framework

Analytical description of the cultural dimensions for each country, and its comparison based on the performed
research analysis follows below:

Collectivism versus individualism (IDV).

In individualist societies, people tend to be independent, self-sufficient, and only closely tied with their immedi-
ate family members. On the other hand, people in collectivist societies are more integrated into strong groups.
Based on the performed analysis, Cyprus, Russia, and the United Arab Emirates are ranked as countries with
a collectivistic society. Uzbekistan falls in the middle ranking and the Czech Republic is found in the Individ-
ualist society, meaning that this group of employees would rather focus on their own achievement and build
relationships with employees based on mutual advantages.

Power distance (PDI)

Employees in organisations with a high score of Power distance accept hierarchy, inequalities, and subordi-
nations. In such organisations there is a clear gap between management and other personnel. The power is
centralised in a few hands, and subordinates are expected to obey the instructions of their management. All
five sample countries demonstrate a high score of Power distance, but with the Czech Republic and Cyprus
scoring significantly less than the remaining countries. In that context, employees would expect easier access
to management, partial participation in decision making, and they would prefer lower levels of supervision.

92
 Uncertainty avoidance (UAI)

A high uncertainty avoidance score indicates that people tend to feel better with strictly established rules
connected with formalisation and security. People in weak uncertainty avoidance countries tend to be more
strategy and achievement oriented.

Cyprus presents an extreme score on Uncertainty avoidance, meaning that people feel uncomfortable in am-
biguous situations and are intolerant of the unknown and unexpected. At the opposite end of the scale, the
Czech Republic demonstrates a lower score for uncertainty avoidance. This means that employees act more
tolerantly to change in their job, and they feel more freedom of expression.

Femininity versus masculinity (MAS)

In masculine societies, people are more focused on recognition, competition, assertiveness, challenges, and
earnings above the quality of life. In contrast, feminine societies are more concentrated on cooperation, se-
curity of their employment, being on good terms with colleagues and supervisors, and caring for the weak.

Russia shows a very low score in this dimension meaning that it is a strongly feminine country. Uzbekistan, by
contrast, is an extremely masculine country, with people oriented towards clear goals and targeting achieve-
ment and success. The other countries demonstrate a medium rank of masculinity. Here, people have a bal-
ance between being success-oriented and their quality of life.

Long-term versus short-term orientation (LOT)

Countries with a higher score in this dimension tend to be more pragmatic and thriftier, whereas countries
with a lower score tend to be more value-driven and nationalistic, with a preference for maintaining traditions.
Russia, Uzbekistan, and the Czech Republic demonstrate high scores, being more long-term oriented. These
populations can easily adapt to changes of conditions. On the other hand, Cyprus and the UAE maintain a more
normative way. They treat traditions with respect and focus on the fulfillment of social obligations.
Another notable theory was created by Edward T. Hall, who categorised cultures into groups of either
high or low context. He pointed out that people belonging to the high-context category can experience irrita-
tion and low patience in a communication process with low-context people. In comparison, low-context people
can be provided with less information while interacting with people in the high-context category.

Based on these classifications, the United Arab Emirates and Cyprus fall into the category of high-con-
text cultures, while Russia and the Czech Republic are categorised as low-context cultures. According to Dad-
abaev (2004), Uzbekistan culture is a high-context one.

Organisational culture

Organisational culture is defined as a cognitive framework that includes attitudes and values, behav-
ioral norms, habits and collective thinking adopted by an organisation. Organisational culture is related to
employees’ practices and habits. It sets mechanisms and regulations for employees’ behaviour and is linked to
the national culture of employees.

Diversified teams must be provided with well-built, managed organisational culture to function ef-
fectively and establish competitive advantages. In particular, organisations with international departments
and geographically dispersed employees need to integrate the appropriate culture to ensure a high level of
conformity among members.

93
 Globalisation brings with it concerns for how to successfully create, and efficiently manage multi-
cultural teams. Thus, for the past few years, a fair number of studies related to cultural diversities and their
impact on business have been conducted. For instance, Jackson et al. (2003) stated that ethnically homoge-
nous working teams demonstrate better performance than diversified ones. Joshi and Roh (2007) reported a
non-significant correlation between ethnic diversity and performance. Jones (2005) found that multicultural-
ism tends to negatively impact a group’s performance. Jehn et al. (2004) suggested that group heterogeneity
exerts both positive and negative effects on group outcomes. It is agreed, however, that the environment and
context of the workplace significantly influences the impact of diversity on performance.

Managing a diversified workforce is a challenging process. Various occasions related to poor man-
agement can lead to employees’ resistance (Antwi-Boasiako, 2008), resulting in low performance and poor
cooperation among diversified colleagues.

Gray and Larson (2003) propose to overcome such challenges and cultural bias by creating standard
practices, promoting communication and cooperation in sharing information.

There are various studies which have revealed the positive impact of the ethnical diversity of a team
on innovations and creativity, because of the opportunity to learn and share alternative views (Alesina and La
Ferrara, 2005).

A Forbes study on this approach concluded that ‘the best way for new ideas to be developed is through
a diverse workforce’. Various studies have noticed the positive impact of ethnic diversity on a team’s produc-
tivity and performance (Gupta, 2013). A variety of cultures within organisations usually leads to better problem
solving, due to the capacity to approach aspects from several points of view, with different cultural mindsets.

As to the above, culturally diversified personnel allow the organisation to enhance vision and innova-
tion, benefiting from a wide range of approaches, ideas and strategic methods.

Looking at situations from several different angles, because of the variety of ethnic backgrounds and mind-
sets, eventually leads to a greater quantity of ideas and possible solutions for critical matters, according to
Martin (2014).

Having management coming from different cultural backgrounds can be a source of ideas, new prac-
tices and approaches, and the integration of ‘challenge culture’ (Travis, 2018). A multinational workforce can
be seen as a source of concentrated knowledge and new ideas, or diverse points of view on existing aspects.
It also helps to keep up in a dynamic environment, staying alert for upcoming changes, and hence remaining
competitive.

Employee Engagement

Employee engagement is defined as the level of participation of a person within their job responsibilities, and
it can be related to their volume of achievements within the employer’s requirements. Engaged employees can
see the company as a whole and realise the purpose, position and role they have to engage with. This leads to
improved decision making, enhancement of performance, and drives an organisation to outperform its com-
petition. In contrast, disengagement can result in harm to a business. The level of employee engagement is
crucial to organisational and staff performance and can be impacted by various conditions within the business.

Autonomy: It is necessary for employees to be trusted in making decisions to perform their job in the best
way. When the employee is free to decide how to manage tasks, they feel the need for commitment and value
themselves as assets to the business.

94
Coworker Relationships: The relationship with coworkers is of great importance, especially when colleagues
collaborate closely. Respect between workers can empower individual performance and enhance teamwork as
well.

Fairness: It is critical for employees to feel that they are treated fairly, including the employee’s feeling about
the job, how this job compensates them, how much respect they are receiving from their managers and col-
leagues.

Feedback: Feedback helps employees to realise when they meet expectations, improve and progress.

Goal Support: Whether employees have the means needed to achieve goals. Are they lacking the support to
reach important milestones? Support is vital to success in given tasks.

Leader Availability: The leader should be approachable, visible, and accessible when required. Otherwise,
employees may see the leader as disconnected from them.

Meaning: Meaningful work is one of the pivotal aspects of employee engagement, in that employees involved
with their work see value or a sense of purpose. Other meaningful factors are the business status, compensa-
tion, and an inspirational environment.

Professional Development: Every individual deserves to have opportunities for professional development.
Access to the right resources and the encouragement for individuals or teams to seek opportunities can favour
both the employee and the business.

Shared Values: Shared work attitudes, values, and principles between coworkers aid in the establishment of
a mutual interest in success.

Taking into consideration all the previous theories and findings, as presented and analysed earlier, it
is concluded that employee engagement can be impacted by various aspects and factors which are related to
cultural differences.

Language barriers, religion, or geographical location may affect coworkers’ relationships, driving em-
ployees to prefer groups and communities based on linguistic or other similarities. This fact can reduce pro-
ductivity and performance, as employees may tend to avoid excessive and unwanted communication, for
example, with coworkers of other linguistic groups. To this end, an organisation must provide the appropriate
business culture and internal set of values, supporting the efficient collaboration of employees as a whole.

Autonomy is an additional factor related to employee engagement, and can either be impacted by the
elements of an individualistic or collectivist society. An employee from a more collectivist culture might feel
frustrated and disengaged if they are expected to act in an autonomous and independent way.

Power distance in culture affects the employee’s perception of respect, trust, and a feeling of fairness.
An employee coming from a culture with low power distance, working with an approachable type of a leader,
would experience disconnection and disengagement in an environment with high power distance. Employees
from low power distance cultures consider frequent evaluations and feedback as an attempt to control.

Uncertainty avoidance can affect employees’ feelings of fairness and comfort. For instance, an em-
ployee from a low certainty avoidance society and with a strict set of principles, rules, and procedures, could
demonstrate low engagement because of certain expectations of consistency of work, limits of creativity and
freedom of expression.

The form of feminine or masculine culture can affect employees’ relationships and sense of fairness.
Employees from feminine societies can experience disengagement in a masculine-cultured organisation, due
to the high level of competitiveness amongst coworkers.

95
4. Framework and methodology

Participants and Demographics

The research sample was composed of 116 employees of the particular multinational organisation.
From the total number of participants, 35 were located in Cyprus, 23 in the United Arab Emirates, 21 in Uz-
bekistan, 20 in Russia, and 17 in the Czech Republic. All respondents were between the ages of 18 and 65
years old, divided into the categorical ranges of ‘Under 25’ up to ‘Over 56’. Most of the respondents belonged
to the age groups of 26-35- and 36–45-year-olds with 42.24% and 37.07% respectively. The descriptive
statistics of the respondents revealed that the number of female participants consisted of 63 people, while
the male respondent percentage was less by 15.87 % and consisted of 53 persons. The demographic results
demonstrated that 31.03% of participants had been employed in the organisation for more than 6 years.

Materials

The survey was comprised of five sections. The initial section required general information about the
respondent. The remain four sections contained closed-ended questions based on the Likert five points scale
with (1) Strongly Disagree to (5) Strongly Agree.

The first set of questions aimed to measure employees’ overall engagement and satisfaction with
their current employment. The second set questioned the reason for engagement or disengagement. The third
part was related to employee communications and interaction with their co-workers of different cultural back-
grounds. The final part measured the organisation’s involvement with cultural diversities and its intentions for
creating a comfortable environment.

5. Discussion and Survey Results

The first set of questions, measuring employees’ level of engagement, presented in Table 1 below,
revealed that the majority of the respondents expressed high engagement in their working process within the
organisation, with 49.14% Agree and 26.72% Strongly Agree answers. However, 11.2 % admitted low engage-
ment, and 12.93% remained neutral, something which could be harmful for an organisation, to some extent.
Based on the answers to questions two and three, demonstrated in the Table 1, most of the employees would
recommend the organisation to their significant others, because of its culture, and could see a further career
path for themselves. This can be true due to various factors. Employees can feel disengaged, have no sense of
personal accomplishment or feel disconnected from the organisational systems and values, etc. They can feel
uncomfortable or at odds with the organisational culture. 74.14% (with 56.90% Agree and 17.24% Strongly
Agree) of employees had feelings of personal accomplishment, with 13.79% remaining neutral and 12.07%
feeling non-fulfillment. 17.24% of employees saw no career path in the organisation.

Table 1. Employees’ level of engagement

96
 As for the distribution of the results related to employee engagement within various departments,
presented in Table 2 below, the highest scores are observed in Cyprus and Uzbekistan. The low standard devi-
ation 0.74 and 0.76 respectively, demonstrated a slighter difference in opinion among participants from those
departments. The highest mean score (3.98) recorded was at the department in Cyprus.

The lowest mean score was found at the department in the Czech Republic, which is also more cultural-
ly distanced from the other four presented departments by IDV, UAI, LOT dimensions, according to Hofstede’s
Dimension theory. This fact can influence employees’ perception of business practices and the ways of inter-
action with dispersed colleagues, creating mistaken expectations and miscommunications.

Table 2. Employees’ level of engagement within various departments

The second section of the questionnaire’s main part was designed to measure the working environ-
ment and causes that might lead to higher or lower engagement of personnel (Table 3).

Table 3. Employees’ environment related responses (%)

The mean value for the questions, demonstrated in the Table 3, ranges from 3.42 to 3.85 with a stan-
dard deviation score 0.98 – 1.23. The highest mean value (3.85) was recorded for the question on whether
the organisation surrounds the employees with a comfortable and supportive environment. This score demon-
strates that the organisation takes some actions to provide employees with a comfortable working environ-
ment, which is one of the factors, influencing employee engagement.

The lowest mean value (3.42) was observed for the question of whether employees are being provided
with feedback regularly. The provision of feedback is a crucial tool to enhance employees’ ongoing develop-
ment and build their confidence. Without constructive feedback, it is nearly impossible to create a successful
and effective team.

63.8% of employees stated that their opinion is valued, 61.21% stated that they can influence deci-
sions taken by the management, with 20.69% Disagree or Strongly Disagree. The high percentage of negative
answers to the question concerning decision making power can be justified by the large size of the organi-
sation, having a tight hierarchical structure, and the dominance of cultures with High power distance (Russia
and Uzbekistan).

97
 Table 4. Perception of employees from other cultural backgrounds (%)

Table 4 demonstrates that 52.59 % of respondents agreed that they cooperate well with coworkers
and feel valued members of the team, whereas 28.45% strongly agreed and 14.66% were neutral on this mat-
ter. As for communication and interaction with colleagues from other cultural backgrounds, an insignificant
percentage of respondents claimed that they experience difficulties in cooperation (2.59%) and successful
communication (0.86%) with coworkers from other cultural backgrounds (Table 4). About 44.82% (with 13.79
% strongly disagree and 31.03% disagree) stated that they have not experienced any challenges to integration
into the working environment at the beginning of their employment. However, 35.35% of respondents faced
challenges in assimilation. This might be related to the presence of a dominant culture, or to personal difficul-
ties of the respondents themselves, caused by changes in the working environment.

Perception on cooperation with co-workers from

other cultural backgrounds
4.10

4.00

3.90

3.80

3.70

3.60

3.50
Cyprus Czech Republic Russia United Arab Uzbekistan
Emirates

Figure 3. Perception on cooperation with co-workers from other cultural backgrounds divided to departments.

As for the summary of employees’ perceptions towards interaction with coworkers from other cultural
backgrounds, provided in Figure 3, the highest mean scores were demonstrated by employees from the de-
partments located in the United Arab Emirates (4.05), Uzbekistan – (3.93) and Russia (3.91). The lowest scores
were seen in the Czech Republic (3.69) and Cyprus (3.83). Those two departments have a significantly smaller

98
population compared to the main headquarters located in Russia and Uzbekistan. This fact can affect em-
ployees’ perception on interaction with colleagues from the main departments. Employees located in smaller
departments can experience feelings of unimportance, irrelevance and distance.

The final part of the questionnaire measured the organisation’s involvement with cultural diversity
and the creation of a comfortable environment. The results, summarised in Table 5 below, revealed that
about 60.34% of the respondents believed that the organisation promotes diversity and inclusiveness for all
employees (with 46.55% Agree and 13.79% Strongly Agree), whereas 29.31% remained neutral and 10.35 %
Disagreed or Strongly Disagreed. Only 50% of the respondents agreed that the organisation provides free
expression of beliefs and ideas and 48.28% stated that diversity is promoted by the leadership. Such results
could be interpreted as an indication that half of the employees feel that their freedom of expression is limited
to an extent and the organisation is not dedicated enough to the diversity of the employees. Those respon-
dents can have the feeling of being outsiders and unimportant team members, which can directly lead to their
disengagement.

Notably, 59.48% of respondents claimed the presence of a dominant culture within the organisation,
with only 2.59% Strongly Disagree and 12.07% Disagree. Even though the organisation is involved with diver-
sity and inclusiveness, the presence of a dominant culture can affect employees’ cooperation and engagement.
16.38 % of employees felt that they were not given the same opportunity as others (Table 5).

Table 5. Perception of employees on organisational culture and working environment (%)

As for the mean score divided by departments and shown in Table 6, the highest result was demonstrated by
the respondents from the United Arab Emirates with score 3.96 and Cyprus with score 3.71. Remarkably, the
lowest mean score was demonstrated by employees from two dominant cultures of the organisation - Uzbeki-
stan with score 3.33 and Russia with score 3.45. This fact can be understood as those employees coming from
dominant cultures (and being the majority) and having no necessity to assimilate or adapt to other cultural
backgrounds.

Table 6. Perception of employees on organisational culture and working environment summary

99
 • Hypothesis One: Employees’ cultural diversity impacts their level of engagement.

First of all, a Pearson correlation coefficient was estimated to determine the relationship between employee
engagement and interaction with colleagues from other cultural backgrounds. The results, presented in Figure
4, revealed a positive relationship between variables. The value of the correlation coefficient is 0.723, which
falls in the category of ‘strong’ (Dancey, 2007), with a statistical significance p-value less than 0.01. R Square
was 0.37, meaning that the observation of this model does explain at least 37% of the data which is academ-
ically acceptable (Osborne, 2000). Thus, Hypothesis One was confirmed by the results of this study.

Correlation between engagement level and

intercultural interaction
6

4
Engagement

0
0 1 2 3 4 5 6
Interaction with employees from other cultural backgrounds

Figure 4. Correlation between engagement level and interaction with coworkers from other cultural backgrounds (r = +0.724)

• Hypothesis Two: There is a correlation between employee engagement and organisational prac-
tices in terms of culture.

Based on the results of the Pearson correlation test and a regression analysis, there was a positive relation-
ship between employee engagement level and organisational practices toward diversified personnel (Figure 5).
Such practices consisted of dedication to and promotion of diversity, the establishment of a positive inclusive
working environment, and the encouragement of development and career growth. The value of the correlation
coefficient is 0.714, which falls in the category of ‘strong’. The p-value is less than 0.01 and R Square is 0.51,
which is academically acceptable, according to Osborne (2000). Hypothesis Two was therefore confirmed by
the findings of this study.

100
 Correlation between engagement level and
organisational practices
6

4
Engagement
3

0
0 1 2 3 4 5 6
Organisational practices

Figure 5. Correlation between engagement level and organisational practices toward cultural diversity (r= +0.714)

Even though 75.86 % of the respondents said that they felt engaged (49.14% Agree and 26.72%
Strongly Agree), 12.93% remained neutral and 11.2% chose to Disagree or Strongly Disagree. 17.24% saw
no career path in the organisation and 15.52% remained neutral. The high percentage of neutral answers
of the respondents can be taken as indifference or an unreadiness to answer, possibly to avoid expressing
their disagreement with the current status in the department. The neutral position could most likely relate
to indifference with opinions investigated through the survey. Equally, such a fact could rather demonstrate
unwillingness to see a path for improvement within the organisation.

Of note, the fluctuation in results for employees’ perception of interaction and cooperation with co-
workers of other cultural backgrounds was significant among the departments. Participants from the Czech
Republic and Cyprus departments demonstrated the lowest mean scores – 3.69 and 3.83 respectively. The
Czech Republic is the only society from those presented in this study, grouped to the category of individualis-
tic, according to Hofstede’s dimensions. This fact can impact employees’ perception of the company’s values
and goals, especially once compared to their own goals and objectives. Employees would really expect to be
autonomous and focus on their own achievements. As a fact, this may negatively impact their relationship
with the management and coworkers and result in lower engagement.

Cyprus and the Czech Republic are the only societies from those considered in this study demonstrat-
ing the lower Power Distance Index, according to Hofstede’s dimensions. The employees of these societies
expect to have low supervision and easy access to management. This is in contrast with the rest of the de-
partments, which belong to high distance societies. This contrast can impact employees’ autonomy, the desire
for further professional development, the expectation of feedback, and their approach to management.

Nevertheless, employees of the Cyprus department demonstrated a lower mean score on intercultural
interaction, with their score for the measurement of engagement being the highest, at – 3.98. This can be jus-
tified by the high score of employees’ perception regarding the organisational working environment and cul-
ture, being - 3.71. Thus, employees’ engagement level is somewhat influenced by the established organisation-
al practices and values, which confirms the formed hypothesis about the correlation between those variables.

It is important to pay attention to this conclusion: Having those employees satisfied and driven, while
they demonstrate weaker bonding with other cultures, demonstrates that the organisation is succeeding in
keeping the personnel committed, even if it is missing the point with a low level on interpersonal relationships
within departments.

101
6. Conclusion

The research aim of this study was to identify the correlation between cultural diversity and em-
ployee engagement. The performed analysis revealed that interaction with employees from other cultural
backgrounds impacts engagement. It was concluded that the employee engagement of the particular organ-
isation is affected when cooperating with colleagues from other geographically located departments. This
correlation was determined as ‘strong’. Specifically, those who stated that they were engaged with their work,
also demonstrated a higher percentage of successful involvement with colleagues of different cultural groups,
stating that as a pleasant and enjoyable experience.

Adding to this, the study revealed the correlation between the organisational environment, in terms
of culture and business practices, and employee engagement. The promotion of diversity, an encouragement
to meet with other employees’ culture, inclusiveness, and freedom of expression define the employees’ en-
gagement. Based on the research findings, the great majority of employees seemed to be satisfied with their
working conditions, in respect to their involvement in personal and group duties. Diversified teams, provided
with well-built, managed organisation, proved to function effectively and establish competitive advantages by
having engaged employees.

Both hypotheses were confirmed during the research process and demonstrated by the results of this
study.

There were obvious limitations faced by this study. To begin with, the sample size consisting of 116
employees involved in office related positions, is considered too small when compared to the total number of
employees, being more than 11 000 people. For this reason, the results of this study can hardly be used for
generalisation or to safely be considered as given for other populations within and outside the organisation.

Furthermore, employees might not have answered the questions truthfully, due to the belief that the
final statistical results could upset the management.

Additionally, there was a risk of the selection of random answers by participants who failed to read
the details correctly, or be properly involved in the procedure. The respondents were not offered an additional
option for expression of their thoughts other than answering closed-ended questions.

Last but not least, the set of questions used in the survey was too general and did not analyse any spe-
cific aspects of cultural differences. It was constructed on the assumption that the respondent would express
their own general understanding about the engagement, cultural differences and related aspects.

Application of Hofstede’s national cultural dimension to distinguish cultural backgrounds of samples

cannot be considered as an absolutely accurate tool. Even though the method is widely used nowadays, it is
necessary to point out that there are variations and mixtures of cultures or subcultures within a country. An
individual can share common attitudes which are characteristic for a specific country, however, s/he might be
influenced by the presence of subcultures. Therefore, an individualistic approach could be more accurate but
less feasible.

102
 7. References

Alesina, A., and La Ferrara, E. Ethnic Diversity and Economic Performance. Journal of Economic Literature,
Vol. 43, No. 3 [online]. Available from: https://www.aeaweb.org/articles?id=10.1257/002205105774431243
[Accessed 03/06/2021].

Andrew, P., Pedersen, P. and McEvoy, C. (2011). Research Methods and Designs in Sport Management. London:
Human Kinetics.

Bryman, A. and Bell, E. (2015). Business Research Methods. 4th Edition, Oxford University Press.

Dadabaev, T. (2004). Post-soviet realities of society in Uzbekistan. Central Asian Survey, Vol. 23, No. 2. [online].
Available from: https://www.academia.edu/177210/2004_Post-Soviet_Realities_of_Society_in_Uzbekistan_
Central_Asian_Survey_Vol._23_No_2_London_Carfax_Publishing_Taylor_and_Francis_July_pp._141-166 [Ac-
cessed 01/08/2021].

Dancey, C. and Reidy, J. (2017). Statistics without Math for Psychology. 7th Edition. London: Pearson Education
Limited.

Darwin, J. (2015). The Effect of Work Force Diversity on Employee Performance in Singapore Organisations.
International Journal of Business Administration. Vol. 6, No. 2 [online]. Available from: https://www.research-
gate.net/publication/273529076_The_Effects_of_Work_Force_Diversity_on_Employee_Performance_in_Sin-
gapore_Organisations [Accessed 05/08/2021].

Dudovskiy, J. (2018). The Ultimate Guide to Writing a Dissertation in Business Studies: A Step-by-Step Assistance.
New York: Sage Publications.

Gray, C. and Larson, E. (2003). Project Management: The Managerial Process. London: Business Economics:
McGraw-Hill/Irwin.

Gupta, A. (2013) International Business Environment: Challenges and Changes. Research Journal of Manage-
ment Science, Vol. 2 No. 11 [online]. Available from: http://isca.in/IJMS/Archive/v2/i11/5.ISCA-RJMS-2013-072.
pdf [Accessed 01/06/2021].

Herbst, F. and Coldwell, D. (2004). Business Research. New York: Juta and Co Ltd.

Hofstede, G., Hofstede, G.J. and Minkov, M. (2010). Cultures and Organisations. Intercultural Cooperation and Its
Importance for Survival. New York: McGraw Hill.

Hofstede Insights (2021). Country Comparison – Czech Republic [online]. Available from: https://www.hofst-
ede-insights.com/country-comparison/czech-republic/ [Accessed 14/06/2021].

Hofstede Insights (2021). Country Comparison – Russia [online]. Available from: https://www.hofstede-insights.
com/country-comparison/russia/ [Accessed 14/06/2021].

Hofstede Insights (2021). Country Comparison – The United Arab Emirates. [online] Available from: https://
www.hofstede-insights.com/country-comparison/the-united-arab-emirates/ [Accessed 14/06/2021].

Jakson, S., Joshi, A. and Erhardt, N. (2003). Recent Research on Team and Organisation Diversity: SWOT
Analysis and Implications. Journal of Management. [online]. Available from: https://journals.sagepub.com/doi/
abs/10.1016/s0149-2063_03_00080-1 [Accessed 06/06/2021].

Jones, E. (2005). Internationalism, multiculturalism, a global outlook and employability. [online] Available from:
https://core.ac.uk/download/pdf/29019297.pdf [Accessed 07/06/2021].

103
Joshi, A. and Roh, H. (2017) Context Matters: A Multilevel Framework Team Diversity Research [online]. Avail-
able from: https://www.emerald.com/insight/content/doi/10.1016/S0742-7301(07)26001-3/full/html
[Accessed 03/06/2021].

Kwibisa, N. and Majzoub, S. (2018). Challenges Faced in Inter-Organisational Collaboration Process. [online]
Available from: https://pdfs.semanticscholar.org/4e99/378213ce5d874edd0bab7e862c2af95063a4.pdf
[Accessed: 02/07/2021].

Marquet, D. (2020). Leadership is Language. Great Britain: Penguin Business.

Martin, G. (2014). The Effective of Cultural Diversity in The Workplace. Journal of Diversity Management, Vol.
9, No. 2. [online] Available at: https://www.clutejournals.com/index.php/JDM/article/view/8974 [Accessed
07/07/2021].

McLeod, P. and Lobel, S. (1992). The effect of ethnic diversity on idea generation in small groups. In: Acad-
emy of Management Proceedings [online]. Available from: https://journals.aom.org/doi/pdf/10.5465/
ambpp.1992.17515639 [Accessed 25/08/2021].

Minkov, M. and Blagoev, V. (2012). What do Project GLOBE’s cultural dimensions reflect? An empirical per-
spective. [online] Available from: https://www.researchgate.net/publication/232880195_What_do_Project_
GLOBE%27s_cultural_dimensions_reflect_An_empirical_perspective [Accessed: 06/06/2021].

Neeley, T. (2015). Global Teams that work: A framework for bridging social distance. Harvard Business Review
[online]. Available from: https://hbr.org/2015/10/global-teams-that-work [Accessed 25/05/2021].

Olsen, J. and Martins, L. (2012). Understanding organisational diversity management programs: A theoretical
framework and directions for future research. Journal of Organisational Behavior, Vol. 33, No. 8.

Osborne, J. (2000). Prediction in Multiple Regression. Practical Assessment, Research, and Evaluation. Vol. 7,
No. 2 [online]. Available at: https://scholarworks.umass.edu/cgi/viewcontent.cgi?article=1085&context=pare
[Accessed 25/8/2021].

Petrakis, P. (2014). Culture, Growth and Economic Policy. New York: Springer.

Bouncken, R., Brem, A. and Kraus, S. (2016). Cultural Teams as Sources for Creativity and Innovation: The
Role of Cultural Diversity on Team Performance. International Journal of Innovation Management, Vol. 20, No.
1 [online]. Available from: https://www.worldscientific.com/doi/abs/10.1142/S1363919616500122 [Accessed
27/07/2021].

Philips, K. (2014). How Diversity Makes Us Smarter. Scientific American Journal [online]. Available from: https://
opentextbc.ca/organisationalbehavioropenstax/chapter/multicultural-teams/ [Accessed 23/06/2021].

Rottig, D. (2017). Meta-analyses of culture’s consequences for acquisition performance: An examination of

statistical artifacts, methodological moderators and the context of emerging markets. International Journal of
Emerging Markets. Vol. 12, No. 1 [online]. Available from: https://www.researchgate.net/publication/312390033_
Meta-analyses_of_culture%27s_consequences_for_acquisition_performance_An_examination_of_statisti-
cal_artifacts_methodological_moderators_and_the_context_of_emerging_markets [Accessed 16/08/2021].

Saunders, M., Lewis, P. and Thornhill, A. (2012). Research Methods for Business Students. 6th Edition. London:
Pearson Education Limited.

Schneider, S. and Barsoux, J. (2003). Managing Across Cultures. Prentice Hall. [online]. Available from: https://
www.academia.edu/17340212/_Schneider_S_Barsoux_J_2003_Managing_across_cultures_Prentice_Hall_
Ch_1_Ch_2 [Accessed: 05/06/2021].

104
Travis, N. (2018). The Challenge Culture: Why the Most Successful Organisations Run on Pushback. Great Britain:
Piatkus.

Van Knippenberg, D., De Dreu, C. and Homan, A. (2004). Work Group Diversity and Group Performance: An
Integrative Model and Research Agenda. Journal of Applied Psychology, Vol. 89, No. 6 [online]. Available from:
https://core.ac.uk/download/pdf/15457901.pdf [Accessed 19/07/2021].

Walsh, J. and Zhu, Y. (2007). Local complexities and global uncertainties: a study of foreign ownership
and human resource management in China. The International Journal of Human Resource Management [on-
line]. Available from: https://www.semanticscholar.org/paper/Local-complexities-and-global-uncertain-
ties%3A-a-of-Walsh-Zhu/63ddb1501ed26dd21467af9d29f074c6eadec908 [Accessed 07/06/2021].

105
Dimitra Christou works as treasury accountant at one of the biggest shipping companies worldwide, with
background studies in Accounting and Finance from the University of Leicester, United Kingdom. Her strong
willingness to constantly learn new things and evolve led Dimitra to pursue her post-graduate studies in digital
marketing with the UWL/CIM master’s (MSc) degree programme. Dimitra’s master’s dissertation, which gained
a distinction, was focused on evolution in the healthcare industry, and more specifically, on the technology
acceptance model for digital health technologies and the effect of Covid-19 on users’ behaviour in Cyprus.
The research aimed to explore the digital transformation of healthcare from the perspective of creating an
innovative digital health app providing medical solutions while focusing on patients’ needs.

Contact info: [email protected].

Dinos Kerigan-Kyrou is responsible for the cybersecurity division of the Joint Command and Staff Course
at the Irish Defence Forces. He has been involved with military education at the Partnership for Peace
Consortium of Defense Academies, and previously at the NATO School Oberammergau, for the past 11 years.
He is an instructor on the Defence Education Enhancement Program, and a Senior Lecturer in the Division of
Cybersecurity, Abertay University, Scotland.

Evgeniya Philippou was born and raised in Sochi, Russia, the renowned host of the 2014 Winter Olympic
Games. She enrolled in art school at a young age, studying contemporary and native Russian art and art history
for seven years. After high school, she attended the Moscow State University of Service, where she received a
bachelor’s degree in Economics and Business Administration. As of 2010, she has resided and worked in Cyprus.
She holds an accountancy position for a recognised global organisation that specialises in oilfield and drilling
operations. Her major areas of interest lie in global tax systems and the tax legislation of various jurisdictions,
as well as global logistics and resources efficiency. She is in constant communication and cooperation with a
large number of colleagues at several departments around the globe. Evgeniya has a passion for traveling. Her
curiosity to explore new destinations and cultures leads her to an exciting lifestyle. Her living experiences, both
in Russia and Cyprus, have cultivated her ability to approach intercultural relationships. Pursuing her interest
in the shipping industry, she acquired an MBA degree in Shipping from the Cyprus Institute of Marketing (CIM)
in 2021. She is currently preparing for the Professional Qualifying Examinations of the Institute of Chartered
Shipbrokers. Her future plans involve enrollment in a master’s degree program in Supply Management and
Global logistics. She is envisioning acquiring knowledge in global logistics and making a positive impact on
resource waste reduction. Her desire for constant learning is the fuel that keeps her focused on personal
development.

Contact info: [email protected].

Garcia Green-McLennon is the Director of Student Financing at the University of Technology (UTech),
in Kingston, Jamaica. She is currently pursuing a Doctorate in Business Administration at the University of
Sunderland, UK, and holds a Master of Science Degree in Public Sector Management and a B.Sc. in Management
Studies and International Relations; both from the University of the West Indies (UWI) Jamaica. She has
served in a number of capacities both regionally and locally. She is currently an Advisor to the UTech, Ja.
Debating and Public Speaking Society and has served as Regional V.P. of the Association of Caribbean Higher
Education Administrators (ACHEA). She is a former Board Director of Jamaica’s National Youth Service and has
served as International Adjudicator at the World Universities Debating Championships in Ireland, Botswana,
the Philippines, Mexico and at the Pan-American Championships in the USA. She is also an Adjunct Faculty
member at the UWI, Mona in the Department of Management Studies.

Contact info: [email protected].

108
Reproduced with permission of copyright owner. Further reproduction
prohibited without permission.