Managing Cultural Diversity - A Key to Organizational Success

Organizations around the world has been realizingemployees are perceived to be more creative
the cultural diversity within organization is not aand efficient in problem solving as compared to
negative aspect, rather can facilitate organizationalhomogenous groupAbility to manage cultural
stalk for glory (Papers4you.com, 2006). Howeverdiversity increases adaptability and flexibility of an
it is not an easy task to manage employees withorganization to environmental changes.Many
different cultural backgrounds. Nevertheless thereorganizational examples can be taken in this
are many policy guidelines that can make taskregard. In Australia, for instance, Hotel Nikko in
easy.On a broader perspective, cultural diversitySydney has unique edge that staff members in
can be manage through communicating (creatingdirect guest contact areas speak a total of 34
awareness among all employees about diversedifferent languages. Similarly Qantas Flight Catering
values of peers through communication),has sixty-six nationalities on staff, with various
cultivating ( facilitating acknowledgement, supportoverseas-born chefs. So dedicated diverse 'ethnic'
and encouragement of any employee' success bykitchens gave Qantas a huge competitive edge
all other workers), and capitalizing (linking diversitythat offers food based on customer's ethnic taste
to every business process and strategy such asand requirements. Moreover Don's Smallgoods
succession planning, reengineering, employeethrough literacy, language and cultural trainings
development, performance management andincreased cross-cultural communication and
review, and reward systems) strategies ( Cascio,increased profits while lowering costs at the same
1995).There are many different innovative waystime. Similarly The Cheesecake Factory had put
that organizations have adopted to managespecial effort to understand Japanese quality and
diversity. For instance Tabra Incorporation, a smallpackaging culture as Asian employees assist
manufacturer of jewellery and accessories inmanagement to understand Asian tastes so that
California comprised of modest workforce isthey can target exports to Asia (Nankervis et al,
composition of Third World immigrants from2002)Hence the discussion suggests that it is
Cambodia, China, El Salvador, Ethiopia, India, Laos,imperative to realize that cultural diversity should
Mexico, Thailand, Tibet Vietnam and other nations.be taken as a tool for better organizational
To acknowledge importance of their culturalprogress rather than a managerial problem and if
association, at least 10-12 different flags areeffectively managed, it can be a key to gain
always hanged from the ceiling of its maincompetitive edge and successReferencesBhatia,
production facility which represents the countriesS., K., & Chaudary, P., ( 2003),'Managing Cultural
of origin of the employees. The owner's viewDiversity in Globalization- Key to Business Success
point is 'I would like for this to be a little Unitedof Global Managers- Insights and Strategies', New
Nations everybody getting along and appreciatingDelhi: Deep & Deep Publication Pvt LtdCascio, W.,
each other's culture instead of just tolerating it'.F., (1995), 'Managing Human Resources'
(Bhatia & Chaudary, 2003)If cultural diversity canInternational Edition, US: McGraw Hill.Cox, T. H., &
be managed effectively, there is a potential toBalke, S., (1991), 'Managing Cultural Diversity:
use diverse workforce for organizational benefits.Implications for Organizational Competitiveness'
Cox and Balke (1991) asserts that multi-culturismAcademy of Management Executive, Vol 5, Issue
is directly linked to organizational success3, August 1991Nankervis, A. Compton, R., & Baird,
asEffectively managed multi culture companiesM., (2002) 'Strategic Human Resource
have cost effective competitive edgeIt helps inManagement'. 4th Edition. Victoria: Nelson Australia
promoting minority friendly reputation amongPty LimitedPapers For You (2006) "P/HR/188.
prospective employeesDiverse culturalViews on diversity management", Available from
corporations help to get better customers which[19/06/2006]Copyright © 2006 Verena
has a variety of peopleDiverse group ofVeneeva.