Professional Documents
Culture Documents
Patrick A. Edewor
Yetunde A. Aluko
VOLUME 6, NUMBER ()
a
INTERNATIONAL JOURNAL OF TIlE DIVERSITY
hltp:llwww.IJiversity-Journal.com
First published in 2007 in Melbourne. Australia by Common (;round Publishing Pty Ltd
www.CommonGrollndPublishing.com.
Authors arc responsible for the accuracy of citations, quotations. diagrams, tables and maps.
All rights reserved. Apart from fair use for the purposes of study, research. criticism or review as permitted under
the Copyright Act (Australia), no part of this work may be reproduced without written permission from the
publisher. 1'01' permissions and other inquiries. please contact <cg-support(lljcommongroundpublishing.com>.
ISSN: 1447-9532
Publisher Site: http://www.lJiversity-Journal.com
The INTERNATIONAL JOURNAl. OF TilE DIVERSITY is a peer refereed journal. Full papers submitted ttlr
publication are refereed by Associate Editors through anonymous referee processes.
EDITORS
Mary Kalantzis, University of Illinois, Urbana-Champaign, USA.
Paul James, RMIT University, Australia
-
Journal Profile
FOR AUTIIORS including Publishing Policy, Submission Guidelines, Peer Review Process and
Publishing Agreement
SUBSCRIPTIONS
The Journal offers individual and institutional subscriptions. For further information please visit
http://iid.cgpublisher.com/subscriptions.html. Inquiries can be directed to
subscriptions@commongroundpublishing.com
INQUIRIES
Email: cg-support@commongroundpublishing.com
Diversity Management, Challenges and Opportunities in Multicultural
Organizations
Patrick A. Edewor, Covenant University, Nigeria
Yetunde A. Aluko, Olabisi Onabanjo University, Nigeria
Abstract: ll1e imperativeness ofthe multicultural olXwlization, with a diverse workfurce, in thef(lce ofglobalization is in-
creasing(y being emphasized. As against what obtains in monolithic organizations, corporations are now accepting and
valuing a multicultural workforce comprising employees with diverse ethnic, racial, religious and gender backgrounds.
This diversity necessitates adopting appropriate strategiesjur its management. Strategies/iJr managing such diversity in
organizations are discussed together with the impact ofmulticulturalism on organizational behaviour. ll1e challenges and
opportunities posed by an increasingly diverse culture as well as how a manager can respond to such diversity are
presented. ll1e paper coneludes that it is imperative for employers and policy makers to undersland changing workjurce
demographics and the impact o{increasing diversity on human behaviour in the workplace.
Keywords: Cultural Diversity, Diversity Management, Globalization, Multicultural Organization, Organizational Behaviour
C
what are the implications of cultural diversity or
alism and its effects on organizational beha-
multiculturalism for organizations?
viour is not a new phenomenon, although
there has been considerable variation in Definition of Concepts
terms used to describe societies or organizations
which include within their boundaries diverse cul- We like to begin with the concept of culture. In order
tures, ethnic, racial and gender groups. Historically, to understand this concept in our present time, we
monolithic organizations, as opposed to multicultural need to go back to its origin. Culture as a concept
organizations, have been created by many top exec- expresses an essential element within the classic
utives in order to attain their corporate visions and world, namely the way in which a man should edu-
missions. Such organizations are characterized by cate himself in order to be a successful and an excel-
leaders who psychologically force the culture of the lent human being. According to Tylor (I 871), culture
organization upon their workers (against theirs). "is that complex whole which includes knowledge,
Ilowever, with globalization and the increasing need beliefs, art, morals, laws, custom and any other cap-
for organizations to develop businesses and cooper- abilities and habits acquired by man as a member of
ation across their national boundaries, it has become society". On the other hand, a 2002 document from
imperative for them to solicit for a more dynamic the United Nations agency, UNESCO, states that
cultural model. Corporations are now accepting and culture is the "set of distinctive spiritual, material.
valuing a multicultural workforce wherein compan- intellectual and emotional features of society or a
ies' employees include members ofa variety ofeth- social group and that it encompasses, in addition to
nic, racial, religious, and gender backgrounds. Atten- art and literature, lifestyles, ways of living together,
tions are now given to the challenges and opportun- value systems, traditions and beliefs (UNESCO,
ities associated with the growing trend toward cultur- 2002).
ally diverse workforces, which is a key factor in With this background, organizational culture is,
overall business success. therefore, the personality of the organization. It
Against this backdrop, this paper first examines comprises the assumptions, values, norms and tan-
the following concepts: culture/organizational cul- gible signs (artifacts) of organization 's members and
ture; diversity/cultural diversity; multicultural-
ism/multicultural organizations. Second, it seeks to
provide answers to the following questions: (I) how
can a manager efTectively manage people and organ-
their behaviours. According to Schein (1993),
worked well enough to be considered valid and organization. It represents a perception that such
therefore, to be taught to new members as the differences have some social significance, primarily
correct way to perceive, think, and feel in rela- because of perceived cultural differences though
tion to those problems. these are frequently associated with forms of struc-
tural differentiation. In the programmatic-political
In other words, as groups evolve over time, they face usage, 'multiculturalism' refers to specific types of
two basic challenges: intcgrating individuals into an programme and policy initiatives designed to respond
efTcctive whole, and adapting effectively to the ex- to and manage ethnic diversity. The ideological-
ternal environment in order to survive. As a group nonnative usage of multiculturalism is that which
finds solutions to these problems over time, they generates the greatest level of debate since it consti-
engage in a kind of collective learning that created tutes a slogan and model for political action based
the set of shared assumptions and beliefs we call on sociological theorizing and ethical or philosoph-
"culture". Therefore, simply defined, "organizational ical consideration about the place of those with cul-
culture" is an organization's values, beliefs, prin- turally distinct identities in contemporary societies.
ciples, practices, and behaviour (Foldy, 2003). Multiculturalism emphasizes that acknowledging
IJiversily. according to Thomas (1991), means the existence of ethnic diversity and ensuring the
more than race and gender in the workplace. Di- rights of individuals to retain their culture should go
versity can refer to lifestyle tenure, position in the hand in hand with enjoying full access to constitu-
organization, age, sexual preference, functional spe- tional principles and commonly shared valucs pre-
cialty or geographic location. It is the human ditTer- vailing in the society or organization. It has been
ences that play an important role in the culture and used interchangeably with cultural diversity.
operation oforganizations (Brazzel, 1991). With this In the light of this, organizations and societies are
in mind, culillral diversily is, therefore, the repres- becoming increasingly diverse in teons of gender,
cntation, in one social system, of people with dis- race, ethnicity, and are being charged to create the
tinctly di fTerent group affiliations of cultural signific- mullicullural organizalion. Primary characteristics
ance (Powell and Persico, 1995; Cox, 1994). Re- of this kind of organization include integration of
searchers have gone further to define diversity in minorities in all structural levels of the company,
primary and secondary dimensions. Primary dimen- including management/executive positions; integra-
sions being age, ethnicity, gender, physical abilit- tion of in formal/social networks of thc business; ab-
ies/qualities, racc and sexual atTection orientation. sence of prejudice and discrimination; and a mindset
The primary dimensions shape our basic self-imagc that not only accommodates diversity but also values
as wcll as our fundamental worldview. Additionally, that diversity. An organization which simply contains
they have the most impact on groups in the work- many dilTerent cultural groups is just a plural organ-
place and socicty (Loden and Rosener, 1991). The ization, but it is considered multicultural only if the
secondary dimensions include educational back- organization values this diversity (Sales and Mirvis,
ground, geographic location, income, marital status, 1984). This change in attitudes, strategies and
religious beliefs and work experience. These second- methods on differences and diversity has led to a
ary dimensions of diversity affect our self-esteem new and emerging school of thought on how to
and self-definition. Numerous studies have estab- manage people and organizations as well as how to
lished that culturally diverse teams have difTerent respond to new challenges and opportunities posed
dynamics than homogeneous teams (Williams and by an increasingly diverse culture. This is discussed
O'Reilly, 1998). These groups are broadly seen as in the next section.
having both increased challenges and opportunities:
diversc groups often experience miscommunication
and disabling conflict (Shaw, 198 I; Tsui, Egan, and
Strategies for Managing Diversity in
Xin, 1995); yet under the right circumstances, they Organizations
-
can be synergistic and creative (Cox, Lobel and A combination of workforce demographic trends and
McLeod, 1991; McGrath, 1984). increasing globalization of businesses has placed the
,'vluiliculillrulism is more of a policy response for management of cultural ditTerences on the agenda
coping with cultural and social diversity in societies of most corporate leaders. Moreover, literature is
and organizations. Inglis (1994) has noted that there both consistent and clear in demonstrating the power
are three interrelated but distinctive referents of the and potential of the culturally diverse organization.
concept 'multiculturalism', namely, the demograph- The key to tapping the advantages of multicultural-
ic-descriptive usage, the ideological-normative, and ism and avoiding its pitfalls is to create an organiza-
the programmatic-political usages. The demograph- tion in which members of all socio-cultural back-
ic--descriptive usage occurs where 'multicultural' is grounds contribute and achieve their full potential.
used to refer to the existence of ethnically or racially To achieve this, leaders face a dichotomy in main-
diverse segments in the population of a society or
PATRICK A. EDEWOR, YETUNDE A. ALUKO 191
measure these efTects, it is necessary to examine an tures that see relationships in temlS of groups want
organization's culture. As shown in our earlier teamwork to be the norm, while those from cultures
definition, organizational culture encompasses val- that emphasize the individual, feel most comfortable
ues, beliefs, principles, practices, and behaviours of with voluntary and infonnal teams. Mixing these
the organization's members. However, because culture types will have significant impact on an or-
members are of various backgrounds and possess ganization.
difTerent attitudes, values and norms, this has resulted Cox (1994) has provided a conceptual model (Fig.
in distinctions in their attitudes and performance at I) showing the impact of diversity on an organiza-
work (Cox, Lobel, and McLeod, 1991). tion. He ties together his research and uses informa-
One area of cultural differences researched extens- tion on gender, racio-ethnicity, nationality, age and
ively is the contrast between individualism and col- other areas of diversity like job function, background
lectivism. Compared to individualist cultures, collect- and values, to create this model. However. the model
ivist cultures emphasize the needs of the group, social ignores how the individual identifies with the culture
nOlms, shared beliefs and cooperation with group of the group. It proposes that the impact ofdiversity
members (White, 1999). People from cultures that on an organization is an interaction of the environ-
view relationships in terms of hierarchy prefer highly ment and individuals.
structured teams. On the other hand, those from cul-
111\ I.It'lI \
nl'\I\U 1'111\ IIII \I. OIU.\ 'II \ II'" \1.
h,di,i,I•. ,1 I ,·,,1 ( \~ITR '.... 1...( 11\ .'1· .....
IliIottctl 1I1 It "\11 ..
• 1,1, n " Slru.. . lllra: 1'1"11""'1
(I"""J1 t I" • .,....II("fllt \.\.."
.sh,,· .1\rL'" \l1l...·ri·,,· Ollh:UIlW,\ 1111 1 ' ..... 1
.f'",., .... 11 J ·1,\ (. UiL"C'1 • r'f 1.. 11\ I\~
, h:!lo',-t~'h II • \\ ... 1. I.'U~II'
C.....""II In't"r·:!I~It"I. • Or~.1I'1 Ih-,.II Rt:IUI' ~ l I l ' , ' ,
I~ '0 11k-lle:1 .. .litH" t 1~.JJI\'I~ Ittl (.\ 'I" I
•( "lllIr~1 • h·h In". hI,; l ....ul ·1'11·1"1,,'111. ~hlflr:
Itllld"" ~ • \\''-Ii~';'''LI' ..
Jill, "Ill'll c ,•• "':11,,"'" .ff...J
-IUkl-'ll (<( nlh,1 ( 11 I ml HI II~"'''
\ .. 111(·'.. 1"1 ....·111
• Jr;::f1li/...... i.IIUI n.h.'nnw
I ,"\ tl I~..I'" '0 ~ Jl~ I'\'{. 'Il '1<' '-("\.4ll1ill. .. \t·(
• t 111 I\.~ .:au"," K.tlm:.. \t II ,,,'1'1 h·
\","\JIlI r~ltll I 1_. IllP\.~ tlol I • P ,.Iil hlllt:
I·r'.... '"~ ... l'h,nt""llI • A" h...· \ctl ..• I· ~I ~1!1Il'lJ1
• SI 1.. 1 l;al 11.... n/~ I I c" a III~ 1I.. I (.".11
J Cy"lolhu .. rU 1IIWIJI11\
·llIh'IU I J I""'~l",h lJ II ~"lJtlllf.d . lltl'l"I~
• In.. I"OII 1 In, ,.. . Il III
III nUl Kt.."""'\1r\.·
'\ ....I·m"
Fig. I: Interactional Model of the Impact of Diversity on Individual Career Outcomes and Organizational Ef-
fectiveness, Source: Loden, M. and J. B. Rosener (199 I),
Workforce In /lmerica: ,'vlanaging Fmployee Diversity as (J Vilal Resource, Homeward: Business One Irwin.
ment outcomes are the "tangible measures that are, Given such realities, organizations need to go
at least theoretically, indexes of the employee's beyond simple recognition of cultural diversity to
contribution to the organization" (Cox, 1994). These active diversity management. Managing diversity is
can include performance ratings and promotion rates. a comprehensive managerial process for developing
Therefore, according to the model, by understanding an environment that works for all employees. Di-
the diversity climate we can predict elTects on indi- versity management is an inclusive process since all
vidual outcomes and, ultimately, efTects of diversity employees belong to a culture, including those from
on organizational elTectiveness. the organization's traditionally dominant cultural
There are direct effects of diversity on organiza- group. Thomas (1991) indicated that diversity man-
tions. Processes such as problem solving, creativity agement must not be viewed as an "us/them kind of
and communications will be affected by diversity. problem to be solved but as a resource to be man-
These processes are critical to any organization and aged". Also, Carnevale and Stone (1994) have em-
diversity can either complement these processes or phasized that valuing diversity involves "recognizing
provide challenges to overcome. This is reflected in that other people's standards and values are as valid
Cox's model by the arrow that extends from the di- as one's own", and note that lor most organizations,
versity climate to the organizational outcome. valuing and managing diversity requires nothing less
Problem solving in a diverse group will provide than cultural transformation. This is a prodigious
different perspectives, provide more critical analyses task, for it requires people - especially those of the
of the alternatives, and lower the probability of dominant culture - to let go of their assumptions
groupthink (Cox, 1994). It is necessary for the group about the universal rightness of their own values and
to understand the differences of the other members customary ways of doing things and to become re-
of the group; otherwise, the group may have conflicts ceptive to other cultures.
in trying to solve problems. Creativity may also be In this regard, cultural diversity in the work place
enhanced by a diverse group. Nevertheless, the con- mirrors many of the same issues at play in the rcalm
tributions of all members must be recognized so that of international business. In international business
individuals will want to share their creative ideas interactions, people who have learned differing
with the group. Finally, communications can pose conceptions of normative behaviour are forced to
an obstacle to a diverse group. Communication dif- suspend judgement of one another. Cultural norms
ferences related to culture may become the source shift relative to language, technological expectations,
of misunderstandings and ultimately lower work- social organization, face-saving, authority concep-
group elTectiveness (Cox, 1994). Once this is recog- tion, non-verbal behaviour and the perception of
nized, action can be taken to try to overcome these time.
difficulties. This, therefore, leads to the next ques- In addition, since the ability to compete success-
tion, what are the new or today's challenges and op- fully in the "new" global economy depends on the
portunities posed by an increasingly diverse culture ability to tap the skills and insights of increasingly
in organizations? diverse workforce allover the world, organizations
must, therefore, be involved. Owing to mergers and
international cooperation as well as migration !lows
Today's Challenges and Opportunities
which lead to multicultural societies, companies and
Managing a diverse or a multicultural organization institutions will increasingly have to take into ac-
is a broad and complex issue. Leaders face fonnid- count the foreign personnel, foreign laws and foreign
able challenges in building a multicultural organiza- market parties. They must recognize that diverse
tion that truly values diversity. This is because not employees possess cultural competencies, for ex-
all people in organizations value diversity. As a rule, ample, language skills and cross-cultural expertise
people arc most comfortable with those like them- that represent a sustainable source of competitive
selves and emphasizing diversity may undermine advantage. Organizations that continue to focus on
that comfort level. Diversity tends to breed new ap- what worked in the past and do not pay allention to
proaches to old practices and long-standing problems. current and future market demographics are exclud- •
Individuals in organizations may find such change ing significant sources of profit.
troubling. Moreover, individuals with strong preju- Internationalization and international business re-
dices against certain groups may find rapidly chan- lations require that the modern manager possesses
ging demographics in the workforce threatening be- or acquires specific skills in order for him/her to be
cause either they find change itself disquieting or able to cooperate adequately with colleagues, man-
because they hold a position they feel they might not agers, or partners in other countries. The manager
be able to maintain if groups historically excluded needs those skills to deal with a range of persons
from their work palace are allowed to compete in an who have been influenced by another background,
unhindered way for their positions. education, training and culture - a culture, at least,
194 INTERNATIONAL JOURNAL OF THE DIVERSITY, VOLUME 6
in which one can recognize similarities as well as stand changing workforce demographics and the
differences with one's own culture (Burggraaf, impact of increasing diversity on human behaviour
1998). A fter establishing this, the organization stands in the workplace. As the workforce grows more di-
to enjoy the following benefits: the full utilization verse, tensions over cultural issues are likely to rise.
of her human resources; reduced interpersonal con- Cultural clashes can be a significant drain on the
flict among employees of all backgrounds as respect energy of the people involved, especially minority
for diversity increases; enhanced work relationships workers who are more likely to feel oppressed by
based on mutual respect and increased employee the differences. To employers and leaders, these
knowledge of multicultural issues; a shared organiz- changes in workforce demographics of1(:r both op-
ational vision and increased commitment among di- portunities and challenges. Leaders who ignore
verse employees at all organizational levels and demographic torces find themselves at a competitive
across all functions; greater innovations, and flexib- disadvantage. However, the organization that
ility as employees of all cultural backgrounds parti- achieves the conditions of a multicultural organiza-
cipate more fully in key decision-making and prob- tion (pluralism, full integration of minority-culture
lem-solving groups; and finally, improved productiv- members both formally and informally, an absence
ity as more employee eflort is directed at accomplish- of prejudice and discrimination, and low levels of
ing tasks and less energy is spent managing interper- inter-group conflict) will create an environment in
sonal conflicts and cultural clashes. which all members can contribute to their maximum
potential, and in which the 'value in diversity' can
be fully realized.
Conclusion
From the foregoing, it can be concluded that it is
imperative for employers and policymakers to under-
References
Brazzcl, M. (\99\) "Building a Culturc of Divcrsity inthc Coopcrativc Extcnsion Systcm". A paper to Foster Dialoguc and
Discussion about Pluralism in Extension. ECOP and I:S-!JSD1\ National Diversity Stratcgic Planning Contercncc.
Denvcr. Colorado. Scptcmbcr.
Burggraal: W. (1998) "Intcrculluml Managcmcnt: On Culturcs and thc Mullieullural Organization", A papcr dclivercd on
thc occasion ofthc assumption of duties as Protessor uf Intcrcultural Managcmcnt at Nyenrodc University, thc
Netherlands Ilusiness SchooL June II.
Carncvale, A. P. and Stonc, S. C. (1994) "Diversity: Ikyund the Golden Rule". 1i'ainin~ and Development, 48, \0, 22-39.
Cox, 'I'. 1I. (1994) Cllitumi Diversity in Or~anizations: lheory, Research (/nd Practice. San Francisco: Bcrrdt-Kochlcr.
Cux, T. I I., Lobcl. S. 1\. and McLeod. P. \ .. (199\) "1:tTcets of Ethnic (,roup Cullum I Ditlcrcnccs on Cuopcrative and
Competitivc Behaviour on a Group Task", Academy of,14anagement Journal. 34,4,827-847
Fcrnandez, J.P. (1993) 1he Diversity Admntage: /low American Business Can OIll-Per/iJrlll Japanese (/nd I~'uropean
Companies in the Global ,Harketplace, Ncw York: Lcxington Books.
Foldy, I·:. G. (2003) "Lcarning from Cultural Divcrsity: A Thcorctical Exploratiun", A Paper prescntcd atthc National
Public Manal,\cment Rcscareh Confcrcnee, (,corl,\etown Public Policy Institute, Washington, DC, Oetobcr 9-11.
GotTcc, R. (1997) "Cultural Diversity", Ihe Complete l'vIlJA Companion, Pitman Publishing.
Inglis, C, (1994) Multiculturalism: ,Vell' Po liLy Responses to Diversity. MOST - UNESCO Policy Paper, NO.4.
Jorgcnsen, B. (1993) "Divcrsity:Managing a Multicultural Workforce", Uectronic Business Buyer, Scptcmber.
Loden. M. and J. B. Rosencr (1991) Work/orce America: Managing Diversity as a Vital Resource. IIomewood. Illinois:
Business One Irwin.
McGrath, J. E. (1984) Grou[1s: Interaction and Per/Ormance, Englewood ClilTs, New Jerscy: Prentiec \Iall, Inc.
Powell, C. and J. E. Persico (\995) My American Journey, Ncw York: Ballantinc Books, 487-488.
Riec, 1". (1994) "IIow to makc Divcrsity Pay" Fortune, 130,3,78-86.
Sales. 1\. L. and P. II. Mirvis (1984) "Whcn Culturcs Collidc With Issues or Acquisitions". in .I. R. Kimberly and R. E.
Quinn (cds.), Managing Organizational 'I'ral1Sirion, 107-133.
Schaubcr, 1\. C. (200 I) "EtTeeting Extcnsion Organizational Changc toward Cultural Divcrsity: 1\ Conccptual1"ramcwork",
Journal o/fxtension, Vol. 39. No.3.
Shaw, M. (1981) Group Dynamics: 'lite Psychology oj'Group Behaviour. New York: MC(Jraw and Ilili.
Schein, E. (\993) "Organizational Culture and Leadership", in J. Shnfritz and J. Stcvcn Ott (cds.) 2001 ('Iassics ofOrgan-
ization 'IheoIY, FortWorth: Ilarcourt College Publishers.
Thomas, R. R. (\991) Beyond Race and Gender, Ncw York: Amcriean Management Association.
Tylor, I~. B. (1871) Primitive Culture: Researcher in the Development a/Mythology, Philosophy. Religion. Art and ('ustOIll,
Gloucester. M. A.
Tsui. 1\.; Fgar, '1'.; and Xin, K. (1995) "Diversity in Organizations: Lcssons from Demography Research", in M. Chcmcrs,
S. Okampo and M. Costanzo (cds.), Diversity in Organizations: Perspectivesfrom a Changin}? Workplace, Vol.
37: 199\-219. Thousand Oaks: Sage Publications.
,
PATR[CK A. EDEWOR, YETUNDE A. ALUKO [95