Managing Cultural Diveristy

3482 Words14 Pages
SHMS - Leysin | Leadership Across Cultures | Managing Workforce Diversity | 131LAC | Mukhtar Mammadov | BAHE 2 | 3/22/2013

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Table of Contents Introduction 2 Discussion 3 Conclusion 7

Introduction

Culture in its many forms and approaches is a very popular subject researched by many authors. The definition of culture from Geert Hofstede, the most cited social scientist according to Powell (2006) comes as "the collective programming of the mind that distinguishes the members of one group or category of humans from another". (1982) He mentions that these differences exist in nations, geographic regions, generations, genders, social classes and many more. As Hofstede simply puts it, "the unwritten rules of
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In order to benefit from the multicultural environment, it is important to effectively manage the diversity of existing staff. Magdaleno and Kleiner predicted that effective management of workforce diversity "will become the major determinate of the continued survival and success...". (1996) A strong organizational culture can be a priceless intangible asset for any company that plans to grow. A "strong culture" must include artifacts such as rituals and organizational stories to illustrate particular cultural traits. (Lee & Yu, 2004) The research by Denison (1984) has revealed that there is direct correlation between 1)organization of work, 2)decision making and financial performance. Various techniques and strategies, such as recruitment, training, managing "culture shock" and using predictors such as personality traits for international assignments can be used in aligning diversity management with requirements. (Gabel et al., 2005; Migliore, 2011; Uwaje, 2009; Harvey, 2012; Tipper, 2004) Workforce diversity and its management, due to complexity, has several disadvantages. First and most obvious is the increase in training expenditures. The trainings such as lectures and seminars "are given to all levels of staff within the organization" are associated with high costs. (Aghazadeh, 2004) Secondly, there is a threat of reverse discrimination. (Brunner, 2003) Reverse discrimination takes place when the cultural majority (e.g.

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