The Impact of Cultural Diversity Within the Hospitality & Tourism Industry

2667 Words11 Pages
Table of Content

I. Introduction 3
II. Cultural diversity 3
II.1. Advantages of cultural diversity 4
II.2. Disadvantages of cultural diversity 5
III. Organizational Culture 5
IV. Management strategies to overcome issues related to cultural diversity 7
V. Globalization 8
VI. Conclusion 9
VII. References 11

I. Introduction
Immigration plays a big role in today’s business world. Especially the hospitality and tourism industry is highly affected, as this industry offers a large number of unskilled positions that can easily be provided to immigrants (Hearns, Devine & Baum, 2007). The intention of these workers who go abroad is mainly the chance to earn higher wages in the chosen foreign country (D’Netto & Sohal, 1999).
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Moreover as stated by D’Netto and Sohal (1999) a culturally diverse workforce can create positive competition amongst workers regardless of their cultural background. Another important point is that a company can benefit and choose from a larger number of different ideas and strategies to the organization. Furthermore many authors (Deresky, 1994; Fernandez, 1993; Grace, 1994; Morrison, 1992) agree on the concept of “managing diversity involves leveraging and using cultural differences in people’s skills, ideas and creativity to contribute to a common goal, and doing it in a way that gives the organization a competitive edge” (D’Netto & Sohal, 1999 p.4). This is further supported by Aghazadeh (2004), who states that a cultural diverse pool of job-applicants enhances the qualitative selection of possible members of the organization. Another positive feature of diversity is an improvement of a company’s international negotiation strategies due to people speaking the native language of the negotiation partner.

II.2. Disadvantages of cultural diversity
However there is also a downside of a cultural diverse workforce as stated by Herarns, Devine & Baum (2007) as Western Europe is struggling with high numbers of immigrants who mainly seek jobs in the hospitality and tourism industry and who possess only few skills and are not really willing to adapt to the new culture. Furthermore due to language barriers migrants might not understand their tasks as well as rules

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