Cultural Diversity

Dr. Shohail Choudhury

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For Cultural Diversity Organisational Culture Multicultural Organisation diversity in workplace

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Hofstedes five value dimensions Project Globe

Hofstedes arguments
Case Study

For Cultural Diversity

Arguments in favour of cultural diversity in organisations
Cultural diversity builds strength for dealing with global markets. Ethnic diversity builds strength for dealing with diverse customers.

Diverse work teams are high in creativity and innovation.

Diverse workforces attract new highly talented members.

To be successful in working with and gaining value from diversity requires a sustained, systemic approach and longterm commitment.

Success is facilitated by a perspective that considers diversity to be

an opportunity for everyone in an organization to learn from each other how better to accomplish their work and

an occasion that requires a supportive and cooperative organizational culture

as well as group leadership and process skills that can facilitate effective group functioning.

Organisational Culture
Inclusivity Culture Multicultural Organisation
How open the organization is to someone who can do the job

A shared set of beliefs, values and patterns of behavior common to group of people
Organization based on pluralism and operates with respect for diversity Groupings of people based on shared demographics and job identities The belief that ones sub-cultural group or membership is superior to all others

Organisational Subcultures
Ethnocentrism

Characteristics of a Multicultural Organisation

Pluralism

Members of minority and majority cultures influence key values and policies.
Minority-culture members are well represented at all levels and in all responsibilities. Mentoring and support groups assist career development of minority-culture members.

Structural integration Informal network integration

Absence of prejudice and discrimination

Minimum inter-group conflict

Training and task force activities support goal of eliminating culture-group biases.
Members of minority and majority cultures avoid destructive conflicts.

Managing diversity in workplace

Building an inclusive work environment that allows everyone to reach their potential

Culture and structure

Hofstedes findings

One of the important studies Attempted to study impact cultural differences on management Conducted by Geert Hofstede, first in the late 1960s and continuing through the next three decades.

The original study was based on an employee survey involving 116,000 IBM employees in 40 different countries.
The survey asked people of their preferences in terms of management style and work environment. Hofstede five value dimensions on which countries differed.

Hofstedes five value dimensions

Diversity among global cultures

Power Distance
Uncertainty Avoidance Individualismcollectivism Masculinity-femininity Long Term Orientation

The degree to which a society accepts unequal distribution of power The degree to which a society tolerates risk and uncertainty The degree to which a society emphasizes individuals and their self-interests The degree to which a society values assertiveness and materialism The degree to which a society values short term or long term goals

Global cultures and value dimensions

Project Globe

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Hofstedes arguments
Given the value differences, Hofstede questioned whether American theories could be applied abroad and discussed the consequences of cultural differences in terms of motivation, leadership, and organisation. Hofstede argued, organisations in countries with high power distance would tend to have
More levels of hierarchy. A higher proportion of supervisory personnel (narrow span of control). More centralised decision making. Status and power would serve as motivators. Leaders would obeyed as authorities.

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Characteristics of a Multicultural Organisation

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Hofstedes arguments
In countries with high uncertainty avoidance

Organisation more formalised. Greater amount of written rules and organisation. Greater importance attached to specialisation in terms of technical competence. Managers would avoid risk and would be motivated by stability and security. The role of leadership would be more one of planning, organising, coordinating, and controlling.

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Hofstedes arguments
In countries with high collectivist orientation
Preference for group as opposed to individual decision making. Consensus and cooperation more valued than individual initiative and effort. Motivation derives from sense of belonging, and rewards are based on being part of the group (loyalty and tenure).

The role of leadership is to facilitate team effort and integration, to foster a supportive atmosphere, and to create necessary group culture.

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Hofstedes arguments
In countries ranked high on masculinity
Management style is likely to be more concerned with task accomplishment than nurturing social relationships.
Motivation will be based on accumulation of money and things rather than quality of life. The role of leadership is to ensure bottom-line profits in order to satisfy shareholders. In a more feminine cultures, the role of the leader would be to safeguard employee well-being, and to demonstrate concern to social responsibility.

Hofstedes also found country clusters.

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Characteristics of a Multicultural Organisation

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Case Study

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Thank you!

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