Managing Cultural Differences and Diversity in a Global Economy
Cultures across the world differ in various aspects, including the way they approach business processes and the way people interact with each other in the workplace. Therefore, managers should understand different cultures since their knowledge helps them to learn the perspectives of different stakeholders, such as employees and customers. Besides, cultural differences can become organizational barriers to effectiveness if they are not understood and managed well. Managers should also learn how the differences influence decisions, such as how they recruit, hire, and manage their human resources. The concept of managing cultural differences has more significant implications in the current era of globalization, where people from different backgrounds are interacting in the workplace. Although many scholars and theorists have proposed frameworks to analyze cultural differences, Professor Geert Hofstede is one of the most efficient and applicable to organizational settings and the contribution of different cultures in organizational settings.
Cultural Differences between the U.S. and China
Professor Geert Hofstede provided a practical framework for comparing cultures using various dimensions to understand why people from different backgrounds behave, and act differently from those of another. The comparison provides critical knowledge, such as the way work is planned and executed in the United States, as compared to China. The two countries have different cultural norms and value systems that affect organizations. Hall and Hofstede provide five dimensions on which to compare the two countries: Power Distance – PDI, Individualism – IDV, Masculinity – MAS, Uncertainty Avoidance – UAI, and Long-Term Orientation – LTO. Comparative analysis using the concepts determine how much the United States differs from China from a cultural perspective. The figure below shows the performance of China and the U.S. in terms of the dimensions.
PDI
The dimension measures the extent to which the less powerful members of a society accept and expect an unequal distribution of power. Leaders and followers tend to endorse the unequal distribution of power in society since they consider it the norm. China has greater inequality compared to the U.S. in terms of power distribution (China’s PDI score is 80), while the U.S. is 40) (Scull, 2017). The score indicates that China accepting more inequalities in power distribution.
IDV
The dimension compares the extent to which individuals are integrated into groups. Compared to China, the U.S. is more individualistic, with a score of 91. In the U.S., the links between individuals are weak, and the society expects people to mind their interests and look after themselves (Scull, 2017). China has a low score of 19, which reveals that it is more of a collectivist society and social ties are strong.
MAS
The dimension measures the extent to which a society is driven by competition, and desire for success and achievement. The two countries are almost at the same level in this dimension, although China is slightly higher at 66, while the U.S. has 62 (Scull, 2017). This shows that people in the two cultures are considerably competitive, strive to achieve, and become successful in various aspects of life and business.
UAI
The dimension measures the level of tolerance of a team for uncertainty, and reveals the degree to which a society accustoms its people to be uncomfortable in unstructured conditions. The U.S. has a higher score of 46 compared to China, which has 30, this reveals that the U.S. is slightly less accepting of opinions that differ from the norm, thus implement stringent laws and rules to minimize uncertainty. It also means that China is more tolerant of uncertainty.
LTO
The dimension measures long-term versus short-term orientation in cultures, it is the degree to which a society engages in long-term relationships. China is better at engaging in long-term engagements with a score of 87, compared to the U.S. at only 26 (Scull, 2017. The high score of China reveals that its values include; thrift, and perseverance. Chinese people are more trusting than Americans and will be willing to enter into long-term alliances.
The outcome of the analysis plays a vital role in the business context since it informs managers how they can manage individuals from the two cultures. For example, when creating teams, they should use the outcome of the cultural analysis to group members effectively. While U.S. employees might perform well in individual tasks, the Chinese might have better results working in groups as a result of the collectivist culture (Hu, Grove, & Enping, 2010). The knowledge can also help management to prevent conflicts emanating from the cultural differences, such as where American employees believe in equal power distribution, while Chinese employees are more accepting of inequalities. For instance, a Chinese manager might consider American employees defiant if they struggle for equality in the workplace. Therefore, business owners and managers should understand the differences, and their possible effects on their decisions, especially in human resource management.
Many companies in the United States and China have employees from the two cultures. For example, multinationals based in the U.S. and operating in China employ expatriates from the country while also working with locals from the host country. People from either of the two countries can work as managers and subordinates. Consequently, understanding the differences between the two cultures will help managers, and employees to work together effectively to improve the performance of the company. Firms with effective management amid cultural differences have proven more competitive since they can take advantage of the talents of the two countries. Besides, employees and managers can learn from each other to create proper working relationships. The management should understand the elements of the two cultures to use relevant leadership styles to manage cultural diversity.
Definitions of Culture
People have different definitions of culture, although they could have some similarities in the way they understand the concept. For example, the definition of the concept in the U.S. could be different from the way the Chinese people define it. The differences also emerge in the usage of the concept. One of the standard definitions of culture is the quality possessed by people in one social group. The common elements under this definition are arts, beliefs, knowledge, customs, morals, and habits that people from the same culture share. However, the understanding of culture differs from countries, such as China and the U.S. When speaking about cultural differences, people consider the way the cultural structure, including language, material culture, religious beliefs, values, and customs differ from one place to another (Hu, Grove, & Enping, 2010). People understand the concept of culture depending on the different expectations of one culture that differs from those of another.
Many sources define culture as a collection of language, symbols, values, beliefs, and artifacts that are part of society. Consequently, the basic components of culture are symbols and ideas held by people within the society. However, various elements are essential to each culture, which defines the expectations of the people of each culture. Notably, the elements that are important to one culture, such as the U.S., might differ from those that are important in china. For example, etiquettes and values are critical aspects in the Chinese culture, which they expect members of the culture and outsiders to respect. Some of the elements that have emerged as being critical in culture include customs and beliefs, material culture, language, values, habits, and etiquettes (Hu, Grove, & Enping, 2010). The elements are essential since they define a culture and the way of life, including expected interactions.
The knowledge about cultural differences play an important role in managing cultural differences, and diversity in a global economy. When people come together from different parts of the world, they bring diverse cultural values that managers should understand, and take into account when managing the diverse human resources (Hu, Grove, & Enping, 2010). For example, while a Chinese employee will expect a handshake every morning from the manager, an American employee might be satisfied with a verbal good morning. Generally, managers in a global setting should understand the beliefs and expectations of the different employees based on their cultural diversity. The knowledge is also essential since failure to consider and manage the differences could cause intercultural or communication differences that affect the performance of a company. Firms in the U.S. and around the world have attracted employees from around the world through immigration. The success of such workplaces depends on the ability of the management to develop cultural competence and sensitivity. For example, they should become proficient in understanding how people from diverse cultures communicate using verbal and non-verbal symbols (Hu, Grove, & Enping, 2010). Such knowledge will ensure that the management prevents, and solves most conflicts that relate to differences in backgrounds and language barriers.
Motivation Strategies and Management Styles in in Different Workplaces
Cultural differences and people’s history affect employee attributes and preferences in the workplace. Managers should understand the critical differences in the way they manage employees from different cultures, such as their motivation approaches. For example, while some employees could be motivated by financial or material rewards, others are motivated by immaterial rewards, such as recognition of achievement. Besides, the job attribute preferences of people from different countries and regions differ. Therefore, managers should adopt management styles and motivation systems that align with the cultures of their employees.
Compared to employees in the United States, those from China might not be necessarily motivated by good wages. They are likely to find more accomplishment in good working conditions and personal loyalty from the manager. For example, Chinese employees could be highly motivated by working in an organization where the leaders respect and trust their employees. Managers working with Chinese employees can build an effective team if they take into account their personal work preferences. For example, Chinese employees are less likely to work in organizations that do not respect their cultural elements, such as respect, manners, etiquette, and time-consciousness (Hu, Grove, & Enping, 2010). Managers who consider these important aspects can gain value from working with a Chinese workforce. Chinese employees come to the United States in search of jobs that might improve their position in society, not necessarily for the financial betterment. For them, respect and recognition, as well as other achievements, such as promotion, could be more important than getting higher wages.
On the contrary, managers working with employees from Latino and Mexican cultures should understand the importance of material motivators to such workers. In most cases, Latinos and Mexicans come to the United States in search of employment, and make a considerable contribution to the country’s economy (Kras, 1995). A person from Honduras/Latin America will persevere against all odds to come into the United States in search of work and a better life. Therefore, financial gains are more important to these people than any other type of motivation. Besides, they are less likely than Chinese employees to choose their working conditions since they focus on financial and material gains associated with working in the U.S. Therefore, their primary motivation is better wages and other financial rewards, such as bonuses. If the management focuses on the financial motivators, they will improve the morale of Latino and Mexican employees.
The increase in immigration in the U.S. means that managers employ individuals from different cultures. One manufacturing company could have employees from Latin America and others from China. The management should understand that managing employees from China differs from the Latino and Mexicans due to cultural differences. From experience, employees from Latin America could be comfortable with working at the production department as long as they perceive the wages as being satisfactory. On the other hand, Chinese employees will be motivated by a higher job level even at the same salary as those working in the production department since they focus on work conditions, and the ability to improve their personal and career achievement. Employers and managers should create employment policies and reward schemes based on an adequate understanding of the different cultures to ensure the use of appropriate motivators.
Cultural Navigation/Agility Tools
Research reveals a strong connection between cultural diversity and team as well as organizational success. Cultural diversity ensures that the team or organization bring together individuals with different strengths and abilities. For example, people from different cultures can see things from different perspectives. Chinese employees are stronger in situations that require collectivism, while U.S. employees are better at conditions that require individualism. Since all conditions are common in the workplace, they can take advantage of individuals from both cultures. While working as a team, we have designed tools to help us to improve our potential to work as members of a diverse virtual team.
We have been working to create a successful virtual team that takes advantage of cultural diversity. Our group has developed two cultural navigation/agility tools throughout this course to assist in understanding how to manage cultural differences in virtual teams. The tools are cultural agility self-assessment tool, cultural navigator, and a cultural agility builder. The tools are learning programs to help members of the team to assess their level of cultural agility. The tools will enable us to work in a global setting by improving our cultural competency to work with and manage amid cultural diversity. One of the ways that we have used the tools is conducting self-assessment to understand our level of cultural agility. The information helps to understand the strengths and areas we should improve to become better at working as a virtual team composed of individuals from different cultures.
The tools would be useful in the workplace to promote the understanding of the cultural differences of stakeholders, including employees, customers, and suppliers. The knowledge will prevent misunderstandings that emanate from differences, such as language. For example, we will know how to greet individuals from a culture like China without appearing disrespectful. When working with virtual teams we have realized that it is possible to misunderstand a verbal gesture, which creates the importance of understanding how different cultures communicate verbally and nonverbally. Generally, the tools will improve intercultural relationships in the workplace, and the ability to take advantage of the diversity to achieve better performance outcomes since each person has unique strengths and talent.
Conclusion
Management of diversity is a critical aspect of effective organizations during modern-day globalization. Therefore, managers should have the competence to attract, manage, and retain employees from diverse cultures since they bring together unique talent. Regardless of the importance of cultural diversity in the workplace, the setting can also have major challenges, such as intercultural conflicts and communication issues. Therefore, the management should develop the competence to manage and understanding of cultural differences to succeed in the global organizational context. For example, although employees from the U.S. differ from those in China in terms of cultural aspects, an effective manager can take advantage of both by mastering cultural competence and agility. Management cultural diversity will remain an important quality in organizations, as the workforce becomes more diverse.
References
Hu, W., Grove, C.N., & Enping, Z. (2010). Encountering the Chinese: A Modern Country, An Ancient Culture, 3rd edition, Boston, MA: Intercultural Press.
Kras, E.S. (1995). Management in Two Cultures: Bridging the Gap Between U.S. and Mexican Managers, revised edition, Yarmouth, ME: Intercultural Press.
Scull, J.C. (2017). How Do Chinese And American Cultures Compare? Medium. Retrieved from https://medium.com/@jules000120/how-do-chinese-and-american-cultures-compare-4c523b41ba59
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