Today, business activities are performed far beyond national boundaries, involving individuals from different cultural contexts. Furthermore, given current trends inherent in globalization, interactions between culturally diverse individuals are projected to increase. Thus, diversity education should be mandatory for Business students because their competence in this area will allow avoiding misunderstandings, facilitating cross-cultural communication, creating inspirational organizational culture, and enhancing the performance of culturally diverse personnel.
Being aware of cultural dimensions inherent in others, a person is able to comprehend their attitudes and behavioral patterns (Stahl and Tung 392). The failure of Best Buy, one of the largest retailers in the world, in China was caused by the underestimation of cultural peculiarities specific to Chinese consumers and the retail environment. The company had to close its branded stores. What is more, evaluating the importance of cultural intelligence, Bogilović and Škerlavaj claim that a person with relevant diversity education is able to minimize possibilities of “emotional and relational conflicts in a culturally diverse group” (56). Irrespective of a business area, communication between managers and personnel is a crucial factor that promotes a positive workplace environment, influences employee job satisfaction, and reduces turnover rates. Therefore, diversity education is a prerequisite for the prevention of conflicts and contradictions.
Appropriate knowledge of cultural diversity facilitates cross-cultural communication between professionals of various ranks. Creary et al. emphasize that this competency is essential for manager-subordinate relationships (542). According to Hofstede’s concept, relationships within an organization and work-associated attitudes are influenced by such cultural dimensions as power distance, uncertainty avoidance, individualism and collectivism, and masculinity and femininity (Andreassi et al. 58). For instance, the consideration of Hofstede’s dimension of power distance allows managers to predict employees’ attitudes to subordination and supervision in such multinational organizations as the International Business Machines Corporation (IBM). Focusing on these dimensions, a leader who is competent in diversity theories is able to select the most effective forms of communication.
A manager’s competence in the concept of cultural diversity is a precondition for the creation of inspirational and motivational organizational culture. Cultural characteristics of coworkers and employees influence the way they perceive information and make decisions. If managerial decisions are in line with employees’ culture-grounded perceptions, they experience elation and perform more effectively than when they face the violation of their cultural values and conventional norms (Andreassi et al. 69). Furthermore, culturally competent leaders are able to motivate “the culturally diverse team to accomplish team innovation goals” (Lisak et al. 656). However, while control and supervising practices foster motivation and creativity in individuals in the East, such approaches can decrease motivation and aspirations in the West (Anderson et al. 1301). The exaggeration of hierarchical regimes can inhibit creativity and innovation-orientation in personnel. Therefore, leaders should possess knowledge of cultural dimensions that is pertinent to their teams’ diversity.
Various joint ventures, multinational enterprises, global alliances, and transnational corporations are prevalent in the contemporary business environment due to globalization tendencies. Thus, a businessperson has to be prepared for the probability of managing multinational teams and communicating with culturally diverse individuals. In addition, referring to the effective functioning of IBM, Stahl, and Tungstate that multicultural teams of employees ensure successful foreign market entry (402). The acquisition of knowledge related to cultural diversity will help managers to adjust their leadership style to the peculiarities of multicultural teams, contributing to effective business performance.
Summing up, despite the current complicated business environment, a leader competent in cultural diversity theories is able to enhance organizational performance, generate inspirational culture, and avoid possible conflicts. Thus, according to Bell et al., diversity education should be obligatory for all Business students as it is one of the keys to success in the globalized business arena (598).
Works Cited
Anderson, Neil, et al. “Innovation and Creativity in Organizations: A State-of-the-Science Review, Prospective Commentary, and Guiding Framework.” Journal of Management, vol. 40, no. 5, 2014, pp. 1297-1333.
Andreassi, Karin, et al. “Cultural Impact of Human Resource Practices on Job Satisfaction: A Global Study Across 48 Countries.” Cross Cultural Management, vol. 21, no. 1, 2014, pp. 55-77.
Bell, Myrtle P., et al. “The Case for Mandatory Diversity Education.” Academy of Management Learning & Education, vol. 8, no. 4, 2009, pp. 597-609.
Bogilović, Sabina, and Miha Škerlavaj. “Metacogonitive and Motivational Cultural Intelligence: Superpowers for Creativity in a Culturally Diverse Environment.” Economic and Business Review, vol. 18, no. 1, 2016, pp. 55-76.
Creary, Stephanie J., et al. “Out of the Box? How Managing a Subordinate’s Multiple Identities Affects the Quality of a Manager-Subordinate Relationship.” Academy of Management Review, vol. 40, no. 4, 2015, pp. 538-562.
Lisak, Alon, et al. “The Positive Role of Global Leaders in Enhancing Multicultural Team Innovation.” Journal of International Business Studies, vol. 47, no. 6, 2016, pp. 655-673.
Stahl, Günter K., and Rosalie L. Tung. “Towards a More Balanced Treatment of Culture in International Business Studies: The Need for Positive Cross-Cultural Scholarship.” Journal of International Business Studies, vol. 46, no. 4, 2015, pp. 391-414.