The Importance of Understanding Cultural, Ethnic, and Gender Differences in the Business Setting Essay

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In the 21st century, the business world has become increasingly complex but thanks to the advent of information technology (IT) and globalization, it is now possible to conduct business transactions from any part of the globe faster, efficiently and effectively. Globalization has linked various business activities across the globe and in the process, connected different cultures and ethnicities (Kania, 2010).

On the other hand, this could also expose intense differences between individuals at the community and organizational level. There is need therefore for managers and professionals in the business world to not only identify, but also work with the various forms of cultures, ethnicities and gender based differences concurrently within a business network or organization.

The modern day business is faced with a multitude of cultural challenges for most managers and other professional, with Hooker (2008) noting that the main challenge is to comprehend and apply cultural, ethnic and gender diversity in the most efficient way in order to enhance the productivity and efficiency of the company on a global scale.

However, this is far from easy given that the impact of cultural, ethnic and gender differences could be positive on the one hand but on the other hand, they could be grossly negative, and this might have negative ramifications on the organization (Ferraro, 2005). In reality, cultural, ethnic and gender diversity impact on the daily activities of a business entity and in the process, affect the way the staff and employees of such an organization think and interact.

However, owing to the inherent complexity involved most managers and business professional either ignore it, or are not able to see the difference, it is important to note that neglecting cultural, ethnic and gender differences at the workplace acts as a source of conflict within the organization.

When managers and other business professionals ignore the cultural, gender and ethnic differences within the organization, this reduces their ability to increase productivity and manage employees. An organization that fails to emphasize on the value of understanding these differences is likely to see cooperation from employees diminishes, trade garments die, and standoffs escalate (Bell, 2007).

Through cross-cultural training programs, managers are able to enhance their ability to be effective at what they do. Managers who are effective at solving cultural, ethnic and gender differences also tend to be innovative and creative, not to mention that this also adds to the synergy for a productive workforce.

It is important for global managers to possess high competence and cultural intelligence levels so that they can act as agents of change for their organisation. In this position, managers are better placed to help their individual organisations extend their business operations across the border. There is need therefore to ensure that such managers have the ability to navigate various forms of cultural, ethnic and gender settings.

The importance of having managers with well developed cross-cultural awareness cannot be overemphasized. Such awareness enables managers to understand the various perspectives not to mention that managers are also in a position to adapt their individual behavior in respect for diverse cultures, ethnic groups, and gender.

In addition, such managers can also use this knowledge and awareness to adapt their business interactions to suit certain situations and /or localities. When a manager and by extension, his/her employees are in a position to demonstrate to members of a certain cultural , ethnic or gender setting that the organization has taken the trouble to respect and learn their customs, traditions, behavior and values, they end up creating a positive impression in such a society.

Understanding of cultural, gender and ethnic differences also informs managers’ decisions when it comes to the issue of hiring. For instance, a manager might be hesitant to hire potential employees from a given cultural or ethnic background on account of his/her knowledge of certain negative elements of their ethnicity or culture.

In contrast, managers who have proper understanding and are well informed of the cultural, gender and ethnic differences in the organizations are best placed to quickly the existing areas of cultural or ethnic weakness among the workforce. As such, they can easily help employees to overcome such weaknesses by organizing proper business training programs.

They could also identify the strengths of employees on account of having a better knowledge of their cultural, ethnic and gender differences. This way, employees end up improving their work performance, however, the ability of managers and professional to understand possible ethnic, gender and cultural differences in the organization does not always result in ethical and sound business decisions.

Managers and professionals who fully understand the potential ethnic, cultural and gender difference at the workplace are best placed to assist such an organization to the productivity and efficiency of its workforce. In addition, such managers can also quickly avert or minimize possible conflicts within the business setting.

The most important task for managers and professional in the business setting is not only to fully understand the differences that affect the business entity in terms of ethnicity, gender and culture, but also the ability to accept and appreciate such differences.

Reference List

Bell, M. P. (2007). Diversity in organizations. New Delhi: Thomson/South-Western.

Ferraro, G. P. (2005). The Cultural Dimension of International Business, 5th ed. Englewood Cliffs, NJ: Prentice-Hall.

Hooker, J. (2008). Cultural differences in business communication. Web.

Kania, S. M. (2010). The Role of Cultural Differences in Forming a Business Strategy. Journal of Intercultural Management, 2(2), 16-25.

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IvyPanda. 2019. "The Importance of Understanding Cultural, Ethnic, and Gender Differences in the Business Setting." April 15, 2019. https://ivypanda.com/essays/the-importance-of-understanding-cultural-ethnic-and-gender-differences-in-the-business-setting/.

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IvyPanda. "The Importance of Understanding Cultural, Ethnic, and Gender Differences in the Business Setting." April 15, 2019. https://ivypanda.com/essays/the-importance-of-understanding-cultural-ethnic-and-gender-differences-in-the-business-setting/.

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