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Cultural Diversity in International Hospitality Management

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Cultural Diversity in International Hospitality Management

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Discuss how an understanding of cross cultural management theory and cultural intelligence could help a hospitality manager in the transition across cultures.

Diversity in hospitality industry:
One of the biggest impacts of globalization for those managing companies and organization is dealing with a more culturally diverse pool of employees (Lim and Noriega, 2007). Lim and Noriega (2007) further argue that in a world where over 50% of world’s are owned and controlled by TNCs and MNCs they are bound to deal with workforces from different cultural backgrounds due to their cross boundary operations, their attempt to attract talent from various parts of globe, and at times governments’ pressure for greater diversity at workplace (Stanley, 2008). Stanley (2008) note that, the same rule of thumb applies to the hospitality industry, which has seen a surge in workforce diversity. Lim and Noriega (2007) advocate that rapid growth in the hospitality industry in areas such as East and Southeast Asia (e.g. China) have presented the hospitality MNCs such as Hilton and Sheraton with the much needed space to grow. Stanley’s (2008) study of international hotel chains in Asia continent reveals that Hilton is planning to add another 300 branches to its existing 50 branches in the region. According to a report by Xinhua (2008) many international hospitality organizations showed readiness to tap into the Chinese market in the face of the Beijing 2008 Olympics. Such aggressive battle for market share in this flourishing region has already made its mark on the labour market where there is a tight competition among these companies to attract the talented employees (Doherty et al, 2007). Doherty et al, (2007) argue that the real competition in the labour market is to absorb the kind of managers that are able to deal with employees from a different cultural background. Thus, the important task for these MNCs is to attract the type of management talent (often expatriates)...