Issues Relating Diverse and Cross Cultural Management

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Issues relating diverse and cross cultural workforce|
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R.RAAKESH(12608013)|
5/14/2013|
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INTRODUCTION
The diverse workforce has become a reality today. The impact of cultural diversity varies with the type of environment and firm’s overall strategy. As more and more number of firms move from domestic, multidomestic, multinational strategies to operating as a truly global firm, the significance and impact of cultural diversity increase markedly. Management of cultural differences has become more important for creating advantages and getting competitive edge. Companies must also consider stakeholders as employees. The viewpoints of stakeholders such as shareholders, suppliers, public agencies, and government regulators should be considered in shaping the culture of performance and approaching the diverse markets. In number of situations employees, customers and other stakeholders in the service environment interact to produce the ultimate service outcome. To solve the problem of unfair, inequitable treatment of diverse people, both as employees and customers, managers must recognize that such treatment is bound with bureaucratic structure, subjectivity and irrationality, inappropriate policies and practices, ineffective implementation of human. Companies should completely reshape the working culture that make possible the integration of a broad range of viewpoints that leads to a redefinition of how work gets done and how diverse markets are approached and capitalized upon. All employees should be held accountable for their behaviors and human resources results. There are certain arguments for creating a diverse workforce, those are as follows: 1. As the number of women, minorities etc. in the workforce increase, so will their influence as consumers. Hiring women, minorities, disabled, etc. will help the organizations to tap these niche markets. 2. As all the segments of society have stake in the development and prosperity of the society as a whole, the creation of diverse workforce should be seen as a social and moral imperative. 3. Diversity enhances creativity and innovation and produces advantages. 4. Diversity helps organizations for entering the international arena. 5. Diverse teams make it possible to enhance flexibility and rapid response to change.

Diversity also causes certain problems those are as follows: (i) Communication becomes more difficult. Employees from different cultures fail to understand one another. Firms operating in different language areas find difficulty in communicating with the local employees as local employees speak different language. (ii) Diversity increases ambiguity, complexity and confusion. (iii) Diversity also causes problems when managers and employees over generalize organizational policies, strategies, practices and procedures. (iv) Cultural diversity creates difficulties for an organization when it wants to reach on a single agreement. (v) Cultural diversity increases the complexity and problems in developing overall organizational procedures. A company with a diverse workforce can better serve and compete in diverse markets. Hiring a diverse workforce can be challenging but the greater challenge is to retain the diverse workforce. Exploring best HR practices helps in identifying the best tools for retaining a diverse workforce. These practices include establishing open communication, supporting ongoing training and mentoring programmes and linking pay to diversity goals. Ultimately, the key to create, develop, and retain diverse workforce is to find a way to make workforce to feel connected to their company Cultural Diversity and Management

The cultural impact on management is reflected by basic values, attitudes, beliefs and behavior of the people. Culture can affect technology transfer, managerial attitudes, managerial ideology and even government-business relationships. Moreover culture affects...
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