Strategies to gain a competitive advantage through managing cultural diversity within a service sector organization.

Strategies to gain a competitive advantage through managing cultural diversity within a service sector organization. Introduction Culture has been defined by different authors differently, but what is perhaps the most common definition is that culture is the collective programming of individuals’ minds, which distinguishes members of a particular group or category from the rest of the population.Advertising We will write a custom report sample on Strategies to gain a competitive advantage through managing cultural diversity within a service sector organization. specifically for you for only $16.05 $11/page Learn More A model by Edward Hall involved the division of cultures according to the communication patterns of individuals into a high context where much of the information is implicit, and a low context where the information is explicit (Harris, 2004). Talcott Parsons and Edward Shils also came up with their own model that suggested that all human actions are influenced by five pattern variables. These pattern variables include: the need for gratification versus the restraint of impulses; self-orientation collectivity orientation; universalism versus particularism; ascription versus achievement and; specificity versus diffuseness. Florence Kluckhohn and Fred Strodtbeck also came up with another model after conducting a field study on five communities in the US that were geographically close. Their model distinguishes communities by five value orientations which are: the evaluation of human nature; the relationship between an individual and the environment; the orientation in time; the orientation toward activity and; the relationships among people (Chavan, 2005). The cultural dimensions model of Geert Hofstead is based on a study of IBM as a company in regard to their employees in 40 countries. He identified a number of problems that the employees had to cope with and from their coping mechanisms formulated his model of cultural dimension. He identified that the solutions that the employees had to these problems were different from those pr oposed by the old workplace which they had all been presented with (Burnes, 2003). He, therefore, came up with five dimensions of national cultures. These dimensions include: power distance, which is the degree of inequality among different people and which, the population of a particular country may define as normal; uncertainty avoidance, which is the degree to which a particular population prefers structured situations over unstructured ones; individualism versus collectivism; masculinity versus femininity; and long-term versus short-term orientation (Carmichael, White, and Jayawardena, 2008).Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Strategy for Managing Cultural Diversity It is important to note that different organizations have different organizational cultures and in as much as a new manager would like to increase the competitive advantage of the organization in the market, his or her strategies may not fit into the inherent culture in the organization. For a Swedish manager moving into Hong Kong it is important to note that he or she has to identify the differences in culture between the two countries first, before a decision to adopt a particular competitive strategy is made. The careful evaluation of the cultural differences allows the manager to come up with a management strategy that incorporates a balanced human resource selection and recruiting process (Hughes, and Rog, 2008). This will also allow the manager to reduce the conflict that may exist between two different cultures by identifying that the market has been predisposed to particular cultural aspects, which if changed will lead to customer dissatisfaction and reduce competitive advantage (Wildes, 2008). It is important to note that any competitive strategy has to be formulated with the customers’ preferences in mind for it to be successful. Selection The process of select ion in a culture that has a high power distance and a high level of masculinity has to incorporate a structure that will complement the formulated strategy meant to increase competitive advantage. Among the components to be identified are clear rules and procedures since the organizational culture in Hong Kong has a high preference for bureaucratic structures. This increases employee loyalty which in turn increases productivity and the organization’s competitive edge in the market. The recognition that people are assets is also vital in the boosting of employee morale and this is transferred to the employees who then identify with the customers in the same way (Scott, and Revis, 2008). The result is a highly aware customer who is loyal to the business and this increases the business’ competitive advantage. The selection of managers who can motivate the other employees is crucial especially in a culture that identifies with achievement such as the one in Hong Kong. This requires that the manager to be flexible and a fast learner for him or her to quickly adapt to the new culture.Advertising We will write a custom report sample on Strategies to gain a competitive advantage through managing cultural diversity within a service sector organization. specifically for you for only $16.05 $11/page Learn More The reduction of conflict is also important for managers since cultures such as that of Hong Kong identify conflicts as offences against efficiency. The threat to efficiency has a direct impact on the productivity of employees and the general productivity as well as profitability of the business (Wildes, 2008). Recruiting The process of recruiting employees has to be consistent with the chosen or the existing organizational strategy for it to be successful. This has to incorporate a shift in culture from the original culture of the already selected employees to that of the new country or organization. The culture in Hong Kong requires that businesses instill superior differentiation structures in their recruitment programs, where division of labor and leadership structures that complement the inherent bureaucracy are put in place (Hughes, and Rog, 2008). The structures are supposed to increase efficiency and output which in turn gives the business a competitive edge in the market. This has to take place in an environment where the new employees can recognize with the new culture for it to have a quick and efficient success rate (Carmichael, White, and Jayawardena, 2008). The identification of employees who may already be conversant with the new organizational structure and nurturing them to train the others increases cooperation and team work in the workplace. This ensures a higher success of the recruiting process as new employees who have moved into a totally different culture are able to comfortably adapt to the new culture (Burnes, 2003). The recruiting process should ensure that the managers are ab le to identify the particular aspects of the new culture that they can combine with their own without creating conflicts that may lead to both employee and customer dissatisfaction. The identification of the strong aspects of culture that can be exploited further is important especially in an environment where competition is stiff and business practices are almost similar, either due to standardization or similarity in cultural preferences (Chavan, 2005).Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More This is because it allows managers to introduce new practices that are unique in the market and increase their competitive advantage in the market. Pre-departure For new managers to adapt to a new environment effectively, they have to be briefed on the particular aspects of the new environment before leaving. This gives them the opportunity to prepare themselves adequately for the new workplace (Salama, Holland, and Vinten, 2003). In this case, role orientation would be of great help to any such managers since it gives them a firsthand idea of the capacity they will have to work at and what is expected of them after they join the new workplace (Harris, 2004). It is also important for the new employees to be conversant with cross-cultural communication especially if the diversity is high. This is meant to reduce the effects of culture shock as the new employees identify channels of communication they are conversant with and have had some experience with. It also increases their effic iency as communication is critical in the productivity of the employees (Littlejohn, and Watson, 2004). With increased efficiency and output, the manager can increase the competitive advantage of the business in the new market with ease. Challenges faced by expatriates due to different cultural backgrounds In the case of multinationals, both the local processes at the headquarters of the company and the processes in their national and global subsidiaries are often at work. This is after their managers realized that some of the cultures differentiate individuals as well as groups in their own unique way and can’t, therefore, be shared (Scott, and Revis, 2008). In this case, expatriates have to be ready to change their thinking and quickly adapt to the new culture and organizational practice of the new country they are posted to. They will obviously need some guidance from locals since some of the cultural characteristics may be too distinct and region specific. For managers wh o always insist on the strict adherence to their home management structures in their new workplace, they often fall out with some of the loyal customers and employees who feel that they are too conservative and rigid to the different challenges that are involved with the different culture in a different country (Wildes, 2008). This means that organizations may lose their competitive advantage in the market if they are too rigid or conservative to change their thinking and the way they come up with solutions to common organizational challenges in the new setting. The identification of the advantages or rather strengths of a particular cultural aspect is sometimes a challenge for foreign managers. The strength of a particular culture often translates to different levels of employee turnover and where a foreign manager may not understand the strength of the culture, he may try to change it by bringing in his own foreign culture into the new organization. This leads to employee dissatis faction and increases their turnover as they no longer feel comfortable and some may have a hard time adjusting to the new culture (Hughes, and Rog, 2008). Ways of Motivating and Leading Staff to Gain a Competitive Advantage Expatriate managers could motivate the new staff by first understanding the cultural practices that are inherent in the new country and in the new organization, and try to incorporate those new practices in their relationship with the new staff (Carmichael, White, and Jayawardena, 2008). This is meant to identify the potential of the staff that the manager manages and especially their cultural potential. With the full exploitation of this potential the managers will be able to gain a competitive advantage over the competitors (Burnes, 2003). This also increases harmony in the workplace as employees complement each other’s potential as they are culturally predisposed and this increases their output. They may also have to allow the new staff to take a leadi ng responsibility is dealing with the new challenges that are unique to their particular position especially where the foreign manager may have a problem adjusting or understanding the particular cultural practices and market needs (Salama, Holland, and Vinten, 2003). This will obviously require the expatriate managers to be flexible and recognize that cultures do change. This should, however, not mean that they should drop all the practices that are in place in their own home country, but rather incorporate them into the practices of the new organization by balancing some of the new cultures to fit into it (Hatch, and Schultz, 2003). Since they have to deal with unique market needs and patters that they may not have been used to in their home country, expatriate managers have to identify the particular successful aspects of the new employees’ culture that have a higher success rate in giving the business a competitive advantage (Chavan, 2005). They should then substitute the strong strategies that have led to successes in their home country with the weaker aspects of the new market. Conclusion The ease at which new managers adapt into a new environment is identified as critical in increasing the productivity of the employees that he or she manages and this has a direct effect on the competitive advantage that the business enjoys in the market. This can only be achieved if the new manager is conversant with the new culture in the new environment before moving. An efficient selection and recruitment process ensures that the manager is not only capable to adapt in the new environment, but is also prepared for the different challenges that he may come across due to cross-cultural differences. Reference List Burnes, B. 2003. Managing change and changing managers from ABC to XYZ. Journal of Management Development. 22(7). Pp. 627-642. Carmichael, C, White, A, and Jayawardena, B. 2008. Binational tourism in Niagara: insights, challenges and the future. Interna tional Journal of Contemporary Hospitality Management. 20(3). Pp 347-359. Chavan, M. 2005. Diversity Makes Good Business. Equal Opportunities International. 24(7/8). Pp 38-58. Harris, P., R. 2004. European leadership in cultural synergy. European Business Review. 16(4). Pp 358-380. Hatch, M, and Schultz, M. 2003. Bringing the corporation into corporate branding. European Journal of Marketing. 37(7/8). Pp 1041-1064. Hughes, J., C, and Rog, E. 2008. Talent management A strategy for improving employee recruitment, retention and engagement within hospitality organizations. International Journal of Contemporary Hospitality Management. 20(7). Pp 743- 757. Littlejohn, D, and Watson, S. 2004. Developing graduate managers for hospitality and tourism. International Journal of Contemporary Hospitality Management. 16(7). Pp 408-414. Salama, A, Holland, W, and Vinten, G. 2003. Challenges and opportunities in mergers and acquisitions. Journal of European industrial training. 27(6). Pp 313-321. Sc ott, B, and Revis, S. 2008. Talent management in hospitality: graduate career success and strategies. International Journal of Contemporary Hospitality Management. 20(7). Pp 781-791. Wildes, V., J. 2008. How can organizational leaders really lead and serve at the same time? International Journal of Contemporary Hospitality Management. 20(1). Pp 67-78.