Cultural Diversity in Hospitality Industry - Report Example

CULTURAL DIVERSITY IN HOSPITALITY INDUSTRY Name Name of Class Name of Professor Institution Affiliation Location Date Cultural Diversity in Hospitality Industry Diversity management is a concept that recognizes the nature of individual differences existing in organizations. It is a concept encompassing the respect and acceptance of these differences by fully recognizing that all people in the organization are unique in their rights (Richard et al., 2004, p. 256). Diversity brings about issues to do with race, gender, ethnicity, sexual orientation, age, socio-economic status, political as well as religious beliefs. All these aspects are usually considered to be integral to the functioning of modern business entities. It is usually considered to be a strategic advantage for firms and organizations (Amaram 2011, p. 2). At the same, the recognition of different cultural inclinations of employees in an organization can also negatively affect the progress of an organization (Burke 2009, p. 62). Cultural diversity is the variety of cultural differences that require keen awareness, comprehension and appreciation of the differences by managers in their respective organizations. Such managers need to make the most of these cultural differences to create positive outcomes for the organization. As such, cultural differences have a way of making leaders create better systems and organizations (Richard et al., 2004, p. 256). During times of turbulence and sudden changes, it is the responsibility of managers to implement changes aimed at strategically positioning the organization in a place of sustainable competitive advantage. To this end, motivation in the workplace is one of the major drivers behind the adoption of culturally-sensitive human resource policies (Ely and Thomas 2001, p. 230). Workforce diversity has always been an important issue in the hospitality industry. Globalization processes have made it possible for increased numbers of minority groups to find access into the hospitality industry, thus creating the requirement for better management practices in the industry. Hofstede conducted well-known studies that looked into the issues of cultural diversity in the workplace and the way it affects workplace productivity (Csaba 2013, p. 533). In one particular study, he looked at the operations of IBM as an organization across 40 nations and sought to look out for critical issues that defined the cultural dynamics in a given workplace (Csaba 2013, p. 533). Five main cultural dimensions were drawn out to include notions of individualism whereby a person looked at the relationship between him and the group. Power dynamics are also important in understanding culture. The perception of power and authority influences the relationship one has to authority (Csaba 2013, p. 533). It also determines one’s notion of social inequality and is a major determinant to organizational alignment along the strategic objectives. Masculinity is also another factor that Hofstede noted as there were clear emotional and social implications of being oriented towards a certain gender. It was also important to look at some of the ways of dealing with uncertainty and ambiguity (Csaba 2013, p. 533). As such, Hofstede developed the Uncertainty Avoidance Index (UAI) in which participants were measured based on their ability to control their aggressiveness as well as to express a range of various emotions. Lastly, Hofstede identified issues to deal with long-term orientation and perspectives about the past and the present (Csaba 2013, p. 533). In the hospitality industry, cultural diversity is crucial in the management of organizations with the long-term view in mind (Burke 2009, p. 62). In an organization such as Hilton Hotels, it is crucial to embrace cultural diversity when it comes to international expansion. Globalization processes have made it mandatory for organizations to look beyond their national borders and tap into the overseas markets (Amaram 2011, p. 1). To create a better competitive advantage that is sustainable in the long run, it is crucial to embrace the different cultures that one may find as they expand into new national frontiers. Failure to plan accordingly and anticipate these cultural differences will only present an organization with cultural issues to deal with, and it can result in a drop in the quality of services offered to customers (Amaram 2011, p. 1). Through the embracing of diversity management principles, a manager can effectively transform the notion of diversity from a legal responsibility to an asset. Hilton Hotels operate across diverse cultures with some having more commonalities as compared to others. An example of such a scenario is seen in the presence of Hilton Hotels in the USA, the UK and Australia. While these nations have similar cultural backgrounds, there are vital differences that exist in these nations, and it is the responsibility of Hilton Hotels to be keenly aware of them (Tajeddini and Trueman 2012, p. 1120). Diversity management is a concept that goes beyond the hiring of a certain group of people in an organization (Richard et al., 2004, p. 260). As such, it is possible that Hilton Hotels may hire women, physically challenged people, gay men and lesbians. Hilton Hotels may also take the step to manage and honour these differences existing in its workforce. However, to ensure the organization attains a sustainable competitive advantage in the market, the organization will essentially take concrete steps towards capitalizing on these differences (Ely and Thomas 2001, p. 241). The ability of an organization to remain competitive in such a globalized industry is dependent on the embracing of diversity management principles and theories. From a socio-cultural perspective, cultural diversity allows managers to augment the cultural inclinations of employees better with the market demands. A culturally diverse workforce can design better products and services for its customers (Burke 2009, p. 63). It helps to broaden their views and approach to problems in the workplace since different paths can be followed through the different cultural perspectives that exist in the workplace. In the case of the hospitality industry, Hilton Hotels has to deal continuously with customer demands that are increasingly more alien to the American culture. As a globalized business entity, it is important to have a customer service operation that responds instinctively to the different demands that occur in its global operation. Hofstede’s theoretical framework points to the fact that different views and backgrounds bring about different approaches to problem solving (Csaba 2013, p. 533). As such, to improve customer service, it is to the benefit of the organization to ensure its workforce has diverse members that can provide vital information and richer perspectives that can be used to solve organizational as well as customer problems (Gong 2008, p. 13). The net effect of such a strategy is that the employees will also become more effective at solving similar problems when they emerge once more. The hospitality industry is one that is always fluctuating as different issues are brought to the fore by competing for business entities. To ensure there are growth and development, more ideas and suggestions need to be introduced to make sure that the organization moves ahead with the times (Gong 2008, p. 13). Cultural diversity ensures problem-solving skills improve through the acquisition of knowledge resources found in the employees (Amaram 2011, p. 5). It also expands the adaptability and flexibility within such an organization on both human resource personnel and the customers. Another feature of the 21st-century organizations is their propensity to embrace learning postures to remain relevant. For Hilton Hotels, embracing diverse cultures among its ranks enables it to become a learning organization. Cultural diversity in such an organization means that the contributions of everyone are valued and implemented (Conway 2016, p. 3). Everyone has equal opportunities since there are fairness and the absence of organizational barriers. The removal of such barriers means that an organization such as Hilton Hotels will always be proactive and flexible in the hospitality industry. Whenever there is a need to make a change, Hilton Hotels will not be hesitant to make adjustments since there is an environment of togetherness. Perhaps the greatest advantage of such a strategy is that monoculture is avoided. The assumption that customers are the same and, for that reason, possess similar needs is debunked. Cultural diversity means that the organization is always able to see things in a different perspective. A globalized operation means there is a demand to have a globalized customer service entity that is open to communication (Gong 2008, p. 14). As such, Hilton Hotels can utilize its diverse workforce always to be in synch with the market by ensuring that ideas are tolerated. Having diverse teams in such a setting means that the organization will always be in a position whereby its members can comprehend the organizational communication patterns (Gong 2008, p. 15). Additionally, the workforce will also be in a position to utilize its vast collection of experience and skills such as cultural understanding and language among others to create a competitive advantage in the globalized Hilton Hotels operations (Singal 2014, p. 17). An additional feature of cultural diversity is that it positions an organization in a place of effective execution, especially in complex aspects (Richard et al., 2004, p. 262). Some tasks increasingly require complex cognitive inputs. As such, knowledge resources such as skills, information, critical thinking and analysis become hugely important for an organization (Crowe and Hogan 2007, p. 31). Diverse members can provide such resources, making it easy to deal with the increased burden of being a global player in the hospitality industry. Research has shown that organizations that embrace cultural diversity principles and practices tend to encourage their members to embrace their abilities. The workforce is usually required to recognize its abilities and strengths fully and work towards ensuring that its customers have the best possible experience (Gong 2008, p. 17). A result of such a thinking framework is that an environment of continuous improvement is created as people become proactive in their duty to the organization as well as the customer. However, some challenges exist as a result of diversity management principles. Cross-cultural gaps are responsible for the increase in cross-cultural challenges in the hospitality industry. As mentioned, the hospitality industry is continuously growing and evolving. It is in the interest of any organization to evolve along with it as seen in the case of Hilton Hotels. However, growth means that there are opportunities for misinterpretation and misunderstanding of the needs of both the customers and the workforce (Gong 2008, p. 22). A good example is seen in the case of AirBnB; a disruptive company that is presently shifting the hospitality industry. The survival of any organization in the hospitality sector is dependent on its ability to consistently appreciate the importance of cultural diversity in meeting the needs of all stakeholders involved in the value chain. However, other major issues should also be regulated. The onset of culturally diverse teams invites other societal evils such as sexism, racism, homophobia and ageism (Crowe and Hogan 2007, p. 12). People brought together to provide a quality service to the consumers are also likely to become too conscious of the differences that exist between them, thus resulting in a negative spiral of events leading to poor results (Ely and Thomas 2001, p. 252). Another issue that affects culturally diverse teams and organizations is that of communication. Perceptual, language and cultural barriers are issues that plague diverse teams. It can result in miscommunication of important strategic information (Gong 2008, p. 23). These communication barriers are not just an issue of language. As seen in the Hofstede’s analogies, people may share the same language but due to differences in cultural expression, strong barriers to understanding and perception will also exist (Csaba 2013, p. 533). As such, an entire workforce in a business entity can be disrupted by simple misunderstandings that exist due to cultural differences in issues such as behaviour, communication styles as well as work attitudes. For an organization such as Hilton Hotels, ineffective communication of crucial objectives can result in confusion as well as the lack of teamwork. Additionally, the workforce may also suffer from low morale resulting in a dull experience for the customers. The multi-cultural hospitality industry requires one to position himself fully in an environment where all team members are aware of each other’s differences in order to reduce ambiguity and increase cohesiveness (Gong 2008, p. 14). Another issue with diversity management approaches in the hospitality industry is that it may lead to challenges in commitment and loyalty in an organization. Studies have shown that people will feel more loyal to cultures that are in line with their own backgrounds and settings (Singal 2014, p. 12). A global entity such as Hilton Hotels has to consider this factor as it essentially means that loyalty from its workforce is not as a business entity since it has many different cultural groups (Gong 2008, p. 21). It is a challenge of any such organization to continuously deal with such issues so that the workforce can remain focused on the customers (Ely and Thomas 2001, p. 263). There are always those members of the workforce who will always be opposed to changes with regards to cultural diversity. They are inclined towards maintenance of the status quo and this can mean that the organization will no longer have access to new ideas. A direct result of such a situation is that progress is curtailed (Singal 2014, p. 15). A company should be keenly aware of such problems before embracing diversity management policies. Additionally, cultural diversity tends to complicate the decision-making process of organizations. As it is with culturally-diverse teams, it is crucial that all members feel that they are part and parcel of the organization (Crowe and Hogan 2007, p. 21). A good way of ensuring that such a vision becomes a reality is to accommodate all opinions and ideas in the organization’s business strategy. However, such a move is virtually impossible to implement in any organization since it is not easy to find solutions and compromises to such ethical conundrums. Hofstede’s framework of cultural diversity in the workforce provides the understanding that people always have different values and beliefs, and this tends to have an effect on the perceptions of different problems in the organization. Those who do not share the same cultural values tend to have difficulties in comprehending one another and it can lead to disharmony in the workplace (Gong 2008, p. 22). In the hospitality industry, it is important for an organization such as Hilton Hotels to ensure there is a single and unified message communicated by its workforce. Hilton Hotels as a brand cannot afford to have different ideals when it comes to meeting customer targets in its global operations. Another issue is that cultural diversity invites the need to provide adequate training for the workforce in order to orient it with the objectives of an organization. Diversity training deals with ethnocentrism and short-sightedness that exists in employees (Gong 2008, p. 20). However, no single training course can adequately prepare employees to deal with all the different cultures that exist in the world. Additionally, training will always come with increased costs as well the consideration of time spent (Crowe and Hogan 2007, p. 54). A common feature of the hospitality industry is only to train the lower level managers and employees when it comes to cultural awareness. However, for there to be effective change and appreciation of different cultures in the organization, it is crucial also to include top-level management in diversity training programs as well. In conclusion, it is clear that managing a culturally-diverse team can create many opportunities as well as challenges for the organization. As seen in the case of Hilton Hotels and its operations in the hospitality industry, it is crucial to consider the global strategy of an organization as it adopts diversity management concepts (Richardson 2005, p. 25). At the core of a business is to ensure a sustainable competitive advantage is attained both in the short-term and the long-term. Merging diversity management principles and the core strategy of the organization is crucial to ensuring success is attained. While an organization can have access to innovative solutions in culturally diverse teams, it can also result in communication barriers and discriminatory practices among members of the workforce thus curtailing the overall business strategy. Reference List Amaram, D.I., 2011. Cultural diversity: Implications for workplace management. Journal of Diversity Management (JDM), 2(4), pp.1-6. Burke, R., 2009. Managing an Increasingly Diverse Workforce: Introduction. Canadian Journal of Administrative Sciences / Revue Canadienne des Sciences de l'Administration, 8(2), pp.62-63. Crowe, D. and Hogan, M., 2007. Cultural diversity in the workplace. Conway, K., 2016. Hospitality and religious diversity, or, when is home not a home? International Journal of Cultural Studies. Csaba, N. (2013). Csaba, N., 2013. MANAGING A CULTURALLY DIVERSE WORKFORCE IN THE HOSPITALITY INDUSTRY. Ph.D.”MIHAI EMINESCU” UNIVERSITY OF TIMISOARA. Ely, R.J. and Thomas, D.A., 2001. Cultural diversity at work: The effects of diversity perspectives on work group processes and outcomes. Administrative science quarterly, 46(2), pp.229-273. Gong, Y. (2008). Managing cultural diversity in hospitality industry. Master of Science in Hotel Administration. China Chongqing University. Richard, O.C., Barnett, T., Dwyer, S. and Chadwick, K., 2004. Cultural diversity in management, firm performance, and the moderating role of entrepreneurial orientation dimensions. Academy of management journal, 47(2), pp.255-266. Richardson, P. (2005). Managing cultural diversity. Engineering Management, 15(2), pp.24-27. Singal, M. (2014). The business case for diversity management in the hospitality industry. International Journal of Hospitality Management, 40, pp.10-19. Tajeddini, K., and Trueman, M. (2012). Managing Swiss Hospitality: How cultural antecedents of innovation and customer-oriented value systems can influence performance in the hotel industry. International Journal of Hospitality Management, 31(4), pp.1119-1129. Read More