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In Order to Successfully Manage a Culturally Diverse Workforce, Managers Should Undertake Diversity Training. Discuss to What Extent You Agree with This Statement, Illustrating Your Answer with Reference to Company Practice Around the World.

Managing Organisations “In order to successfully manage a culturally diverse workforce, managers should undertake diversity training. Discuss to what extent you agree with this statement, illustrating your answer with reference to company practice around the world. ” ” It has been demographic organizational change in the last two decades.

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In the beginning, diversity management is a supposedly new management paradigm from USA that to deal with the inequality and diversity issues of the workplace in the late 1980s(Kelly and Dobbin,1998; Thomas,1990).

The relationships or interactions between employees and managers become increasingly complex. Authors as O’Reilly and Barsade(1999), Jehn (1995) and Polzer, Milton and Swann (2002) explained that diversity can bring positive outcomes as well as the challenges in the historically homogeneous environment of the workplace. For managing workforce diversity, many governmental, educational and other businesses began to develop strategies in the early 1990s.

Ashakanasy et al (2002) stated that several factors influenced this trend, which are organizational emphases on teams, the shift to an economy, globalization and the knowledge workers. Many publications typically addressed the importance of organizational workforce diversity(Jamieson and O’Mara,1991; Cox,1993; Loden and Rosener, 1991; Cox and Blake, 1991). As such, the organization is faced with not only recruiting or training employees from different backgrounds, but also needs to manage the challenges.

As diversity increases among organisations and employees, it is essential that human resource practitioners have to view different management strategies for the effective performance. The subject of diversity management has changed as increasing different background and preferences employees are representing the same organisation. According to Thomas (1991), the originally concept of diversity management is presented and his original definition is emphasized performance attributed to today’s majority of definitions.

In this paper, it is focussed on how diversity management influences the reputation of an organization, also, affects both outsider and insider sectors (i. e. , perceptions of organization and interpersonal behavior. ) How organisations achieve and sustain competitive advantage is the fundamental question of strategic management(Teece, Pisano and Shuen, 1997). Recent empirical studies from McMahon (2010) have pointed out that diversity is a multifaceted reality with ethical implications and essentially competitive.

However, diversity management is focusing on the social and organisation processes(e. g. Frech, 2001;Ryan and Haslam, 2005;Kalev, Kelly and Dobbin, 2006). Individual career outcomes or group process are playing an important role in the diversity management. Because of the different culture background of employees, it is required the managers that training or retraining for critical diversity of employment. Scholars have seen diversity the key driver of organization, which reflects the variety of skills, abilities and knowledges among top managers.

That means managers are able to understand the complex culture background of employees, also work with the multicultural workplace. They should be identified the challenges that dealing with other cultures, and assess the best methods to reduce the conflict of diverse workplace. As Thomas’ model stated that diversity is the mix of similarities and differences involving many dimensions in an organization, such as sexual orientation, race, age, educational level, ethnicity, religion, gender, geographic origin and other from organizational context itself, including location, job function and tenure.

In addition, Cox(1993) explained it that diversity is “the representation, in one social system, of people with distinctly different group affiliations of cultural significance”. However, successful management of diverse talents is addressing the potential impact of all differences on organizational culture(Thomas,2010). Organizational tensions are complex and unexpected, also related to the diversity. According to Thomas'(2010) studied that a case related to African-American members of a workplace which own lower levels of organizational satisfaction than other groups.

It’s describes racism can be caused by inappropriate management. ” Lacks disproportionarely worked in a function held in relatively low regard by the organization and also in a plant located in a geographic site considered to be an undersirable place to live. These functional and geographic considerations proved more significant in prompting blacks to report higher levels of dissatisfaction than other groups in the company than did racism. Any efforts to address the perceived racism – no matter how successful – would not have included the complexities associated with functions and geographic locations”

In the view of the fact that, the role of the individual firm can be diverse by the culture or workplace. Wyatt-Nichol and Badu(2012) noted that “workforce diversity has the potential to improve service delivery and performance by way of understanding the values and norms of target populations the organization serves, particularly for public employees in service delivery organization”. Indeed, the organization focus on how communication diversity management through practices such as mentoring, team building and decision making.

In the context of communication, there are essentially barriers in the communication process which from different cultures. The world is getting smaller by the improved communication technology. At the same effect, globalization is developed by narrowing down the distance from national to national. Although, the globalization directly affected the distance,still, organization maintain the characteristic of cognitive conflict in employees with diversity. Accordingly, these characteristics can be defined as group members disagree about the tasks, for example, differences in ideas and viewpoints (Jehn, 1995).

Communication is very important interactions between people, which including verbally and non-verbally elements. Both communication are possible for a person to communicate with each other by using gestures. Language to explain their fellings and emotions which from their own cultural background. For example, language is different from non-verbal communication, therefore, verbal communication determines the certain meaning of what they say and what they feel. It can show that personal experience about the world and the differences between two or more cultural background.

For instance, one author states that in the Chinese Doctrine of the Mean: “Feeling like joy, anger, sorrow and happiness are in the state of the meaning when they are kept in heart; they are in the state of harmony when expressed in conformity with moral standards. The mean is the fundament of everything under heaven, and harmony is the universal law. With the mean and harmony, the earth moves orderly, and everything thereon grows and flourishes”. (He, 1992:23) Team members working together should smooth over conflict when they are on task or emotion.

In this circumstance, people from different culture background may be accepted by the small differences. But the main concern of the language is misunderstanding the signals leading to unsuccessful interacting. Hurn (2007) pointed out that “a reasonable working knowledge of the foreign language helps managers avoid feeling isolated”. Therefore, diversity management required the managers have the acquired abilities to work as an international managers. It is clarified that they have to make the effort to the work, particularly deal with foreign cultural background employees.

With regards to the international environment, Luthans et al,(2009) indicated that “if international managers do not know something about the cultures of the countries they deal with, the results can be quite disastrous”. As the generalizations environment changed cultural influences from person to person, managers have to learn more in-depth knowledge about diversity management to manage employees in different workplace. In doing so, the study contributes to the deeper research by analysis the social communities.

It is said that ‘organizations are social communities in which individual and social expertise is transformed into economically useful products and services by the application of a set of higher-order organizing principles'(Kogut and Zander,1992). All the management concepts are concerned about the human capital, in other words, the resources of human. Resources can be identify as ‘anything that could be thought of as a strength or weakness of a give firm’ as well as ‘those (tangible and intangible) assets which are semi-permanently tied to the firm'(Wernerfelt, 1984), such as efficient procedures, machinery and skilled personnel.

Consequently, those sources for organization are competitive advantage which organizations need to transfer the capacity into productive use. In order to achieve organizational goals, sustainable human resource management is offering a solution for organizations that preserving the productivity and retention of employees. Understanding diversity management requires an attention to rules, interests to entry that distinct social space. For the beginning, research should start by defining the field which boundaries are located.

Generally, Wright and McMahan(1992) indicated that “the linking of human resource management practices with the strategic management process of the organisation… the coordination or congruence among the various human resource management practices through a pattern of planned action”. Most of writers suggested that the human resource management should concern about the significant input of strategic decision making, rather than only corporation between employees. Hence, corporate strategy in a relatively global way is the necessity of a link with diversity management.

It tended to be widely used real than the basic theory that describes by the scholars. In order to sustain a competitive advantage from the more knowledge-based demand for labor market, human resource offers a potential source that related to highly qualified and skilled employees(e. g. Moroko and Uncles, 2008). For the diverse workplace, managers have been required more diverse skills to be solving the problem when work with different employees. Some critical diversity scholars pointed out the shift from opportunities to management(Kelly and Dobbin,1998).

There is evidence that HRM related to the organisational performance and the relationship of employees. However, it is concerned about how to improve the employees’ skill and the differences in the diverse workplace. Alternatively, the process of HRM system refers to theorization and critical management through efforts of encouraging employees’ internal motivation. In turn, traditional HRM process has focused on the identity-based control with employees’ expectations. However, according to the globalisation diverse workforce, it forced the top manager change the management style through the diversity environment.

On employee level, they are influenced by the basic elements (e. g. conflict between individual and others, rewards from the organisation, etc), and easy to lead negative outcomes by the difference in the workplace. In order to reduce the negative influence, organisation has to find a win-win approach which fulfils the scale of diverse environment and well-control the internal environmental human resource management. Thus, HRM practices refer to the qualities process that impact on employees and organisational performance.

In addition, multicultural management and wi-win hypothesis can be developed in the different workplace. Diversity is a multifaceted reality that implies a ” new organisational paradigm” and requires planned change efforts and systematic (Gilbert et al, 1999). Affirmative action approach is following this phenomenon. According to Shaw (1988), affirmative action can be defined as a ” program designed to equalize hiring and admission opportunities for historically disadvantaged groups by taking into consideration those very characteristics which have been used to deny equal treatment”.

With regard to irrelevant workplace characteristics, there are several implementation problems and negative reactions occured to affirmative action. Following diversity management, many organisations have changed the operation approach by taking the limitations of affirmative action into account(Kelly and Dobbin ,1998). Nevertheless, as Stockdale and Crosby (2004) defined that diversity management is “a voluntary and planned program designed to make differences between employees a source of creativity, complementarity and greater effectiveness”.

Human resource as an approach for the organisation to manage diversity, also organisation can take advantage of differences toward employees. In order to associate with a diverse workplace, affirmative action has been able to achieve business and social justice outcomes. In view fact that organisational culture has changed, it is a relational and multilevel management under the complex workplace. Human capital is playing an important role in this stage that organisation should be attracting, developing and maintaining it.

Human resource management describes as a functional approach that including HRM philosophy and strategic practices. Diversity management requires complex consideration of human resource management, which related to the strategic operation as well. Then, the management system is characteristic by Martin-Alcazar et al,(2012) noted that ” policies such as compensation, recruitment or motivation should be substantially changed when they are oriented toward a heterogeneous workforce, as differences between employees normally involve dis partitions of interests and reactions”.

Thus, the HRM development should be involved diversity practices. As scholars suggested that the majority of diversity analysis is focussed on certain isolated demographic attributes (Jackson et al. , 2003). According to several scholars’ studies, it is simplifying reality and fail to clarify the internal relationship among diversity variables and also need to explore more deeply internal concepts and relationships under the diversity analysis (Milliken and Martins, 1996; Priem et al. , 1999; Harrison and Klein, 2007). Several concepts and measures of diversity from Jackson et al. 2003) have been introduced and proposed two closely interrelated dimensions: demographic diversity and human capital diversity. As Martin-Alcazar et al, (2012) indicated that ” demographic differences influence group work not by themselves but through other less visible variables that directly ass value to group activity(e. g. skills, knowledge). Importantly, demographic diversity is determined a heterogeneous composition of a group’s human capital, which the measure of human capital can be considered as the main input of the group process (Lin, 2001).

It can be classified the demographic composition of workgroups have two categories, as Lawrence (1997) and Hope-Pelled et al. (1999) described : immutable characteristic (e. g. gender, age and nationality ) and individuals’ certain set of background variables (e. g. training, university degree, functional experiences and tenure) (Wiersema and Birs, 1993). On the other hand, human capital diversity is a set of knowledge, abilities and skills(Becker, 1964; Schultz, 1961; Kilker, 1966), and is directly determined by demographic diversity and related to value and individuals’ cognitive approaches.

The multidimensional concept of diversity is occured by the complex cultural background. As regard, multiple common points exist between HR diversity and demographic element which the literature of diversity concept is related. The advantage of group diversity shows that human resource management is a strategic process in the group working and performance. Additionally, it is related to employees’ skills, knowledge, values, abilities and cognitive approaches. As evidence confirmed, the best pattern of human resource management is depended on the situation of rganisation facing demographic and human capital concepts, that used the diverse approach to moderate the differences. Employees are particularly the main key issue to establish structural diversity management. In the other words, human resource management is more important than strategic control operation. In fact, HRM is the based on the member of group that related to the deeply development of human resource and managers need to understand the diversity relationship. Then manage the work system.

In fact, organizational diversity management may affect inside and outside environments. It is indicated policies influence organizational diversity management, for example, climate (Wentling and Palma-Rivas, 2000) and incisiveness (Roberson, 2006). Insider perspective and outsider perspective are both affect diversity management by policies and practices on managing diverse background employees. Human capital is a very important portion of the organization and maintain a consistently positive information about their efforts.

In other words, the commitment to diversity management may influence insider and outsiders by interaction between managers and employees, organization and managers. Diversity management is referred to as balancing act that has an impact to employees performance, satisfaction and retention (McKay et al. , 2008; Roberson, 2006). An organization is contributed to manage diversity and shape the climate for diversity, which presenting the shared employee perception by personnel practices and encourages. Organizational climate is used to classify its different management styles.

In the view of the fact that, diversity management strategies are focused on a diverse workplace by integrating all employees from different types demographic background. Multicultural companies emphasized differences in management practices and attitudes, which associate with all members of its workplace. Therefore, internal messages and external images can affect insiders and outsiders through diversity management efforts. It is concerned that managing ” the organizational environment in which knowledge resources are levered to become a critical production factor” (Botha and Fouche, 2002).

The environment of management is a key source of organization, which determines an organization’s strategy and performance. To be sure, knowledge management is decided the successful operation in routines and capabilities. Furthermore, integrate knowledge to real action is transformed by the top managers through organizational principles. Organizational behavior is explored the knowledge of inside operation, specially in sharing behaviours. An important area of diversity management is operative field that transferring expertise from individual to others, or even across organisations (Wang,2005).

It has been shown that knowledge sharing refers to ” behaviour by which an individual voluntarily provides other social actors (both within and outside the organisation) with access to his or her unique knowledge and experiences” (Hansen and Avital, 2005). It is occurring between individuals,departments and organisations. Thus is voluntary action in this process. Lin (2007) noted that the motivation to knowledge sharing has related to some factors which are self-efficacy, enjoyment and helping others, hence, there are strong knowledge sharing motivators behaviour in the empirical studies.

Indeed, share knowledge from individuals to others has been shown positively related to organisation’s inside environment, such as performance and image. As knowledge sharing in the workplace transmitted organization behaviour by people behaviour engage in the context of diverse workplace, generally, knowledge sharing is a type of organisational behaviour. However, knowledge sharing behaviour can be predicted as well as organisation behaviours. The organisational behaviour literature indicated that job satisfactions and organisational commitment are the main precedent of organisational behaviour (Organ and Ryan ,1995; Podsakoff et al, 2000).

Nevertheless, as Organ, Podsakoff and MacKenzie(2006) observe, organisational behaviour is ” employee behaviour that is above and beyond the call of duty and is therefore discretionary and not rewarded in the context of an organisation’s formal reward structure”. Formally, it expected and required employees as part of their duties and responsibilities, hence, it is voluntary as antecedent and goes beyond role expectations (Allison, Voss and Dryer, 2011).

The growing body of literature that contain with knowledge sharing, job satisfaction, organisational commitment concepts. The type of organisational behaviours is involving strongly positively correlated of two concepts and can be predictors of the formers. The relationship in these concepts is a kind of organisational behaviour characteristic and valuable in encouraging organisational behaviour. These variables can be moderate the relationship between job satisfaction and organisational behaviour.

As it turned out, “in general terms, a moderator is a qualitative (e. g. sex, race, class) or quantitative (e. g. level of reward) variable that affects the direction and/or predictor variable and a dependent or criterion variable”(Baron and Kenney, 1986). Job satisfaction is defined as ” an attitudinal variable that reflects how people feel about their jobs overall as well as about various aspects of them”(Spector, 2003). Also, it is ” a pleasurable or positive emotional state resulting from the appraisal of one’s job or job experiences”(Brief,1998).

Although attitude job satisfaction is multi-dimensional, affective component is the only one key issue which most job satisfaction definitions will be concern(Brief,1998). There are a large number of important variables of job satisfaction such as positive with health, life satisfaction and well-being(Daley and Parfit ,1996; Kantak, Futrell and Sager, 1992; Faragher, Cass and Cooper, 2005; Schmitt and Pulakos, 1985; Rice, Near and Hunt, 1980); turnover intentions or negatively with turnover (Lambert, Lynne and Barton, 2001; Van Dick et al. 2004; Cotton and Tuttle, 1986; Lam, Baum and Pine, 2001;Tett and Meyer, 1993;Shaw,1999); positively with job characteristics (Voydanoff, 1980; Lee, McCabe and Graham, 1983; Thomas, Buboltz and Winkelspecht, 2004; Bhuian and Menguc, 2002); negatively with lateness (Clark, Peters and Tomlinson, 2005). During such time as and lastly, job satisfaction can be a predictor for organisation behaviour, and related to the commitment of organisation. Job satisfaction and organisational commitment are the view of job attitudes, however, they are more strongly related to organisational behaviour.

Within the organisational behaviour, organisational commitment has been identified as a measure of the devotion and loyalty which the feeling of employee toward employing organisation. It is related strength of individual’s identification in the organisation. Wiener (1982) also pointed out that organisational commitment is ” the totality of internalized normative pressure to act in a way that meets organisational interests”. The definition of organisational commitment has also been divided as three component models in the view by Meyer and Allen (1991), which discussed in the literature.

They are continuance, affective and normative commitment: “Affective commitment refers to the employee’s emotional attachment to, identification with, and involvement in the organisation… Continuance commitment refers to an awareness of the costs associated with leaving the organisation. … Finally, normative commitment refers to a feeling of obligation to continue employment. ” Nevertheless, affective organisational commitment has been found that related to the organisational variables, such as tardiness and absenteeism(Dishon-Berkovits and Koslowsky, 2002; Blau, 1986), turnover and turnover intentions(Griffeth, Hom and Gaertner, 2000).

Hence, organisational commitment is strongly positively correlated with organisational behaviour as well. It is indicated that decision to measure only related to affective that it was motivated by realisation among organisational commitment. As the view by scholar, it can be observed that ” affective commitment is positively related to individuals’ willingness to commitment that can be expected to be related to willingness to donate and receive knowledge”(Van Den Hooff and De Ridder, 2004).

By analysis some authors’ studies, Qirko (2012) viewed that ” organisations often invest in what are generally called ‘ understanding differences’ programs” and these related to “training and workshops as well as the celebration of particular identity groups through festivals, lecture series,etc. , and which often coincides with federal observances”. However, these approaches only promote the unnecessary dimensions such as awareness and communication that not directly improve the management part of organisation.

Negative issues may be addressed that increasing of the wrong training process. Therefore, managing diversity is involving understanding different components and affirmative action, while developing a managerial environment for all employees. Also, it focuses on the cultural background diversity as well as the diversity practice. As the process occured all the linkages of organisation such as promotions, recruitment, training and hiring, which critical diversity management is involving.

Cultural dimension described by Thomas(2010) that ” examines and explains the common rules of behaviour and underlying beliefs of an organization and identifies sources of diversity tension and leverage points that shape culture”. The fundamental cultural assumptions are underlined the action of organisation and explore how culture relates to diversity management goal. As views of Jayne and Dipboye(2004) on their research, effective diversity management is ” a thorough needs assessment of the people. Jobs, and organisation ensures that issues related to diversity are framed accurately and that the right interventions are identified”.

From the independent business to the large multinational enterprise, organisations typically become complex and deal with a number of products, attributes and competencies. Diversity management literature in general suggested the important cultural diversity as well as the external development. The potential relevance of diversity management efforts is emphasised by cultural audits. It is involving most of knowledge skill for solving the difference, such as analytical skill, knowledge about cultural identity and strategic methods. Therefore, cultural variability and change are determined by multicultural relationship.

According to Baba (2005), it is indicated by “culturally grounded systems of practice and meaning that affect people’s work behaviour”, as well as “diagnosing problems and recommending solutions that arise when employees from different cultures work together”. Most of generalisations companies have diversity program in place, which the long-term operation in the different workplace and manage the diverse employees. Also there is significant function that positive influence by reducing diversity conflict and support the internal corporation.

The impact of functional diversity on conflict will depend on the company beneficence, which employees can associate with affective tension. For example, Chinese cultural environment is unique that the main characteristic is managers and employees working under a harmony environment. They pay more attention to the different employees and seek to reduce conflict from a diverse cultural background. The function design the management process has to look up the individual differences among manager. To sum up, there appears that business diversity management is involving several dimensions such as culture, knowledge, human resource.

The organisation need to be managed in the diverse environment, it is a challenge for the management and employment that not only character in migrant movement and settlement in a new country (related to demographic and cultural factors), but also the multicultural corporations. Thus, large numbers of people around the world are affected by their own cultural experience,diverse workplace or management style. The differences stated that business in a diverse environment is diverse by corporate culture’s value and assumptions and influence by political, economic and social factors.

As the view of Moeran (2003) pointed out: “The joint-stock company is probably one of the most prevalent social institutions to be found anywhere in the world today. What such business organisations do, how they distribute wealth, where they choose to locate their premises, how many and what kind of people they employ, what kind of research they carry out, what sporting or cultural events they choose to sponsor, and so on and so forth, have enormous financial, economic, administrative, governmental, environmental, social and cultural consequences”

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