Cultural diversity's influence on business accountability and decision-making

Ethnographic Research on Business Culture

Ehtnographic research as it pertains to business culture

Influence of culture on business management

According to Cox (1993, 45-56) cultural diversity in an organization includes the different ways in which the entire workforce experiences a unique group identity that is either based on sexual orientation, race, ethnicity, gender or age. Cox further ads on that culture entail the beliefs, values and customs of each distinct group and that organization can be classified into any of the three groups depending on their cultural diversity, which are the monolithic, plural or multicultural organization. Scholarly literatures have shown that cultural diversity has an influence on business management accountability and decision making strategies.

Accountability has been portrayed as a rational practice that is a requirement in the governance structure of business organizations, while accountants present it as the main aim in financial reporting. Fernandez (1991, 112-123) noted in his studies that different cultures embrace accountability in business management in different ways; his studies further enlist guilt and shame as the two main factors that influence accountability and are also responsible for the way different cultures perceive accountability. Individuals from cultural background where guilt is common tend to practice accountability through the disclosure of information, while individuals from cultural background where shame is common are perceived to be poor in their accountability and rarely do they give out information.

Human resources consultants have observed that expatriates working in cross cultural organization have being forced to adapt to cultural change in respect to accountability and that host managers tend to instill good knowledge of foreign culture and respect to foreign culture on them so as to enable them adopt the new culture of accountability.

As companies expand and emerge into new markets it has become apparent that there is need for host managers to understand cultural values of foreign cultures in order for them to make decisions that will cater and keep into consideration all of the cultures encompassed in their business organization. Cox (1991, 23)pointed out in his studies that culture, belief system, values and customs all have an influence on decision making strategies because different cultures view ethical issues on different perspectives i.e. certain cultures promote ethical practices that are can be viewed to either discourage or encourage what is perceived to be ethical behavior or practice in another culture. The culture-based consequentiality model is an example of a model that tries to explain how cultural value differences change ethical actions of managers responsible for the decision making process.

Leadership influence in multicultural organization

Fernandez (1991, 112-134) wrote in his studies that the leadership process is that of influencing subordinates to perform well in their duties so as to be rewarded for it. Different models and theories that include Likert's system 4 model, Vroom and Yetton model, path and goal theory among others suggest that a more effective leadership style is that which involves subordinates in the decision making process and productive workers always have a directions, guidance or leadership when working.

Referring to the expectancy theory of motivation, leaders should build a model of behavior that is in line with company expectations on performance and workers expectations for rewards. They should also clearly define a direction of effort of work that will result to rewards which workers view as important.

Accountability strategies in a culturally diversified workforce will be greatly influenced by the leaders or host managers, the entire workforce will follow in the direction of the leader and hence if the leader's culture encourages accountability the entire workforce will be bound to be accountable because through this they should expect great rewards. What a leader considers to be ethical behavior or moral practice will form the basis in the decision making process, thus again the leader's culture will greatly determine which decision making strategy that the business organization can adopt.

Work cited

Cox, Taylor, Jr. (1993) Cultural Diversity in Organizations Berrett-Koehler Publishers, pp 45-56.

Cox, Taylor, Jr. (1991)"The Multicultural Organization" Academy of Management Executive Vol. 5, pp 23,

Fernandez, John P. (1991) Managing a Diverse WorkForce. Lexington Books, pp 112-134