Multicultural Workforce at a Large

¶ … Multicultural Workforce at a Large Company

Almost every large company today must confront the pressures of the global marketplace. Consumers and suppliers often come from different cultural environments than the nation of origin of the organization's founders. Companies like General Motors are finding that nations such as China may offer more receptive markets to their core products than the United States. But to enjoy the benefits of globalization, a company must also embrace the reality of a diverse, multicultural workforce. To fully understand the consumer psychology of a different nation, having marketing and advertising personnel who are of that culture and background can be invaluable. When dealing with the challenges of government bureaucracy, supply chain management, and operations abroad, having workers with a familiarity with the customs of foreign cultures and nations is essential.

For example, in some high-context cultures such as India and the Middle East, bribery and favoritism may be an accepted part of business life (also known as the 'gray market'). Even if a large, multinational company cannot endorse such practices, entering into negotiations with a foreign business entity, top-level management should be aware of such a situation, so they will not be surprised. Likewise, many former communist nations in Eastern Europe and contemporary China often have extremely complicated restrictions and regulations regarding doing business. An understanding of how to cut through official 'red tape' requires an understanding of cultural norms in an intimate fashion, as well as historical and linguistic familiarity with the nation.

Companies that have ignored such norms when beginning new enterprises abroad are likely to meet the fate of Wal-Mart in Germany. In Germany, worker's rights and union rights are protected under national law, and are an important part of the cultural fabric. "One Wal-Mart employee told the newsmagazine Der Spiegel that management had threatened to close certain stores if staff did not agree to work to working longer hours than their contracts foresaw and did not permit video surveillance of their work" (Schaefer 2006). Wal-Mart also had a tone-deaf ear to what German customers wanted. The enforced smiling of Wal-Mart employees at taciturn German customers, and the fact that no one at the company realized "that American pillowcases are a different size than German" pillowcases, leaving Wal-Mart Germany "with a huge pile of pillowcases they couldn't sell to German customers" are examples of how an informed and nuanced cultural understanding of a nation is demanded to succeed in a global environment (Schaefer 2006).

On a more subtle level, diversity can create a more positive organizational culture by changing the dynamics of the workplace on a daily basis. Of course, almost all organizations say that they support diversity. But "clearly, there are often substantial differences between constructed 'espoused culture' and the real 'culture in use' -- that is, between the formal statements of senior management regarding organizational culture and the informal culture of various parts of the organization" (Trefry 2006: 6). A diverse workforce can inject an important dynamic of creativity and new thinking, and prevent an organization from growing stagnant. Different interpersonal styles can create a more balanced workplace culture. For example, although it is important not to stereotype, a more traditionally cooperative style of management provided by female employees can balance out a hyper-masculine dynamic at a highly competitive organization.