Managing Diversity in a Global Business Context

Introduction

Management is becoming an increasingly integral element of business operations within an international context. Rising competition from international firms, combined with the emergence of globalization, has created a need for strong managerial talent within international organizations. In addition, the exponential growth of e-commerce has allowed even small businesses to sell their products and services overseas. This increase in accessibility has allowed small and large enterprises to compete globally, thereby improving the quality of life for people across society, according to research conducted by Cox (Cox, 2021). As more goods and services are produced, more individuals can partake in the innovations that emerge, irrespective of their country of origin.

This international expansion has brought with it a range of concerns related to management and its implementation within a global context. For example, managers must now demonstrate a much higher degree of emotional intelligence in order to assess the emotional stability of their teams and organizations. They must also be able to navigate a complex system of cultural values, norms, and behaviors—particularly when those values run counter to their own. Research conducted by Bachmann in 2006 found that managers have difficulty not only forming multicultural groups, but also maintaining diversity and inclusion within the work environment (Bachmann, 2006).

Management must also have the ability to adopt and embrace changing technologies that improve operational capabilities within an international context. COVID-19, for instance, placed a large and unexpected strain on business operations. Managers had to contend with significant supply chain disruptions, economic upheaval resulting from business closures, and evolving regulations related to public health mandates. The most successful international managers were able to pivot quickly and efficiently by adopting new technologies designed to mitigate the impact of the pandemic on business operations. Research conducted by Roberts found that coordination between workgroups within an international context was the best means to cultivate and maintain a culture of change management throughout the organization (Roberts, 2021). International managers must instill a culture of change management that allows—and even empowers—employees to embrace technologies that enable their businesses to compete in more restrictive economic environments.

As will be detailed below, managers must have the ability to adapt to changing circumstances within the business environment. COVID-19 was no exception. From an economic standpoint, businesses have faced numerous unexpected shocks throughout history, each requiring extensive innovation and organizational change (Riordan, 1997). History has shown that such shocks often occur every five to seven years, resulting in periodic economic contractions and recessions—each of which requires management expertise to navigate. Likewise, managers today are contending with a shortage of qualified hiring candidates. The United States in particular is experiencing a deficit of qualified applicants for many needed positions. Here too, managers must adapt and leverage international human resources practices to establish a culture that attracts the best talent within their industries (Appelbaum, 1998).

Managing Diversity in the Workplace

There are a variety of management strategies and styles that can be used within an international context to manage diversity effectively. The first, and most common, is to encourage constant communication—preferably face-to-face. This strategy is important because it helps establish a strong and engaging organizational culture. One of the primary benefits of diversity is the unique thought processes and experiences that team members bring to the work environment (Barry, 1996). These benefits, however, do not manifest if culturally diverse teams do not communicate productively. Management must therefore create an environment in which communication is highly encouraged and rewarded. By rewarding open communication, management can better foster a culture of candor that ultimately builds rapport between diverse teammates (Watson, 1993).

This becomes even more important as team members are located in geographically dispersed locations. Hybrid and remote work environments are now commonplace in the business world, and it is not unusual to find members of the same team working from two entirely different locations around the globe. Communication is therefore critical to managing a diverse workplace while also realizing the benefits that diversity offers. Similarly, policies, procedures, safety rules, and other important information should be designed to overcome language and cultural barriers—through translated materials and the use of pictures and symbols wherever applicable. Research conducted by Williams found that pictures and symbols often carry universal meaning within an international context, and that leveraging such imagery can help reduce miscommunication while aligning and engaging team members across a diverse work environment (Williams, 2001).

Cultural Value Differences: East and West

When managing a diverse workplace, cultural values, norms, and behaviors can often clash. Different cultures frequently hold divergent values and behavioral expectations. For example, Asian cultures tend to be more collectivistic in nature, emphasizing the benefit of the group over individual achievement. In certain contexts, individuals who attempt to overshadow the group may be shunned or ostracized. Research by Gail Robinson found that managers who take these values into account are significantly more successful at building diverse teams within an international context (Gail Robinson, 1997). Furthermore, age is often used as a criterion for senior-level positions in many Asian cultures, with deference typically given to the most senior individual for leadership and guidance. Many Asian business cultures also prefer clear organizational structures with defined lines of authority, particularly during times of uncertainty.

These concepts contrast sharply with those of Western culture, where individuals are often promoted and recognized based on personal achievement rather than group contribution. Western companies tend to promote based on talent and skill rather than seniority, creating competitive environments that reward high performers. This approach, however, is not without its flaws, as some individuals may be promoted on the basis of politics or personal connections rather than merit (Tsui, 2007). Nevertheless, Western societies broadly prioritize talent, qualifications, and individual performance when determining leadership roles—rather than age or tenure alone (Igbaria, 1995).

Conclusion

Diversity has become a much more important element within the context of international business. Businesses are now conducting a larger portion of their operations overseas, and with the internet and technological advancements, even small businesses and individuals are able to engage in international commerce. This reality requires a diverse and engaged workforce in order to serve international clients and consumers effectively.

To achieve this, management must foster a culture of diversity and inclusion throughout the organization. As outlined above, this culture must be grounded in respect for differing opinions, driven by diversity-conscious hiring practices, and sustained through meaningful training and development initiatives. In addition, management must embrace a servant leadership philosophy—seeking to understand each team member's professional goals and aspirations. This approach ultimately creates a compelling and engaging work environment that rewards diversity and fosters open communication (Bagshaw, 2004).

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