A STUDY TO DETERMINE HOW MANAGERS AND LEADERS CAN MOTIVATE A MULTICULTURAL STAFF

A STUDY TO DETERMINE HOW MANAGERS AND LEADERS CAN MOTIVATE A MULTICULTURAL STAFF

By

Author 's name

A Dissertation

presented in partial fulfilment

of the requirements for the degree of

--------------------

in the Department of -----------

------------------------- University

November 2007

ABSTRACT

In the early 21st century , organisations have been through important changes related to this trend of globalisation where not only factors such as international competitive pressure in business activities have taken place , but also the diversity of human capital from all around the

world where cross-cultural interaction has been in expansion

Consequently , this study is focused on the understanding of a culturally diverse workforce with the aim of examining its influences on management styles to motivate the employees . Therefore , this investigation is supported by Herzberg 's theory of motivation , Hofstede , Trompenaars and Hall Hall 's models of cultural differences and its influence on management and organisations ' effectiveness , and the most important management approaches that have contributed to the current management thinking were also taken into consideration

Recommendations in terms of courses involving cultural differences were given , as well as calls for future research and managerial implications where studies of cultural differences between different organisations is recommended

PREFACE

Globalisation is resulting in highly culturally diverse workforce Organizations are facing the issue of managing employees belonging to a variety of cultural backgrounds . The responsibility to solve this issue is on the shoulders of managers and leaders . The purpose of this study is to find out the ways that can help managers and leaders to motivate a multicultural workforce . The researcher has chosen this because the researcher aims to shed light on the ways to manage a multicultural workforce by using latest research studies . Secondary research method is used in this dissertation . The researcher has selected this method due to limited time availability . Data has been collected from previously published journals , articles , books and other online sources . Thus it can be said that the present research contributes to the understanding of managing multicultural workforce

TABLE OF CONTENTS

Part 1 : Chapter 1 Introduction .5

Part 2 : Literature Review

Chapter 2 . Motivation in the Workplace .11

Chapter 3 . Managing a Multicultural Workforce .15

Chapter 4 . How Managers And Leaders Can Motivate A

Multicultural Staff .35

Part 3 : Conclusions and Recommendations

a . Chapter 5 . Conclusions of the Research .40

B . Chapter 6 Recommendations 40

Part 4 : References

TOC \o "1-4 " \h \z \u PART 1 : CHAPTER 1 : INTRODUCTION

BACKGROUND TO THE RESEARCH

Cox and Beale (1997 cited Harvey and Allard 2005 ) define diversity as a group of people in a social system that has different group ties . On the other hand , Thomas (1999 cited Harvey and Allard 2005 :p3 ) defines diversity including not only differences but also similarities indicating that diversity is individuals who are different in some ways and similar in others

As it was mentioned before , diversity in a workforce includes employees with a variety of backgrounds in terms of race , gender , education sexual orientation among others . This study will be focused on the understanding of a cultural diverse workforce with the aim of examining its influences on management styles . For this , it is necessary to point out some important definitions and s that are relevant to management style in an international and heterogeneous business environment to motivate employees . Hofstede , Trompenaars and Hall Hall are three of the most important and significant contributors in what culture and workplace differences regard (Mullins , 2005

General Overview and History of the

The term managing diversity is nowadays becoming more important to organisations , not only because they are interested in diverse groups or they are up to date with the Equal Opportunities legislation and policies , but because they are facing important challenges related to the management and development within a diverse workforce in to survive in today 's global marketplace (Edwards , 1991 cited Henderson 1994 . Ten years ago , the majority of organisations did not think about diversity in the workplace with the intention of having benefit from it Today , a vast percentage of organisations take advantage of diversity initiatives to enhance organisational performance and most important they are committed to it (Berrios , 2003 cited Liberman , 2003

According to Mor Barak (2005 , managing diversity is basically to bring together employees from different backgrounds . However , this definition does not take into account the influence that it might have on management behaviours . According to Harvey and Allard (2005 , diversity can affect people 's interactions in the workplace since it requires changes not only in the way people interact within each other , but also changes in the functionality of the organization , hence in the business performance

Rationale For The Study

Managing diversity is a reality that all Multinationals and International companies are facing . Most organisations nowadays are adapting programmes to manage a culturally diverse workforce in to fulfil their objectives and gain place in the global competitive marketplace , making the most of its employees potential

Globalisation is one of the reasons workers are moving across bs increasing the heterogeneity of organisations and development of cross-cultural interaction in to enhance alliances that go beyond differences such as race , gender , and others (Harris et al , 2004 . Not going much further , the European Union is the most important phenomenon of cultural diversity that has happened in the last 20 years . With 25 different countries as members where all of them has different cultures the EU has faced the challenges that globalisation has brought in to reach common objectives such as encouraging innovation and business investment through Union identity and national diversity (European Union , 2006

In the early 21st century , organisations have been through important changes related to this trend of globalisation where not only factors such as international competitive pressure and business activities have taken place , but also the diversity of human capital from all around the world where cross-cultural interaction has been in expansion (Mullins 2005 . Therefore , it is important that these companies identify their strategies when managing cultural differences in to have the right opportunities to gain competitive advantage (Schneider and Barsoux 2003 . Nevertheless , there are also some risks than can bring difference of cultures in the workplace or business activities consequently , it is vital that organisations understand that different cultures execute procedures differently (Pooley , 2005 Adler , 1983 cited Miroshnik 2002

Furthermore , and being more specific , the management of these ethnically diverse workforce has been on the spot of many authors . As Tayeb (1996 p180-181 ) says the first step in the management of a diverse workforce is to recognise and value such diversity , then he argues that once the diversity is recognised , the next step is to ensure that it is effectively utilised and handled . In this case , utilising those differences contributes to an effective management , thus to bring opportunities for organisational learning and innovation creating competitive advantage in the global marketplace (Schneider and Bardoux 2003 Mor Barak , 2005 . To gain this , managers must have the needed skills to manage a multicultural workforce , this includes , having the ability to recognise and accept cultural differences between their workers as well as coordination , cooperation and communications (Lane et al , 1997 Ravlin et al cited Earley and Singh , 2000

Significance and the Importance of the Study

Managing culturally diverse workforce is nowadays a challenge for international managers . On one hand , diversity represents both differences and similarities that exists on individuals and which make them be unique from one to another (Buelens et al , 2002 and on the other hand Parekh (2000 ) defines culture as a system of beliefs and practices in terms of which a group of human beings understand , regulate and structure their individual and collective lives . Thus , cultural diversity is a variety of cultural differences that requires awareness understanding and acceptance of those differences by managers , making the most of them in to gain positive outcomes (Scarborough , 2001 Littrell , 2002 Harris et al , 2004 Smith and Peterson , 2005

Cultural differences might have some influences in the way managers manage and motivate their culturally diverse team , and those ways or styles that are carried out in one culture are difficult to be implemented in another due to the difference of traditions , ways of doing things and values of that culture (Hofstede cited Evans et al cited Jackson , 1995 . Therefore , further investigation is recommended to be developed to minimise cultural shock in management which could affect business performance . However , this study has been done to offer an up-to-date source of information about multicultural workforce and its influences on management style to motivate employees , which is going to be executed through secondary research . Hence , factors such as cultural diversity and management style should be analyzed in-depth in to comprehend what may constrain managers of any multinational organisation to adjust strategies to maintain the business addressed to its objectives

In this case , there have been other studies more related to the influence or impact of organisational and national culture on management styles and although managing diversity is a that has been researched for various authors , it can be said that managing and motivating a culturally diverse workforce is a relative new approach Therefore , the purpose is to do academic research by studying the related existing literature reviews to analyse and understand the influence of a multicultural workforce in the management styles Finally , a secondary aim of this research is to encourage people to take similar investigation so as to offer useful up-to-date sources that can help both organisations and researchers to acknowledge what is happening in international business and what forces are influencing the changes within organisations

1 .2 . RESEARCH AIM AND OBJECTIVES

a ) Research Aim

The main aim of the research will be to determine which are the major skills needed by managers and leaders to motivate a multicultural staff

b ) Research Objectives

To analyse the main issues related to the role of motivation in business enterprises

To examine the role played by leaders and managers in motivating their staff

To determine which approaches can be used to manage a diverse workforce

To analyse how having a diverse workforce affects business entities

To determine which are the major skills needed by managers and leaders to motivate a multicultural staff

1 .3 . PROPOSED RESEARCH METHODOLOGY

To answer the research question and achieve the objectives of the research there is the need to collect data (Saunders et al , 2000 There are two main data resources , secondary and primary data . Secondary data is the one that already exists from previous investigations and it can be found in books , journals and films (Saunders at al , 2003 Primary data is the one that is recollected from the research and it can be obtained by using methods such as questionnaires , interviews , focus group , and other (Collis and Hussey , 2003

Saunders et al (2003 ) points out that literature review helps to develop an understanding and insight into relevant previous research Collis and Hussey (2003 , add to Saunders 's point of view saying that exploring the existing literature will help to have a better overview on previous research that has been conducted and its impact on the studied research problem . In addition , Saunders et al (2003 ) classify the secondary data into three types : documentary , survey-based and multi-source . For this investigation , it will be useful the documentary secondary data because written documents such as articles taken from the Internet , journals , books among others , could be relevant information to be used

The present research is based on secondary data only due to time constraints

1 .4 . STRUCTURE OF THE DISSERTATION

This research is divided into five chapters

Chapter 1 . Introduction : presents an introduction of the research 's background , its aim and objectives as well as a justification give reason for choosing this

Chapter 2 . Motivation in The Workplace : presents Herzberg 's theory of motivation and explains that ways that can be used to motivate employees

Chapter 3 . Managing a Multicultural Workforce : explores and explain theoretical aspects of multicultural workforce and management styles emphasising culture , management and models of cultural differences

Chapter 4 . How Managers Can Motivate : A Multicultural Staff : explains ways that can be used to minimize the negative effects of cultural diversity in an organization . How managers can motivate their employees

Chapter 5 . Conclusions : presents the conclusions of this investigation

Chapter 6 : Recommendations : provides suggestions for further studies as well as provides whether or not the objectives have been achieved

PART 2 : LITERATURE REVIEW

CHAPTER 2 . MOTIVATION IN THE WORKPLACE

Employee motivation has become the most important factor in to get success in any business . It generally helps any organization grow in a very healthy manner . This happens because employees are the backbone of any organization and if the backbone is strong , then the whole skeleton is strong . In the same way , if the employees are satisfied with their jobs , they definitely show very positive attitude towards their work and thus flourish the plant of the organization (Cooke ,

. 2057-2130 . There are many ways to motivate the employees and some of them are discussed in this

2 .1 Herzberg 's Theory

Frederick Herzberg is well known as the pioneer of motivation theory . He performed a research in the late 1950s . A group of employees were interviewed to find out the factors that brought in them the feelings of satisfaction and dissatisfaction on the job . He asked two simple but essential questions from them that are as follows

When you feel especially good about your job , think of that time . Can you explain why did you feel especially good

When you feel especially bad about your job , think of that time . Can you explain why did you feel especially bad

These two simple questions led him develop his theory . He postulated that motivation and hygiene are two dimensions that lead to job satisfaction . Herzberg explained that hygiene is not related to employee motivation but it can be used to minimize the level of dissatisfaction so hygiene issues should be handled properly . Or it can be said that if hygiene issues are not found in an organization or they are mishandled they can lead to dissatisfaction . Hygiene issues are related to the environment of the employees and they include supervision , interpersonal relations , company policies , salary and working conditions (Herzberg 1966

Herzberg also explained that employees can be satisfied only when their needs for personal growth and meaning are fulfilled and motivators are responsible to do so . Motivating issues include recognition responsibility , achievement , the work itself and advancement . Herzberg concluded that if the hygiene areas are completely addressed , the motivators will lead to the promotion of job satisfaction and encouragement of production (Herzberg 1966

2 .2 Application of Herzberg 's Theory

Herzberg 's theory can be applied to real-life practices . As mentioned earlier , hygiene issues are not considered as factors essential for employees ' satisfaction but an organization must deal first with hygiene issues for the creation of environment that is helpful in employee motivation and satisfaction . So , hygiene issues are discussed first for the creation of such environment

2 .3 Steps to Motivate Employees

Hygiene Factors

Company Policies

Company policies should be made in such a manner that they are applicable on all the employees . The policies should be very clear and only necessary point should be included in the policies in to avoid employees ' frustration . Although company policies will not make employees feel that they are motivated and satisfied but when the policies are clear and proven to be fair and equal for all employees then the rate of dissatisfaction will decrease . A manual of policies should be written and printed copies should be available to all the employees . The manual should be updated time-to-times and employees should be notified such change (Herzberg 1966

Supervision

The selection of supervisor should be based on wise decisions to reduce dissatisfaction . A supervisor has to perform tough tasks as well as he /she has to treat all the employees fairly and equally

Salary

All the employees should be paid fairly in to eliminate the feelings of dissatisfaction that they are not paid fairly . Salary is not a motivator but it can reduce dissatisfaction and thus unhappy working will be reduced . Salaries should be comparable to other organizations on the similar level . Raises and bonuses are also important

Interpersonal Relations

Interpersonal relations are very important to reduce the feeling of dissatisfactions . Employees feel happy when they are given necessary time to socialize such as over lunch . A sense of teamwork is very essential and it is possible with socialization . Offensive comments rudeness and inappropriate behaviors are diminished among employees when their interpersonal relations are strong (Herzberg 1966

Working Conditions

Working conditions bring pride for employees and their work . So , it is necessary to update all equipments and facilities . If possible , every employee should be assigned his /her own space . Employees will feel dissatisfaction if there is no space in their quarters

Motivators

Work Itself

`It is very important to ensure all the employees that they and their work are very important for the organization . Unnecessary tasks should be eliminated to ensure an increase in satisfaction and efficiency

Achievement

It is natural that all the employees want to perform a great job . So it is necessary that all the employees are placed to positions that are suitable for their talents and thus the chances of failure will be reduced . Each position has its own set of achievable goals and standards so all the employees should be familiar with them . It is also necessary to give regular and timely feedbacks on the performance of all the employees so that employees can feel that they are challenged but not overloaded

Recognition

It is the psychology of everybody that they want recognition of the work they do . In the same way , all the employees of an organization also need recognition of the work they do for their organization . So it is necessary to praise the efforts of the employees . The performance should be monitored and then their good work should be acknowledged immediately . It is very essential to recognize their good work in public so that they feel proud of themselves . Some notes of appreciation can be written . Bonuses can also be given . Most importantly , a recognition program should be introduced such as `employee of the month

Responsibility

The sense of ownership brings drastic changes in the performance of employees . They feel motivated when they are given responsibilities Necessary freedom and power should be provided to employees that may be helpful in the performance of their tasks . Employees should be challenged to perform some tasks in possible manner . Employees should be given freedom to decide which pathway they have to select to succeed in a particular task

Advancement

Employees should be promoted to a new position when they become successful in their tasks and their work progress report appears satisfactory . If there is not position available to promote them on then a new title should be given to them that should show the achievement of that employee . Employees should be encouraged to gain further education so that they become a valuable asset for the organization (Herzberg 1966

CHAPTER 3 . MANAGING A MULTICULTURAL WORKFORCE

3 .1 . MULTICULTURAL WORKFORCE AND MANAGEMENT STYLES

3 .1 .1 . Multicultural Workforce

As a starting point , it might be important to understand what culture is , since it plays and important role in people 's behaviour . As there have been a lot of authors who have defined this term , this study will present some definitions from different authors to get a better understanding of the

3 .1 .1 .1 . Definition of Culture

Taylor cited Davis and Rasool (1995 ,

.39 ) offered culture as the complete whole which includes knowledge , belief , art , morals , laws customs , and any other capabilities or habits acquired by man as a member of society . Harris et al (2004 ) suggest that culture manipulates human behaviour hence it impacts on people 's way of thinking , way of doing things and includes values and pattern that influence their manners and actions

This position is also portrayed by Hofstede cited McFarlin and Sweeney (1998 ,

.31 ) who defines that culture is the collective programming of the mind which distinguishes one group or category of people from another . In other words , it can be said that culture is in everyone 's mind and influences on their behaviour within a society which could or not be different to other

It can be observed that in all definitions the word values ' play an important role , so to have a better understanding of culture , this term is going to be expressed in this . Schwartz (1992 , cited in Eaton Dembo , 1997 ,

.12 ) defines values as desirable states , objects , goals or behaviours , transcending specific situations and applied as normative standards to judge and to choose among alternative modes of behaviour People are taught values of their culture since their childhood and that is the way they behave which are taken for granted and that influences their social behaviour (Mead , 2005 . This is important in the way that whatever the situation is , people stick to their values and behave in a different way , because is how they grew up

In the last 20 years there has been an important inclination towards cultural interaction , due to globalization which influences on politics economics , markets , organisations and technology . Because of this migration of people has increased considerable bringing closer contact between cultures (Parekh , 2000 . Consequently , in cross-cultural analysis it is important not only to be aware of , but also to accept differences on culture in to avoid misunderstanding and stereotyping

It is important to highlight that culture diversity provide competitive advantage to global organisations , since it offers tangible benefits such as the improvement of effectiveness and productivity , expansion on the size of the market and increase the awareness of the communication patterns within the organisation . On the contrary , it can also bring disadvantages such as generate conflicts and misunderstanding (Hoecklin 1995 Wright and Noe , 1996 Adler , 1997 Schneider and Barsoux , 2003 This statement is also portrayed by Cox (2001 ) who claims that culture can bring barriers to good performance due to the fact that it can reduce the effectiveness of the communication between employees , this means , that people from different cultures communicate in different way have different styles , patterns and ways to interpret things , so unless they are not aware of those differences , misunderstandings can come out and influence in a negative way in the performance of the business . It can also create discrimination between members of the organisation because people are not prepared to deal with situations which are involved in the cross-cultural environment

3 .1 .1 .2 . What is a Multicultural Workforce

Nowadays , there are many organisations including global organisations such as the United Nations (UN ) that operate within a multicultural workforce . This is a challenge for these companies due to its complexity since they have to deal with it in a different way that they used to do with a single-culture workforce (Tayeb , 1996 . In addition , Ravlin et al cited Earley and Singh (2000 ) point out that globalization is the reason why these organisations are experiencing the management of a multicultural workforce . On the other hand , some authors argue that advances in technology , telecommunication and transportation are the reasons of this multicultural exchange around the world (Elashmawi and Harris , 1993 Parekh , 2000 Harris et al , 2004 Applebaum et al , 1998 This is an important point , since they lead to changes in processes and ways of doing things , hence it influences on cultural matters

According to Harris et al (2004 , multicultural workforce or groups can be understood as the demonstration of culture including languages beliefs , values , etc . by the behaviour of individuals of a particular culture through groups of individuals working together . It can be seen that culture is a very dominant factor in this kind of groups and as time goes by , workforces are culturally more diverse , where it can be found people still adapting to the host culture as well as the ones that have a familiar multicultural background (Hoecklin , 1995 Ravlin et al cited Earley and Singh , 2000 Randel . 2003 Thomas and Inkson , 2004

3 .1 .1 .3 . Managing a Multicultural Workforce

Sadri and Tran (2002 ) and Cox (2001 ) claim that a multicultural workforce would bring new ways of groups working together in an effective way , leading to increase morale between workers as well as profit and productivity . Tough , those positive outcomes take long time to manifest due to the need of becoming cohesive and find the structure that suits them on the way of doing things . However , once the members of the team learn and understand how to work together , the group become effective and even more than homogeneous groups (McFarlin and Sweeney 1998 Schneider and Barsoux , 2003

Multicultural workforce was seen before only as equal rights legislation and affirmative /positive action programs , where the former means that it is against the law to discriminate people and the latter means that organisations have to guarantee equal opportunities by taking positive steps . Nowadays , several studies have revealed some important outcomes that managing a culturally diverse workforce brings , which gives competitive and business advantage to the organisations in the global marketplace , so organisations aimed at promoting a diverse and heterogeneous workforce (Mor Barak 2005 ,

.210 . In this case , it provides innovative ideas , new product lines by understanding customer 's needs and different perspective when it comes to decision making and problem solving (Hoecklin , 1995 Adler , 1997 McFarlin and Sweeney 1998 Cox , 2001 Buelens et al , 2002 Schneider and Barsoux , 2003 Thomas and Inkson , 2004 Mor Barak , 2005 . On the other hand , some opinions state that the existence of diversity in organisations can lead through problems and create obstacles by reducing communication and reduce integration between workers (Adler , 1997 Cox , 2001 Schneider and Barsoux , 2003

Similarly , some authors mention that working with multicultural groups affects not only communication (language barriers ) in the way of understanding meanings but also integration because having differences in behaviour and preferences , people might not work in the same way and this brings ambiguity and confusion , leading to conflicts and disappointment between employees (Cox , 2001 Adler , 1997 McFarlin and Sweeney , 1998 Ravlin et al , cited Earley and Singh , 2000 Swe and Kleiner , 1998

However , in today 's diverse markets and consumers , a culturally workforce diversity provides an understanding of customer 's need by creativity and innovation , hence throw out new products or services that appeal to the different taste of customers which lead to increase market share , hence corporate profitability (Adler , 1997 , Buelens et al , 2002 Randel , 2003 . In addition , in multicultural workgroups the process of decision-making and problem solving which leads to good performance of the organisation is obtained by a wider and richer range of diverse ideas , life experiences and perspectives which are value as opportunity for learning (Hoecklin , 1995 Cox , 2001 Buelens et al , 2002 Thomas and Inkson , 2004 . Conversely , Ely and Thomas (2001 ) draw the point that in some multicultural groups the fact that exits those differences in ideas and experiences can create competitiveness and distrust between workers because each of them want to expose and impose their experiences and ways of doing things as being the most important and relevant , hence they will not have a common objective but individual

There are some discussions between authors of why working with multicultural employees fails and create disappointment for organisations . According to Cox (2001 , an important reason is that organisations see cultural differences as a something shallow and easy to manage putting pressure on employees to assimilate those differences without a proper training . Moreover , Metzler (2003 ) identify that organisations make little changes in discriminatory practices and no changes in organisational structures , such as how decision are made and the way the organisation deal with business

Consequently , some authors provide some prescriptions ' for making multicultural workgroups effective . For instance , whereas Schneider and Barsoux (2003 ) propose that creating a common purpose and setting specific processes and goals , as well as evaluating and providing feedback to groups , is the best way of making the most of the difference of cultures and work in a harmony environment Thomas and Inkson (2004 and Randel (2003 ) propose that the managers of these multicultural groups need to comprehend the degree of the diversity of cultures and increase the member 's awareness of those cultural identities that exists between them

To sum up , all these advantages can be gained by a correctly proactively and effective management , making the most of the multicultural workforce because they have much to contribute . They provide managerial opportunities and challenges , that if are ignored can bring negative results and affect the performance of the organisation Owing to this , it is vital for managers not only to develop strategies and skills to cope in an effective way with those cultural differences but also to provide the training needed , so the members of the group can work together (Schneider and Barsoux , 2003 Darby , 1995 Black and Porter , 2000 . In addition and in relation to legal matters , equal rights legislation and affirmative /positive action policies , these are fundamentals for the development of diversity and heterogeneous workforce management , since they build the social , legal and organisational environment where these initiatives can be based (Mor Barak , 2005 . Burton (1995 , cited Mor Barak 2005 ,

.211 ) promotes this view by stating that diversity management is seen as the natural next step for effective management in the future competitive business environment

3 .1 .2 . The Nature of Management

To some extent , everyone can be entitle as a manager since organising planning and controlling are activities that people perform in their lives . In what business matters , every organization , small or large , has objectives and goals to accomplish and the only way to do it is through their people . Managing the members of the organisation is the way to get activities and operations effectively done and most importantly , it is the way to keep strong the people-organisation relationship (Mullins 2005 Buelens , 2002

Moreover , according to Hofstede cited Jackson (1995 ,

.150 management is getting things done through (other ) people . Similarly Black and Porter (2000 ) defined management as the process of assembling and using resources-human , financial , material and information-in a goal-directed manner to accomplish tasks in an organization . Therefore , a manager is a person who perform a series of roles related with leading and acting as a figurehead , distributing information , negotiating , assigning resources and handling conflict Though , there are some factors that influence the way managers exercise those roles such as personality , functional responsibilities , culture of the organisation and cultural background , being these the most important ones (Mead , 2003

3 .1 .3 . The Role of Culture in Management

The word management ' has different meanings in some extent in each country of the world , so it can not be taken for granted in a specific culture where a multicultural workforce is taken place because it is always link to the way society /organisation operate and its processes as well as national culture which could influence on people 's behaviour (Hofstede , 1992 Elashmawi and Harris , 1993 Tayeb , 1996 Mead , 2005

In this case , organisations are facing changes due to the growing of global business activities which affects the management of those businesses . As a consequence , organisations to be successful and gain competitive advantage in today 's business environment , are requiring of more and more managers with global management experience , to be more precise , multicultural experience , since they have the skills needed to cope with the requirements of a diverse workforce (McFarlin and Sweeney , 1998 Mullins , 2005

According to Black and Porter (2000 , culture has an influence not only on organisations but also on the people it affects behaviour as well as observation and interpretation to certain situations which are mostly different from one culture to another . Furthermore , as Scarborough (1998 ) mentions , a manager who can understand other 's cultural backgrounds has better notion on how those people act and react , and also their behaviour to certain situations which give them cultural sensitivity , having the right skills to cope with a culturally diverse workforce . In addition , Iverson (2000 , points out that , managers should communicate effectively and accept , support and respect the cultural beliefs of employees from other countries , since it adds value to the workforce diversity

It can be concluded that although values , beliefs and attitudes are deep-rooted in everyone 's culture , the fact of working with people from other cultures could bring changes in those values or at least in the attitude , for example , by being more open-minded and develop cultural awareness . Hence , the best way for managers to deal with this is combining the culture of the organisation and the culture of the employees from different backgrounds which will give positive outcomes to the organisation (Cartwright , 2002

3 .1 .4 . Management Styles

According to Mullins (2005 , managers should adopt basic managerial philosophy and style of behaviour in to be successful in the managerial performance , the way they apply their responsibilities and the ability to deal with people

Style is a personal quality , so it differs from one manager to another but it might be influenced by the culture of the organisation they work for , so in to accomplish the optimum performance in the organisation , managers have to find the compatibility between the organisation 's approach and the styles they want to adopt . Furthermore Tayeb (1996 ) point out that the factors which sway manager 's styles are the organisation 's context and their personal beliefs and preferences As a contrasting opinion , McGregor cited Mullins (2005 ) argues that human nature and behaviour are the factor which influence on the management styles adopted by manager

Authors have developed several frameworks on management style with a variety of perspectives that may vary from one author to another . There have been ideas of management styles since 700 B .C . but those ideas are continually changing with new insights and innovations as the years pass by (Black and Porter , 2000 . In addition , Lee cited Rosenfeld and Wilson (1999 ) concludes that of those approaches can be taken as granted or as a complete true , all of them are based on particular assumptions related to knowledge , people , technology , etc . and could be applied in a different way or give different results in specific situations

As a result , due to the characteristics of this study , aspects such as cultural differences may possibly influence in the management styles of managers who work with a multicultural workforce . Consequently , it is important to highlight some of the most important management approaches that have contributed to the current management thinking and might be influenced by culture such as : Bureaucracy , Management Systems and Theory X Y (Mullins , 2005 Black and Porter , 2000

3 .1 .4 .1 . Bureaucracy

This style of management is based on the relationship between management and the authority structure of organisations . There are two important founders of this theory who are Henri Fayol and Max Weber (Black and Porter , 2000 . In this section it is going to be examined the theory stated by Max Weber since it is more related to a style of management based on the hierarchy in organisations , hence is relevant to the study due to the influence that culture can have in the authority relationship between managers and workers

According to Weber , in bureaucracies authority is described as legal-rational where the work in the structure of the organization is defined by job title and there is a lot of planning , levels of authority and division of labour where the control of it is impersonal , to be more precise , to make a distinction between the people and the organisation (Bennett , 1991 Pettinger , 1997 Buelens et al 2002 Hopfl , 2006

This theory has been criticised by some authors . Bennett (1991 , for example , points out that in spite of the positive impact that Weberian ' bureaucracy could have on employees , since it gives them a permanent status and protection from arbitrary dismissal due to its focus on rules and regulations , this theory bring some problems and disadvantages for the organisations ' performance . For instance bureaucracies can not accept changes and is resistant to innovative ideas as well as it makes decision making slow due to its long levels of hierarchy where the junior staff might not have any contact with the ones who makes the decisions (Bennett , 1991 Black and Porter , 2000 This position is also portrayed by Mullins (2005 ) who adds that bureaucracy makes the organisation be dysfunctional and inefficient because it becomes rigid , inflexible and brings much of communication problems , which in today 's global business and cross-cultural management causes negative outcomes

Black and Porter (2000 ) stated that this theory has been used in the past , present and might be use in the future management of organisations . However , it can be said that the bureaucracy method suffer from a strong disadvantage in today 's organisations . The main weakness is that global or international organisations are given the attention to a more participative and team management as well as horizontal organisational structure instead of a vertical one , that is to more power-sharing ' models of management styles (DiPadova , 1996

In relation to cultural aspects , this management style can create misunderstandings when working with people from different cultural backgrounds . In fact , there have been studies done by researchers which provided some results in relation to bureaucracy . For instance , and according with a study done by Laurent (1983 cited Miroshnik , 2002 , US managers believe that the main purpose of hierarchy is to organise tasks and facilitate problem-solving and where employees are colleagues rather than bosses and subordinates . On the contrary , many southern Europeans and most Asian managers believed that the main purpose of hierarchy is to everyone know who has the authority over whom . In this case , the findings of the study revealed that culture could influence on management styles because US managers said that they should help subordinates to discover ways to solve problems , rather than answering their questions , whereas most Japanese managers believe that they should give precise answer to subordinates ' questions in to maintain their credibility as experts and as managers . Thus , it can be said that differences in management styles varies across a very wide range of cultures which could bring misunderstandings if it is not well manage

3 .1 .4 .2 . Management Systems

This theory is based on theories of motivation supported by Rensis Likert who argues that every aspect of a firm 's activities is determined by the competence , motivation , and general effectiveness of its human organization ' and the way of managing that human resource is the most important task to an effective outcome (Likert , 1967 . Likert identified a model of four styles of management systems which are designated by number (Tayeb , 1996 Pettinger , 1997 Mullins , 2005 System 1 , Exploitative Authoritative System 2 , Benevolent Authoritative System 3 , Consultative and System 4 , Participative . The former (System 1 , there is neither participation nor trust of subordinates , so decisions are impose to them and there is little teamwork and communication . The latter (System 4 , there is a supportive relationship between workers and managers where is shown trust and confidence . Decisions are taken based on participation , teamwork and communication

Likert (2005 ) highlights that every organisation must make the most of their human assets to accomplish good relationship with its workers Owing to this , he argues that System 4 (participate ) is the most appropriate one for organisations to use due to its human concern which leads to have high levels of productivity , thus profitability for the company . By adopting this management style , managers will lower costs and increase the levels of productivity and employee motivation and participation , whereas if system 1 is adopted , the outcome will be the opposite (Likert , 1967 Pettinger , 1997 . Similarly , Mullins (2005 br

.237 ) points out that the society is changing every day and individuals are more independent and educated in a global environment , so they expect to be consulted rather than to be told what to do

One question that needs to be asked , however , is whether the findings of the author would have been the same in a cross-cultural environment owing to the fact that the experiment was done with a large group of managers of companies only from the USA (Likert , 1967 . The findings might have been more interesting if the author had consider a group of managers from different cultures , which for the purpose of this study there is going to examine the influence of culture on this management styles

3 .1 .4 .3 . Theory X and Theory Y

Douglas McGregor proposed two theories based on assumption and predispositions made by managers in the way they view employees and work . The author simply called them Theory X and Theory Y which is based on opposite attitudes related to people and work (Pettinger , 1997 Mullins , 2005

Theory X is based on the fact that employees ' motivation is mainly money and requires supervision and control to have the work done (Bennett , 1991 Pettinger , 1997 Carson , 2005 Mullins , 2005 . According to Mullins (2005 ,

.238 ) the central principle of Theory X is direction and control through a centralised system of organisation and the exercise of authority . This can be compared or assimilates to System 1 of the management systems theory and Weber 's bureaucracy theory already mentioned above , besides it is more related to a task-orientated management style

On the other hand , Theory Y is based on the assumption that work is a necessity for man in to gain knowledge , achievement and responsibility where they exercise self-direction and self-control as well as be committed with the organisation . Their motivation is to work and give the best of their capability with creativity to reach to a self-actualisation level (Bennett , 1991 Pettinger , 1997 Mullins 2005 . The essential task of management of Theory Y is to set up organisational process and conditions so people can achieve their own goals by directing their own efforts toward organisational objectives (Carson , 2005

However , McGregor 's theories have been criticised by a number of . Bennett (1991 , for example , points out that Theory X is altruistic and underestimates the initiatives and work of the employees In addition , some see Theory X similarly to the military style in where management controls employees ' behaviour (Drucker , 1988 cited Carson , 2005 . On the other hand , according to McGregor , cited Mullins (2005 , Theory Y is the best approach in management principles because it leads to co-operation between workers where the acceptance of it depends of some implications such as staff-managers relationship leadership , managerial team and management development . This is supported by Carson (2005 ) who claims that Theory Y has emerged as one of the most important characteristic in the relationship management principles of the last 20th century

Mullins (2005 ) highlights that both theories are extremely opposite yet they represent managerial philosophies that influence management styles and behaviours . Nevertheless , the style of management adopted by a manager will always be influenced by the situation and either theory would be seen as most appropriate

To conclude , it is important to highlight that there is no unique theory or imperative approach dominating management thinking (Black and Porter 2000 . In fact from the above stated , it can be seen that there are always new perspectives developed to face the increasing management challenges of organisations in an effective way , specially in today 's fast changing global business environment

3 .2 . CULTURAL DIFFERENCES AND THEIR INFLUENCE ON MANAGEMENT

Cultural differences are not a question of understand the languages of different countries , it is a matter of understand people 's values beliefs and traditions and how these influence the way of doing business as well as its influence on management (Trompenaars and Hampden-Turner 1997 . This position is also portrayed by Tayeb (1996 ) who indicates that it is important for any organisation with international business interest to be aware of its people 's culture and backgrounds in to enrich the organisation as a whole . Hall cited Tayeb (1996 ,

.180 support the other two authors by expressing this point

Sometimes when I hear my company talk about harmonisation , I think they want us all to play the same note . Well , I am a musician , and let me tell you that harmony doesn 't mean that it means that we all play different notes , but together we sound beautiful

This metaphor reflects exactly what to work with a multicultural group means , it is to understand and accept each others ' ways of thinking and doing things by being aware of differences , understand them and accept them in to make the most of them and fulfil common goals , which can be achieved by utilising the skills needed to deal with different cultures

As it was mentioned before , culture can have important influence over management styles which can affect the effectiveness of the management in a positive or negative way (Wright and Noe , 1996 . Hoecklin (1995 br

.5 ) mentions that cultural differences are not going away , but becoming more entrenched . This means that the fact of misunderstanding cultural differences can have an important impact on costs if they are ignore . In to get a better understanding of the cultural differences that might influence on management and organisations effectiveness , there are three models developed by three important authors in cultural differences . Hofstede , Trompenaars and Hall Hall identified dimensions , orientations and contexts which assist in differentiating cultures

3 .2 .1 . Hofstede 's Cultural Dimensions

Geert Hofstede conducted a study of how values , attitudes and behaviour in management styles are influenced by culture . In his research he analysed a data from an American multinational corporation which were included managers and employees from 70 different countries between 1967 and 1973 . From these comparisons , Hofstede found out that culture has more influence in management behaviour than age , gender , functions and positions within the organisation hence its repercussion in organisations operating across cultural bs is vital . From the results obtained , Hofstede developed four dimensions to differentiate cultures power distance (PDI , individualism (IDV , masculinity (MAS and uncertainty avoidance (UAI (Hoecklin , 1995 Adler , 1997 Usunier 1998 Mor Barak , 2005 Hofstede , 2006 . What this dimensions are about is shown in appendix A . In appendix B it can be seen the scores on the four dimensions for the 70 countries involve in the study

There are some positive opinions about Hofstede 's model . Mead (2003 mentions that the population taken allowed to make comparisons of different cultures and also that the dimensions were relevant to the international manager environment . In addition , Mor Barak (2005 ) points out that the study was focused only in cultural differences due to the fact that all employees were from the same organisation and shared the same environment but different nationalities . There are fewer who critics Hofstede 's study , for instance , Mullins (2005 ) and Mead (2005 ) argue that the focus of the study had to be on a regional level rather than national due to the greater range of sub-culture groups in the same country . Another important point Mullins criticises is that Hofstede 's findings are not up to date and he points out that the world is changing , so also people are

3 .2 .2 . Trompenaars ' Culture Orientations

Fons Trompenaars conducted a research of around 50 ,000 participants from more than 40 different countries (Hoecklin , 1995 Hampden-Turner and Trompenaars , 2000 Mullins , 2005 . The purpose of the study was to investigate the role that cultural diversity plays in business in terms of the difference in attitudes between countries , which are taken as general tendencies and not as particular one (Cartwright , 2002 . This is relevant to this study since it takes into consideration the different attitudes people from different cultures have , which influences on business , hence management activities . He identified five orientations in which individuals deal with each other and create relationships therefore those orientations influence in the way people do business universalism vs . particularism , communitarianism vs . individualism neutral vs . emotional , diffuse vs . specific and achievement vs ascription (Trompenaars and Hampden-Turner , 1997 . What this dimensions are about is shown in Appendix G

Mullins (2005 ) mentions that Trompenaars ' culture orientations are very useful because his identifications of cultural differences can be linked with organisational behaviours . Mead (2003 ) appears to support Mullins by stating that these culture orientations can be practical for business people who are the ones that manage cultural differences in the workforce . In contrast , Mead (2003 ,

.47 ) also points out that the pool of informants is vaguely defined and lacks homogeneity , so it does not give judgments on the parameters

In relation to the Universalism-Particularism orientation , the Anglo Scandinavian and Germanic countries are the strongest in having a Universalistic approach due to their Protestant culture , not only where the respect of a rule-based behaviour is more rigid , but also where they rely on judicial systems to deal with problems and conflicts . It can be seen that these cultures have more of a Neutral orientation , which have a tendency of not showing or revealing their feelings because it can be unprofessional . In addition , these cultures are represented by having a Specific orientation , where there have to be a clearly separation between their personal life and their work . In this case , organisations are more focused on reaching objectives and managers prefer a high-content communication (Hoecklin , 1995 Hampden-Turner and Trompenaars , 2000 Scarborough , 2001 Cartwright , 2002 Mullins , 2005

On the other hand , countries which follow Asian religion and are Catholic cultures , such as Southern and Eastern Europe and Latin America countries , tend to be more Particularistics , which means giving more importance to relationships and being more flexible to situations . When to business matters , Hoecklin (1995 ,

.41 ) point out that encounters between universalistic and particularistic business people may result in both sides being sceptical of each other 's trustworthiness . In addition , these cultures tend to be more Diffuse in their relationships where business and personal life is related , it means that they look business as another way to interact socially consequently , these cultures are more Emotional where they do not care on expressing their feelings (Hoecklin , 1995 Hampden-Turner and Trompenaars , 2000 Scarborough , 2001 Cartwright , 2002 Mullins , 2005

The Individualism vs . Collectivism orientation as well as the Achievement vs . Ascription orientation is not going to be explained because of its similitude to the Hoftede 's dimensions of Individualism (IDV ) and Power Distance (PDI

3 .2 .3 . Hall Hall 's Cultural Contexts

One of the most important points in adapting to cultural differences is to understand its cultural context in what a communication refers . This means , the extent to which people interpret the different context of the information shared and how they react (Black and Porter , 2000 Mead 2005 . According to Hall and Hall (1990 ,

.6 ) context is the information that surrounds an event it is inextricably bound up with the meaning of that event . Therefore , context can influence on managerial behaviour such as decision making , communication negotiation , etc (Black and Porter , 2000 Adler , 1991 cited Mor Barak 2005

According to Hall and Hall cited Holden (2002 ) each culture has a particular communication style , which can be either high-context or low-context . The former is when the information is given as a non-verbal communication (indirect communication style . The explicit information is minimal , hence , the receiver has to interpret and understand the context by filling the gaps . In this group it can be found cultures such as Japanese , African , Arabs , Latin and Mediterranean cultures (Hall and Hall , 1990 Buelens et al , 2002 Mor Barak , 2005 Mullins , 2005 . The latter is when the communication is more explicit , that is , the information is expressed within the transmitted message (direct communication style . The English /German speaking and the Scandinavian cultures are found in this group (Buelens et al , 2002 Mor Barak , 2005 Mullins , 2005 . Hall and Hall (1990 ,

.4 ) argue that the essence of effective cross-cultural communication has more to do with releasing the right responses than with sending the right ' messages

Mead (2003 ) identifies some weaknesses in Hall and Hall 's model . He argues that the data they took was not quantitative but qualitative since it was taken from anecdotes rather than from a numerical data and the analysis was made in a subjective basis . In spite of that , he point out that the purpose of the anecdotes is practical in exemplify situations and arguments . By contrast , he argues that the model is useful to understand the differences in communication within cultures

In overall , it can be said that these three studies are link to each other and have common aspects in their findings referring to behaviour and attitudes within different cultures . For example , they three agree on the characteristics of group of cultures , in one hand the Asian Arabs , Latin and Mediterranean cultures are Collectivistic as Hofstede said , Diffuse as Trompenaars said and High-context as Hall and Hall said . Consequently , these cultures are relationship or people-orientated . This means that they feel comfortable being in groups , sharing information and like to interrelate their personal life with work

On the other hand , the English /German speaking and Scandinavian cultures are more Individualistic , Specific and Low-context , which take them to be more task-orientated because they do not interact with their co-workers in a personal way and look only for their personal achievement , so that is why the communication has to be more explicit

To conclude , it can be said that managers who work with a multicultural workforce should bear in mind that not only customs , traditions or business protocol are important , but to know , understand and respect the differences in values and beliefs , management philosophies and attitudes of those people (Harris et al , 2004 . Besides , it is vital to have in mind that it is impossible to deal or each employee individually according to their cultural requires the key to handle such groups is to manage the process which is going to involve different cultural reactions (Thomas and Inkson , 2004 . Cartwright (2002 ,

.42 ) promotes this view by saying that each manager should use the techniques best suited to each particular situation and to the people involved , and should recognize that there may be different methods of achieving objectives , depending on the organization , the people and the culture that he or she is working with . Moreover , Scarborough (2001 ) mentions that although people in multicultural groups can adapt their behaviour to fit in , they are not going to change their values because those are they beliefs . This is supported by Mahatma Gandhi (cited Schneider and Barsoux , 2003 ,

.185 ) who conveyed in few but precise words what exactly cultural background in people 's mind means

Let my house not be walled on four sides , let all the windows be open let all the cultures blow in , but let no culture blow me off my feet

CHAPTER 4 : HOW MANAGERS AND LEADERS CAN MOTIVATE A MULTICULTURAL STAFF

The most important key that organisations have to keep in mind to manage a culturally diverse workforce is to identify and give value to such diversity and see it as an opportunity instead of as a threat it is to change attitudes and mindsets about cultural differences (Tayeb , 1996 Thomas and Inkson (2004 ) promote this view by stating that cultural diversity provides innovation and creativity because different people have different viewpoints and this makes it easy the decision-making process among other results . To obtain this , managers play a vital role and they must have cultural sensitivity and develop it into their workforce , otherwise the lack of understanding and acceptance to a cultural diversity in today 's business environment can lead to misunderstandings between managers and their group work (Ghoshal and Bartlett , 1998

Owing to this , global organisations are now looking for what is called the international manager which is one whose characteristics are cosmopolitan , multifaceted and multilingual and with experience across national bs (Elashmawi and Harris , 1993 Schneider and Barsoux 2003 . But what is relevant is not who the international manager is , but what skills these managers have to fulfil to deal with the actual requirements of the job (Barham and Antal cited Schneider and Barsoux 2003

There are several who propose a strategy related to skills rather than a project that managers have to develop . These skills or abilities for managing a multicultural workforce are recognise understand , respect and respond to different cultures simultaneously understand interdependencies , demonstrate cognitive complexity , adapt a cultural-general ' approach , acquire multicultural competencies and acquire communication skills (Elashmawi and Harris , 1993 Iler , 1995 Adler , 1997 Friday and Friday , 2003 Schneider and Barsoux , 2003 According to Elashmawi and Harris (1993 ) and Thomas and Inkson (2004 those skills can be merged in gaining cultural awareness and sensitivity , becoming culturally intelligent and develop cross-cultural communication skills

41 . Cultural Awareness and Sensitivity

In today 's global marketplace , managers with cross-cultural sensitivity are more in demand . These managers can operate within any culture since they value cultural distinctiveness and become more broad-minded which lead to increase not only professional development but also organisational effectiveness (Elashmawi and Harris , 1993 Harris et al 2004

To reach that effectiveness in managing multicultural groups is to recognise that differences in attitudes and behaviours between members of the group exist . As Schneider and Barsoux (2003 ) said , recognition of cultural differences is the first step to see the opportunities and advantages that multicultural groups bring , otherwise if it is ignored it would lead to misunderstandings and can not be managed . After being recognise , the second step is to understand it by interpreting why people from different cultures behave , think and act the way they do When differences have been understood , people have to respect them in to avoid prejudices and ethnic stereotypes . This can be avoid by enhancing close contact and cooperative efforts to achieve a common goal , as well as to provide equal status or power within members of the group according to the skills that each of them can contribute to the team (Elashmawi and Harris , 1993 Adler , 1997 Schneider and Brasoux 2003 Thomas and Inkson , 2004

This can be link to what has been stated above in relation to the management styles or approaches to be adopted within a multicultural workforce , after it has been recognise and understand . As managers are going to deal with multiple cultures simultaneously , they have to develop a general approach that suits all cultures instead of centre the attention in each particular one (Schneider and Barsoux , 2003 Thomas and Inkson , 2004 Mullins , 2005

4 .2 . Cultural Intelligence

According to Thomas and Inkson (2004 , cultural intelligence is being skilled and flexible about understanding a culture , learning more about it from your ongoing interactions with it , and gradually reshaping your thinking to be more sympathetic to the culture and your behaviour to be more skilled and appropriate when interacting with others from the culture . In other words , it means to know how to adapt to different cultures and situations that are going to be faced and learn from them in to become always better and improve the cross-cultural skills needed to face the implications of managing multicultural workforces effectively

Tan (2004 ) suggest that cultural intelligence could be related to emotional or social intelligence which in a way means that people use familiar situations when interrelate with others , but cultural intelligence has an important plus which is the fact that it deals with people using as well unfamiliar situations . Similarly , Levy-Leboyer (2004 ) states that cultural intelligence is the most important ability and capability that a manager could have because apart from what it was mentioned by Tan (2004 , it gives the open-minded to understand other 's people behaviour and way of doing things , hence to cope with the new challenges that international managers have to face in to succeed in the global business

4 .3 . Cross-cultural Communication

According to Black and Porter (2000 ,

.443 ) communication is the process of transferring information , meaning , and understanding from sender to receiver . It includes sending verbal or non-verbal messages which the former is by oral or written communication , and the latter is the way people communicate by using their hands , tone of voice , facial expression , physical settings , behaviour among others (Adler , 1997 Black and Porter , 2000

Cross-cultural communication has become an important of study within the last decade due to the growth of international trade increasing of foreign direct investment and multiculturalism (Limaye and Victor cited Jackson , 1995 . Cross-cultural communication takes place when people from different cultures send messages to each other , and the greater the difference between one culture and the other is , the lowest the change of accuracy in transmitting the message . In this case , it is a challenge in cross-cultural communication for the sender to send a message that...