Cultural diversity and the regional cultural nuances at La Napoli - Essay Example

? Executive Summary Handling cultural diversity requires the right leadership which appears to be lacking at La Napoli. National cultures have a greater impact than the organizational culture. Cultural differences impact the need for love, belongingness and the esteem needs of individuals. Hofstede’s dimensions of culture provide a deeper understanding of how people from different cultural backgrounds interact. Understanding cultural diversity and the regional cultural nuances can help in the management of a diverse workforce. Cross-cultural training is essential because different cultures imply different mental programming. Empathy towards the employees and empowerment through motivation are other techniques that help the organization handle cultural diversity. Table of Contents 1. Introduction 1.1 Symptoms 1 1.2 Theories on cultural forces 1 1.3 Analysis of symptoms 2 1.4 Scope of the report 4 2. Key managerial issue 2.1 National cultures 5 2.2 High power distance 5 2.3 Empowerment & Control 6 2.4 Guanxi 6 2.5 Understanding cultural diversity 7 2.6 Collectivist society 7 3. Recommendations 3.1 Cross-cultural training 8 3.2 Empathy towards the employees 10 3.3 Empowerment 11 4. Conclusion 11 1. Introduction 1.1 Symptoms Globalization has accelerated the process of growth in the hospitality industry and relaxation of immigration policies have helped overcome skill shortages in the sector. However, while labour migration helps the local economy, the managers in the hospitality sector face the challenge of managing the workforce diversity because of high level of labour mobility across nations (Baum, Dutton, Karimi, Kokkaranikal, Devine & Hearns, 2007). La Napoli appears to lack the right leadership in handling the issue of cultural diversity. 1.2 Theories on cultural forces Diversity manifests in visible and non-visible differences which could include race, ethnicity, nationality, language or even religion in addition to personality and work style (Pinilla, 2002). Elements such as age, gender, sexual orientation, race and physical traits are the core elements that form the primary dimensions. These do not change over time as they are inborn and also interdependent. Managers would perceive the world through these elements and if the primary differences between individual are high, it becomes difficult to establish an environment of mutual trust and confidence. Culture clash and conflicts become common place having a negative impact on human relationships. Cultural differences impact the need for love, belongingness and the esteem needs of individuals, which thereby contradicts Maslow’s theory of Hierarchy of needs which states that an individual moves to higher levels of needs only when the physiological needs are satisfied. Even very subtle differences can impact outcomes, decisions and thereby organizational effectiveness (Korac-Kakabdse & Kouzmin, 1999). Cultural imprints are deeply rooted and embedded, and cultural forces drive behaviour. By being aware of these conscious forces the leader might be able to better handle the forces and enhance positive behaviour. Each culture has its own recurring pattern which becomes so embedded in the system that individuals remain invisible to the pattern (Rapaille, 1999). Since these patterns are deeply imprinted, the moment a different culture appears, there is resistance or non-acceptance. Power usually radiates from the centre (Kane-Urrabazo, 2006). Hofstede’s dimensions of culture provide a deeper understanding of how people from different cultural backgrounds interact. For instance people from low power distance culture communicate more effectively while those from high uncertainty avoidance culture do not like delegating work (Testa, 2004). It is thus important that the manager/leader understands the different cultural archetypes, the unconscious forces that shape culture. Food is an area where cultural forces have a great impact. This is evident in the case of La Napoli where the local culture in food consumption had not been evaluated. People prefer light food at lunchtime in Hong Kong and do not engage in multi-courses like the Italians and nor do they ‘eat big’ like the Americans. It is obvious that Compio had tried to impose his Italian-American imprints but there was non-acceptance from the local people. Compio overlooked the fact that the restaurants were vaguely international in nature. This could be the reason for declining profits. This implies that the regional taste had to be maintained and the Italian cuisine would need to maintain Hong Kong version. 1.3 Analysis of symptoms At La Napoli, the initial management team itself comprised of one American Chinese, one Indian and an Englishman while the chefs were German and Chinese. The baker too was Chinese and none of them had any prior experience of Italian cuisine. Compio himself was an Italian-American chef and had won accolades as Master Chef. This does not necessarily instill managerial qualities in an individual which is evident from the initial team that he chose to form at the start of the venture. He wanted to train the chefs from ‘scratch’ and he only perceived the lack of serious competition which he thought was sufficient reason to succeed in his venture. Since the business environment was foreign to most of the newly recruited staff, time was spent in dealing with the challenges thereby reducing the time that should have been spent on training them for the new environment. Consequently staff turnover at the end of the first year was high. Compio’s lack of managerial ability is also evident from his impulse purchases for decorative objects. This also shows that ‘decor’ was more important than managing resources. Besides, his hurling of abuses at the doorman shows lack of empathy towards staff and lack of understanding of the nuances of different cultures, apart from a temperament not suited for a manager. He was not keen to provide the right compensation for the service staff whereas service is the key to success in the hospitality sector. The disaster at the ‘practice run’ demonstrates lack of training given to the staff. National cultures impact how the leaders interact with their subordinates and also how the subordinates respond. Leaders from low power distance culture are able to communicate more effectively with the subordinates but despite Compio being an Italian-American (low power distance culture), he believed in maintaining power distance. However, Compio was keen to keep all decisions as well as actions to himself. He did not believe in sharing power or even allowing others to contribute in any form. This could be because of his cultural background (Italian culture) due to which uncertainty avoidance trait persists. Those from high uncertainty avoidance culture demonstrate high levels of control and they do not believe in delegating work or responsibility (Testa, 2004). They are also low on approachability, which is perhaps the reason that employee turnover was high. Within the first year there was none other than Compio from the original management team that had started the project. To understand organizational culture Charles Handy identified four different culture types one of which is the power culture. In power culture power radiates from a central source like a web and reaches the staff through the rays (Kane-Urrabazo, 2006). Compio tried to emanate power and exert influence over the entire staff but this lacked communication and trust, the two essential elements in power culture. There was practically no communication and the top management failed to influence the staff. 1.4 Scope of the report This report proposes to recommend solutions for La Napoli to handle the issue of cultural diversity being currently faced. It would draw upon the theories of culture as well as leadership theories to provide the best possible suggestion to overcome the problem. 2. Key managerial issue The key managerial issue confronting La Napoli is lack of leadership and lack of training in handling cultural diversity. In a multi-cultural workforce feeling of superiority, threat of job loss, fear and ignorance give rise to conflicts leading to abuse or harassment. The migrant workers feel threatened due to uncertain situations which give to uncertainty avoidance (Baum et al, 2007). Based on different theories and perspectives on culture, this section discusses how cultural background impacts interpersonal relations at the workplace. 2.1 National cultures Culture has a significant impact on cognition, problem-solving and perception; it also impacts the satisfaction levels (Pizam & Eliss, 1999). Levels of literacy also impact the standards of performance evaluation. While Compio had the interest of the restaurant at heart, and he expected to train people from the ‘scratch’, he did not realize that individuals express their cultures and their qualities through the values they hold about different aspects of human life (Seymens, 2006). National cultures influence decision-making, shape organization and social structures (Shore & Cross, 2005). The managers in the hospitality sector are outsiders and hence use sophisticated selection technique. Compio did not possess the level of knowledge, experience, contacts and influence within the hotel industry. His experience was confined to that as a chef and he had no idea of the local labour market. He was thus unable to adapt to and understand the local culture which resulted in high labour turnover. This implies that the ‘best approach’ may not be suitable for every situation (Lockyer & Scholarios, 2004). 2.2 High power distance Empowerment is not accepted in Hong Kong because of the high power distance and they prefer to receive instructions and work on it. High power distance is one of the four dimensions of culture as identified by Geert Hofstede where power is unequally shared. High power distance demonstrates that authority and hierarchy prevail in the society. The boss maintains a distance from the people. This is because of the deep-rooted filial piety in local culture. They feel the manager is the solution to all problems, which Compio failed to accomplish. 2.3 Empowerment & Control In fact, Compio did not delegate work or responsibility and the workers were sitting idle even though they had been employed. Perhaps he felt that empowerment could lead to loss of control as is the opinion of the line managers (Lashley, 1999). He thus kept all responsibilities to himself. While the managers and their team ran around getting permits and licenses, the staff wasted their time getting bored. It demonstrates that expatriate managers or CEOs need local assistance in managing people. Psychic distance influences how people interact with one another. Hence, supervising a culturally diverse workforce requires training. The leader should also be able to carry out effective communication with the employees without which the employees are in the dark about the business and its environment. 2.4 Guanxi Compio hired all foreign staff whereas it is essential to have local managerial, staff to deal with local issues such as procurement of licenses. Having a local partner well-connected with local authorities is essential for foreign ventures (Smarzynska, 2000). Compio was determined to sort out all paperwork before opening the restaurant but obviously he was not aware of guanxi that is prevalent in Hong Kong where informal ‘tax’ can be paid and regularized once the restaurant opened its doors. The meaning of the word guanxi is “connections” or “relationship” and such actions/decisions takes place in such a manner that people work towards mutual benefit (Chen & Peng, 2008). It helps to know and understand the local cultural norms, to which Compio did not pay heed. 2.5 Understanding cultural diversity While cultural diversity can lead to innovation and creativity in problem-solving (Devine, Baum, Hearns, & Devine, 2007) it can become the root cause for conflicts and harassment (Baum, 2007). Compio, being Italian-American, had little experience of other cultures. Besides, he had served only as a chef and lacked experience in managerial capacity. Compio interfered in all decisions and wanted to have the last word. He was unsatisfied with the menu prepared by the staff that was appointed to take care of. The service staff were not English speaking which is essential for such restaurants where people from different cultural backgrounds come. Compio referred to the problems as lack of initiative, common sense and awareness while lack of training and empowerment was the problem. The bakery staff was German and could not follow the recipes that were predominantly Italian. He tried to be the manager but he worked as the chef, which shows lack of leadership and managerial ability. With such diverse workforce the challenges for conducting training program can be many. Compio also lacked the strategic leadership traits essential in managing cultural diversity. This requires clear mission and values, communication, individual values, individual focus and empowerment culture (Potter & Harper, 2005). 2.6 Collectivist society Hong Kong is a collectivist society and hence the entire staff at the bakery left when the Bakery chef walked out without any notice. Training and motivation can make a difference but the chef was not given the necessary training in understanding the recipe. Role ambiguity also persisted as in the case of Karl who did not know his area of ‘authority’ within the restaurant hierarchy. 3. Recommendations La Napoli could employ the following techniques and expect a turnaround in their operations. 3.1 Cross-cultural training Through cross-cultural training of the local staff La Napoli can overcome the staff resistance and the high turnover. This can be done through integration and socialization of the international workers with the local staff. In-depth induction should be arranged where practical help is provided in such matter as even opening bank accounts. There should be focus on understanding individual employee needs, concerns and aspirations (Failte Ireland, 2004). Access to English language training is essential especially as the sector in Hong Kong employs a large number of migrants. It should also cover a range of languages including those of the main visitor groups enabling them to discharge service to the satisfaction of the customers. The management needs training on the practical implications of working with a diverse workforce. An ethos of inclusion and respect for differences should be inculcated. All these suggest the leadership role that senior management plays in shaping the culture amidst cultural diversity. Feedback, appraisal, promotion and personal and professional development should be given importance. Different cultures imply different mental programming, according to Hofstede and the mental programming governs the activities, motivation and values (Gilbert & Tsao, 2000). Lack of understanding of diverse cultures can lead to ineffective management techniques such as in staffing, directing, motivating and rewarding a culturally diverse workforce. Hong Kong has high uncertainty avoidance culture (Hofstede’s dimension) where the employees feel threatened by uncertain environments. The local staff should be provided with cultural diversity awareness education so that they understand their co-workers better. However, apart from the migrant workers, the indigenous staff also needs training so that they understand the migrant workers. Systematic cross-cultural training in the hospitality sector can help overcome the challenges of working with diverse workforce (Lee & Chon, 2000). The training objectives have to be set and the training needs identified. Multi-cultural training helps improve interpersonal skills in dealing with diversity. Training has also been found to reduce turnover. Job specific training helps overcome the role ambiguity and enhance the service levels, the element on which the hospitality sector thrives. The training program should have a ‘culture-general’ approach for a few weeks followed by a smaller program for ‘culture-specific’ approach (Mallinson & Weiler, 2000). The learners should be engaged through experiential methods and multiple sensory teaching. The learning environment should be user-friendly – clean and bright with interesting aspects of culture visible to all. Meals should be appropriate to the culture and the participants should be made as comfortable as possible. Many foreign nationals have been recruited but they have not been provided with training before they were taken in which resulted in differences in attitudes, behavioual patterns and mannerisms (Celaya & Swift, 2006). Training the expat managers before being appointed in culturally diverse work environments would help overcome the resistance and the non-acceptance by the people. This would also help overcome the issue of the food menu which was not in alignment with the local taste. Cross-cultural education can help overcome resistance and uncertainty avoidance culture. Hong Kong is a region with high power distance and high uncertainty avoidance, as identified by Hofstede. Compio has been trying to recruit a young workforce, practically ‘boys’ but there is a shift towards the work values of the youth towards work and life. People seek flexible working arrangements and freedom. Since the sector employs lot of migrant workers focus has to be on individual values. Cross-cultural communication is a part of cross-cultural training. Effective communication is essential as differences in communication style can lead to conflicts as in this case when the doorman asked Compio of his destination when he was asked to call a cab. This occurred because of the language and the cultural barrier leading to misunderstanding. It is hence essential to understand both verbal and non-verbal communication without which it can hinder working relationships and productivity (Devine, Baum, Hearns & Devine, 2007). Coding and de-coding of verbal and non-verbal messages is essential. Styles of dialogue can differ leading to misunderstanding. Communication dilemma can be overcome through language courses. Several online courses are available where ESL is taught for a culturally diverse workforce. 3.2 Empathy towards the employees The situation at La Napoli can also be improved by showing empathy towards the employees from culturally diverse backgrounds. The hospitality sector does not require degrees; it requires people with hands-on experience while Compio chose to recruit people with no experience whatsoever. People with strong practical skills and people with ‘soft’ management skills rather than analytical skills are required in this sector (Connolly & McGing, 2006). Besides, employees from different backgrounds should be dealt in their own comfort zones (Stevens & Hisle, 1996). This becomes essential in high power distance cultures where people may not be comfortable when reprimanded in a group. To manage cultural diversity in the hospitality sector there has to be a change in the attitude and behaviour in organizational leadership (Lowy & Hood, 2004). The internal and external environment has to be vetted, the options have to be identified and then the leadership has to make informed choices. Leaders must have a more active attitude towards goals. Compio did not have clearly defined goals and vision which made it difficult for him to plan the venture. He lacked empathy for the people, which perhaps were the reason that there was no active encouragement, motivation, and involvement of people. National cultures distinguish one group of people from another and in such circumstances the leader acts as a conduit for communicating the managerial practices and organizational policies (Testa, 2004). 3.3 Empowerment Empowerment should be achieved by appointing a local manager and also through motivation. Empowerment reflects managerial intentions (Ashness & Lashley, 1995) and this may require a change in how the organization works. Empowerment enhances efficacy in a manager and also inculcates a sense of responsibility and accountability (Lashley, 2000). It fulfills the need for a sense of control (Kappelman & Richards, 1996). Employees feel encouraged to put their own talents to use. Empowerment leads to participation and self-control (Lashley, 1999) which has been totally lacking at La Napoli. However, the concept of empowerment can differ due to cultural differences, which justifies the need for cross-cultural training. 4. Conclusion Thus cultural diversity and lack of leadership are the two key managerial issues confronting the management at La Napoli. The management should train and appoint a manager with experience in the hospitality and enriched with ‘soft’ people skills. The staff should be local and experienced in the sector. 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