Cultural Diversity: A World of Difference

The European Union has declared 2008 the year of intercultural dialogue, so what better time for companies to turn diversity into a business opportunity?

Written by Dr Atul K Shah

Professional bodies are a magnet for minorities of all kinds ­ they provide a way for them to break the class barrier and maximise their skills and potential. In the UK, the accountancy profession attracts the largest number of ethnic minority applicants compared to any other profession. Look at any list of prize winners, and minorities ­ ethnic Indians, Chinese, Africans and others will often be there.

Although actual statistics of membership are not available, anecdotal evidence suggests that at least 40% of the members are non-white. That is a staggering statistic. China, India, Kenya, South Africa, Nigeria, Germany, France, Brazil, Canada, USA ­ and countries from all over the world have sent their ambassadors to the UK ­ to practice accountancy. Every country in the world is represented in the UK profession ­ and that is a staggering accomplishment.

Either working in the profession or in industry, these members are making a huge contribution to the UK economy. There is diversity in the range of involvement and careers pursued. Many of these people are playing critical roles in the globalisation of British enterprise. British diversity has boosted the bottom line of corporations and professional firms for decades.

Plenty to offer

What exactly is it that immigrants bring to British enterprise? Different languages and cultural sensitivities for a start. International contacts and a flexibility of approach and hospitality gives them a leading edge. Hard work and diligence are a given ­ they have had to work very hard to get where they are and are keen to push the ceilings. Also they came with zero so the only way they can go is up.

For many immigrants, risk, enterprise and commerce is in their DNA. This applies particularly to Indians whose membership of the profession is in the tens of thousands. Their success has been proven by their thriving businesses ­ with many in the British Rich List. Their extensive community ties and networks provide them with huge social capital. The next generation has now been born and raised in Britain and having educated parents has made them even stronger.

At a time when countries like India and China are on the rise, people from these cultures with an accounting qualification provide an added bonus for effective international commerce. In professional practice, there is a disproportionately large number who have set up their own practices which are dynamic and growing. This is partly a result of discrimination and lack of opportunity within mainstream firms. They are a primary engine of small business growth in this country and many an entrepreneur would vouch for that.

The law on diversity in employment and services has changed significantly in recent years. It is illegal for firms to discriminate in their employment practices both at time of recruitment, progression and promotion. The consequences of breaking the law are serious in terms of time, embarrassment and cost. Many large firms have set up diversity units which spearhead employee training and ensure equality of opportunity at all levels.

Special employee networks have been established such as the Ernst & Young South Asian Network and the Price Waterhouse Hindu Network. There are also networks for women, gay people, disabled people and other minorities. However, the research evidence suggests that there is still a glass ceiling for minorities of all kinds. The same applies to industry and here again, if we look at the FTSE 100 companies, colour and gender is virtually absent among the board members.

However, there are positive ways of dealing with difference and turning it into an advantage. Human resource departments in firms hold the key to unlocking diversity and enabling change through recruitment, training and progression. Often problems lie in the very middle of large organisations ­ and the top stays mono-cultural as a result.

For teams to be creative, diversity helps in providing different ways of thinking and approaching a problem. Genuine open-mindedness enables learning and growth and avoids marginalisation of any colleague, irrespective of their background.

Studies have shown the huge losses companies incur through employee turnover, and this can be avoided if the right policies and practices are implemented. Empowerment of team members promotes respect and loyalty rather than fear and repression.

A recent study by Vodafone showed that many employees suffer from ‘identity stress’ ­ they feel they have to switch identities between home and the workplace. I like to encourage companies to embrace difference and see difference as an opportunity for growth and prosperity.

Treating employees ‘holistically’, where they are allowed to be themselves, creates loyalty and trust which are critical to lasting success. Mentoring and role models enable minorities to aim high and have hope and aspiration.

Organisational cultures need to change and this requires serious commitment from the senior staff. No longer can these matters be brushed under the carpet.

Professional bodies have to be careful in ensuring their services are accessible to all and that they take account of the needs of minorities and ensure their full participation in the association. Here again, there is a huge challenge as diversity is in policy statements but not observed in practice.

In reality, diversity in the workforce increases creativity and helps tap into new markets nationally and internationally. Organisations who ignore this are losing out.

How to make the most of it

• Difference is an opportunity, not a threat
• Organisations need to treat their employees ‘holistically’– as wholes and not parts
• Open-mindedness needs to be nurtured and encouraged
• Empowerment rather than territorialism will create loyalty and build trust
• Research has shown many employees suffer from identity stress
• Diversity helps creativity and enable firms to develop new products and access new markets
• A diverse workforce helps with global trade and commerce


About the Author

Dr Atul K Shah is chief executive of Diverse Ethics Ltd.

Source : Accountancy Age

Common Ground

Both employees and employers win when minority networking groups succeed

By John K. Borchardt, Ph.D.

Minority employee network groups are flourishing at a growing number of companies. These groups provide leadership in resolving diversity issues and offer opportunities for minority employees to grow professionally. They can also help firms compete in the increasingly diverse American economy as well as in global markets.

Both networking groups and employers have a stake in the success of the employers' diversity processes. Strong networking groups can help employers attract new minority employees and customers. They also offer workers a forum for connecting with others of similar backgrounds, interests and cultures. Edgard Prado, a project manager with Shell Services International and president of the Shell Hispanic Employees Network, says, "Our number one goal is to support Shell's diversity process." However, he also notes that the group "gives us an opportunity to talk about things common to us, to feel included and have a sense of belonging to something greater at Shell."

Removing barriers to build a sense of inclusion also carries multiple benefits. Rick Schroder, a diversity group leader and member of Shell's Diversity Center, comments that minority networks "help create a safe, open work environment where people can contribute to their full potential, increasing productivity."

GETTING STARTED

With regard to forming networking groups, diversity consultant Taylor Cox, author of Cultural Diversity in Organizations: Theory, Research & Practice, says, "A core of similarity among group members is desirable. Members must share some common values and norms to promote coherent actions on organizational goals."

Sometimes the impetus to form employee networks comes from management, but more often it springs from employees—although the company may facilitate the group. For example, at Microsoft, individual employees initiate the formation of networking groups. Aerospace and defense firm Lockheed Martin assists employees in starting "affinity groups" by posting guidelines on how to do so on its company Intranet. At Shell, employees can contact the company's Diversity Center for advice on starting networks.

When initiated by employees, networking groups have a better chance of being accompanied by great enthusiasm. For example, although the first organizational meeting of the Shell Black Networking Group was held at 7:00 a.m. on a Saturday, more than 300 interested employees attended.

Equally important, however, is getting management to buy in. Without the support of management, an employee group is likely to find success to be an uphill battle. Luckily for many networks, more and more corporations lend strong support, recognizing the benefits of promoting and encouraging employee organizations. Encouragement can come in forms as simple as the employer's providing access to meeting rooms, photocopying machines and company communications channels to announce meetings. Members of the Shell Black Networking Group use company videoconferencing facilities to communicate between different facilities during working hours. Support can also be given in more personal efforts. Each employee networking group at Texas Instruments is sponsored by a member of senior management. There and at other companies, the accomplishments of the networking group influence the adviser's own performance evaluation. At Xerox Corp., CEO Paul Allaire has appointed senior executives as "champions" of the employee networks and given them the authority to act on concerns raised by their groups. When African-American women at Xerox began to fear that the small numbers of black female engineering graduates would translate into their perpetual underrepresentation at Xerox, they confided their concerns to executive vice president William F. Buehler, their group's designated champion. Buehler acted, establishing a summer internship program for black women engineering students that has aided Xerox in recruiting these students after graduation.

MUTUALLY REWARDING

Many companies have discovered that supporting employee networks pays big dividends, as employee organizations can make direct contributions to business goals. Besides participating in ongoing computing technology discussions, members of Microsoft's Chinese group (whose members are from China, Taiwan, Hong Kong and North America) assist in Asian business development by participating in recruitment of employees for U.S. and overseas assignments. Their responsibilities grew when Microsoft announced it would open a research laboratory in the People's Republic of China.

Patsy Randell, Honeywell's vice president of corporate diversity and multicultural business affairs, says that the Asian American Council at that company provided valuable insight into Asian business practices and protocol that aided the firm's expansion in these markets. At computer systems firm Silicon Graphics, the Asian networking group provided similar advice and "was pivotal in helping them gain access to the Pacific Rim," according to Michael Wheeler, author of two diversity studies for The Conference Board, an association of Fortune 500 companies. Wheeler also reports that the Silicon Graphics' African-American networking group played a significant role in exploring expansion into South Africa.

Successfully marketing to minority groups is becoming increasingly necessary to business success. Employee networks play a role in reaching American minority consumers as well. For example, Honeywell's Hispanic Council aids the company in marketing products to people whose first language is not English.

Employee networking groups at many firms also promote minority employee recruitment. For example, at Microsoft, members of the Hispanic, Filipino and Chinese groups participate in employee recruitment of more professionals of these ethnicities. Prado emphasizes that the Shell Hispanic Employees Network wants to be a resource in the recruitment, development and retention of Hispanic employees at Shell. Network members are already working with personnel departments and visiting college campuses on recruiting trips, he notes.

While recruiting a diverse work force is important, employee retention is also a critical issue. "Very often, executives trying to build a diverse work force can find talented minorities and women already on the company payroll. All [these employees] lack is the opportunity to advance," observes Bernard E. Anderson, assistant secretary of the U.S. Department of Labor. Firms must promote the development of minority employees, offering suitable advancement opportunities. Some firms view their employee networking groups as valuable tools for encouraging professional development. Charles McCloud, new business development manager at Shell Chemicals, says, "Employee networks provide opportunities for growth for both the members and the company. The more people utilize network groups, the more opportunities there are."At Xerox the desire to retain minority employees has prompted action at the highest level. The Black Managers' Network, working several years ago with then-CEO David T. Kearns, analyzed the resumes of top executives at the company in order to determine the career path that each had taken to the top. Identifying the specific positions once held by these executives, Kearns then delineated similar positions at Xerox for professionals of color and women (in proportion to their numbers in the organization). The effort has not slackened with Kearns' retirement. Allaire has sent a memo to every manager informing them that he holds each of them accountable for promoting minorities and women into management.

The Black Managers' Network also found that African Americans as a group received lower performance appraisals than other groups—even when the same wording was used to describe their performance. In addition, African Americans in the same jobs often received lower pay for the same work. As a result of these findings, Xerox changed its personnel processes to achieve equity. These actions impacted hundreds of employees.

Networking groups at Texas Instruments have played a similar role, helping the firm update its policies against discrimination. For example, members of the company's women's networks participated in developing a training program addressing sexual harassment.

Employee networking groups also help younger employees meet successful co-workers who can become mentors and role models. In the case of engineers and computer scientists, these contacts can be invaluable since they might otherwise have little contact with successful minority co-workers. The latest employment data released by the U.S. Department of Labor show that there are still few African Americans and Hispanics employed in the engineering and information science fields.

LEADERSHIP FORUMS

Networking groups help members in less direct ways as well. Chip Egea, director of human resources at AT&T's corporate headquarters in New York, says that employee networking groups provide an arena in which to develop leadership skills—tools that become increasingly valuable to employees as they progress in their careers. The Texas Instruments Semiconductor Group Black Employee Network sponsors a leadership training program. Gini McCain, director of human resources communications at 3M Corp., notes that networking group activities often help employees develop useful political skills.

Some employee networking groups organize courses in career enhancement subjects such as communications and management skills. Others serve as clearinghouses collecting information on such courses and informing their members about continuing education opportunities. Employee networks can also strengthen other employee groups dedicated to improving personal skills. For example, discussions within the Shell Asian Pacific Employees Networking Group on the importance of oral presentation skills convinced some members to join the Toastmasters Club that meets weekly during lunch hours at Shell's research center in Houston. (Toastmasters International is an independent organization dedicated to improving its members' public speaking skills though an organized program of projects.)

Benefits can also spill over into the surrounding community. Wheeler says, "Community involvement helps the community but also provides developmental opportunities for employees."

The African-American, Hispanic, Native American and other employee networking groups at Microsoft have outreach programs to minority communities, particularly schools. Members of the Shell Hispanic Employees Network recently set up computers at a Houston area school that received a shipment of computers but no instructions on how to install them.

Programs through these and other companies' employee networks encourage minority employees to talk to grade school classes about career opportunities in engineering and other fields. These volunteers provide role models to children, showing that minorities can achieve career success in engineering and computer science.

Honeywell often responds to requests from its employee networking groups for financial support of worthy community and educational causes. The Lockheed Martin Latino Mentoring Network has raised thousands of dollars for the National Hispanic Scholarship Fund and has cooperated with other groups such as the Society of Women Engineers in service projects in the Hispanic community. These projects include going into schools to discuss engineering careers and serving as mentors to science teachers, providing information and materials to help them teach their classes.

CONVERGING POINTS

Even if various employee networks at a company represent different minority groups, they often have common interests. Recognizing this, some networks are banding together, sharing resources and supporting each other's missions. The Texas Instruments Diversity Network is an informal organization of representatives from the various employee networking groups at the firm. The Microsoft Diversity Advisory Council includes representatives of 12 employee networks.

At both firms these groups exchange information, oversee areas of common interest to the various employee resource groups, guide new initiatives and organize leadership conferences. The Texas Instruments network also publishes a periodic diversity newsletter for employees.

Throughout the country, corporations and their employees are clearly realizing the benefits of minority employee networks. When supported and nurtured by employees and management, both groups reap significant profits—not only in terms of the bottom line, but also in career development success.

Dr. John K. Borchardt works for Shell and is an adjunct professor of chemical engineering at the University of Oklahoma. He also consults on career management and work force diversity.

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Source : Graduating Engineer Online

Multicultural is New Workplace Model

By Juana Bordas

Not only is the world getting flatter, it is becoming more colorful.

As globalization becomes a reality, more and more companies will employ people of every race, nationality, religious background, and age group. These people will work side by side in the same office building, others a hemisphere away.

That's why if your company is still leading the "old" — read "white, male, authoritarian" — way, you're making a mistake. It would be great if you could magically fill your leadership ranks with men and women from different cultures, backgrounds and traditions. But if that's unrealistic, you can gain a lot by simply borrowing their techniques.

"Today's leadership models, although they may differ from person to person and method to method, generally have a common bias toward Western- or European-influenced ways of thinking," said Bordas, author of the new book "Salsa, Soul, and Spirit: Leadership for a Multicultural Age."

"We're leading as if our companies are filled with white men and, quite clearly, that's no longer the case. Contemporary leadership theories exclude the enormous contributions, potential learning, and valuable insights that come from leaders in diverse communities."

According to the U.S. Census Bureau, by 2010 one-third of U.S. residents will trace their descents to Africa, Asia, the Hispanic world, the Pacific Islands, or the Middle East. In her book, Bordas explains that the most successful businesses will be those that incorporate the influences, practices, and values of these diverse cultures in a respectful and productive manner. Through implementing multicultural leadership, not only will your company's working environment be a better, more enjoyable place to work, but you will be able to better handle the needs of your multicultural customers.

"Multicultural leadership encourages an inclusive and adaptable style that cultivates the ability to bring out the best in our diverse work force and to fashion a sense of community with people from many parts of the globe," Bordas said. "It enables a wide spectrum of people to actively engage, contribute, and tap their potential. That's why making sure that your workplace has culturally inclusive leadership will be one of the most important transitions you make into the new globalized world."

Here are eight ways to help you make the transition to a multicultural leadership model.

1. First, you need a history lesson. You may be thinking: Why can't I simply hire new leaders from varying backgrounds and incorporate their leadership techniques into the entire organization? Here's why. Expanding the leadership at your organization into a multicultural form requires an understanding of how Eurocentric and hierarchical leadership became dominant in the first place. That means beginning with our society's myths concerning the "settling of America," which deny the historical contributions of communities of color.

"For mainstream leaders, understanding the history that gave rise to ethnocentricity is perhaps the most difficult step in transforming leadership to an inclusive, multicultural form," Bordas said. "You can't just go to a seminar for a day and come out understanding why the old Eurocentric leadership models won't work in a globalized world. You need to learn about these cultures in order to develop the clarity that allows you to incorporate multicultural leadership techniques into your organization."

2. Think we, not I. Today's corporate world is an incredibly competitive place where the accepted motto seems to be "Every man for himself." Bringing in multicultural leadership will put an end to this sometimes harmful way of thinking and will create a working environment where the focus is on mutual, not singular advancement.

The Black, Latino, and American Indian leadership techniques that you will integrate into your organization originate from a collectivist culture. These cultures are usually more tightly woven and integrated than Eurocentric cultures, and as a result they cherish welfare, unity and harmony.

"To maintain these elements, people behave politely, act in a socially desirable manner, and respect others," Bordas said. "People work for group success before personal credit or gain. And there isn't a business out there that won't benefit from employees who identify themselves as part of a team and who, as a result, work together to make the entire company a great success."

3. Practice generosity, not greed. In communities of color, being generous is an expected leadership trait that indicates integrity and garners respect.

How does this generosity show itself in the working world? Let's use Latinos as an example.

They have the highest percentage of participation in the U.S. labor market of any subgroup and are viewed as being great contributors at work. This reflects their value of generosity. They view work as an opportunity to share their talents and contribute to the welfare of the organization, Bordas said.

"Just as employees are generous with their hard work, company leaders need to show generosity by paying employees fair wages," she said. "According to a 2002 study, CEOs are making 241 times the average worker's salary. This can't happen in a company that practices multicultural leadership.

"Multicultural leaders are not greedy. They want the best for their employees. As a result, their employees are generous with their time and concern for customers."

4. Flatten your leadership structure. Traditional leadership today, particularly in corporate America, is associated with fat salaries and mega bonuses, the big office, corporate jets, special parking places, and the numerous privileges that come with being in the top echelon. These types of perks create elitism that runs contrary to the principle of equality in the workplace, resulting in economic and social chasms between leaders and employees.

Organizations would benefit from taking a more multicultural approach to leadership structure. Take the American Indians, for example. In their communal set-up, everyone can be a leader because the members of their tribes are valued based on what they contribute to the community.

"Today's high-powered CEOs are known for what they take," Bordas said. "But as the world flattens, successful companies will be those whose CEOs view themselves as just another part of the company and who place value in the expertise and innovation of their employees.

"Flattening the leadership structure will put you a step ahead of your competitors. Why? Because employees will feel more appreciated and will work more easily together instead of getting hung up on a 'You're the boss' mentality."

5. Help people learn to work better together. No two people come from exactly the same background. Despite outward similarities, every employee, manager or CEO is unique.

Successful businesses are those that learn to accept the small differences that make us human and work together for the greater good of the organization. Latinos exemplify how this can work in the real world. They are not a "race," but an ethnic group bound together by the Spanish language, colonization, the Catholic Church, and the common values that stem from both their Spanish and indigenous roots.

"Latino leaders, therefore, are challenged to forge a shared identity, vision and purpose from a conglomerate of people who are joined together like pico de gallo — a Latino condiment that includes bite-size pieces of many spicy ingredients," Bordas pointed out. "They have to be consensus builders and integrate the many critical issues that touch people's lives. Consensus building is a great way to strengthen any company's work environment."

6. Minimize conflict by reminding employees that they truly are "family." Aside from heading up different projects and managing different departments, company leaders are expected to bring together employees who don't get along. Any number of conflicts can arise in an office setting, and by using the right leadership techniques, you can alleviate conflict so that everyone works together (for the most part, at least) as one big, happy family.

"In multicultural leadership, one step toward minimizing conflict is encouraging people to view each other as relatives," Bordas said. "In the same way that viewing other members of society as relatives would reduce the likelihood of war and fighting, encouraging employees to view one another as family encourages them to seek out resolutions to their problems. It makes them feel a responsibility to find a way to coexist in order to benefit the company."

7. Foster a culture that's accepting of spirituality. As a business owner, you might be reluctant to make a connection between spirituality and work, but it is possible to do it without stepping on anyone's toes. As long as no one tries to force his or her faith on anyone else, the entire workplace is free to learn from one another and be inspired by the values that underline many faith traditions — hope, optimism and gratitude — all factors that go hand in hand with a spiritual life.

By encouraging employees to share their spiritual sides rather than compartmentalize them, you create a workplace where people bring their "whole selves" to work. You do this by example: Be open about your own spiritual beliefs and activities and strike up conversations with employees about theirs (in a completely nonjudgmental way, of course). Your employees will quickly see that they are free to be themselves and, as a result, they will be happier people — and happier people are more productive and creative.

"When I was researching my book, LaDonna Harris, a member of the Comanche tribe, pointed out to me that in American society, churches are one place, work is somewhere else, education is over there, and none of them relate to each other," Bordas said. "She explained that for Indian people, spirituality is the integrating force of their lives and the essence of leadership. By encouraging spirituality in your employees, you can create even stronger bonds within the workplace and improve the ways in which your employees work together."

8. Focus employees on a company vision. Almost every organization has a company motto or promise that is meant to inspire employees and assure customers that only the highest quality product or service will be coming their way — and if you don't have one, you should come up with one right away. But does your company's vision really represent the beliefs and attitudes of all of your employees?

"In order to develop a company vision that truly reflects the diverse attitudes of your employees, think of it as a community vision," Bordas said. "Listen to different points of view, communicate in an open, give-and-take fashion, and welcome new ideas.

"The shared vision that results will provide a focal point for people's skills, talents and resources. With that vision assuring them that their efforts will make a difference, people will be willing to assume a higher degree of risk and make greater sacrifices, which will translate to a company with harder working, more dedicated employees."

"Businesses today understand the phenomenal growth in communities of color and want to access these lucrative and growing markets," Bordas said. "Tapping the potential of the changing work force, consumer base and citizenry requires leadership approaches that resonate with and are representative of a much broader population base. Mainstream leaders must be able to use practices and approaches that are effective with the many cultures that make up the U.S. population.

Business leaders without significant experience within diverse cultures needn't worry, Bordas said. People can develop affinities and sensitivities for a number of different cultures. Leaders can acquire multicultural competencies and work effectively with many different populations.

The convergence of the leadership principles of diverse cultures with American business practices can create a socially responsible environment — one that underscores the role of business in supporting the welfare of our communities and our quality of life, she said.

"If we can achieve this, the world will be a better place — to work in, to live in, and to bequeath to our children and to future generations."

About the Author

Juana Bordas is president of Mestiza Leadership International in Denver and vice president of the board of the Greenleaf Center for Servant Leadership. She is a founder of Mi Casa Women's Center and founding president/CEO of the National Hispana Leadership Institute and was initiated into the Colorado Women's Hall of Fame and honored as a Wise Woman by the National Center for Women's Policy Studies.

Source : Seacoastonline.com