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ManagingCulturalDiversitywithinanOrganization:CarestreamHealth

AndreeaPODEANUAbstractThepaperresearchesculturaldiversityinamultinationalcompany.Itstartsbydefiningculturaldiversityandbypointingoutitsadvantagesanddisadvantages.Itthenpresentsasurveyon35employeesoftheCanadiancompanyCarestreamHealth aiming at revealing their opinion on cultural diversity and theircompany’spolicyinthisrespect.Keywords:culturaldiversity,leadership,management,organizationalculture,multiculturalworkenvironment

Introduction

he theme of cultural diversity and its impact on companiesworldwide hasbecome a timely subject that Iwill address in this paper. It has become amovementandaninstrumentthatcompaniesusetoaddtotheirfoundation,

inthewillingnesstoopentheworld,expandtheirbusinessandbringpeopleofanyculturetoworktogetherinacommonenvironment.

Thispaperfocusesonwaysthatcompaniescanintegratemulticulturalismwithin their personalities, how to achieve this in a practical and financiallyrewardingwayandhowtheyhavemanagedtouseculture tobenefit themandhelpthemevolve.

ThisprocessisillustratedbyacasestudyonCarestreamHealthcompanythat, inmypersonalopinion, isanexampleofcrossculturalenvironment.Thesubjectofmulticulturalism is treated therewith respectandgenuine interest indoing their best to conduct a harmonious and balancedworking environment.Theirleadershipskillsareclearlystatedinthewaytheyworkedwiththatcertaingroupofpeople.

Tobackupmyresearch,Ichosetointerview35personsworkingforthesame company, but having different nationalities, age, gender, or roles. Thesurvey was designed to focus on employees’ perception towards themulticultural environment in the company, to define their point of viewregarding the level of satisfaction they have working in such place, theadvantages and disadvantages they see, what is the position of the companyfacing a cultural diversity and especially which is the impact that cultural

diversityhasontheindividual,theteamorthecompanyasanentityandhowtomanageitinordertogetthebestresultsfromeachdiverseteam.Thesurveywasbuild using open ended questions,where the participants filled in the answerswiththeirthoughts,questionswithmultiplechoicesallowed,questionsbasedonlevelofmeasurementandfilterandcontingencyquestionsinordertoguidethemtoprovidetheinformationneededformyresearch.Theresultsofthisqualitativeresearch are descriptive rather than predictive but helped me support theconstructionofthecasestudy.

Whatisculturaldiversity?Traditionally speaking, cultural diversity encompasses two dimensions:

ethnic belonging and nationality, which point directly to the individual’sbelonging to a specific culture. That is why “diversity” used to be called“culturaldiversity”.EURacialEqualityDirectiveandEUEmploymentEqualityDirective stipulate that cultural diversity encompasses six dimensions – age,physicalcapabilities/disabilities,culture,sex,religionandsexualorientation.

Further classifications of cultural diversity can be found in scientificliterature too: superficial diversity - age, sex, belonging to an ethnic group,religion, education and deep (hidden) diversity - culture values

1; main - race,

ethnicity, sex, physical or cognitive abilities and secondary - individual’sattitudes, mother tongue, social-economic status, education and professionalexperience dimensions of cultural diversity

2; task-associated dimensions of

cultural diversity - dependence of to a division, hierarchical level, duration ofemploymentwiththeorganization,professionalgroup,knowledge,abilitiesandskills, experience, educationand relationship-orienteddimensions -nationality,ethnicdependability,sex,age,religion,disability,race,attitude,values,personalqualities,socialstatus.

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AdvantagesofculturaldiversityinanorganizationTherearemanyargumentsforcreatingaculturallydiverseworkforce.For

instance, as the number of women, minorities, disabled etc. in the workforceincrease, so will increase their influence as consumers. Hiring them,organizationswilltapthesenichemarkets.

Taking into account that all the segments of society have a stake in thedevelopmentandprosperityofthesocietyasawhole,thecreationofadiverseworkforceshouldbeperceivedasasocialandmoralimperative.

A further argument for creating a culturally diverse workforce is thatdiversity enhances creativity and innovation and therefore it produces

advantages.There is no doubt that diversity helps organizations for entering the

international arena. Also, diverse teams can make it possible to enhanceflexibilityandrapidresponsetochange.

By capitalizing on the potential benefits of diversity, organizations willhaveaddedvalueandcompetitiveadvantagesoverorganizationswhichdonotrespondtothischallenge.

If people feel valued regardless of their background, it will lead toincreased commitment and productivity, enhancedwork relationships, and therecruitmentandretentionofthebestemployees.

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Needlesstosay,companieswillhavetheabilitytodrivebusinessgrowthandimprovecustomerservicebyinvolvingtheirdiverseworkforce.Thismeansmaking use of language skills, cultural sensitivity, knowledge of businessnetworksintheirhomecountriesandmarketknowledge.Withthesekeyassets,organizationswillhavecompetitiveadvantagesinmarketinggoodsandservicestoanincreasinglymigrantcommunityaswellastotheglobalmarket.

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Also,itcanbestatedthatorganizationscanexpectenhancedcreativityandproblem solving from a diverse workforce. Research has shown that diversegroupstendtobemorecreativethanhomogenousgroups,inpartbecausepeoplewithdiversebackgroundsbringdifferentperspectivestoproblemsolving.

DisadvantagesofculturaldiversityinanorganizationTherearealsosomedisadvantagesofaculturallydiverseworkforce.Afirstdrawbackcanbeconsideredtobecommunicationwhichbecomes

moredifficult.Sometimes,employeesfromdifferentculturesfail tounderstandoneanother.Companiesoperating indifferent languageareas finddifficulty incommunicating with the local employees because local employees speakdifferentlanguage.

Anotherdisadvantagereferstothefactthatculturaldiversityincreasesthecomplexity and problems in developing overall organizational procedures.Moreover,culturaldiversitycreatesdifficultiesforanorganizationwhenitwantstoreachonasingleagreement.Diversityalsocausesproblemswhenmanagersandemployeesovergeneralizeorganizationalpolicies,strategies,practicesandprocedures. A further disadvantage is that diversity increases ambiguity,complexityandconfusion.

Nowadays, failure to handle diversity can create a lot of problems for acompany.

An important problem is financial cost that may be caused by high

turnover, absenteeism and/or lawsuits. Companies lose themoney invested inrecruiting and training when a dissatisfied employee leaves. High turnovermeansemployeesareconstantlyinalearningstagewithoutperformingattheirfull potential. Moreover, absenteeism results in a significant cost: there is apositiverelationshipbetweenemployees’perceptionsofbeingvaluedandcaredaboutandtheirattendance.Inadditiontothis,lawsuitsonracialdiscriminationcanalsocausefinancialcosttothecompany.

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Reduced individual and organizational productivity are also seriousproblems. This occurswhen people experience prejudice and non acceptance.People who feel unappreciated are less innovative, and are less aggressive inpressingtheirideasorinassumingleadership.Theywillnotvoicedisagreement,because they want to be accepted, and time will be wasted due to poorcommunicationandmisunderstandings

7.

Itcanbestatedthat,alessobviousimpactisthetarnishedcorporateimagethatdevelopsaroundemployeedissatisfaction.Ifacorporationbecomesknownasonethatalienatesnon-traditionalemployees,itwillhaveahardtimefindingqualifiedworkersinperiodsoflimitedskilledlaboursupply.

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ManagingculturaldiversitywithinCaresteamHealthThis chapter focuses on a survey performed on 35 employees of

CarestreamHealth having different roles (management, IT, customer services,coordinators)anddifferentnationalities (Romanian,French,British,American,etc).

CarestreamHealthisaworldclass,globalcorporationwithover100 years of leadership in healthcare innovation. The company serves adiversified customerbase inover170countries, it is part of theOnex (oneofCanada`s largest and most respected companies) family of companies since2007,beingformerlyadivisionofEastmanKodak.Thecompanyhasthousandsofhealthcaresolutions,suchasRISandPACS,enterpriseworkflow,cloud-basedservices. Carestream is one of the top global providers of digital radiography(DR) and computed radiography (CR) systems. I chose this company as asubject tomycase study as I havebeenworking for the company for 6yearsand, during the years, I had the opportunity to observe the impact that theculturally diverse workplace has on the employees and how the company`smanagementadjustedtothemoreandmorecomplexanddiverseworkforce.

This study explores the perception that these respondents have on theorganizational culture of the company, the advantages and disadvantages ofworking in a culturally diverse workplace and the impact that it has on the

individual. It is about identifying factors based on leadership behavior andproposesamodelforeffectivemanagementandleadership.

Inordertoobtainequityofresponsestomysurvey,Itargeted35participants,allCarestreamemployees:18womenand17menalmosthalfofthemagedbetween18-35years,40%aged36-50yearsand9%aged50+.

Fig.1:Survey-Gender

Fig.2:Survey–Age

The nationalities of the participants vary: Romanian (12), French (9),Italian(3),German(1),Spanish(1),Moldavian(1),American(1),Mexican(1),Swedish (2),British (1),Belgian (1), Indian (1),Tatar (1) asdo the roles theyhavewithin thecompany:managers, teamleaders,coordinators,subjectmatterexperts, technician, planners, implementation specialist, financial controllers,etc. (different departmentswere targeted: IT, finance, customer order services,management,supplyanddemand,technicalsupport).

MorethanhalfoftheCarestreamemployeesthatansweredthesurveyhavebeenworkingforthecompanyformorethan5years.Ichose themas theyhaveawideexperience in thecompanyandduring theseyears they had the time to observe and analyze the cultural diversity and therelationthatthecompanybuiltwithit.Ialsowantedtoquestionsomeofthenew

comers,toseeiftherearedifferencesbetweentheirpointsofview:

Fig.3:Survey–Howmanyyearstheparticipantshaveworkedforthecompany34answersfromthetotal35hadapositiveanswertothequestion:“Doyouthinkthatyouareworkinginamulticulturalenvironment?”makinga

clearstatementthatCarestreamfacesamulticulturaldiversity.

Fig.4:Survey-Doyouthinkthatyouareworkinginamulticulturalenvironment?

Hofstedeaffirmsthatthereisnostandarddefinitionfortheorganizational

cultureconcept,butevenso,itcanbedefinedas“thecollectiveprogrammingofthemindthatdistinguishesthemembersofoneorganizationfromothers”.Eachcompany has its own unique organizational culture and based on the sixorganizational culture dimensions proposed by Hoffstede and the answersprovided by the 35 participants in the survey, we can sketch the Carestreamorganizationalculture:itisaresultsorientatedculture,whereachievingspecificinternalresultsisthegoal,eveniftheyinvolvetakingsomerisks(24answers).According to 31 participants, the company has a job orientated culture,completing the job being more important than concern for the people.Carestreamisanopensystem,wherenewcomersfeelwelcomeandanyonecanfitwithin theorganization(26answers).Questionedabout the levelofcontrol,

22participantsanswered that thecompanyreliesona tightcontrol rule,wherepeople are cost-conscious, punctual and serious. 20 participants agree thatCarestream is anormativecompany,wherebusinessethics andhonestymattermost,ratherthanonlyemphasizingtheneedtomeetcustomers’expectations.

Fig.5:Survey–Organizationalculture

Analyzing the data received from the answers provided to the survey, itcanbesaidthatthehighlyagreedperceptionthattheemployeeshaveregardingtheorganizationalculturewithinCarestreamisambition,50%oftheparticipantsseekingopportunitiesforadvancementandwantingtocontributetothesuccessoftheorganization.30%oftherespondentsfeelthatworkaholismbestdescribestheirexperienceinthecompany,workbeingmoreimportantthanleisuretime.Asmallerpercentage,10%ofparticipantsagree thatalienation isalsopartof theorganizational culture, the company not being professional, the managementbeingfaultyandwithahostileattitudeagainsttheorganization.Therestof10%of theanswersaresplitbetweenauthoritarianism,managementauthoritybeingconsidered never questioned and machismo, some of the respondentsconsideringthatworkandcareeraremoreimportantthanfamily.

Fig.6:Survey–Perceptionregardingtheorganizationalculture.

Leadershipaffectsallfacetsofhumanenterprise.Thoughtherearemanydefinitions of leadership, each definition has a different focus on leadership.

Leadership according to Hemphill and Coons is “a behavior of an individualdirecting the activities of a group toward a shared goal”.

9 Fiedler advances a

similar definition as follows: “By leadership behavior we generally mean theparticular acts in which a leader engages in the course of directing andcoordinating the work of his group members. This may involve such asstructuring the work relations, praising or criticizing, group members andshowingconsideration for theirwelfare and feelings.”

10Overall,wemight say

that leadership is theprocessofeffectivelyandsensiblydirecting theactivitiesof an individual or a group towards achieving certain goals and any givensituationconcerningtheworkenvironment.

11ofthe35participantstothesurveyareleaders,managingteamsfrom4to 100 people. Asked to describe what the impact that a multiculturalenvironmenthasitontheteamandinthecompanyis,theopinionsvary:leadingamulticulturalteamcanbefunandrewarding,butthemindneedstobeflexibleandagile.Theyneedtoadapttodifferentwayofthinkingastherearedifferentperspectivescomingfromdifferentpeople,leadingtoauniquesolution.Theteamdoesn`talwaysconnecttothevaluespromotedbytheleadersofthecompany,butthatdoesn`tmeanthattheydon`tdotheirjobright.Newapproachesandnewpointsofviewareofferedbyamulticulturalenvironmentatthecostofmoreconsciousandmorestructuredcommunication.

Communication is crucial and developing sensitivity, awareness andknowledgeofcross-culturalcommunicationtypescancometobeofgreatvaluewhen managing a multicultural organization.What is also very important forleadersistolearnhowtoeffectivelygettheirmessageacrosswithoutbecomingpatronizinginthewaytheycommunicate.

There are a few competencies that a leader should have, along withattitudes and solid values. A first value should be promoting mutual respectthrough the development of awareness of the diversity of the people. This isachievedthroughanhonestrecognitionofwheretheemployeesarecomingfromasindividualsandwheretheleaderwantstodirectthemtoasanewcommunityinordertomergewithinhisorganization.

Asked what the qualities that a leader should have when managing aculturallydiverseteamare,theparticipantstothesurveyconcludedthatthemostimportant quality was communication, followed by conscious responsibility,self-awarenessandempathy.

Fig.7:Survey–Thequalitiesaleadershouldhavewhenmanagingaculturallydiverseteam

Inmyresearch,Ihavecomeacrossdifferentleadershiptheoriesthathave

been developed in time. In the Karpin Report, developed in 1995 by theEnterprising Nation it is stated that the challenge of managing diversity is todevelop a newway of thinking about the socialworld, a newway of treating“difference”, a frame of mind which sees the potential, the excitement ofworking with people who are different. In “International Dimensions ofOrganizational Behavior” Nancy Adler proposes 3 strategies for managingcultural differences: ignore,minimize or reduce the cultural diversitywithin acompany.

Askingthe11leadersparticipatinginthesurveytochoosetheappropriateone for Carestream, 10 of them, meaning 91%, inclined to define “Manageculturaldifferences(recognizetheimpactofculturaldiversitythatleadstobothadvantages and disadvantages; managers and employees minimize potentialproblems by managing the impact of cultural diversity, not by attempting tominimizediversityitself)”asbeingtheonefollowedbyCarestreamHealthandonlyoneconsidered thatminimizeculturaldifferences is thestrategy followedbythecompany.

Fig.8:Survey–Strategiesformanagingculturaldifferences

Diversityenhancescreativityandinnovationandhasitsadvantages.The persons that participated in my survey consider that working in a

multiculturalspacegavethemtheopportunitytointeractwithdifferentcultures

andunderstandtheirwayofthinking,toembracecreativeandunusualwaysofsolvingproblems; theyhad toadapt theirwayofactionandcommunication inordertogettheresultsneeded.Someofthemconsiderthatdiversityitselfisanadvantage, helping them to becomemore tolerant, to connectwith people anddevelopbothonapersonalandprofessionalplan.

Diversity has also some flaws and disadvantages: the act ofcommunicationbecomesmoredifficult(communicationhastobewrittenmorethanverbal).Employeesfromdifferentculturesmightfailinunderstandingoneanotheronabasiclevel,becauseoftheirdifferenceinculturalbackgrounds(thelevelofrigortorequesttheimplementationofanactionmayvaryindifferentcultures,meaningthatyouneedtobeawarethatthehumanfactorinmulticulturalworkingspaceisanimportantparametertobetakenintoaccountandanticipatetheeffectsforaccomplishingagiventask).Firmsoperatingindifferentlanguageareasfinddifficultyincommunicatingwiththelocalemployeesaslocalemployeesspeakdifferentlanguage(Englishisamust).

Diversitycandefinitelyraiseambiguitywithintheworkplace,complexityand confusion and also causes problemswhenmanagers and employeesmaketheir organizational policies, strategies, practices and procedures too general.(Fuzzy set of basic assumptions and values, orientations, beliefs, policies,procedures and behavioral conventions, the multicultural environment bringsdiversity,productivity,butalsomoreefforttokeepthebalanceandconsistency.)

Cultural diversity can create issues for an organizationwhen itwants toreachasingledecision.Culturaldiversitymayalsoincreasethecomplexityand,inalogicalmanner,itmaycreateproblemsindevelopingoverallorganizationalprocedures.

Thefactthattheteammembersareculturallydiversehelpstoprovideanunexpected point of enjoyment in their working relationships, with membersconnecting with each other over the sharing of new cultural information(personal enrichment, “tons of people fromdifferent culture inmyLinkedIn”,“outside the box thinking”, respect for other cultures and behavior).Onewaythatthiscanbeinterpretedissimplybecausepeople,moreoftenthannot,enjoymeeting,interactingandknowingothersonadeeperlevelandevolvedinsuchaway thatmanydifferences seem interesting to them. I contend that thepeoplethatparticipatedinthisparticularstudywerehappiertocommunicateandlearnthan to judge. (70%of the peoplewho answered the survey are very satisfiedworkinginamulticulturalspace,24%aresomewhatsatisfiedandonly6%areneutral,nounsatisfiedanswer).

Fig.9:Survey–Levelofsatisfactionworkinginamulticulturalenvironment

Effective management of workforce diversity is more than just simply

acknowledgingdifferences in theemployeesofacertainorganization. It ratherinvolves recognizing the value and importance of those differences, fightingagainstdiscrimination,andpromotingaharmoniousorganizationalculture.(“Weare open to hire any nationality.Leading a team located in a lower labor costcountrydealingwithotheremployeesorevencustomerslocatedinhighercostcountry is challenging, when on the phone with them, either colleagues orcustomers, sometimes because they don’t like the fact that jobs were movedfrom their countries to lower cost countries we still see discrimination, badbehaviors, disrespectful comments towards our service representatives. So Ithinkwearestillnotthereyet,westillhavetoworktowardsthesamegoals,andfocusonwhatweneedtoaccomplish.”)

AsKlopfer states, benefits of diversity are never automatic.Benefits areobtained through well trained, hardworking, and committed leaders withexcellentdiversityskillsandcapabilityoffacingthechallenge,byfindingnewwaystomakediversityworkandrealizethepotentialforbenefit.

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ConclusionsWhen writing this paper, I learned much on the subject of cultural

diversity, organizationculture, dimensionsof culture, diversitymanagementorhowtomanageculturaldiversityinbusinessenvironments.I learned that diversity always entails challenges but also opportunities thatwouldnotbepresentinhomogeneousgroups,sinceanentireuniformityisnotrealisticandfeasible;organizationshavetodealwithitandtrytobenefitmostfrom differences.When people of various cultures come together on commonground,theycanbringtheirassets,theiruniqueknowledgeandproblemsolvingskillsforafocusedissueandsparkcreativityintheprocessofteamworkwithinacompany.

Diversityinleadershipwithinacompanyallowsmanagerstobringinnew

skillsandmethodsforachievingunitywithintheirteams.Asideasthataremorediversearebrought to the table, thechancesof findingaworkableanswerareimproved.Insituationswherebrainstormingisnecessary,moreideasareformedbecause team members come from different cultural backgrounds, they havedifferentexperiences,creatingavastteamknowledgebase.

I think that an organization success depends upon its ability to embracediversityandseekforthebenefits,butculturaldiversitycanaffecttheworkplaceinnumerousways.Negativeeffectscanincludemiscommunication,creationofbarriers, or dysfunctional adaptation barriers. Culturally diverse workers havedifferentopinions, thoughts,beliefs,customs,values, trendsand traditions.Wecan add conflicts, lost productivity, difficulty to achieve harmony in mixedteams.Therearealso languagebarriers thatneed tobeovercome fordiversityteams to succeed. Ineffective communication results in confusion and lack ofteamwork. There are always employees who refuse to accept the change, thediversity.

But encouraging workforce collaboration through mutual respect forcolleagues,withoutregard toworkstyle,ethnicityorculture isawaytofosterappreciationfordiversity.Ibelievethatculturallydiverseteamscanbringmorecreative, synergisticandeffectiveoutcomeseven if therearenegative sides.Acollaborative workforce can result in a more productive workplace, which inturn,translatestogreaterorganizationalsuccess.

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Notes[←1]

Cox,T.,&Blake,S.:Managingculturaldiversity:implicationsfororganizationalcompetitiveness,AcademyofManagementExecutive,5,1991

[←2]Daft,RichardL.:,Management,4thedition,HarcourtBraceCollegePublisher,USA,1997;Seymen,O.A.:Theculturaldiversityphenomenon inorganisationsanddifferentapproaches foreffectivecultural diversity management: a literary review,CrossCulturalManagement:AnInternationalJournal,Vol.13,2006

[←3]Köppel,P.,&Yan,J.,&Lüdicke,J.:CulturalDiversityManagementinDeutschlandhinkthinterher,Gütersloh,2007

[←4]Loden,MarilynandRosener,JudyB.:WorkforceAmerica:ManagingEmployeeDiversityAsaVitalResource, Business One Irwin, USA, 1991, p. 14; Daft, Richard L.:,Management, 4th edition,HarcourtBraceCollegePublisher,USA,1997

[←5]Karpin,DavidS.:EnterprisingNation:RenewingAustralia’sManagerstoMeettheChallengeoftheAsia-PacificCentury,TheAustralianGovernmentPublishingService,Canberra,1995

[←6]Robinson, Gail and Dechant, Kathleen: Building a Business Case for Diversity, Academy ofManagementExecutive,Vol.11,Number3,1997,p.21-31.

[←7]Loden,MarilynandRosener,JudyB.:WorkforceAmerica:ManagingEmployeeDiversityAsaVitalResource,BusinessOneIrwin,USA.1991.

[←8]Daft,RichardL.:Management,4thedition,HarcourtBraceCollegePublisher,USA,1997.

[←9]Hemphill,J.K.,&Coons,A.,E.:Developmentof theLeaderBehaviorDescriptionQuestionnaire,inLeaderBehavior:ItsDescriptionandMeasurement,editedbyStogdill,R.M.andCoons,A.E.,TheOhioStateUniversity,BureauofBusinessResearch,Columbus,Ohio,1957,pp.6-38.

[←10]Fiedler, F.E.:Leader Attitudes andGroup Effectiveness,University of Illinois Press,Urbana, IL,1958,p22-36.

[←11]Klopfer,S.:Diversitychallengesmanagers;education,skillsrequiredforsuccess[online]Availableat http://articlestorehouse.com/Art/105325/24/Diversity-Challenges-Managers-Education-Skills-Required-For-Success.html