The Competitive Advantage in the Hospitality Industry

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Table of Contents

Introduction
Importance of managing cultural diversity
Disadvantages of managing cultural diversity
Managing cultural diversity to foster competitive advantage
Managing culture shock
Training program for managing cultural diversity
Managing recruitment
Adopting an employee relationship management system
Conclusion and recommendations
References

Introduction

Due to globalization which is characterized with advanced technology that has enhanced communication, organization has been experiencing a situation where at one time or another, the workforces they have are from different cultural backgrounds. For this reason, it is no doubt that the issue of cultural diversity is a reality and organization has to brace themselves to handle it or else they will be in trouble.

It would be rational to first define cultural diversity; it refers to the cultural differences between individuals. These differences may take the following forms; language, dress, traditions, morality, religion, social organization, social interaction the manner of communication among others (Cornelius, 2002).

It is generally accepted that a diverse workforce makes it possible to foster flexibility as well as rapid response to change, it also enhances the ability of an organization to concur international markets, encourages creativity and innovation and it support the notion that accommodating others is a social as well as a moral duty.

However, the concept is associated with a number of problems such as increasing complexity and issues when it comes to developing overall procedures, there is a problem when there is need to come to a single agreement, it increases ambiguity, complexity and confusion, bring difficulties in communication and it calls for policies, procedures and policies to be very specific (Reynolds & Valentine, 2004).

It is no doubt that hospitality industry in the United States generates billions of revenue as well as providing millions of job opportunities both directly and indirectly. Records show that the industry is third behind automotive and food service respectively (Becker & Huselid, 2001). The revenue generated by full service hotels of which are the largest section of lodging industry is about $80 billion annually.

In terms of employment, the hotel industry in the U.S has provided job opportunities to about 1.3 million people. Out of the total, a half works in full service hotels. A closer examination of the workforce will definitely leave one with the impression that indeed it is diverse in terms of age, cultural background, sex, gender among others.

It is worth noting that hotels located in the city centers offer employment to the urban populace. Approximately, the industry provides 8.0% employment opportunity nationally. The paper will thus look into the best strategies to be used by hospitality industry to ensure that it gain competitive advantage.

Similarly, issues relating to importance of cultural diversity, disadvantages of managing cultural diversity are succinctly brought to light.

Importance of managing cultural diversity

One benefit that will be brought about by managing cultural diversity is that policies that are in line with the government laws, guidelines as well as procedures will be generated. This will ensure that the issue with regards to discrimination is fully addressed.

Having in mind that a diverse workforce in itself is advantageous for instance, there will be various and indeed suitable alternatives to solve problem and more so transfer on knowledge.

Andall, 2003 suggested that when workers are treated equally, there is no doubt that there will be no resentments and for that matter the entire workforce will work in unity hence being productive. On the same line of reasoning, cultural diversity enhances corporate image particularly where recruitment and treatment of employees is sensitive to the differences in their cultures.

This can be exemplified by the fact that if an organization focuses on recruiting employees especially from the minority group and from diverse culture, then this kind of message will definitely attract more young individuals to feel passionate about hospitality industry.

On the same note when an organization is sensitive to cultural differences, the local community as well as the general society will feel accommodated and will thus support all endeavors of the organization since they feel part and parcel of the organization (Reynolds & Valentine, 2004). More importantly cultural diversity brings with it valuable innovation to an organization.

An organization having workers from different cultural settings as well as experience will bring into the industry more improved innovation by offering new skills and ideas when it comes to dealing with emerging issues. Lastly, managing cultural diversity makes an organization gain or increases its competitiveness.

Having in mind that an organization’s future is dictated on how motivated and satisfied workers are, there is no doubt that proper management of a diverse workforce contributes.

The issues that will be realized when managing cultural diversity include; motivated employees, lower rates of employees’ turnover as well as attracting more consumers and more skilled and knowledgeable workforce. A diverse workforce also ensures that the diverse customers’ needs are successfully met (Marx, 1999).

Disadvantages of managing cultural diversity

Although majority of scholars are of the view that managing cultural diversity brings a lot of advantages to the organization, there are situations where drawbacks of doing the same usually emerge.

For instance, when an organization tends to focus on managing cultural diversity, majority of employees especially those who share a common cultural background will feel that they are being pulled down to match with their counterparts who are from a different cultural background.

This means that a section of the workforce may tend to hold the view that they are being sidelined. If such an issue is not addressed an earlier stage, then there are chances that there will be tension between those affected hence jeopardizing the intention of the activity of managing cultural diversity (Brotherton, 2003).

It is also no doubt that the whole concept is very expensive in terms of resources such as money and time. It is worth noting that where there are programs implemented to help workers appreciate the fact that cultural diversity is important, a lot of money is usually being used to bring in consultants, fund the entire project among other things (Kirton & Greene, 2000).

On the same note, there are higher chances that most of the time will be take to teach and train workers on how to respect the cultural differences between them. This time could have been otherwise used to enhance productivity of the firm. However, there are those who have argued that although time is lost during managing cultural diversity, if it is successfully done then it is possible that time lost can be recovered (Healey, 2008).

Managing cultural diversity to foster competitive advantage

Competitive advantage is thought of as a strategic advantage an organization or a firm usually has over its competitors in a competitive environment of doing business. The ability of managing cultural diversity successfully has been shown to help organization attain a sustainable competitive advantage.

In this section, am going to narrow down on four main strategies that can be used to manage cultural diversity, they include; managing culture shock, managing recruitment, developing a program that will train employees on diversity issues and adopting an employee relationship management system (Deresky, 2002).

Managing culture shock

Culture shock is the anxiety that is experienced by individuals when they find themselves in a completely new environment. Ideally, it entails a feeling of not knowing what to do, how to do certain things, as well as what is and what is not appropriate. It also includes physical and psychological discomfort.

This issue is characterized by certain characteristics such as sadness, loss of identity, inability to solve common and simple problems, inability to feel confident among others. All these attributes contribute to one not to be productive in his or her place of work (Wetherell, 2008). There is thus need to manage culture shock. This can be accomplished from two levels; individual and organization.

At the individual level the affected person opt to keep an open mind and understand being different is not better or worse. Additionally, keeping one’s sense of humor by smiling and laughing helps one to deal with embracing situations, fears, shame, despair among other reactions linked to culture shock.

Eating healthy and balance diet and getting enough rest will help. The ability to relax and meditate, and including a regular physical activity in most cases will help an individual fight sadness and loneliness and deal with stress (Warner & Joynt, 2002).

From the organization level, if a firm creates an environment where employees will be reminded of their strength through activities in which individuals will utilize their unique skills, talent and knowledge. Organizational also need to provide employees with all the resources the later need to fight culture shock, for instance a gym room, human resource personnel to help those suffering from culture shock among others.

On the same note, where organization has an environment where employees are free to democratically air their views and the same are seriously considered, then new workers from a different cultural background will feel confident.

If all this are accomplished (managing culture shock) then all employees will be at par and respect each other. The ultimate result is satisfied workers, who are motivated, respect one another all these contributing to successful attaining of organization preset goals and objectives (Warner & Joynt, 2002).

Training program for managing cultural diversity

Having in place a training program to manage culturally different employees will help in attaining competitive advantage. Training program such as cross-cultural training will help managers to learn about different cultures thus ensuring that they develop skills and better ways to manage cultural diversity issues hence help in reducing the potential costs associated by differences in culture (Wetherell, 2008).

Additionally, there is need to merge this training program with cross-cultural training which will help the target audience to understand what they expect when dealing with colleagues from a different culture. Ideally the training program will help workers appreciate their diversity, respect one another as well as gain more understanding of other’s beliefs and traditions (Holden, 2002).

On the same note, the program usually emphasizes on communication where positive impacts will be generated both the minority as well as majority within an organization.

It no doubt that if the program is well developed, implemented and continuously improved, enforced and carefully design, then all those issues that arise as results of difference in culture will be handled successfully. This will translate to a more productive team of employees fully dedicated to meet the organization goals and objectives (Holbeche, 1999).

Managing recruitment

It has been argued that the human workforce is the most important assets an organization could have to attain its goals and objective. For that reason, having in mind that globalization has made the world to turn into a global village, there is need to manage how new workers are recruited into an organization (Lewis, 1999).

When there is an open position, care should be taken so that during advertisement, the same is fully made available to both internal and external individuals who would be interested in the position.

Additionally, it should be made known that the firm is not di9scriminative and the minority groups are encouraged to apply for the position. When recruitment is managed properly; the organization will have at its disposal a diverse workforce with exceptional skill, talent and knowledge.

Taking the new recruit through training aimed at familiarizing them with all the activities within the firm will greatly help in aligning the skills and talent of these new recruits with those of existing employees (Schneider & Barsoux, 2003).

Adopting an employee relationship management system

Having realized that a workforce that is diverse in terms of culture brings both advantages and disadvantages, there is need for managers to successfully manage a multicultural workforce. Managers opt to appreciate that minority and majority do not share certain experiences all the times (Schneider & Barsoux, 2003).

Under this system, creation of a program that will enhance awareness of cultural diversity, enhance positive attitude with regards to a diverse workforce, encouraging a flexible communication method as well as encouraging workers to freely air their opinions without victimization.

Additionally efforts such as teaching other languages and cultures to local employees, having an event periodically where certain religious as well as traditional holidays of specific groups will aid in curbing problems that might arise due to cultural differences (Anca & Vazquez, 2007). More importantly inclusion of family members of minority workforce to such events will add value.

To accomplish this, managers need to first create and build a one on one relationship with workers so that they can know different personalities and backgrounds of their employees. Lastly increasing communication between workers, the management and among employees will be a plus in managing a diverse workforce in term of cultural background (Jeannet, 2000).

Conclusion and recommendations

From the review of the concept of managing cultural diversity in the hospitably industry, it is evident that it can bring advantages to the industry. Among the advantages include; building the image of the organization, increase competitiveness, brings in innovation and creativity when solving problem, encourage knowledge sharing among others.

However, there are some drawbacks associated to managing cultural diversity; for instance creating tension between minority and majority and consumption of resources that could otherwise be used elsewhere.

To gain competitive advantage, the following strategies can be used, managing recruitment, adopting an employee relationship management system, training program for managing cultural diversity and managing culture shock.

Among the recommendation I put forth include the following;

Hospitality industry is not an exception when it comes to cultural diversity and for this reason, there is need to be sensitive on this issue
Adopting a training program is called for
Hospitality industry needs to have in place an employee relation management system

References

Anca, D. & Vazquez, A. 2007. Managing Diversity in the Global Organization, New York: Palgrave: Macmillan.

Andall, J. 2003. Gender and Ethnicity in Contemporary Europe, Oxford: Berg.

Becker, B. & Huselid, M., 2001. The HR Scorecard: Linking People, Strategy and Performance, Harvard Business School Press; Harvard.

Brotherton, B. 2003. International Hospitality Industry, Oxford: Butterworth Heinemann

Cornelius, N. 2002. Building Workplace Equality. Ethics, Diversity and Inclusion, London: Thomson.

Deresky, H. 2002. International Management: Managing across Borders and Cultures, London: Prentice Hall

Healey, F. 2008. Race, Ethnicity, Gender and Class: The Sociology of Group Conflict and Change, New York: Sage Publications.

Holbeche, L. 1999. Aligning Human Resources and Business Strategy, Oxford: Butterworth Heinemann.

Holden, N. 2002. Cross-Cultural Management. A Knowledge Management Perspective, London: Prentice Hall

Jeannet, J. 2000. Managing with a Global Mindset, London: Prentice Hall.

Kirton, G. & Greene, A. 2000. The Dynamics of Managing Diversity, Oxford: Butterworth Heinemann.

Lewis, R. 1999. When Cultures Collide: Managing Successfully Across Cultures, London, UK: Nicholas Brealey Publishing.

Marx, E. 1999. Breaking Through Culture Shock, London, UK: Nicholas Brealey Publishing.

Reynolds, S. & Valentine, D. 2004. Guide to Cross-Cultural Communication, New Jersey: Prentice Hall.

Schneider; S. & Barsoux, J. 2003. Managing Across Cultures, London: Prentice Hall

Warner, M. & Joynt, P. 2002. Managing Across Cultures: Issues and Perspectives, London: Thomson Learning

Wetherell, M. 2008. Identity, Ethnicity, Diversity and Community Cohesion, New York: Sage Publications

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