National Cultures and Leadership

When there are differences between individual members of a team on various dimensions, including age, nationality, religion, skills, etc., there would be a diverse team. Overall, researchers suggest that diverse teams in work are more productive as well as better performing. In 2017, a study conducted by the Boston Consulting Group (BCG) found diversity to be a key driver of innovation; as a result, diverse teams can create as high as 19% more profit compared to their counterparts (Lyons, 2019). According to this study, diversity allow teams to remain in tune with the changing needs of their customers, and thereby develop more relevant products to serve customer demands. The diversity among team members lead them to contribute diverse insights and ideas during work, which foster a high level of adaptability for the team. The solutions of diverse teams can often take into account multiple perspectives. In this way, they become more well-rounded. The benefits of diversity in the work environment are also supported by other studies. A research by McKinsey conducted in 2015 provide more evidence that companies with diverse workforces are able to perform better financially (Hunt et al., 2015). This study showed that companies that are ethnically diverse are 35% more likely to perform above the industry median. While ethnic diversity may not directly translated into high financial performance, companies that are committed to diverse leadership tend to improve their customer orientation, employee satisfaction, and decision making. Improvement in these aspects bring higher levels of competitive advantage for the companies, enabling them to make higher levels of financial profit as well.

However, diverse teams can also bring challenges to companies and to leadership. First of all, establishing professional communication across different languages and cultures can be difficult. In addition to language barriers, non-verbal communication can also vary across cultures and lead to misunderstandings. The delicate aspects of cultural interactions may not be easily recognized by diverse team members, which gives rise to misunderstandings and risks of conflict. Secondly, different cultures and backgrounds also foster different understandings of professional habits. The workplace attitudes, behaviors, and etiquette may differ for different members. For instance, the younger generation of employees have less expectation of formality and organizational hierarchy. This can prove and issue when diverse teams work. Furthermore, diverse teams face a significant challenge in integration, especially when there are underlying prejudices among different cultures. Researchers found negative stereotypes to be seriously detrimental to work productivity (Martiny et al., 2012). When team members have cultural stereotypes toward one another, teams face misunderstandings and even biased treatment. This would lead to negative impacts on the morale of employees, and eventually on their performance.

The ability to manage a diverse team is one of the most important skills for leaders in the the retail industry. Retail companies serve a wide range of customers and employ a large workforce. For retail companies, it is important to maintain diversity in the workforce so that decisions can be made to cater the interest of diverse customers (Burns et al., 2021). In addition to the financial benefits associated with having a diverse workforce, diversity is critical to attracting customers and enhancing brand image for retail companies. Today’s customers are highly diverse and with more demands. The new generation of customers support companies that value diversity and inclusion, while actively engage in discussions with each other on social media. Customers seek to purchase products form brands with identities and values they can identify with.

Leaders in retail can use the knowledge of diversity to build diverse teams that can function properly. With successful leadership, a diverse team can leverage its numerous benefits. First of all, managers should be aware of the value that diversity offers and support diversity and inclusion. For example, managers can offer opportunities to underrepresented groups and promote the participation of all team members. Furthermore, managers need to ensure that they can communicate effectively with diverse team members, overcoming language and cultural barriers. The leader of a diverse team should create a culture in which diverse thinking is respected, heard, and applied. This may involve providing the necessary cultural and communication training for team members. Overall, it is important to overcome the challenges of managing a diverse team with skilled leadership to promote the benefits of diversity.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

References

 

Burns, T., Ellsworth, D., & Field, E. (2021). The diversity imperative in retail. McKinsey & Company. Retrieved 21 December 2021, from https://www.mckinsey.com/industries/retail/our-insights/the-diversity-imperative-in-retail.

 

Hunt, V., Layton, D., & Prince, S. (2015). Why diversity matters. McKinsey & Company. Retrieved 21 December 2021, from https://www.mckinsey.com/business-functions/people-and-organizational-performance/our-insights/why-diversity-matters.

 

Lyons, S. (2021). Council Post: The Benefits Of Creating A Diverse Workforce. Forbes. Retrieved 21 December 2021, from https://www.forbes.com/sites/forbescoachescouncil/2019/09/09/the-benefits-of-creating-a-diverse-workforce/?sh=20a4890d140b.

 

Martiny, S. E., Roth, J., Jelenec, P., Steffens, M. C., & Croizet, J. C. (2012). When a new group identity does harm on the spot: Stereotype threat in newly created groups. European Journal of Social Psychology, 42(1), 65-71.