Definition of Cultural Competency in the Business Setting
In a global economy, cultural diversity is increasingly critical in workplaces and trade. Managers and employees alike have to become versed in the ways people of various backgrounds work and interact. In business, the term "cultural competency" has come to refer to several things, including diversity within an organization, dealing with culturally diverse domestic clients and conducting international business.
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Diverse Workplace
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Not only do Americans come from diverse ethnic, racial and cultural backgrounds, but the American work force includes many immigrants. Besides respecting federal law requiring nondiscrimination and fair treatment irrespective of gender, race, age and national origin, professionals must learn to work effectively with a variety of people. Cultural competency involves understanding the communication and work styles typical of various nationalities and ethnic groups. It may even include proficiency in a foreign language. A construction site manager in California may get more respect and have more successful communication if he can speak Spanish. Nurse managers who understand that Filipino nurses tend to avoid conflict may adjust their managerial style to be softer and more inviting so nurses will come forward with their concerns.
Customers and Clients
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America has many communities with large minority populations. Their linguistic and cultural needs may mean that different business, marketing, sales and service approaches will improve an organization's performance. Many hospitals, for example, try to hire bilingual and multilingual staff to assist patients who speak languages as diverse as Russian, Chinese, Vietnamese and Spanish. Supermarket chains often feature different promotions and specials in their different locations and regions to meet the culinary tastes and budgets of the various communities they serve.
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International Business
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It takes a great deal of preparation to do business in foreign markets. Whether a company is forming business partnerships, buying supplies or retailing to foreign consumers, it must understand the nuances of the other culture. Products that may succeed in America can flop in another country. Multinational corporations usually run studies involving marketing, supply chain and even store presentation to develop culturally effective strategies. Doing business in other countries requires awareness of other business cultures and practices. Although being respectful is a universal foundation of business, different cultures have different ways of showing respect. Business leaders must study other cultures when developing new relationships and opportunities.
Global Operations
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Companies have their own internal cultures. These norms and values add cohesion and set a tone and outlook that guide how they do business. Company cultures are an intangible way companies direct their employees on how they want them to behave. While developing effective company cultures can be challenging domestically, it becomes especially difficult when companies have international offices and locations. Top managers must take into account the various work styles, outlooks and values of a company's entire work force to create a platform that effectively brings together all the parts under one cultural umbrella. In turn, employees who work with colleagues in other countries must become savvy about their different work styles and communication habits, especially when work teams have members in offices around the globe.
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References
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