Community Management and Organizations Hierarchical leadership

Questions: 1. Why is it important that leaders understand cultural diversity in modern day organisations?2. How can leaders influence and support cultural diversity in the workplace? Answers: 1. Cultural diversity of Australia is considered as the national strength of the country. There are people from various countries resides in Australia. In modern business world, employees are the assets of the organization. The multinational organizations of Australia recruit candidates not only from Australia but also from other parts of the world. Apart from that, the Australians also consist of people of different aboriginals. People usually belong to Anglo Celtic background. Leaders of different organizations has identified that leadership of different organizations at different levels include Anglo cultural styles (Hoch Kozlowski, 2014). For maintaining equality in the country and organizations there are anti-discrimination act that helps the organizations in maintaining equality among various employees of the organization. Inclusive leadership is the step that the leaders can practice in multinational organizations. Performance of the various departments of organizations depen ds on the performance of the employees associated with the particular task or particular department. Leaders must understand cultural diversities in the organizations to drive their team into excellence (Liden, 2012). Many research have illustrated the fact that multicultural teams are usually more productive than that of teams of monoculture. However, many authors have contradicted about the productivity of multicultural teams among various organizations. It is the responsibility of the leader that drives the excellence as well as the performance of the employees of the organization. The article says that a diverse workforce helps organizations in making better decisions in many cases. McKinsey conducted an analysis that illustrates a positive relationship between team leaders and the team members of multicultural teams. Approximately 366 companies from various countries from Canada, United Kingdom, United States and Latin America, are found perform well with an increase of 35% in terms of financial returns. The present representation in terms of cultural diversity in various aspects of leadership is responsible for reflecting few impediments in terms of equal opportunity. Existence of these impediments represents the lack of talents within the organization. In many cases, organizations will not promote their best talents due to lack of leadership practices within the organizational level (VanderPal Ko, 2014). If cultural diversity is not maintained properly then in many cases innovation and opportunities for growth can be squandered. A team of diverse cultural background in organizations help in providing many unique ideas regarding a certain problem that are discussed among the middle level management. Leaders need to understand the need of diversity management in terms of development of team performance as well as organizational development. A proper understanding of the group cohesiveness along with group productivity and talent management is positively correlated with the cultural diversity in the teams as well as in organizations. There is a relationship between senior leadership, data and accountability and culture in the framework of cultural management. Improved performance of the organization is the result of maintaining cross-cultural communication between the multicultural teams in a way so that new ideas can be grasped from them. As it is mentioned earlier that teams of diverse culture leads to higher financial return (Ng Sears, 2012). The leaders have to utilize the talents present within the team members effectively. Apart from that, the concept of human capital is also related with the diversity in organizational culture. Leaders are considered as the pathfinder of the organizations. Human capital is the intangible assets of a company that are considered as core competencies and competitive advantage in terms of employee development. It is the responsibility of the leaders to utilize the human capital in an effective w ay. There are many factors that are mentioned above must be followed by leaders in terms of following cultural diversity among the organizations (Kim Van Dyne, 2012). 2. Leaders of multinational organizations must practice inclusion and diversity within the company. Whenever a company opts for inclusion in the organizational level then the employees of diverse cultural background feel a sense of belongingness and sense of uniqueness in their team and organization as a whole. It means that the workers are being recognized from their senior managers and are allowed to take part in decision-making process of the organization. Recognitions are based on their talents on the respected field. They are considered as insiders in the teams and are associated with sharing common goals and objectives within the team. This concept is known as inclusive leadership. The target of inclusive leadership is to include the practice of inclusion in the organization as well as in the teams. The leaders in the organization that are included in the inclusive leadership of the organization emphasize some factors that are mentioned in the article. The factors of courage, e mpowerment, humility and accountability are the factors that are responsible for the psychological safety of the culturally diversified employees. Inclusive leadership is characterized by helping individuals by the leaders (Johansson Cherro, 2013). Apart from that, the leaders can follow many leadership styles in the company according to the nature of the employees and the organization. The different types of leadership are transformational leadership, situational leadership, participative leadership, etc. that can be practiced in order to maintaining diversity and inclusion in companies among the employees. Participative leadership is similar to that of the inclusive leadership (Ashikali Groeneveld, 2015). Multinational organizations have to work with teams that are present at different subsidiaries of the parent organizations. Effective communication has to be maintained so that the flow of communication between the team members can be maintained. It will result in the transfer of knowledge between the members. A concrete solution can be formulated as the thinking procedures of the diverse background employees are different from one culture to another culture. The diverse range of employees will help in improved financial re turns and increased efficiency of the team. Diversity can be maintained both in terms of culture and in terms of gender (Lawrence, 2015). Both gender equality and cultural equality leads in the enriched organizational culture of the companies across Australia. The article provides a technique of skin in the game technique in maintaining cultural diversity among the teams of the companies. It includes equality of both gender and culture. Every employees should pay equal opportunity to male and female workers. Apart from that, training and developmental program are developed by the multinational organizations that focus on the problems faced by the employees as well as strategic management of the organization. Developmental programs are formed by the various aspects so that productivity of the team as well as individual performance of the employees. The nature of the program must be different in terms of the problem faced by every team in the organization (Moran et al., 2014). Global leaders follow situational leadership style that is formed according the characteristics and behaviour of the team members. All the methods and approach of cross-cultural communication and cultural diversity has a particular goal towards the company. They are focused for the career development of the employees as well as the different other facilities provided to them. Finally, the organizational performance can be raised including improved financial returns and return on investment (Van Knippenberg et al., 20 13). References Ashikali, T., Groeneveld, S. (2015). Diversity Management in Public Organizations and Its Effect on Employees Affective Commitment The Role of Transformational Leadership and the Inclusiveness of the Organizational Culture.Review of Public Personnel Administration,35(2), 146-168. Hoch, J. E., Kozlowski, S. W. (2014). Leading virtual teams: Hierarchical leadership, structural supports, and shared team leadership.Journal of applied psychology,99(3), 390. Johansson, P., Cherro, S. (2013). How do you manage the pressure?: How time, type, complexity and cultural diversity affects the relationship between leadership styles and project success. Kim, Y. J., Van Dyne, L. (2012). Cultural intelligence and international leadership potential: The importance of contact for members of the majority.Applied psychology,61(2), 272-294. Lawrence, T. (2015). Global leadership communication: A strategic proposal.Creighton Journal of Interdisciplinary Leadership,1(1), 51-59. Liden, R. C. (2012). Leadership research in Asia: A brief assessment and suggestions for the future.Asia Pacific Journal of Management,29(2), 205-212. Moran, R. T., Abramson, N. R., Moran, S. V. (2014).Managing cultural differences. Routledge. Ng, E. S., Sears, G. J. (2012). CEO leadership styles and the implementation of organizational diversity practices: Moderating effects of social values and age.Journal of Business Ethics,105(1), 41-52. Van Knippenberg, D., van Ginkel, W. P., Homan, A. C. (2013). Diversity mindsets and the performance of diverse teams.Organizational Behavior and Human Decision Processes,121(2), 183-193. VanderPal, G., Ko, V. S. C. (2014). An Overview of Global Leadership: Ethics, Values, Cultural Diversity and Conflicts.Journal of Leadership, Accountability and Ethics,11(3), 166.