How Understanding Cultural Differences Improve the Work Environment and the Bottom Line

Another rather unexpected outcome was that there was a significant change in management: an ineffective manager was replaced with a new manager-chef–and because management listened to the needs of all of the staff members, both Hispanic and American–they hired one who was bilingual. As a result, trust levels between management and staff improved, as well as among staff members. This helped create a much safer work environment for the Hispanics whose collectivist culture is quite different from their more individualist American co-workers (Hofstede, 1980). This enhanced team effort led to a more cohesive work force, a more comfortable work environment and enriched organizational culture.

As a result of the improved work environment, better communication practices evolved. Meetings were more effective and productive not only between management and staff, but within divisions. The entire staff now understood that input and feedback was not only helpful, but desirable.

Meetings were identified as a good source for sharing new information, updating members on the status of business (positive and negative), and discussing customer comments.

The improved communication and feedback processes enabled the Hispanic staff to become so self-managed that in just one year, when the manager-chef announced his plans for a new career opportunity, it was decided that instead of replacing him, his responsibilities would be divided between several of the Hispanic staff members. This move eliminated one of the highest cost positions from payroll.

Bittersweet experienced other cost reductions in staff as non-team oriented members realized they no longer fit in and could not work there. The remaining team-oriented staff enhanced the overall efficiency of the operation.

The bottom line continued to improve as staff worked to streamline systems, eliminating costly steps, while improving inventory practices. More effective food ordering resulted, less waste became the norm, and food costs were lowered. Also, Bittersweet developed new menus and improved food quality based on information gathered from customers and staff during the interview process. This has led to not only an increase in customer satisfaction, but also to an increase in volume of actual customers, which has improved profitability.

My colleague recently reflected on how things are going: “A flood of creativity has resulted where members of different departments throughout the organization have impact on product development. Their willingness to take risks and new responsibilities has enabled them to be self-managing and has increased their earning power significantly. Bittersweet is very profitable as a result.”

The Value of Appreciating Cultural Differences

Geert Hofstede (1980) must be credited for the value of his research on cultural differences, and how his work helped make sense of what was happening at Bittersweet. Hofstede’s lifelong work, which began in the late 70’s, helped organizations understand why their business models worked in some countries and not in others. He is highly regarded as an expert in both dimensions–cultures and organizations. He recommends today that organizations think local, but act global.

From Hofstede and other sources we learn that Hispanic cultures pride themselves in having a hard work ethic. As a From Hofstede and other sources we learn that Hispanic cultures pride themselves in having a hard work ethic. As a result of the thorough and accurate needs assessment, Bittersweet gained significant information, not only in what the organization needed, but in the quality and content of the knowledge it gained about its staff.

With this added awareness and appreciation of the cultural differences came all to be more sensitive and empathetic.

It also facilitated a better appreciation of one another, which helped improve communication. This new insight has helped Bittersweet reenergize itself, but before any assumptions are made, Bittersweet was not selected for this practicum because it needed help, quite the contrary. Here lies a potential paradox which may exist in organizations today. Bittersweet has always been an excellent environment in which to work, especially for Hispanics. My colleague is loved by his people–as shown by very low turnover in an industry which is plagued by that problem.