How to Manage Cultural Differences at Work: Tips from Exadel

Having a multinational team is not a challenge. It’s an advantage.

Diversity means creativity. Creativity means innovation. And innovation elevates businesses.

Bridging gaps and fostering an inclusive environment not only enhances teamwork but also contributes to overall organizational success. In this article, we will explore the intricacies of navigating cultural diversity in the workplace and offer practical insights and strategies for both leaders and team members.  

What does cultural diversity mean?

Cultural diversity refers to the presence of various cultural groups, including different ethnicities, races, religions, languages, and customs within a society, organization or community. It acknowledges and values the unique characteristics, beliefs, practices, and perspectives that individuals from diverse backgrounds bring to a collective environment.

Cultural diversity is not only about recognizing differences, but also about promoting inclusivity, understanding, and respect among people with various cultural backgrounds. It involves acknowledging and appreciating the richness that diversity adds to a society, thereby fostering an environment where people can learn from each other, and creating opportunities for positive interactions.

According to UNESCO, cultural diversity assumes the presence of a wide variety of cultures, as opposed to monoculture, the global monoculture, or the erasure of cultural differences.

Why is cross-cultural experience important?

The ability to innovate and change plays a huge role in business. According to Forbes contributor Tendayi Viki, multicultural experiences enhance creativity. This is crucial for companies developing new products.

In addition to boosting creativity, working with people from different cultures raises cultural development, increases the adaptability of team members to new approaches, and makes people more open-minded. This ultimately improves overall communication within an organization

What is a culture map and how does it work?

Erin Meyer, an American author and professor, highlights eight scales for visualizing cultural communication differences in her book The Culture Map: Breaking Through the Invisible Boundaries of Global Business. Let’s take a look at which of the cultural differences should be considered in business communication.

Each scale has two diametric positions, and countries are analyzed by their degree of compliance with these or other values. We will provide examples of cultural differences in communication based on these scales.

Leadership: Hierarchical vs. Egalitarian

Leadership is a key part of any project. Leadership comes in two main forms: egalitarian and hierarchical.

Egalitarian leadership means that the boss doesn’t separate themself from their subordinates; they are equal. In hierarchical behavior, a strong boss is a must, and leaders set themselves apart from their subordinates.

According to Erin Meyer, the current trend is for leaders to move towards egalitarianism. Most companies use a blend of both models so they can be more flexible.

How to communicate if you’re working in a hierarchical system:

• Communicate with the person above you in the hierarchy
• While emailing someone at a lower hierarchical level, copy their boss. Address the recipient by their last name unless they have indicated otherwise
• If you need to approach a person who has a higher level than you, get permission from your boss first

Now let’s see how communication in an egalitarian system is done:

• Don’t bother your boss if you need to contact someone else from your company
• Skipping hierarchical levels is not a problem
• When writing emails, use first names (this is true for Scandinavia, the Netherlands, Australia, the United States, and the United Kingdom, although regional and circumstantial differences may apply.)

NOTE: Before starting to work in a team that uses a mixed approach, discuss methods of communication, especially what is and isn’t appropriate. These strategies to manage cultural differences might help avoid misunderstanding and confusion down the line.

Decision-Making: Top-Down and Consensual

Keep in mind the two types of decision-making: consensual and top-down. Consensual means that decisions are made in groups and by mutual agreement. In top-down decision-making, decisions are made by an individual (the boss).

So, how do you deal with cross-cultural differences in decision-making?

Moving from a top-down decision-making team to a consensual one will create space for expressing opinions. People will start trying to contribute. It will be harder for people to move from a consensual model to a top-down one. Be sensitive to the needs and backgrounds of your team members as you choose your decision-making approach.

Communication: Low Context vs. High Context

Context in communication refers to the understanding of the situation/circumstances in which communication is taking place. There are two types of communication: low context and high context. Let’s learn how to manage cultural differences in communication in each case.

In simple words, low context means that communication is clear and open; it has a literal meaning. This is widespread in individualistic societies, so you can expect it in the U.S., Canada, Germany, and the Netherlands, as well as many other Western European countries.

In contrast, high-context communication is nuanced and layered, and it requires more contextual understanding — you need to read between the lines. People using high-context communication utilize non-verbal messages and gestures extensively. This type of communication is more common in collectivist societies. Japan is a particularly good example.

There can be problems when communicators of different types interact. Low-context communicators should remember that their gestures, tone of voice, or facial expressions (which they don’t usually have to pay attention to) could be misinterpreted. High-context communicators should try not to be offended by the direct nature of low-context communicators. They should also remember that their words can be taken at face value.

Feedback: Direct and Indirect

Feedback is a necessary aspect of all professional settings. The importance of feedback in a workplace with cultural differences is quite crucial. Please keep in mind that negative feedback always has an impact, so you should be careful when you are providing negative feedback to people from different cultures.

Direct feedback: when feedback is provided directly and frankly, without hiding details or softening the criticism. It’s more common in the U.S. and Western European countries. Example: I don’t think this is the best idea.

Indirect feedback: negative feedback is provided softly, subtly, and diplomatically within the larger context of positive feedback. Example: It’s an interesting idea.

Let’s look at an example of cultural differences in communication from Exadel. Our colleagues from the U.K. sometimes give feedback like “this looks good, but can we correct this one issue?” This is actually negative feedback; the point is that there is a correction that needs to be made. However, because our Ukrainian colleagues are so accustomed to very direct feedback, they actually see it as exclusively positive.

Wondering how to manage multicultural teams with different types of feedback? Consider the cultural norms of the person you’re speaking to and adapt your behavior accordingly.

Trust: Task-Based vs. Relationship-Based Cultures

Business or relationships — which should come first? Managing cultural differences in communication involves answering that question. In task-based cultures, business comes first. Business decisions are made quickly and on the basis of measurable competencies. Task-based cultures care more about what you do than who you are (the U.S., Denmark, the Netherlands, Finland, Australia).

In relationship-based cultures, trust develops from friendship. This means that in some cases, many meetings may be held before an agreement is reached. Business decisions are made slowly, while partners get to know each other better (this is more common in Asian and Middle Eastern cultures).

At Exadel, we’ve found that our colleagues from Western Europe often prefer to work autonomously, taking direction from what they learn at meetings and then executing their tasks. Our colleagues from India prefer to share responsibility across the team and work more collaboratively, especially after they have gotten to know each other. Our cultural diversity activities, including our Fun Friday tradition, helped our colleagues get to know each other. This was especially helpful for our colleagues from trust-based cultures.

To prevent misunderstandings, task-oriented team members should make an effort to take part in organizing meals and other social events. It’s crucial to avoid talking about business during those meetings. For relationship-based cultures, it’s important to remember that it’s okay if your colleagues leave earlier or don’t engage as much in discussing their personal lives at work; it doesn’t mean that they don’t respect you.

Persuasion: Application-First vs. Principle-First

The persuasion scale reveals how people from different cultures tend to reason with each other. Under the principle-first approach, theory and statements go first, then a conclusion is made based on argumentation and deduction. While making a presentation, you show the route first and the conclusion at the end. This works for France, Italy, Russia, and Spain.

In the application-first approach, you start with the hypothesis and then present arguments in defense of the statement. While making a business presentation, you start a proposal with a couple of bullet points and a conclusion and then explain the data (you may even be able to skip the information about the origin of data). This approach is commonly used in the U.S., UK, Canada, the Netherlands, and Australia.

Disagreeing: Confrontational vs. Non-Confrontational

The next aspect of cultural differences in communication involves discussing the controversy. For confrontational types, disagreeing is a normal process. It’s okay to debate constructively, even with people in senior positions, because it improves the overall discussion. Open confrontation doesn’t impact relationships. This is a cultural norm in places like Germany, France, Russia, the Netherlands, Denmark, and Italy.

In non-confrontational discussions, open disagreement is inappropriate because it ruins the harmony in the team. Violating this norm would be taken personally. This is true in Japan, India, Mexico, Sweden, China, and Saudi Arabia, among others.

While managing a multicultural team, try to depersonalize the confrontation by sending their ideas and suggestions to a third person tasked with making a list of items that will be discussed during a meeting. You can also soften obviously confrontational phrases. For example, you could use the phrase “I think there may be some issues with that” rather than “That’s not a good idea.”

Scheduling: Linear Time vs. Flexible Time

Linear time-oriented cultures use and follow strict deadlines and schedules. It requires efficiency and good organization. In these cultures, time is money, so it must be used wisely. This is true in Germany, Switzerland, the U.S., the U.K., Sweden, the Netherlands, and Denmark.

On the other hand, flexible time-oriented cultures accept unpredictability, deadline postponement, and the completion of several tasks at the same time. It’s all about multitasking in these contexts. The schedule is not as important as people’s feelings, so you may take as much time as you need without rushing your work or decisions.

5 Strategies for Managing Cultural Differences at Work

We’ve already covered a lot of ground to help you better understand the theoretical aspect of cultural differences at work. It’s now time to put this knowledge into practice. Here are 5 easy steps that can help you create a better and more accepting work environment for your team:

Promote Open Communication

Encourage open and transparent communication within the workplace. Create spaces where team members feel comfortable sharing their perspectives, values, and experiences. Foster an environment where questions are welcomed, and constructive dialogue is encouraged. This approach helps build mutual understanding and dismantles potential cultural barriers.
And most importantly, don’t forget to consider all communication styles. People from different cultures communicate differently.

Establish Inclusive Practices

Implement inclusive policies and practices that celebrate diversity. This can range from acknowledging cultural holidays to providing language resources for non-native speakers. By actively demonstrating a commitment to inclusivity, organizations create an atmosphere that values every employee’s unique contributions. This should also be reflected in the way you schedule work-related meetings and set deadlines during various religious or national holidays. 

Cross-Cultural Team Building

Facilitate team-building activities that promote cross-cultural understanding. Engage teams in collaborative projects that encourage diverse skill sets and perspectives. Such initiatives not only enhance teamwork, but also create opportunities for individuals to learn from one another, fostering a sense of unity within the diverse workforce.

Leadership by Example

Leaders play a pivotal role in setting the cultural tone of the organization. Lead by example by demonstrating cultural sensitivity, embracing diversity, and championing inclusive practices. When leaders embody these values, they inspire others to follow suit. This creates a workplace culture that thrives on the strength of its diversity.

Cultivate Cultural Intelligence (CQ) and Promote Cultural Awareness

Cultural intelligence, or CQ, is the ability to understand, adapt to, and work effectively across various cultural contexts. Invest in CQ training for employees to enhance their awareness of cultural nuances, communication styles, and social norms. This foundational knowledge equips teams to navigate diverse interactions with sensitivity and respect.

Conclusion

According to a McKinsey report titled Diversity Matters, ethnically diverse companies are 35% more likely to outperform their competition. 

Promoting cultural diversity is essential for building a more inclusive and tolerant world, as it contributes to breaking down stereotypes, reduces prejudice, and fosters a sense of unity among people from different backgrounds. Embracing cultural diversity can lead to increased creativity, innovation, and a broader range of perspectives in various fields, including education, business, and social interactions.