- Describe how diversity can enhance decision-making and problem-solving
- Identify challenges and best practices for working with multicultural teams
- Discuss divergent cultural characteristics and list several examples of such characteristics in the culture(s) you identify with
Decision-making and problem-solving can be much more dynamic and successful when performed in a diverse team environment. The multiple diverse perspectives can enhance both the understanding of the problem and the quality of the solution. Yet, working in diverse teams can be challenging given different identities, cultures, beliefs, and experiences. In this chapter, we will discuss the effects of team diversity on group decision-making and problem-solving, identify best practices and challenges for working in and with multicultural teams, and dig deeper into divergent cultural characteristics that teams may need to navigate.
Does Team Diversity Enhance Decision Making and Problem Solving?
In the Harvard Business Review article “Why Diverse Teams are Smarter,” David Rock and Heidi Grant (2016) support the idea that increasing workplace diversity is a good business decision. A 2015 McKinsey report on 366 public companies found that those in the top quartile for ethnic and racial diversity in management were 35% more likely to have financial returns above their industry mean, and those in the top quartile for gender diversity were 15% more likely to have returns above the industry mean. Similarly, in a global analysis conducted by Credit Suisse, organizations with at least one female board member yielded a higher return on equity and higher net income growth than those that did not have any women on the board.
Additional research on diversity has shown that diverse teams are better at decision-making and problem-solving because they tend to focus more on facts, per the Rock and Grant article. A study published in the Journal of Personality and Social Psychology showed that people from diverse backgrounds “might actually alter the behavior of a group’s social majority in ways that lead to improved and more accurate group thinking.” It turned out that in the study, the diverse panels raised more facts related to the case than homogeneous panels and made fewer factual errors while discussing available evidence. Another study noted in the article showed that diverse teams are “more likely to constantly reexamine facts and remain objective. They may also encourage greater scrutiny of each member’s actions, keeping their joint cognitive resources sharp and vigilant. By breaking up workforce homogeneity, you can allow your employees to become more aware of their own potential biases—entrenched ways of thinking that can otherwise blind them to key information and even lead them to make errors in decision-making processes.” In other words, when people are among homogeneous and like-minded (non-diverse) teammates, the team is susceptible to and may be reticent to think about opposing viewpoints since all team members are in alignment. In a more diverse team with a variety of backgrounds and experiences, the opposing viewpoints are more likely to come out and the team members feel obligated to research and address the questions that have been raised. Again, this enables a richer discussion and a more in-depth fact-finding and exploration of opposing ideas and viewpoints to solve problems.
Diversity in teams also leads to greater innovation. A Boston Consulting Group article entitled “The Mix that Matters: Innovation through Diversity” explains a study in which they sought to understand the relationship between diversity in managers (all management levels) and innovation (Lorenzo et al., 2017). The key findings of this study show that:
- The positive relationship between management diversity and innovation is statistically significant—and thus companies with higher levels of diversity derive more revenue from new products and services.
- The innovation boost isn’t limited to a single type of diversity. The presence of managers who are either female or are from other countries, industries, or companies can cause an increase in innovation.
- Management diversity seems to have a particularly positive effect on innovation at complex companies—those that have multiple product lines or that operate in multiple industry segments.
- To reach its potential, gender diversity needs to go beyond tokenism. In the study, innovation performance only increased significantly when the workforce included more than 20% women in management positions. Having a high percentage of female employees doesn’t increase innovation if only a small number of women are managers.
- At companies with diverse management teams, openness to contributions from lower-level workers and an environment in which employees feel free to speak their minds are crucial for fostering innovation.
When you consider the impact that diverse teams have on decision-making and problem-solving—through the discussion and incorporation of new perspectives, ideas, and data—it is no wonder that the BCG study shows greater innovation. Team leaders need to reflect upon these findings during the early stages of team selection so that they can reap the benefits of having diverse voices and backgrounds.
Challenges and Best Practices for Working with Multicultural Teams
As globalization has increased over the last decades, workplaces have felt the impact of working within multicultural teams. The earlier section on team diversity outlined some of the benefits of working on diverse teams, and a multicultural group certainly qualifies as diverse. However, some key practices are recommended to those who are leading multicultural teams to navigate the challenges that these teams may experience.
People may assume that communication is the key factor that can derail multicultural teams, as participants may have different languages and communication styles. In the Harvard Business Review article “Managing Multicultural Teams,” Brett et al. (2006) outline four key cultural differences that can cause destructive conflicts in a team. The first difference is direct versus indirect communication, also known as vs. . Some cultures are very direct and explicit in their communication, while others are more indirect and ask questions rather than pointing out problems. This difference can cause conflict because, at the extreme, the direct style may be considered offensive by some, while the indirect style may be perceived as unproductive and passive-aggressive in team interactions.
The second difference that multicultural teams may face is trouble with accents and fluency. When team members don’t speak the same language, there may be one language that dominates the group interaction—and those who don’t speak it may feel left out. The speakers of the primary language may feel that those members don’t contribute as much or are less competent. The next challenge is when there are differing attitudes toward hierarchy. Some cultures are very respectful of the hierarchy and will treat team members based on that hierarchy. Other cultures are more egalitarian and don’t observe hierarchical differences to the same degree. This may lead to clashes if some people feel that they are being disrespected and not treated according to their status. The final difference that may challenge multicultural teams is conflicting decision-making norms. Different cultures make decisions differently, and some will apply a great deal of analysis and preparation beforehand. Those cultures that make decisions more quickly (and need just enough information to make a decision) may be frustrated with the slow response and relatively longer thought process.
These cultural differences are good examples of how everyday team activities (decision-making, communication, interaction among team members) may become points of contention for a multicultural team if there isn’t an adequate understanding of everyone’s culture. The authors propose that there are several potential interventions to try if these conflicts arise. One simple intervention is adaptation, which is working with or around differences. This is best used when team members are willing to acknowledge the cultural differences and learn how to work with them. The next intervention technique is structural intervention, or reorganizing to reduce friction on the team. This technique is best used if there are unproductive subgroups or cliques within the team that need to be moved around. Managerial intervention is the technique of making decisions by management and without team involvement. This technique should be used sparingly, as it essentially shows that the team needs guidance and can’t move forward without management getting involved. Finally, exit is an intervention of last resort and is the voluntary or involuntary removal of a team member. If the differences and challenges have proven to be so great that an individual on the team can no longer work with the team productively, then it may be necessary to remove the team member in question.
Developing Cultural Intelligence
Some people seem to be innately aware of and able to work with cultural differences on teams and in their organizations. These individuals might be said to have cultural intelligence. is a competency and a skill that enables individuals to function effectively in cross-cultural environments. It develops as people become more aware of the influence of culture and more capable of adapting their behavior to the norms of other cultures. In the IESE Insight article entitled “Cultural Competence: Why It Matters and How You Can Acquire It,” Lee and Liao (2015) assert that “multicultural leaders may relate better to team members from different cultures and resolve conflicts more easily. Their multiple talents can also be put to good use in international negotiations.” Multicultural leaders don’t have a lot of “baggage” from any one culture, and so are sometimes perceived as being culturally neutral. They are very good at handling diversity, which gives them a great advantage in their relationships with teammates.
To help people become better team members in a world that is increasingly multicultural, there are a few best practices that the authors recommend for honing cross-cultural skills. The first is to “broaden your mind”— expand your own cultural channels (travel, movies, books) and surround yourself with people from other cultures. This helps to raise your own awareness of the cultural differences and norms that you may encounter. Another best practice is to “develop your cross-cultural skills through practice” and experiential learning. You may have the opportunity to work or travel abroad — but if you don’t, then getting to know some of your company’s cross-cultural colleagues or foreign visitors will help you to practice your skills. Serving on a cross-cultural project team and taking the time to get to know and bond with your global colleagues is an excellent way to develop skills.
Once you have a sense of the different cultures and have started to work on developing your cross-cultural skills, another good practice is to “boost your cultural metacognition” and monitor your own behavior in multicultural situations. When you are in a situation in which you are interacting with multicultural individuals, you should test yourself and be aware of how you act and feel. Observe both your positive and negative interactions with people, and learn from them. Developing “cognitive complexity” is the final best practice for boosting multicultural skills. This is the most advanced, and it requires being able to view situations from more than one cultural framework. To see things from another perspective, you need to have a strong sense of emotional intelligence, empathy, and sympathy, and be willing to engage in honest communications.
In the Harvard Business Review article “Cultural Intelligence,” Earley and Mosakowski (2004) describe three sources of cultural intelligence that teams should consider if they are serious about becoming more adept in their cross-cultural skills and understanding. These sources, very simply, are head, body, and heart. One first learns about the beliefs, customs, and taboos of foreign cultures via the head. Training programs are based on providing this type of overview information—which is helpful but obviously isn’t experiential. This is the cognitive component of cultural intelligence. The second source, the body, involves more commitment and experimentation with the new culture. It is this physical component (demeanor, eye contact, posture, accent) that shows a deeper level of understanding of the new culture and its physical manifestations. The final source, the heart, deals with a person’s own confidence in their ability to adapt to and deal well with cultures outside of their own. Heart really speaks to one’s own level of emotional commitment and motivation to understand the new culture.
Earley and Mosakowski have created a quick assessment to diagnose cultural intelligence, based on these cognitive, physical, and emotional/motivational measures (i.e., head, body, heart). Please refer to the table below for a short diagnostic that allows you to assess your cultural intelligence.
Assessing Your Cultural Intelligence
|Generally, scoring below 3 in any one of the three measures signals an area requiring improvement. Averaging over 4 displays strength in cultural intelligence.|
|Adapted from “Cultural Intelligence,” Earley and Mosakowski, Harvard Business Review, October 2004 (Credit: OpenStax/CC BY-NC-SA 4.0)
|Give your responses using a 1 to 5 scale where 1 means that you strongly disagree and 5 means that you strongly agree with the statement.|
|Before I interact with people from a new culture, I wonder to myself what I hope to achieve.|
|If I encounter something unexpected while working in a new culture, I use that experience to build new ways to approach other cultures in the future.|
|I plan on how I am going to relate to people from a different culture before I meet with them.|
|When I come into a new cultural situation, I can immediately sense whether things are going well or if things are going wrong.|
|Add your total from the four questions above.|
|Divide the total by 4. This is your Cognitive Cultural Quotient.|
|It is easy for me to change my body language (posture or facial expression) to suit people from a different culture.|
|I can alter my expressions when a cultural encounter requires it.|
|I can modify my speech style by changing my accent or pitch of my voice to suit people from different cultures.|
|I can easily change the way I act when a cross-cultural encounter seems to require it.|
|Add your total from the four questions above.|
|Divide the total by 4. This is your Cognitive Physical Quotient.|
|I have confidence in my ability to deal well with people from different cultures than mine.|
|I am certain that I can befriend people of different cultural backgrounds than mine.|
|I can adapt to the lifestyle of a different culture with relative ease.|
|I am confident in my ability to deal with an unfamiliar cultural situation or encounter.|
|Add your total from the four questions above.|
|Divide the total by 4. This is your Emotional/Motivational Cognitive Quotient.|
Cultural intelligence is an extension of emotional intelligence. An individual must have a level of awareness and understanding of the new culture so that he or she can adapt to the style, pace, language, nonverbal communication, etc., and work together successfully with the new culture. A multicultural team can only find success if its members take the time to understand each other and ensure that everyone feels included. Multiculturalism and cultural intelligence are traits that are taking on increasing importance in the business world today. By following best practices and avoiding the challenges and pitfalls that can derail a multicultural team, a team can find great success and personal fulfillment well beyond the boundaries of the project or work engagement.
Digging in Deeper: Divergent Cultural Dimensions
Let’s dig in deeper by examining several points of divergence across cultures and consider how these dimensions might play out in organizations and in groups or teams.
Low-Power versus High-Power Distance
How comfortable are you with critiquing your boss’s decisions? If you are from a low-power distance culture, your answer might be “no problem.” In , according to Dutch researcher Geert Hofstede, people relate to one another more as equals and less as a reflection of dominant or subordinate roles, regardless of their actual formal roles as employee and manager, for example.
In a , you would probably be much less likely to challenge the decision, to provide an alternative, or to give input. If you are working with people from a high-power distance culture, you may need to take extra care to elicit feedback and involve them in the discussion because their cultural framework may preclude their participation. They may have learned that less powerful people must accept decisions without comment, even if they have a concern or know there is a significant problem. Unless you are sensitive to cultural orientation and power distance, you may lose valuable information.
Individualistic versus Collectivist Cultures
People in value individual freedom and personal independence, and cultures always have stories to reflect their values. People who grew up in the United States may recall the story of Superman or John McLean in the Diehard series, and note how one person overcomes all obstacles. Through personal ingenuity, despite challenges, one person rises successfully to conquer or vanquish those obstacles. Sometimes there is an assist, as in basketball or football, where another person lends a hand, but still the story repeats itself again and again, reflecting the cultural viewpoint.
When Hofstede explored the concepts of individualism and collectivism across diverse cultures (Hofstede, 1982, 2001, 2005), he found that in individualistic cultures like the United States, people perceived their world primarily from their own viewpoint. They perceived themselves as empowered individuals, capable of making their own decisions, and able to make an impact on their own lives.
Cultural viewpoint is not an either/or dichotomy, but rather a continuum or range. You may belong to some communities that express individualistic cultural values, while others place the focus on a collective viewpoint. (Hofstede, 1982), including many in Asia and South America, focus on the needs of the nation, community, family, or group of workers. Ownership and private property is one way to examine this difference. In some cultures, property is almost exclusively private, while others tend toward community ownership. The collectively owned resource returns benefits to the community. Water, for example, has long been viewed as a community resource, much like air, but that has been changing as businesses and organizations have purchased water rights and gained control over resources. Public lands, such as parks, are often considered public, and individual exploitation of them is restricted. Copper, a metal with a variety of industrial applications, is collectively owned in Chile, with profits deposited in the general government fund. While public and private initiatives exist, the cultural viewpoint is our topic. How does someone raised in a culture that emphasizes the community interact with someone raised in a primarily individualistic culture? How could tensions be expressed and how might interactions be influenced by this point of divergence?
Masculine versus Feminine Orientation
Hofstede describes the masculine-feminine dichotomy not in terms of whether men or women hold the power in a given culture, but rather the extent to which that culture values certain traits that may be considered or . Thus, “the assertive pole has been called ‘masculine’ and the modest, caring pole ‘feminine.’ The women in feminine countries have the same modest, caring values as the men; in the masculine countries, they are somewhat assertive and competitive, but not as much as the men, so that these countries show a gap between men’s values and women’s values” (Hofstede, 2009).
We can observe this difference in where people gather, how they interact, and how they dress. We can see it during business negotiations, where it may make an important difference in the success of the organizations involved. Cultural expectations precede the interaction, so someone who doesn’t match those expectations may experience tension. Business in the United States has a masculine orientation—assertiveness and competition are highly valued. In other cultures, such as Sweden, business values are more attuned to modesty (lack of self-promotion) and taking care of society’s weaker members. This range of differences is one aspect of intercultural communication that requires significant attention when the business communicator enters a new environment.
Uncertainty-Accepting Cultures versus Uncertainty-Rejecting Cultures
When we meet each other for the first time, we often use what we have previously learned to understand our current context. We also do this to reduce our uncertainty. Some cultures, such as the United States and Britain, are , while others go to great lengths to reduce the element of surprise. Cultures in the Arab world, for example, are ; they tend to be resistant to change and reluctant to take risks. Whereas a U.S. business negotiator might enthusiastically agree to try a new procedure, an Egyptian counterpart would likely refuse to get involved until all the details are worked out.
Short-Term versus Long-Term Orientation
Do you want your reward right now or can you dedicate yourself to a long-term goal? You may work in a culture whose people value immediate results and grow impatient when those results do not materialize. Geert Hofstede discusses this relationship of time orientation to a culture as a “time horizon,” and it underscores the perspective of the individual within a cultural context. Many countries in Asia, influenced by the teachings of Confucius, value a long-term orientation, whereas other countries, including the United States, have a more short-term approach to life and results. Native American cultures are known for holding a long-term orientation, as illustrated by the proverb attributed to the Iroquois Confederacy that decisions require contemplation of their impact seven generations removed.
If you work within a culture that has a , you may need to place greater emphasis on reciprocation of greetings, gifts, and rewards. For example, if you send a thank-you note the morning after being treated to a business dinner, your host will appreciate your promptness. While there may be respect for tradition, there is also an emphasis on personal representation and honor, a reflection of identity and integrity. Personal stability and consistency are also valued in a short-term-oriented culture, contributing to an overall sense of predictability and familiarity.
is often marked by persistence, thrift and frugality, and an order to relationships based on age and status. A sense of shame for the family and community is also observed across generations. What an individual does reflects on the family and is carried by immediate and extended family members.
Edward T. Hall and Mildred Reed Hall (1987) state that monochronic time-oriented cultures consider one thing at a time, whereas polychronic time-oriented cultures schedule many things at one time, and time is considered in a more fluid sense. In interruptions are to be avoided, and everything has its own specific time. Even the multitasker from a monochromatic culture will, for example, recognize the value of work first before play or personal time. The United States, Germany, and Switzerland are often noted as countries that value a monochromatic time orientation.
looks a little more complicated, with business and family mixing with dinner and dancing. Greece, Italy, Chile, and Saudi Arabia are countries where one can observe this perception of time; business meetings may be scheduled at a fixed time, but when they actually begin may be another story. Also, note that the dinner invitation for 8 p.m. may in reality be more like 9 p.m. If you were to show up on time, you might be the first person to arrive and find that the hosts are not quite ready to receive you.
When in doubt, always ask before the event; many people from polychromatic cultures will be used to foreigner’s tendency to be punctual, even compulsive, about respecting established times for events. The skilled business communicator is aware of this difference and takes steps to anticipate it. The value of time in different cultures is expressed in many ways, and your understanding can help you communicate more effectively.
Review & Reflection Questions
- Why are diverse teams better at decision-making and problem-solving?
- What are some of the challenges that multicultural teams face?
- How might you further cultivate your own cultural intelligence?
- What are some potential points of divergence between cultures? How might these play out in teams?
- Brett, J., Behfar, K., Kern, M. (2006, November). Managing multicultural teams. Harvard Business Review. https://hbr.org/2006/11/managing-multicultural-teams
- Dodd, C. (1998). Dynamics of intercultural communication (5th ed.). New York, NY: Harper & Row.
- Earley, P.C., & Mosakowski, E. (2004, October). Cultural intelligence. Harvard Business Review. https://hbr.org/2004/10/cultural-intelligence
- Hall, M. R., & Hall, E. T. (1987). Hidden differences: Doing business with the Japanese. New York, NY: Doubleday.
- Hofstede, G. (1982). Culture’s consequences (2nd ed.). Newbury Park, CA: Sage.
- Hofstede, G. (2001). Culture’s consequences: Comparing values, behaviors, institutions, and organizations across nations (2nd ed.). Thousand Oaks, CA: Sage.
- Hofstede, G. (2005). Cultures and organizations: Software of the mind (2nd ed.). New York, NY: McGraw-Hill.
- Lee, Y-T., & Liao, Y. (2015). Cultural competence: Why it matters and how you can acquire it. IESE Insight. https://www.ieseinsight.com/doc.aspx?id=1733&ar=20
- Lorenzo, R., Yoigt, N., Schetelig, K., Zawadzki, A., Welpe, I., & Brosi, P. (2017). The mix that matters: Innovation through diversity. Boston Consulting Group. https://www.bcg.com/publications/2017/people-organization-leadership-talent-innovation-through-diversity-mix-that-matters.aspx
- Rock, D., & Grant, H. (2016, November 4). Why diverse teams are smarter. Harvard Business Review. https://hbr.org/2016/11/why-diverse-teams-are-smarter
Author & Attribution
The sections “How Does Team Diversity Enhance Decision Making and Problem Solving?” and “Challenges and Best Practices for Working with Multicultural Teams” are adapted from Black, J.S., & Bright, D.S. (2019). Organizational behavior. OpenStax. https://openstax.org/books/organizational-behavior/. Access the full chapter for free here. The content is available under a Creative Commons Attribution License 4.0 license.
The section “Digging in Deeper: Divergent Cultural Dimensions” is adapted from “Divergent Cultural Characteristics” in Business Communication for Success from the University of Minnesota. The book was adapted from a work produced and distributed under a Creative Commons license (CC BY-NC-SA) by a publisher who has requested that they and the original author not receive attribution. This work is made available under the terms of a Creative Commons Attribution-NonCommercial-ShareAlike license.
group pressure where members may remain silent and seek to avoid conflict and decisions are made based on the faulty assumption that the group is in agreement
a culture that emphasize nonverbal communication and indirect communication styles
a culture that emphasizes verbal expression and direct communication styles
a competency and a skill that enables individuals to function effectively in cross-cultural environments
cultures in which people relate to one another more as equals and less as a reflection of dominant or subordinate roles, regardless of their actual formal roles
culture tends to accept power differences, encourage hierarchy, and show respect for rank and authority
cultures that place greater importance on individual freedom and personal independence
cultures that place more value on the needs and goals of the group, family, community or nation
cultures that tend to value assertiveness, and concentrate on material achievements and wealth-building
cultures that tend to value nurturing, care and emotion, and are concerned with the quality of life
cultures with a high tolerance for uncertainty, ambiguity, and risk-taking. The unknown is more openly accepted, and rules and regulations tend to be more lax
cultures with a low tolerance for uncertainty, ambiguity, and risk-taking. The unknown is minimized through strict rules and regulations
focus on the near future, involves delivering short-term success or gratification and places a stronger emphasis on the present than the future
cultures that focus on the future and delaying short-term success or gratification in order to achieve long-term success
an orientation to time where interruptions are to be avoided, and everything has its own specific time
an orientation to time where multiple things can be done at once and time is viewed more fluidly