The Impact of Cultural Diversity Within the Hospitality & Tourism Industry

In: Business and Management

Submitted By Lilly1308
Words 2667
Pages 11
Table of Content

I. Introduction 3
II. Cultural diversity 3
II.1. Advantages of cultural diversity 4
II.2. Disadvantages of cultural diversity 5
III. Organizational Culture 5
IV. Management strategies to overcome issues related to cultural diversity 7
V. Globalization 8
VI. Conclusion 9
VII. References 11

I. Introduction
Immigration plays a big role in today’s business world. Especially the hospitality and tourism industry is highly affected, as this industry offers a large number of unskilled positions that can easily be provided to immigrants (Hearns, Devine & Baum, 2007). The intention of these workers who go abroad is mainly the chance to earn higher wages in the chosen foreign country (D’Netto & Sohal, 1999). According to these facts the workforce, especially in the hospitality industry, is becoming more and more diverse which can lead to either advantages or disadvantages (Kandola & Fullerton, 1998; Gröschl & Doherty, 1999; Kreitner, 2004 in Hearns, Devine & Baum, 2007). In order to overcome issues and conflicts related to cultural diversity, key authors such as Gundling & Zanchettin (2007), Primer (2000), D’Netto & Sohal (1999) , Graf (2003) and Lund (2003) have pointed out the possibility to implement diversity management strategies that help employees with the adaptation process.

II. Cultural diversity
Culture is a term that has many definitions in academia; Hofstede (2001) introduces culture as “the collective programming of the mind that distinguishes the members of one group or category of people from another” (p.9). Moreover Hofstede (2001) has developed the theory of using five different dimensions in order to analyze differences between cultures. In addition not only National Culture can have an impact on the workforce but also the implementation of an organizational culture that can enhance employees’ commitment as well as…...

Similar Documents

The Scope Size and Diversity of Hospitality Industry

...Unit 1: The hospitality Idustry THE SIZE ,SCOPE AND DIVERSITY OF HOSPITALITY INDUSTRY The scope of the hospitality industry refers to the range of businesses that provide services and facilities. The hospitality economy is one of the country’s key industries with huge growth prospects in jobs. In employment terms, restaurant are easily the largest sector, closely followed by a pubs, bars and club with the hotel sector growing more slowly, and the contract food service sector holding steady . ECONOMIC PERFORMANCE the restaurant industry produces the most income which is not as profitable as other industries * The Industry employs over 1.8-2.4 million people. * It is estimated that the industry will require 30,000 to 35,000 trained people at managment and supervisory level year on year. * The canteen and cotract catering or contract food service sectors had also shown a strong growth. * Estimated,400,000 jobs in hotels and related services. * 1.26m jobs in restaurant. * 750,00 contract catering and in-hous catering jobs. * 20,000 jobs in event management * £7.4bn of foreign exchange export earnings. The restaurant industries produce the most income which is not beneficial to other industries when staff and other fixed costs are taken into consideration ,£47.53 contributed for each hour worked.£121.44 per hour in gambling industry and the most profitable of all whole tavel services generate £102.74 per hour then followed by pubs,bars and......

Words: 673 - Pages: 3

Impact of Cultural Diversity

...ABSTRACT This paper examines the impact of cultural diversity on productivity in the workplace. In this paper, we will identify how diversity in an organization contributes or detracts from an organization. What is cultural diversity? Cultural diversity is defined by Cox (1991) as “the variation of social and cultural identities among people existing together in a defined employment or market setting.” This paper will focus on national and racial diversity as it relates to culture, and the impact of such a diverse team on an organization. The evolvement of an integrated global economy has made diversity essential in this present day world. The paper will explore the pros and cons of such a diverse culture to an organization. A diverse culture within an organization is one that will comprise of benefits such as innovation, the introduction of new ideas and the expansion of a consumer base. All of which increase the productivity of an organization. Diversity may be regarded as a double-edged sword in that a diverse environment could lead to team members creating subgroups and creating conflicts and tension within the group, in essence reducing the productivity of the team. Approaches to reducing the negative effects of diversity on an organization are addressed, and include education and increased awareness. This will in turn reduce bias and stereotypes in the group or organization. Impact of Cultural Diversity on Productivity in the Workplace An increase in...

Words: 718 - Pages: 3

Investigating High Turnover Rates Within the Hospitality Industry

...RATES WITHIN THE HOSPITALITY INDUSTRY The hospitality industry is a category of the service industry which offers a product-service mix to guests, including lodging accommodation, food service operations, event planning, visitor attractions, transportation and cruise lines and other operations aimed at hosting or catering to guest needs. While the hospitality industry provides immense benefits to worldwide economy, lifestyle and culture, researchers suggest that the hospitality industry suffers from negative effects associated with turnover rates as this industry is amongst the highest in employee turnover rates. (Lewis, 2012). The high employee turnover in the hospitality industry is believed to be due to the nature of the work, lack of job satisfaction and lack of motivators delivered to employees by employers or organizations (Carver, 2011). While the industry struggles to establish to understand employees and keep them satisfied with their jobs, understanding the industry in necessary in understand the behavior of employees. The exceptionally high turnover rate in the hospitality industry is approximately 20 times the national average for the Unites States of America in employee turnover. The hospitality industry turnover rate sits over 60 percent while the United States of America has an average 3-percent rate in annual turnover of employers, within all industry, excluding hospitality. (Lewis, 2012). One of the primary challenges that the hospitality industry......

Words: 2158 - Pages: 9

Overview of the Hospitality and Tourism Industry

...Overview of the Hospitality and Tourism Industry HTM100 05/28/13 Abstract The Hospitality and Tourism industry changes over the years like people of the world change clothes. Within this paper we are going to look at the overview of those changes and just exactly what makes this industry tic. We will discuss the challenges involved in managing restaurant operations that are specific to my state, as well as how I would address those challenges. Such challenges to the restaurant industry may include regulatory issues, social concerns, competitive issues, and / or demographic and geographic issues. I am also going to determine the impact of computerization on food service and lodging operations within my state, particularly in the areas of reservations, accounting, personnel management, and the recording of sales transactions, I’m also going to consider the quality of technology infrastructure in my state and the degree of technology usage by potential customers visiting or using these services within my state. I will be giving my opinion on all of these topics plus I will also analyze the interdependence of food service, lodging, and meeting segments of the hospitality industry and make two (2) recommendations for how the synergy between the three (3) could be improved, using examples from my state to illustrate my case. I will also explain how I believe these segments can improve their relationships between one another and how they can combine their services in order to......

Words: 1884 - Pages: 8

Workplace Diversity in Hospitality & Tourism

...show that 8 million people are employed in the travel and tourism industry and the report further reported that 1.2 million are linked directly with international tourists. These statistics confirm just how diverse the workforce composition in the industry has become. Workplace diversity in hospitality and tourism is therefore a key factor in facilitating cultural exchange on a global level. Globalization has enhanced the diversity experienced in the hospitality and tourism industry because of its multicultural nature. Tourism involves the movement of people from their usual surroundings to places of interest either within the country or across international borders for leisure, business, fun or adventure. Hospitality, on the other hand, involves providing services such as travel, accommodation and entertainment to meet the needs of tourists. Hospitality and tourism aims at optimizing the experience of tourists in cultural environments that differ from those of their home countries or regions.Hospitality and tourism present a unique opportunity to understand new cultural experiences for both employees and the tourists. It is important for the personnel to understand and appreciate different cultures to enhance the nature of their interactions with tourists of different cultures, religions, races, creeds, colors, ages, genders and sexual orientations. It is for this reason that businesses plying their trade in this industry must endeavor to train their personnel to appreciate......

Words: 483 - Pages: 2

Hospitality an Tourism Industry

...HOSPITALITY AND TOURISM INDUSTRY Danielle Bates Darrin Stern HTM 100 03/10/2013 Managing a restaurant in Baltimore, Maryland has many operational challenges. Restaurants deal with food, people and are a vital part of our everyday lifestyles because we are a society on the go, we visit them several times a week to socialize, as well as to eat and drink. It is a serious combination because people are very sensitive about their food and service. Several different challenges come to play in the restaurant industry. These challenges include regulatory issues, social concerns and competitive issues. Regulatory issues are laws and systems that have been established to help ensure that the food served in restaurants is safe. Bacteria develop very easily if given the chance. The local Health Department will send out inspectors to make certain that the chefs and waiters are following the appropriate guidelines. Inspectors will issue penalties for minor violations and can shut you down for major violations. Some restaurants prepare for health inspections by holding random drills in which a manager or another member of the staff conducts a random mock inspection of the restaurant. This is designed to keep employees on their toes, and to identify problems, which will be spotted by the health inspector. Practice inspections can be performed using the same checklist utilized by the health department, to ensure that all aspects of a real restaurant......

Words: 1145 - Pages: 5

Impact of Cultural Diversity in Hospitality

...Nama : Ike Meily N.D (11/312439/SA/15787) Givano Ramadhan Mata Kuliah : Etiket Pariwisata. * Impact of Diversity (Cultural differences in employees and guests) on the hospitality industry. Dampak dari keanekaragaman akan perbedaan kultural antara karyawan dan tamu di industri hospitality, membuka tenggang rasa antara para karyawan dan para tamu, bahwa walaupun dengan budaya yang beragam atau latar belakang yang berbeda – beda tidak mempengaruhi hospitality atau pun kenyamanan itu sendiri. Selain itu, Dengan menerima keanekaragaman tersebut, terbentuk lah suatu kelarasan antara tamu dan karyawan, tamu yang merasa dihormati dan karyawan yang senang melayani tamu, apapun budaya yang tamu itu pegang. Selain itu, dengan menerima keanekaragaman, dapat terbentuk nya suatu kerja sama yang kooperatif. Tamu akan memikirkan bahwa dengan keterbukaan kepada keanekaragaman yang ada dapat membawa peluang kerja sama yang lebih baik ke depan nya, dan mengembangkan kemitraan bisnis dengan minoritas, dimana agar minoritas ini dapat berkembang pesat sehingga tidak ada nya diskriminasi yang akan dialami, bahwa walaupun minoritas dapat bekerja keras dan meraih hasil yang besar layak nya orang – orang yang lain. Semakin banyak nya orang – orang yang menerima keanekaragaman cultural, baik dari sisi karyawan maupun tamu, akan membantu industri hospitality semakin berkembang dan semakin besar. Jika dilihat dari dampak yang negatif, adapun mereka yang menolak akan keanekaragaman dapat......

Words: 421 - Pages: 2

Impacts of Internet on Tourism Industry

...IT and Internet’s Impact on Tourism and Hospitality Industry: Implementations of technologies for Hilton Hotels Group. Demonstrate critical and evaluative interpretation and application of theoretical IT/ e-business concepts to a current tourism and hospitality market situation in order to build sustainable competitive advantage. I Introduction Accompanying the technological revolution of the 1990s there are many new opportunities and challenges for the tourism and hospitality industries. Since tourism, global industry information is its life-blood and technology has become fundamental to the ability of the industry to operate effectively and competitively. Poon (1993) suggests that the whole system of information technologies is being rapidly diffused throughout the tourism industry and no player will escape information technologies impacts. The report below gives an insight into the importance of application of information technologies and the use of Internet in tourism and hospitality industries. Two given strategic frameworks provide the analysis of the Internet and its impact on these sectors. This paper also aims to show how technological innovations and information systems can be beneficial for the hotel companies, by using the example of Hilton Hotels Group. II IMPORTANCE OF TECHNOLOGY IN TOURISM AND HOSPITALITY SECTORS Market wisdom today suggests that hospitality companies must embrace technology to compete against traditional competitors, as well as......

Words: 3156 - Pages: 13

Investigating High Turnover Rates Within the Hospitality Industry

...Smith, (2007) notes that there is difficulty in finding and keeping talented people is having a catastrophic impact on many businesses and industries throughout the world. Money and benefits are important, but studies show most employees leave for other reasons. Employers have the need to retain the talents they have to attain the desired organizational goals which could include quality, customer satisfaction and the bottom line. Earle (2003) observes that workers today are demanding more from their employers than they ever have in the past, not just in terms of salaries and perks, but also in terms of the work experience itself and the cultural context in which it occurs. Many companies are finding that providing a productive, flexible and dynamic work environment can be a critical asset in attracting and retaining valuable employees. The hotel industry experiences high turnover if compared against a benchmark of Best Practice Forum's Benchmark Index of 26.5% by Horwath Consulting. Caterersearch, (2009) first benchmarking exercise reported an average annual staff turnover of 33.4%. That compared with an average of just over 26% on the Best Practice Forum's Benchmark Index, which surveys 2,000 hospitality businesses is relatively high. Gautam (2005) states that world wide research has suggested that employee turnover is among the highest in the hospitality industry. Studies by American Hotel and Motel Association (2001) have shown that the average turnover level; among......

Words: 1378 - Pages: 6

The Hospitality Industry

...brief description of the hospitality industry in UK along with its size, scope and diversity in order to convince the panel of potential investors to invest in the hospitality industry. My management consultancy firm was asked to produce a formal report focussing on the foreign business people to help them to decide whether to invest or not in particular sector of the industry for the coming London 2012 Olympic games. It will provide them a brief description of different ownership styles, management styles as well as organisational structure of several different sectors of the hospitality industry. Moreover, it will also provide the detail analysis of current trends, issues and recent developments within the industry. There are different sectors in the hospitality industry like hotels, restaurants, clubs and bars, contract catering, casinos etc. The particular sector that I am going to focus is the accommodation sector i.e. hotel and I am presenting the ideas that i have generated while doing the research. INDEX PAGE Executive Summary…………………………………………2 Definition of hospitality industry……………………………4 Scale, scope and diversity…………………………………...5 Organisational Structure……………………………………..6 Contemporary issues…………………………………………7 Changes in last 20 years……………………………………...8 Current trends…………………………………………………9 Conclusion…………………………………………………….9 Bibliography………………………………………………….10 Definition of hospitality industry Hospitality industry is a very broad industry. It is not always easy......

Words: 3081 - Pages: 13

Cultural Diversity in Hospitality Management – How to Improve Cultural Diversity Workforce

...Bachelor's thesis Degree Programme In Hospitality Management Hospitality Management 2012 Veera Korjala CULTURAL DIVERSITY IN HOSPITALITY MANAGEMENT – How to improve cultural diversity workforce BACHELOR'S THESIS | ABSTRACT TURKU UNIVERSITY OF APPLIED SCIENCES Degree Programme In Hospitality Management | Hospitality Management 2012 | 64 Susanna Saari Veera Korjala CULTURAL DIVERSITY IN HOSPITALITY MANAGEMENT The bachelor´s thesis investigates cultural diversity in the hospitality management. It aims at presenting effective ways to improve cultural diversity in a workplace. This study was commissioned by JW Marriott San Antonio Hill Country Resort & Spa in Texas, USA and three hotels in Stillwater, Oklahoma, USA: Atherton Hotel, Hampton Inn & Suites and Residence Inn. The bachelor´s thesis incorporates culture theories and their applications to the workplace. Additionally, it focuses on cultural diversity dimensions in hospitality workplace, such as its benefits and challenges, its reflection in the work environment which have been related to the organization’s cultural diversity management. Eventually it provides solutions, such as a corporate strategic plan which focuses on the improvement of cultural diversity in the workplace by means of cultural diversity training. These best practices of cultural diversity are discussed in detail both in the literature review and in the study. The bachelor’s thesis has used two research methods, both qualitative and......

Words: 13922 - Pages: 56

Socio-Cultural Impacts of Tourism

...Topic: Socio-Cultural impacts of tourism Tourism considered as global phenomenon which is carried out by persons itself. This naturally results in meeting of different culture, economy, progress, status, etc. round the globe. Human being considered as social animal cause’s significant social culture impact by tourism. According to Teo (1994) impacts are defined as “change in value system, moral, conduct, individual behaviour, relationship, lifestyle, expression, tradition”. Social culture impact of tourism discussed below is categorised broadly as positive and negative impact of tourism, factors responsible and impact management utilising various supportive journals articles. Interaction between host and tourist at particular destination leads to social culture impacts. This could have immediate social impact like change in quality of life, adjustment to tourist industry and long term culture impact like change in standards, social relationship defined as “conducting elements of behaviour and product of that behaviour” (Weidenfeld, 2012). Broadly literatures revels positive impacts like urban relocation by creating jobs, infrastructure, security, foster pride in culture, etc. certain negative impacts like increase in crime, environmental detonation, increase traffic, alcoholism, drugs, prostitution etc. However, the impacts are considered ambiguous broadly varies country to country and hosts perceptions. Various pre studied articles are taken into consideration to have......

Words: 3247 - Pages: 13

The Effect of Cultural Diversity in the Hospitality Industry

...because they cannot put up acceptable collaterals. These problems of credit can be solved through the information of cooperatives. Agribusiness cooperatives and microcredit are interdependent and mutually re-enforcing and hence date back to the beginning of mankind. Before the advent of formalized institutional source of financing, agricultural credit took the form of borrowing from friends, relatives, neighbors and so on, with its attendant term either in the form of selling products to the lender at a future date and price or repayment at some agreed value (Fafchamps, 1999). Prisma (2006) identified microcredit as a powerful development tool with which to eradicate poverty by providing financial services to the poor. The microcredit industry has been growing more than 25% a year during the last decade. Nonetheless, only a fraction of the demand has been met to date. Specifically, successive governments in Nigeria have in the last three decades shown much interest in ensuring adequate financing for agriculture by establishing various schemes and specialized financing institutions to provide appropriate finance to the sector (Sanusi, 2003). Easy access to credit for agribusiness cooperation development by members would result to increase in production and income of the household. A well established and smoothly functioning agribusiness cooperative in Nigeria will play vital role of savings-investments processes. The essential spontaneous and voluntary emergence of......

Words: 4185 - Pages: 17

Htm 100 Assignment 2 Overview of the Hospitality and Tourism Industry

...HTM 100 Assignment 2 Overview of the Hospitality and Tourism Industry http://homeworkfy.com/downloads/htm-100-assignment-2-overview-of-the-hospitality-and-tourism-industry/ To Get this Tutorial Copy & Paste above URL Into Your Browser Hit Us Email for Any Inquiry at: Homeworkfy@gmail.com Visit our Site for More Tutorials: (http://homeworkfy.com/ ) HTM 100 Assignment 2 “Overview of the Hospitality and Tourism Industry” Due Week 8 and worth 250 points Write a five to six (5-6) page paper in which you: 1. Determine the challenges involved in managing a restaurant operation that are specific to your state, as well as how you would address those challenges. Such challenges to the restaurant industry may include regulatory issues, social concerns, competitive issues, and / or demographic and geographic issues. 2. Determine the impact of computerization on food service and lodging operations in your state, particularly in the areas of reservations, accounting, personnel management, and the recording of sales transactions. Consider the quality of technology infrastructure in your state and the degree of technology usage by potential customers visiting or using these services within your state. 3. Analyze the interdependence of food service, lodging, and meeting segments of the hospitality industry and make two (2) recommendations for how the synergy between the three (3) could be improved, using examples from your state to illustrate your case. 4....

Words: 493 - Pages: 2

Tourism and Hospitality

...TOURISM SUSTAINABILITY IN KENYA Overtime, an increasing number of destinations have opened up and invested in tourism development, turning modern tourism into a key driver for socio economic progress, through the creation of jobs and enterprises, infrastructure development, and the export income earned (UNWTO2009). Tourism has become one of the major international trade categories. The overall export income generated by international tourism including passengers transport reached US$ 1.1 trillion in 2008, or US$ 3 billion a day (UNWTO2009). Tourism exports account for as much as 30% of the world’s exports of commercial services and 6% of overall exports of goods and services. Globally, as an export category, tourism ranks fourth after fuels, chemicals and automotive products. For many developing countries it is one of the main income sources and the number one export category, creating much needed employment and opportunities for development (UNWTO2009). Ecotourism and sustainable tourism development has become the catch word today. The concept of sustainability has its origins in the environmentalism that grew to prominence in the 1970s. The explicit idea of sustainable development was first highlighted by the International Union Today sustainable development has become an international catch word and its import for the Conservation of Nature and Natural Resources (IUCN, 1980) in its World Conservation Strategy. The importance of the sustainable development in the global...

Words: 916 - Pages: 4