Cultural Dimension Theory and Workplace Diversity

This assignment delves into the scope and impact of workplace diversity in the United Arab Emirates and international business studies. It discusses the application of Hofstede-inspired country-level culture research, including its relevance to service multinational companies, corporate boards, and firm performance. Additionally, it examines the relationship between cultural dimensions and obesity, as well as tourist satisfaction. The assignment also touches on factors affecting consumer product company performance in Malaysia and managing diversity in academic settings.

INTERNATIONAL
BUSINES

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Overview of the company 275....................................................................................................3
1 The concept of cultural diversity..............................................................................................4
2 Analysis of cultural value dimension in the company ............................................................5
3 Advantages and disadvantages of having a diversified culture in the company......................7
SUMMARY.....................................................................................................................................9
References......................................................................................................................................10

INTRODUCTION
International business can be defined as a trade of services, goods & technologies across
national borders & transactional level. This present study is based on Bonia corporation Berhad.
This company is an international fashion retailer that is based in Malaysia. This study is going to
show about the main concept of cultural diversity that includes different language, race, gender,
ethnicity etc. Cultural diversity has some advantages and disadvantages in the company which
help hinder and foster them in achieving their goals. Bresciani & Ferraris, (2015).
Bonia corporation is a fashion retailer whose headquarter is in Kuala Lumpur, Malaysia.
This company was founded by Chiang Sang Sem in 1974 and since then it has been created a
trademark legend in this fashion industry. It offers a wide range of leather products and goods
which includes leather footwear, handbags & accessories for not only women but also for men. It
is well-known company for its luxury and qualitative products and it landed its shops and
boutiques all around the world like Singapore, Vietnam, Thailand, Japan, Kuwait, Myanmar etc.
Rather than selling, manufacturing, marketing & distribution Bonia company is involved in
development, investment, advertising, product design and research & development activities.
This retailer company has more than 700 sales outlets across Asia and has around 833 employees
at all shops Ismail & Subramaniam, (2017).
This corporation announced unaudited consolidated earnings results for the 3rd quarter
and 9 months ended March 31, 2019. For the quarter, it reported revenue of MYR 116,916,000
against MYR 104,224,000 a year ago. For the 9 months, this company reported revenue of MYR
348,346,000 against MYR 329,759,000 a year ago. Earning results for the 2nd quarter & 6
months ended it reported revenue of MYR 132.245 million against MYR 125.197 million.
Earning results for the 1st quarter ended it reported revenue of MYR 99,185,000 against
100,356,000 a year ago on September 30,2018. It is stated that this company owns over 1,200
sales outlets & 185 stand-alone boutiques throughout the world.
In addition, its Flagship fashion label Bonia, this group and all members has established
SEMBONIA & CARLO RINO brands. In order to acquire of 70% equity stake in Jeco Ltd, The
German brand BRAUN BuFFEL joined this group Kassim, Ramlee & Kassim, (2017).
1 The concept of cultural diversity

This is going to show about cultural diversity and their impacts on the performance level and
operations of the company. Due to cultural diversity, Bonia corporation has to face several
issues. On the other side it gives various benefits and the company takes various advantages of
cultural diversity.
Cultural diversity can be defined as the quality of different culture & a form of
appreciating differences in individuals. It can be also defined as a belief, customs, languages, arts
etc. In the context of Bonia corporation there is existence of multiplicity of different value
system and sub-cultures. There are several issues which is being faced by the company and
cultural diversity is one of them. It can have both positive and negative impacts on the operations
and performance level of the company.
According to the Kim, Lee & Kim, (2015) cultural diversity have positive impacts as it
can help the company in achieving their goals in an effective manner. For example, Bonia
corporation is consists of different culture of people and it operates worldwide. People with
different background have different perspectives and their different point of view contribute in
the group and make all able to solve problem and to look at problems from all angles. When
different culture of people works in a team then it increases the chance of learning from other.
Employees can increase their skills and decrease their weaknesses which can help them in
increasing sales and productivity of the company for which they work. For taking more strength
it is important for the company to integrate into company policies and celebrate diversity.
On the other hand, Al-Jenaibi, 2017 states that cultural diversity can have negative
impacts also if the company does not focus on managing it. If the company do partiality between
their employees on the basis of gender, age, skills, marital status then it can demotivate
employees, and they are more likely to leave the organization. If they do not value then it can
create several problems for the company such as it can increase absenteeism, labour turnover,
become the reason of interpersonal conflicts and also have negative impacts on its overall
productivity. So it is important for the company to make the best policies regarding culture and
follow them with effectively.
It has various economic benefits as diversity increases profits. It is also stated that out of
50 public corporations, 43 were 24% more profitable than the S &P 500. There are mainly 3
areas where diversity matter in companies such as marketing, operations and innovation. In the
context of marketing, cultural diversity can help the company in building trust in the brand with

a diverse target market. In the context of operations, the company can reduce costs and also
decrease absenteeism if they value diversity. It can help Bonia Corporation to the great extent as
it increases employee’s engagement Lambert, (2016).
For supporting this view Shore, Cleveland & Sanchez, (2018) discussed and said that
cultural diversity brings innovation at workplace. By bringing innovation, Bonia corporation can
take competitive advantages and can become the market leader in this industry. When the
company value its employees then the whole team work towards achieving their pre-determined
goals. Bonia corporation focus on following a culture of person and relationship oriented rather
than task oriented. The main aim of following this culture is to motivate their employees and
make them able to become self-dependent and also increase loyalty for brand and the company.
It is also analysed that Bonia corporation give equal opportunities to their male and
female employees in the production and manufacturing process. There is a ratio of 50:50 of male
and female in their production process which encourage them to work more effectively and work
for accomplishing their company's goals. It is also found that, companies who value diversity
and diverse team they earn more than those who do not focus on diverse workforce. It cuts down
on legal costs because it is illegal for employers to discriminate employees based on their
cultural diversity. Federal laws prohibit workplace discrimination in six areas including
disability, age, race, religion, national origin & gender.
It is also stated that this company has to face several problems like absenteeism and
labour turnover as it does not give them flexibility facilities to employees. It becomes difficult
for the company to implement and apply all employment legislations as employees come from
different culture and places. Different understanding of workplace etiquettes is other major
problem which is being faced by Bonia corporation.
2 Analysis of cultural value dimension in the company
Cultural value dimension is an effective tool that can help the company as it makes them
able to make sense of culture. Value dimension of culture includes power, identity, gender,
uncertainty and time. The main aim of developing this cultural value dimension is to understand
and predict human behaviours and attitudes in the cultural context & then compare human
behaviours across 2 or more cultures.

With the help of Hofestede's cultural dimension theory Bonia corporation makes itself
able to take advantages in the context of culture and identify human nature and behaviours. It has
mainly 4 dimensions
Individualism-collectivism
This dimension of culture considers and show the degree and extent to which employees
and team members are integrated into a group. Individualism shows that the company give more
importance on accomplishing personal and individual goals. In this category a person's self-
image is defined as I. On the other hand in collectivism category and cultural dimension, the
company give greater importance on team goals and well-being of the group. In this category, a
person's self-image is defined as We.
Bonia corporation, focus on collectivism type of dimension with the main aim of
increasing collaboration and make an effective culture. When the company and employees more
focus on accomplishing team goals rather than accomplishing individual goals then it increases
their learning skills Hoe & et.al., (2019).
Masculinity-femininity
This cultural dimension of Hofestede's theory consider the preference of the company for
achievement and attitude towards behaviours & sexuality equality. In the masculinity social
gender roles are clearly distinct. Male and men employees are supposed to be assertive and
focused on material success, In contrast, female employees are supposed to be modest and
concerned with the quality of life. Masculinity focuses on work role model, control and power.
Femininity defines distribution of roles and functions between the genders.
Bonia corporation focus on both as it all depends on situations. But they more focus on
masculinity dimension because they have traits which emphasizes ambition and willingness of
doing something new. When the company focus on long term achievements then it helps them in
developing a strong culture.
Long-term & Short-term orientation
This cultural dimension considers the extent to with the company's view its time horizon.
In the long term orientation, the company more focus on the future and ignore short term success
as they want to gain long term success. In this type, companies focus on perseverance’s and
persistence. Whereas, in short term orientation, the company lay keen emphasizes on the near
future and it involves short-term success Huang & Crotts, (2019).

Bonia corporation focuses on long term orientation because its vision and main aim is to
become sustainable business. Short-term orientation has some limitations as it only focuses on
present which can decrease loyalty level among employees. In this type this fashion retailer
company support a strong work ethics where long term rewards are expected as a result of
today's hard work.
Uncertainty avoidance
This cultural dimension also plays an important role for companies as it refers the need to
avoid uncertainty about the future and in a working relationship. In this dimension, Bonia
corporation focus on the level of tolerance. In the context of culture and employees this
dimension shows an extent to which employees feel comfortable and uncomfortable. Bonia
corporation more focus on minimizing the possibilities of such situations by applying strict
policies, laws, safety & security measures Beugelsdijk, Kostova & Roth, (2017).
By following all these cultural dimensions, Bonia corporation make all employees and
itself able to take advantages and make a strong and an effective culture. There are various
advantages of following Hofestede's cultural theory because it helps them in identifying and
analysing their employee’s behaviours and attitude towards their roles, functions and policies in
the context of culture. When employers know needs and attitudes of employees then they are
more likely to achieve their pre-determined goals and objectives.
Due to cultural diversity this company has to face several challenges like employees
sometimes do not agree on leadership and management style. It becomes the reason of conflicts
that decrease workplace environment. Approaches of team work & collaboration vary. Some
employees want and prefer to work individually, while other prefer to work in team so it can also
create interpersonal conflicts.
3 Advantages and disadvantages of having a diversified culture in the company
There are several advantages and disadvantages of having a diverse workforce and
diversified culture in Bonia corporation. By valuing diverse workforce and by applying strong
policies related to culture this company can take various opportunities and advantages. Some
advantages which Bonia corporation take at their workplace are described as below:
Advantages:
Innovation: It is stated that the main reason of innovation is valued diverse workforce
and the result of cultural diversity. When the company has more perspectives and diverse

workforce while solving a problem then there are greater chances of creativity and innovation.
Diversified members of a team have the ability to create better solutions than homogeneous
group do.
Community connection: Cultural diversity also increases community connection. Bonia
corporation have wider range of diverse employees which make them able to understand their
behaviours and also satisfy their needs. When employer have ability to understand behaviours of
diverse employee then it is also possible for them to understand different needs of different
customers. It can increase their loyalty and brand image.
Retention: When a company and an organization initiate and focus on creating truly
inclusive environments where the differences are welcomed then it increases chance for them to
hire and get skilled employees. More candidates and people from diverse backgrounds tend to
follow & stick around. It attracts more culturally diverse people when they see reflection of
themselves higher up in this type of organization. It is beneficial for both employees and
employers as it cuts costs of recruiting and training cost when employees tend to leave in the
company for the long run Frijns, Dodd & Cimerova, (2016).
Company growth: It is stated from research that there are 2 out of 3 employees want to
go and prefer those organizations who focused on diversity. If company give them opportunity
and focus on diversity, then employees also support the company in accomplishing their goals. It
also allows Bonia corporation to recruit the best and skilled candidates for their open positions.
When employees give different suggestions and opinion then employers have variety of opinion
and on the basis of suggestions they can make the best decisions.
Disadvantages:
Communication issues: This is the preliminary disadvantage and issue which Bonia
corporation company has to face is communication issues due to different culture and different
languages of people. People from different culture speak different language with different
accents that can become difficult for manager and other employees to understand. When
employees do not have clear understanding about messages and information’s then it can
decrease productivity due to misunderstanding.
Increasing of complaint level: In a diverse workplace environment, manager and
employer have tendency of comparing one employee from others. Different working styles,
behaviours and habits can create bothersome results. It increases complaints level, when em-

employees feel that their perspectives and opinion are being ignored. Increment in complaining
level make managers work more complex. They need to perform all their functions and roles
effectively. Jabbar & Mirza, (2017).
Conflicts: Bonia corporation focus on recruiting diverse people and when they focus on
diversity then they create a series of different opinions that is good at some time. Sometimes
different opinion can become the reason of conflicts and dissatisfaction among employees.
Manager give opportunity to all employees to speak up and give suggestions but it can slow
down the speed of a project that impacts on productivity and customers experience. Sometimes
making a decision on different suggestion lies with the superior it means some employees are
right and other are wrong. Employees feel that their perspective are being ignored and it becomes
the reason of conflicts.
SUMMARY
From the above study it has been summarized that cultural diversity played a vital role in
the selected retailer company. IT helped them in both positive and negative manner. By valuing
diverse workforce, it made itself able to take various competitive and other opportunities. On the
other hand, it has also shown negative impacts of cultural diversity, if the company do not focus
and value diverse workforce as it demotivated employees. Cultural value dimension identity,
gender, power as it supported the company to understand and predict their different culture
employees' behaviours in the context of culture. In the context of advantages it helped the
company to improve retention and reduce costs that is associated with employees turnover. On
the other hand, it created language, social tension and other barriers.
In addition of cultural value dimension. Selected retailer company has made use of
Hofestede's cultural dimension theory that includes 4 dimensions like power distance,
individualism-collectivism, uncertainty avoidance and masculinity-femininity. It has found
useful in using as a starting point in intercultural communication. By applying and application of
the best culture and dimension, the company has made itself able to take and accomplish its
goals and objectives by distribution of roles among all employees on the basis of their skills and
capabilities.

References
Books and Journals
Al-Jenaibi, B., 2017. The scope and impact of workplace diversity in the United Arab Emirates–
A preliminary study. Geografia-Malaysian Journal of Society and Space, 8(1).
Beugelsdijk, S., Kostova, T., & Roth, K. (2017). An overview of Hofstede-inspired country-level
culture research in international business since 2006. Journal of International Business
Studies. 48(1). 30-47.
Bresciani, S., & Ferraris, A. (2015). International diversification and performance in European
service multinational companies. The Marketing Review. 15(4). 423-437.
Frijns, B., Dodd, O., & Cimerova, H. (2016). The impact of cultural diversity in corporate boards
on firm performance. Journal of Corporate Finance. 41. 521-541.
Hoe, C. & et.al., (2019). The Relationship Between Hofstede's Cultural Dimensions, Schwartz's
Cultural Values, and Obesity. Psychological Reports. 122(3).
Huang, S. S., & Crotts, J. (2019). Relationships between Hofstede's cultural dimensions and
tourist satisfaction: A cross-country cross-sample examination. Tourism
Management. 72. 232-241.
Ismail, N., & Subramaniam, A. (2017). Factors Affecting Performance of Consumer Products
Companies in Malaysia. Journal of Global Business and Social Entrepreneurship
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Jabbar, A., & Mirza, M. (2017). Managing diversity: academic’s perspective on culture and
teaching. Race Ethnicity and Education. 1-20.
Kassim, N. S., Ramlee, R., & Kassim, S. (2017). Impact of Inclusion into and Exclusion from the
Shariah Index on a Stock Price and Trading Volume: An Event Study
Approach. International Journal of Economics and Financial Issues. 7(2). 40-51.
Kim, H. K., Lee, U. H., & Kim, Y. H. (2015). The effect of workplace diversity management in a
highly male-dominated culture. Career Development International. 20(3). 259-272.
Lambert, J. (2016). Cultural diversity as a mechanism for innovation: Workplace diversity and
the absorptive capacity framework. Journal of Organizational Culture, Communications
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Shore, L. M., Cleveland, J. N., & Sanchez, D. (2018). Inclusive workplaces: A review and
model. Human Resource Management Review. 28(2). 176-189.