THE IMPACT OF CULTURAL DIVERSITY IN NIGERIAN BANKING SYSTEM

Description

Abstract

THE IMPACT OF CULTURAL DIVERSITY IN NIGERIAN BANKING SYSTEM.
The aim of this study was to examine the impact of cultural diversity on the Nigerian Banking system. Zenith Bank of Nigeria at Apapa Lagos was the case study for this study. The researcher adopted a qualitative approach, interpretive and exploratory in nature for this study. Using a semi-structured interview, data was collected from 15 participants who were selected using non-probability sampling method. Thirteen of the staff comprised of operation and marketing staffs in Zenith Bank, Apapa, Lagos while the other two were from the Zenith Bank headquarters representing the Management team and the Human resource team. Using Thematic analysis, data collected form the participants were analyzed. Six themes identified were in respect to the research question. Under the theme Perception of Cultural Diversity, the subthemes were; Relationship with other employees, Social Interaction Groups. Under the theme Benefits of working in cultural diversified workspace the subthemes were;         Wide Customer Base, Informed Decision Making, Disregarding Cultural misconceptions. Under the theme Challenges of working in cultural diversified workspace the subthemes were; Favoritism, Language Usage, Religion, Value System. Under the theme Cultural Diversity Management Policies, the sub themes were; Knowledge, Adherence. Under the theme Effectiveness of policies in managing Cultural diversity the subthemes were; Intimidation, Poor Disciplinary Measures. Under the theme Staff Recommendation, the subthemes were; Training Programs, Awareness, Disciplinary Measures. The results from the thematic analysis suggested that cultural diversity had both a positive and a negative impact on the Nigerian Banking System. The intensity of which occurs in an organization is however dependent on the managements polices, practices, and adherence measures of the organization on cultural diversity management. The study recommended that organizations should have a well-defined polices on cultural diversity management which are effectively communicated to staff through trainings and awareness programs.

CHAPTER ONE

Background of the Problem

The cultural background of an individual goes a long way in influencing his belief, ideas, ways of thinking, approach to situations among others. According to Aluko (2003), culture is a wide and multidimensional concept that can be divided into two major aspects; the material cultures which entails the physical pieces that are clear and noticeable, such as, skin color, language, clothing, tools, technology and art and the non-material cultures which entails things that cannot be seen or touched but can be revealed through the psychological state and behavior of individuals

With the increase of globalization, migration and other sociocultural factors, the workforce in all industrialized countries has become progressively heterogeneous constituting of people from different cultural backgrounds, race, gender, ages, religion and color (Rodrik, 2018). This implies that most organization workforce comprises of people who may not necessarily share the same beliefs, speak the same language, have the same skin color, have the same religion as well as having the same view and approach to life situation. This can be referred to as cultural diversity.

Cultural diversity is the representation, in one social system, of people with distinctly different group affiliations of cultural significance (Ang,Van, Koh, Templer, Tay & Chandrasekar 2007). Diller (2018), further defined cultural diversity as the existence of diverse individuals from different cultures or societies whose differences arise from language, religion, race, sexual orientation, and ethnicity. It includes people who represent different ethnic community, who understand and know the needs of their culture.

According to research, cultural diversity in a working environment can be beneficial or detrimental to an organization. Milliken and Martins (1996), described it to be a double-edged sword, increasing the opportunity for creativity as well as the likelihood that group members will be dissatisfied and fail to identify with the group.

The studies of Cox and Blake (1991) indicated that a culturally diversified workforce produces positive outcomes like advancement of teamwork, creativity, invention, openness to useful change, enhanced problem-solving skills, cost cutting and a livelier work environment. Stahl, Maznevsk, Voigt & Jonsen, (2010) also noted in their study a culturally diverse workforce increases the competitive advantage of an organization mainly because they have the opportunity to utilize a vast array of knowledge, skills and abilities found in a diverse cultural workforce.

However, the study of Amaram (2007) on the other hand, noted that a diverse workforce can create a negative dynamic in a working environment due to ethnocentrism, stereotyping and culture clashes. This is in line with the studies of Kochan et al, (2003); Jehn and Rupert (2008)  noted that, workforce diversity not handled correctly, the formation of various groups will occur; could lead to miscommunication, emotional conflicts, power struggle and ultimately to high turnover of employees.

This indicates that the management of cultural diversity is very crucial for an organization with a culturally heterogenous workforce. A well-managed culturally diverse system results to having a system of beliefs and behaviors in an organization that recognizes and respects the presence of all diverse groups in an organization or society, acknowledges and values their socio-cultural differences, and encourages and enables their continued contribution within an inclusive cultural context which empowers all within the organization or society (Singh, 2018).

Studies also shows that organizations with high levels of well managed diversity are effective and steering ultimately producing corporate cultures that have new perspectives, pioneering capabilities and fresh ideas necessary to survive.  Workforce diversity management practices enhance organizational performance, productivity, effectiveness and sustained competitiveness (Munjuri & Maina, 2013). Davis, Frolova, and Callahan (2016) also indicated in their study that when organizational policies are properly implemented (proper workforce diversity management) with an aim to promote diversity at the workplace, it can result in superior business performance, higher employee satisfaction and loyalty, increased competitive advantage, and a strengthened relationship with multicultural communities.