Business Ethics and Organization Social Responsibility (MGT 422)

‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية اإللكترونية‬

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

College of Administrative and Financial Sciences

Assignment 3
Business Ethics and Organization Social Responsibility (MGT
422)
Due Date: 30/11/2024 @ 23:59
Course Name: Business Ethics and
Organization Social Responsibility
Course Code: MGT 422

Student’s Name:

Semester: 1st

CRN:

Student’s ID Number:

Academic Year:2024-25-1st

For Instructor’s Use only
Instructor’s Name: Dr. Hanen Louati
Students’ Grade:
/10

Level of Marks: High/Middle/Low

General Instructions – PLEASE READ THEM CAREFULLY
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•
•
•
•
•
•
•

Restricted – ‫مقيد‬

The Assignment must be submitted on Blackboard (WORD format only) via allocated
folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented, marks may be reduced
for poor presentation. This includes filling your information on the cover page.
Students must mention question number clearly in their answer.
Late submission will NOT be accepted.
Avoid plagiarism, the work should be in your own words, copying from students or other
resources without proper referencing will result in ZERO marks. No exceptions.
All answered must be typed using Times New Roman (size 12, double-spaced) font. No
pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.

Learning Outcomes:
Learning Outcomes:
No
CLO-6

Course Learning Outcomes (CLOs)
Write coherent project about a case study or actual research about ethics

The content is available for free download in knowledge resource from the SEU homepage:

Read the following article available in SDL:
Yadav, R., Gangwar, R., Arora, S., & Andres, F. (2019). Cultural Issues in Employee Engagement:
Illuminate, Causes, and Significance. In N. Sharma, N. Chaudhary, & V. Singh (Eds.), Management
Techniques for Employee Engagement in Contemporary Organizations (pp. 47-56). IGI Global.

Answer the following questions:

1. Discuss the role of employee engagement in the growth of organization as argued by the author. (Not
less than 400 words)- 3 Marks.
2. Explain the significance of cultural issues in Employee engagement addressed by the author. (not less
than 400 words)- 3 Marks.
3. According to the author, why do cultural issues occur in employee engagement? Explain the
techniques to improve employee engagement. (not less than 500 words)- 4 Marks.

Note: All answers should be supported with proper references.

Restricted – ‫مقيد‬

Answers

Restricted – ‫مقيد‬

47

Chapter 3

Cultural Issues in
Employee Engagement:

Illuminate, Causes, and Significance
Radha Yadav
Chandigarh University, India
Riya Gangwar
Jaipuria School of Business, India
Sunaina Arora
Jaipuria School of Business, India
Frederic Andres
National Institute of Informatics, Japan

ABSTRACT
The purpose of this chapter is to analyze the cultural issues in employee engagement. This chapter covers
the importance of employee engagement and diverse workforce. The author focuses on the role of culture
in employee engagement, and it shows a positive relation between the organization performance and
employee engagement. In this chapter, the author also depicts cultural issues in the organization. In the
end, the author emphasizes the techniques to improve the cultural issues to enhance employee engagement.

INTRODUCTION
Today’s management approach has been changed, Human Resource Department do lots of activity to
engage, to enthuse and to excel the employees toward task. Famous organisation like Apple, Microsoft,
Google and other companies follow the activities to build employee relations. Affection, Love and Cohesiveness are the social need of anyone’s. Today’s Human resource Department focuses on this social
need to make a strong bond between the employer and employee.

DOI: 10.4018/978-1-5225-7799-7.ch003

Copyright © 2019, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited.


Cultural Issues in Employee Engagement

Today’s world is digital world; thought processes and actions are continuously changing to face
the challenges in this competitive world. Employee engagement is not tangible thing by which any
organisation predicts the requirement of the employee by one touch, all employees are alike, degree of
engagement will be different, and employees themselves will be responsible of own level of engagement. Companies have their own strategies to make employees engaged at a work place. These strategies may vary companies’ polices and work environment. According to the Gallup great work place
award 2015; many popular companies who maintain the great workplace and environment to involve
the employee into a work. ABC Supply Co., Inc, Indus Towers, Adena Health System and many more
companies proved that engagement plays a vital role in the performance of the organisation. On above,
Google, American Express, John Lewis, Hyatt, Southern Airlines and Virgin are on the top of the list
of employee engagement. These companies focus on different approaches i.e. transparency, behaviour,
listening to the employees, etc.
Employee engagement can be of three types with the perspective of employees. Some employees are
actively engaged with passion, dedication and determination towards the companies. They do assignments with futuristic approach; give creative and innovative ideas to the development of the organisation. Second type of employee engagement i.e. Not engaged, these types of employees do their work
without energy and passion; personality of these employees are sleepwalker and lazy. Third types of
employee engagement is actively engaged, these employees are not only unhappy at the work place but
it also affects other employee to make unhappy them. It has been proved by many researcher that highly
engaged employee give healthy environment and higher productivity to the organisation. Engagement
can affect employees’ attitudes, absence and turnover levels and various studies have demonstrated links
with productivity, increasingly pointing to a high correlation with individual, group and organisational
performance, a success measured through the quality of customer experience and customer loyalty. Beyond this, it is a challenge to manage diverse work force at a work place. To make a engaged employee,
main issue which occur is cultural issues. Culture varies person to person
With advancement and enhancement in the usage of technologies, and the growing need to globalize
organizations, industries are going across the national geographical boundaries and expanding the scope
of their business dealings. Once a concern is globalized, the need for the search of the best person to
carry out the respective tasks emerges. Now, that is something opening up new opportunities for candidates across international boundaries; making these boundaries thinner and gradually eliminating it as
a criterion for choosing a job.
As we see these days, the supremacy of Multi-nationals is sprouting; and so is the need to have different
people from various countries and cultural backgrounds. This cultural mix is a boon to any organization
in terms of new ideas, unique creativity, increased exposure, foster innovation, richer brainstorming
and better customer understanding and decision making; but the same gives rise to a number of cultural
issues in the organization too, like- the unclear culture, resistance to changes, vague assumptions, reduced communication, and the list continues. Employee engagement has become a crucial topic in the
organisation to compete in the market, it is necessary to having highly engaged employee at a workplace.

Meaning and Importance
The thoughts, traditions, and social conduct of the people of a particular place or society form the culture
of that place. Diversity in a culture adds to the rich dynamic quality at any given place. These distinctions

48


Cultural Issues in Employee Engagement

exhibit a number of challenges in the work environment. Understanding these social contrasts goes far
towards settling them.
Employee engagement is a working environment approach bringing about the right conditions for
the human resource of an organization that helps them come up with their best every day, focusing on
the goals of the organization, whilst driving a push towards the organizational success with an escalated
sense of their own well-being.
People come from all kinds of backgrounds- different religions, values, beliefs, tradition, mindsets,
statuses, and even beyond national boundaries- to work together, under the same roof, achieve a common
goal and benefit each other interdependently. Certain issues arise due to the cultural differences amongst
the human resource of an organization and lead to barriers to employee engagement.

Role of Employee Engagement in the Growth of the Organization
Better employee engagement leads to better yield or better output. At the point when employees are
engaged at work, they feel a sense of belongingness with the organization. They believe that the work
they are doing holds importance to the firm and hence work harder, along these lines. This, in turn,
fulfill their three needs from the “Maslow’s hierarchy of needs”, namely- Self actualization Needs, Esteem Needs, and most importantly, the Need for Love and Belongingness. Hence, the contentment of the
employee increases and so does his/her willingness to stay connected with the organization; the turnover
rate declines and happy employees propel the organization to grow.

How Does This Affect the Society?
Culture is the social conduct and standards found in human social behavioral patterns. It includes the
ideas, customs, behaviors, religion, language, food, music and a million other things of a particular people
or society. Social or cultural distinctions will influence the receptiveness, responsiveness, tolerance, and
open mindedness of a person to individual education and readiness to acknowledge data and absorb it
into one’s own life. Various social perspectives impact the way we connect with other individual, including national culture, regional culture, gender culture, work culture, and different correspondence styles.
Now, if we talk about diversity at workplace, we will come across a number of challenges in their
working styles because you cannot just put a bunch of individuals together with immense contrasts and
anticipate them to get along from the very first day. Many of them aren’t even tolerant enough to be
working with people of distinct social backgrounds and everything gets muddled up at the end. In order
to minimize the aftermath of employing a diverse workforce, diversity trainings and strategic management for the diversity takes place that permeates every department and function of the organization.

How Can Cultural Issues Decrease the Performance of the Employees?
The culture of an organization and its productivity are closely related. It is true that diversity brings a
lot of challenges at the workplace; challenges in the management of the firm, communication barriers,
resistance to change, tolerance level of the employees, power and politics, and many more. These obstacles
play a colossal role in decreasing the level of productivity and efficiency of the employees and hence
the organization. The following are a few limitations of diverse culture of a workplace-

49


Cultural Issues in Employee Engagement

1.
2.
3.
4.
5.

Communication and language barriers can lessen the viability of the employees. This inefficacy
can lead to conflicts and affects the team performance.
Conflicts and clashes are generally caused when individuals have diverse opinions and priorities
in light of different individual demands and needs.
Differences in backgrounds, social statuses, and experiences lead to difference in mindsets, thought
processes and opinions too, which in turn lead to another reason for struggling in the multicultural
environment.
The reason that individuals are not contented in working in a diverse environment is on the grounds
that they do not consider it a better soil which according to them is due to the dissimilar people
around them.
The mentality of “we have always done it this way” is resistant to change and does not accept,
rather silences new ideas coming from the diverse workforce.

Significance of Cultural Issues in Employee Engagement
With the growing needs of any organization to go global, there is a current trend of multicultural workforce
too. Therefore, employees are expected to simultaneously and adequately interact with other employees
belonging to different cultural backgrounds because an organization’s efficacy and competitiveness relies
on its capacity to embrace the multicultural environment and understand its advantages.
Culture and engagement is the most vital issue organizations face round the world. In a Deloitte study,
it has been found that 87% of the organizations specifically point it out as one of their top challenges. On
the other hand, if individuals start seeing its brighter side, they will come to know in how many ways
workplace diversity can benefit them.
1.
2.
3.
4.

5.

50

Variety in Perspectives and Viewpoints: A large pool of ideas and opinions can be created using
the viewpoints of the diverse workforce that can be drawn for the strategic requirements of the
business.
Adaptability: While working and interacting, with people from all cultures, individuals make
peace with it and ultimately learn to adapt to such surroundings which is beneficial not only for
the organization but also for them as a human being.
Broader Service Range: A differing collection of skills and experiences (e.g. learning various
languages, understanding of various cultures) enables an organization to give world-class worldwide
services to their customers.
Effective Execution: Sometimes competitiveness can also lead to high productivity amongst
the employees leading to better execution of the skills of individuals at their tasks. Also, various
techniques would then be able to be executed; bringing about higher efficiency, benefit, and rate
of return.
Diversity Trainings: Diversity training is any program intended to encourage positive inter-group
collaborations, decrease discrimination on the basis of difference in culture by forming prejudices
and make the individuals different from others learn how to with each other effectively


Cultural Issues in Employee Engagement

LITERATURE REVIEW
There are many studies conducted in order to mitigate these issues and get the best out of the employees of
the concern- like the one to look after and analyze, at a business unit, the relationship between employee
satisfaction -engagement and the results of customer satisfaction, efficiency, productivity, profit, employee turnover and other concerned variables (Harter, 2002). One study is done on the accounting firms
to analyse the factors that improve the commitment and engagement at work place. Findings show that
company’s value and organizational culture are significantly related with the commitment and employee
engagement (Barkman and Sheridan; 2002). If company does not follow sound and appreciable culture,
it impacts negative impression of the top management among employees. In this condition, employee
prefers to quit the organization. Another study says about the organizational culture in Saudi Arabia. This
study says that training & development, organization communication, rewards and recognition enhance
the interest of the employees in the job. Employees feel more engaged and motivated at the workplace.
Another study done on qualitative approach that provided a restorative chance to enhance the knowledge
of the relationship of organizational culture with employee engagement in Saudi banks Results also show
that Islamic culture influence employee engagement in Saudi banks, it affects on Non-interest bearing
transactions, and the female segregation rule. (Shehri, Laughlin Ashaab & Hamaad; 2017). Employee
engagement is a positive fulfilling work-related state of mind that can be characterized by three characteristics i.e. vigor, dedication and absorption. (Schaufeli & Bakker; 2004). One researcher proves that
culture of the organization should be compatible with the values of the employees. (Allen; 2010). There
are four types of culture that affects the employee engagement among employees i.e. Power culture,
support culture, Role culture and achievement culture. (Brenyah and Darko; 2017)
It was observed by many studies that culture of an organization that drives the employee engagement (Lockwood, 2007; McBain, 2007). Appropriate compensation and benefits for the employees are
one of the primary factors that contribute to the desired employee engagement, apart from friendly and
supportive work environment. It is found by the research as well as from the observations of the successful companies that there is a direct link between the corporate culture, commitment and engagement
(Schein; 1985, Rashid, Sambasivan & Johari, 2003). According to the Mickenzie report, the concept of
the organizational culture just not related to the environment at work place, it covers the every aspects
of the organizational life and it also affects on the employees. One research says that if management
give their little concern about the culture then it can increases the employee engagement in job but that
concern should be in continuous process. (Reilly; 1989)
In Social Exchange Theory, given by George Homans, it states that when employees receive certain
employee benefits or the righteous advantages of working in the organization from their employer or
the management, they feel more engaged and more motivated towards organization although from different cultures (Homans, 1961). Another study says that ideal theoretical standards for understanding
work behavior in an organization gives result in terms of more committed, loyal, responsible, and trustworthy employees (Cropanzo, Mitchell, 2005). Where POS (Perceived organizational support) is how
much employees bank upon that their organization regards their commitments and contributions, and
thinks about their prosperity and well-being, satisfying their socio-emotional needs. Researcher found
that perceived organization support is positively related to employee engagement (Sacks, 2006; Ram &
Prabhakar, 2011; Shuck, 2010).

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Cultural Issues in Employee Engagement

One study proves that employee engagement is significant positively related to the loyalty of the
employees towards the organisation (Schaufelli and Bakker, 2004; Vazirani, 2005). In another study it is
noted that employees feel a sense of commitment towards the organization when they are engaged, they
feel contented with their work as well as with the company which leads to high retention of employees
(Haid and Sims 2009).

EMPLOYEE ENGAGEMENT AND CULTURAL ISSUES
A research conducted by Mercer Human Resource Consulting helped in figuring out that- the typical
country standards for propelling the engagement and for other employee perceptions vary considerably
from place to place and region to region – about their work and their employers. A core set of propelling
factors or drivers is emerging globally. This might help MNCs and globally functioning concerns differentiate between local-global issues of engagement in designing and strategizing a global employee
engagement strategy and alter the implementations to cater to the needs of the local workforce. (Sanchez
& McCauley, 2006)
Social identify theory explains the concept of the individuals’ culture affects the person’s attitude and
behavior and also the team dynamics (Josee & Shisia, 2004). The rationale to justify the cultural change
effects on individuals and organizational performance. Individual’s similarity on visible and permanent
traits influences the feelings of identification. And identification based on demographic similarity is
related to in-group inclinations and team conflicts. (Tsui, Egan & O’Reilly, 2006).
It is also explained as (‘the portion of an individual’s self-concept derived from perceived membership in a relevant social group’ (Turner, John; Oakes, Penny, 1986). It is used to deduce and comprehend how a change in individuals’ culture affects the person’s attitude and behavior and also the team
dynamics (Josee & Shisia, 2004). The rationale to justify the cultural change effects on individuals is
that the individual’s similarity on visible and permanent traits influences the feelings of identification
(Tsui, Egan & O’Reilly, 2006). Inside groups, identification based on demographic similarity is related
to in-group inclinations and team conflicts.
Similarity/Attraction Theory posits on the notion that- individuals with similar traits and attributes
(especially the demographic aspect), enhances the interpersonal attraction and affinity. This is because
people with backgrounds akin, feel that they might share similar tastes and interests that will make them
comfortable around each other, ultimately bringing an ease and convenience for them in working together.
A research earlier (using the above mentioned attraction theory) found that differences in the similar
stated aspects leads to lack of attraction caused due to lesser conversation, message misinterpretation
and other communication barriers (Cameron & Quinn, 2002).
As with social identification and categorization theory, similarity/attraction research would anticipate
that high levels of culture change in an association or in a work group are probably going to prompt
flawed work forms. These flawed work procedures will, thusly, prompt weaker execution.

Why Do Cultural Issues Occur in Employee Engagement?
Employee engagement, a term coined by the Gallup Research Group, is widely used and practiced actively
in every other organization for at least one of the two reasons- it’s analytically proven relationship with
productivity, profitability, customer satisfaction, employee retention and safety (Buckingham & Coff-

52


Cultural Issues in Employee Engagement

man, 1999; Coffman & Gonzalez-Molina, 2002). However, this takes a lot of effort due to the varying
cultures in the organization. Culture includes everything from an individual’s brought-up, lifestyle and,
beliefs to ideas, mindsets and, social behavioral norms.
A few of the issues caused by the distinguished cultural aspect in employee engagement are:
1.

2.

3.

Values and Beliefs: People coming from different family backgrounds possess different mindsets,
perceptions, opinions and, discernments. Naturally, they are going to depict certain distinguished
values and beliefs according to their brought up and cultivation. Values are basically the guiding
principles of people’s internal conception of what is good and constructive or bad and undesirable.
Hard work, discipline, usefulness, trustworthiness, punctuality etc. are some personal values that
enhance an employee’s efficiency and efficacy in the company. The importance of these values is
believed to be different from person to person and hence, it creates a gap between the employees
and engagement, since the non-dominant cultural group always has to adapt according to the values
and beliefs of the dominant cultural group of the organization.
Demographic Aspect: The demographic aspect is anything relating to demography or the structure
of the population that can be age, gender, race, education, income level, marital status etc. According
to the similarity/attraction theory, if two people have the same age group or education or other
similar demographic factors stated above, will have a better interpersonal interaction (Cameron &
Quinn, 2002). The perceived age similarity relates to the workers at a higher level of satisfaction
and hence engagement (Avery, D. R., McKay, P. F., & Wilson, D. C., 2007). This could bring in
comfort to work around each other and would prompt enhanced work forms, productivity, profitability and a healthy competition as well. Whereas, on the other hand, absence of this could cause
diversity issues.
Attitudes and Behavior: Attitude is a driver of behavior. It is a settled way of thinking about
something that can be either positive or negative. It can be seen in a person’s response to his or
her surroundings. Some negative attitudes are harmful in the work place and can spread to the
ones around them that can impact the co-workers’ performance as well. To change these attitudes,
is a duty of everyone (manager, employees and the organization). This is another cultural issue
that stands as a rift to employee engagement pertaining to differences in individuals’ and group’s
attitudes.

Techniques to Improve Employee Engagement
There are a number of cultural issues standing between an effective organization culture. Some ways to
improve the employee engagement cause due to the prevailing cultural issues in the concern are:
1.

Respect and Accept: It is one thing to hire and employ a diversified workforce for the company
in order to acquire varied forms of talent; and it is another to deal all of them with deference and
dignity by way of inclusion. Again, it is the responsibility of the employees, manager and the
organization. A few statistics to check out the effectiveness of inclusiona.
b.
c.

Inclusive teams consistently outperform their peers by 80% on team-based challenges. (Deloitte)
Ethnically-diverse organizations are 35% more likely to outperform competing firms. (McKinsey)
More women-led (41%) than male-managed (35%) teams report being engaged. (Gallup)

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Cultural Issues in Employee Engagement

Now, once the personnel are distinguishing in terms of the demographic aspect, it is now the responsibility of the workforce to take the only solution, i.e. to accept and adjust accordingly and work
peacefully in harmony.
2.

3.

4.

5.

Cross-Cultural Training: Globalization advancement in the areas of economic, political and social is leading to greater interpersonal cross-cultural and diversified contact. Since not everyone is
able to adjust to this connect, cross-cultural trainings have been proposed by researchers in order
to make the working classes have an effective communication. It is found that these trainings are
successful in order to mitigate the drift and have a better contact (Black &Mendenhall, 1990).
Active Grievance Solving Process: Diverse workforce gives rise to lots of misunderstandings
and conflicts due to variation in ideas, beliefs, opinions, perspectives, etc. Such conflicts lead to
complaints and grievances. This calls for an active process in every organization that is able to get
to the bottom of the problem and fix it.
Interaction/Communication: In a study, it was highlighted that the internal level of interaction
amongst the employees is food to considerably good degrees of employee engagement (Public
Relations Review, 2017). It is certain that employee communication and employee engagement
are inter-linked (Kang & Sung, 2017). Employee engagement aids to considerably decrease the
employee turnover intention and also increases supportive employee communication attitudes and
behaviors.
Exit Interviews: An exit interview is a kind of interview held in order to retain the employee
leaving the organization. For the purpose of employee retention, counseling takes place that is a
psychological healthcare intervention at workplace (Padmasiri & Jayatilake, 2016). This can not
only prevent employee turnover but can also solve the prevailing problem between the employee
and the company, making the relations healthier than they were before. This, in turn, becomes an
advantageous situation when we talk about employee engagement.

CONCLUSION
Employee engagement is the spine of an organization’s healthy work environment. As discussed in the
chapter, there are a number of ways to attain that like “Respect & Accept, Cross cultural trainings, Active
grievance solving process, Interaction, Exit Interviews, and many more” -, and not to deny, there are a
number of cultural issues too like- “Values & Beliefs, Demographic Aspect, Attitudes & Behavior, and so
on” . Organization needs and demands of the market to attain the diverse work force but to handle this
work force can be tough. Todays’ manager has been working to maintain diverse work force by engagement practices, So employees get awareness of values, belief, life style, behavior and so on. Techniques
After reviewing the researches of many famous researchers- Gallup, Harter, Schmidt, Hayes, Suharti, Suliyanto, Haid, Sims, Schein, O’Reilly, Sanchez, McCauley, and many more, it can be certainly
concluded that employee engagement is a necessity these days in this globalised market where there are
people from all over the world working together under the same roof. To keep them working in harmony,
under the same roof, with employee-satisfaction as the key objective of the organization, there is a need
to have certain drivers of employee engagement like- “Work environment/organizational culture, job
role, rewards & recognition, learning & training opportunities, quality of interaction with peers and
superiors, and many more”. Employee engagement is that buzz-word in the industry that has changed

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Cultural Issues in Employee Engagement

the perception of the management, considering the fact that how crucial it is to be employee-centric for
an organization in order to positively impact the productivity.
Therefore, it is important for companies to see and understand what are the ‘causes’ behind employee
engagement, if they want to influence the ‘effect’ of employee engagement.
In the last, factors of culture affects the employee engagement at the work place. An engaged employee
will exhibit only not better performance but will be intrinsically motivated. When an employees understand their colleague’s culture, values and belief, and give respect to the diversity. These understanding
enhance the cohesiveness among employees and reduce the barrier which comes from the different
factors of culture, and increased the engagement of employees at the work place.

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