The advances in technology and communication nowadays seem to have caused a resurgence of the term “globalization” during the last two decades or so. Globalization can be defined as the process by which businesses or other organizations develop international influence or start operating on an international scale (Oxford Dictionaries, 2018). Following this definition, it is therefore safe to infer that globalization is directly linked to the term “culture” due to the fact that international organizations will need to operate in boundaries outside of their origin and hence come into contact with other cultures. Culture in itself can often be difficult to define and may have different meanings and connotations to every person. For the purpose of this paper though and in the context of globalization, we can define the term “culture” as the customary beliefs, social forms, and material traits of a racial, religious, or social group (Merriam-Webster, 2018).
The service sector or more specifically the hotel industry, is perhaps one of the very first industries that have been exposed to a high level of cultural diversity. This primarily holds truth due to the very nature of the business, namely welcoming guests that are often staying in a country or region outside of their own. Furthermore, an empirical study that measured the correlation between diversity and organizational performance concluded that the effects of diversity are more conspicuous within service industries (McMahon, 2011). The author attributes the result to higher interpersonal communications within industries such as hospitality, and in which personalized customer service is likely to affect organizational performance. In this regard, major hotel companies such as Hyatt Hotels Corp. have therefore recognized the importance of adopting a culturally diverse work environment that can enhance both the product delivery by employees and product experience for guests.
Establishing a culturally diverse work environment is easier said than done, as large-scale organizations would first need to build up and create such a culture that would then be replicated across the entire brand portfolio. Furthermore, achieving a culturally diverse environment is not merely a simple hiring process by the Human Resources department but involves an adopted attitude embodied by all members of the organization. As Kreitz (2018) states, successful diversity is built from the often small, everyday actions taken by people at all levels of an organization.