The Challenge of Managing Diverse Team

 

Introduction

The world has become increasingly globalized in the past decades, resulting in a diverse workforce. Effective management of diverse teams is crucial for the well-being of organizations, as it fosters an inclusive and harmonious environment, attracts and retains talented employees, and ultimately enhances the organization’s performance (Ministry of Manpower, nd). However, leading a diverse team is a dynamic, profound, and challenging process, yet it is a fundamental requirement of a good leader (MORAN, 2018).

Advantages of a diverse team

Workers from diverse backgrounds tend to remain objective and factual, leading to better unbiased decisions. They are also more innovative, which is crucial for the progress of a company (Grant, 2019). Therefore, workplace diversity not only attracts top talents but also creates an international work environment where employees can interact, learn, and develop new skills and perspectives. With the new norm of remote working and technological innovation, more companies can choose to employ and operate in different parts of the world. This allows companies to take advantage of lower labor and rental costs, resulting in a more inclusive workplace environment (Camus, 2023).

Disadvantage of a diverse team

However, diverse workplaces may face challenges in creating a harmonious and united work environment due to differences in cultures, languages spoken, race, gender, or nationalities. Thus, helping workers cope with and adapt to diverse cultures, as well as improving communication, are key issues that need to be addressed (Western Governors University, 2021).

Importance of good diverse team management

 

Iceberg model of workplace diversity

Figure 1- The Iceberg Model of Workplace Diversity (Gina Kaspar, 2020)

 

As mentioned, diverse teams can innovate better, leading to improved company performance, especially in the fast-paced changing environment. This trend is evident in the crypto and blockchain industry. During the Covid-19 pandemic, the number of cryptocurrency companies tripled from 2019 to 2022 (Best, 2023), and the number of cryptocurrency users increased exponentially by approximately 12 times during the same period (Best, Crypto users worldwide 2016-2022, 2023). By 2021, digital assets became widespread among public users, and regulators started building frameworks to govern the crypto markets (Thomson Reuters, 2022). However, gender diversity remains a challenge in the crypto and blockchain space, where risk-taking ‘Crypto Bros’ dominate (WARREN, 2020). Moreover, the diversity of these firms often doesn’t go beyond surface level, as the management teams lack cognitive and experiential diversity, as evidenced by the failure of FTX (Kolenda, 2023). In addition to gender diversity issues, Coinbase was also criticized for racial discrimination, as it reportedly did not offer competitive packages to Black employees and did not provide fair treatment (Popper, 2020).

Effective management of a diverse team

Effective communication

Effective communication forms the foundation of good relationships. Workers should be encouraged to communicate frequently, honestly, and openly during discussions. This approach allows employees to feel heard, appreciated, and supported. Over time, such communication fosters trust and understanding among workers, creating a cohesive working environment (Jornod, 2021).

Gender

In terms of gender diversity, the crypto industry is predominantly comprised of males from technology and finance backgrounds. To promote inclusivity, crypto companies need to actively attract more females from non-tech and non-financial sectors (Molchan, 2023). By increasing the number of female employees, toxic workplace cultures can be transformed (Hoffower, 2022).

Create an inclusive workplace diversty

Crypto companies should enhance inclusion by hiring workers and senior management from diverse backgrounds, ages, and ethnicities, rather than focusing solely on younger individuals or individuals from a single nationality. Employees should be selected based on their varied work experiences and cultural perspectives. By fostering an inclusive organizational culture and leadership, workers will feel more valued and fairly treated, which, in turn, will contribute to the long-term progress of the company (International Labour Organization, 2022).

Conclusion

In today’s world, workplace diversity is not just an option but a commitment that all leaders should actively pursue for the excellence and long-term benefit of their companies. Being a good leader is non-negotiable.

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