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INTERCULTURAL COMPETENCE AS PRECONDITION FOR CULTURAL DIVERSITY MANAGEMENT

Aura Repekien1, Nida Kvedarait2, Vaiva Jankauskien3
1 2

Kaunas University of Technology, Lithuania, ausra.repeckiene@ktu.lt, Kaunas University of Technology, Lithuania, nida.kvedaraite@ktu.lt 3 Fine Arts School, Lithuania, vaiva.jankauskiene@gmail.com

Abstract
In this article, intercultural competence is substantiated as pre-requisite for cultural diversity management. From the theoretical point of view, conceptual preconditions for cultural diversity management (dimensions and management models of cultural diversity) and intercultural competence (knowledge, attitude, skills and critical cultural awareness) were distinguished. Having developed intercultural competence, individual can positively evaluate cultural diversity, organizational changes occurring as a consequence of the latter and tolerate other elements of cultural diversity management. In the empirical part, intercultural competence expression of companies employees and attitudes to cultural diversity and its management were assessed through quantitative and qualitative research. The intercultural competence of respondents was developed adequately, attitudes and critical cultural awareness were the most prominent dimensions; cultural diversity was expressed weakly; the positive approach of employees to cultural diversity and its management are identified. Keywords: intercultural competence, cultural diversity, cultural diversity management. JEL Classification: M12, M53.

Introduction
Globalization, regional integration, migration and demographic changes create new preconditions for inter-mingling of individuals and cultures, pose new challenges to organizations, which encounter representatives of different cultures and social groups in domestic and global markets. The society is not homogeneous; i.e., in different activities, individuals from other cultures, companies with different organizational culture, of other sexes or minority groups are met. Cultural diversity management is a relatively new concept of company management (Cox & Blake, 1991; Iles, 1995; Thomas & Ely, 1996; Kppel, 2004, 2010; Kppel et. al., 2007), which emerged in the USA and two decades ago its application commenced in Europe. In the meantime, in Lithuania cultural diversity concept has not been broadly examined in fields of business and management, while focusing mostly on multi-culturism in comprehensive schools (Kavolis, 1996; Grigas, 1993; Tamoinas, 2000; Saugnien & Jakaviius, 2000, Saugnien & Liaudanskien, 2003; Reingard, Vasiliauskait, Erentait, 2010) and searching for the importance of culture cognition in business (Kudokien & Repekien, 2006; Kudokien, 2007). They key competence of the individual enabling them to successfully operate in the context of diversified culture is the intercultural one, and foreign scientists have been paying particular attention to the analysis of its notion and meaning over the last two decades (Bennett, 1993; Byram, 2000; Deardorff, 2006; Fantini, 2000, 2006; Bolten, 2007). In Lithuania, characteristics of intercultural competence are also examined by representatives of management (Petkeviit & Budait, 2005; Kerien & Savaneviien, 2005; Radzeviien, 2004) and educology (Saugnien & Liaudanskien, 2003; Maeikien & VirgailaitMekauskait, 2007; Maeikis, 2007) sciences, however, mostly basing upon intercultural competence models suggested by foreign authors (Bennett, 1993; Byram, 2000; Fantini, 2000, 2006). It is noteworthy that scientific papers of Lithuanian authors do not examine the link between intercultural competence and cultural diversity, which becomes an actual scientific problem elaborated through these questions: how should the cultural diversity is managed? And what competences become relevant as the individual acts within the context of diversified culture? The aim of the research is to substantiate theoretically and identify empirically the expression of intercultural competence and the possibilities for cultural diversity management. Subject of research intercultural competence. Methods of research include scientific literature analysis, questionnaire survey, interview and statistical data analysis.

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Conceptual preconditions for cultural diversity management

According to scientific sources (Thomas & Ely, 1996; Sepehri, 2002; Hays-Thomas, 2004; Kppel et al., 2007; Kppel, 2004, 2007, 2010), the notion of diversity encompasses the existing differences as well as similarities, the perception of diversity and its social constructs; hence, it is important to define its dimensions. Traditionally, cultural diversity encompasses two dimensions: ethnic belonging and nationality, which point directly to the individuals belonging to a specific culture. That is why diversity used to be called cultural diversity. EU Racial Equality Directive and EU Employment Equality Directive stipulate that cultural diversity encompasses six dimensions age, physical capabilities / disability, culture, sex, religion and sexual orientation. Other classifications of cultural diversity dimensions can be found in scientific literature, too: superficial diversity (age, sex, belonging to an ethnic group, religion, education) and deep (hidden) diversity (culture values) (Cox & Blake, 1991); main (race, ethnicity, sex, physical or cognitive abilities) and secondary (individuals attitudes, mother tongue, social-economic status, education and professional experience) dimensions of cultural diversity (Daft, 2003; Seymen, 2006); task-associated dimensions of cultural diversity (dependence of to a division, hierarchical level, duration of employment with the organization, professional group, knowledge, abilities and skills, experience, education) and relationship-oriented dimensions (nationality, ethnic dependability, sex, age, religion, disability, race, attitude, values, personal qualities, social status) (Kppel, 2007, 2010). For the purposes of organizations success, it is important to turn the culture dissimilarity problems into advantages. Consequently, scientific context emphasizes the significance of cultural diversity management, seeing as masterfully managed, cultural diversity can become a resource, providing economic benefit and competitive advantage to the company. Cultural diversity management first of all is associated with the assurance of equal opportunities for representatives of different cultures and social groups and this refers to more than just the observance of anti-discrimination guidelines (Krislin & Kppel, 2008; Thomas & Ely, 1996). Moreover, cultural diversity management is an expedient and constructive use of diversity, mobilizing the potential of the staff, ensuring equal opportunities, yielding economic benefit and helping ensure competitive advantage (Iles, 1995). It is noteworthy that cultural diversity management tolerates personal differences of employees as well as enthrones them as a special value (S & Kleiner, 2005). Scientific literature distinguishes three directions, defining the essence of cultural diversity management: multicultural organization concept (Cox & Blake, 1991); cultural diversity management typology (Ely & Thomas, 2001); holistic model of cultural diversity management (Kppel, 2007). The concept of multicultural organization substantiates the model of cultural diversity management (Cox & Blake, 1991), oriented to implementation of organizational objectives and encompassing five key components, necessary for transforming traditional organization into a multicultural one (see Fig. 1).

Figure 1. T. Coxs (1991) model of cultural diversity management (Seymen, 2006) Cultural diversity management typology (Ely & Thomas, 2001) suggests that the organization applies one of the three paradigms subject to its strategic objectives: Discrimination and Fairness Paradigm actualizes equal opportunities to equal treatment and social equality. Companies following this paradigm, when managing the diversity, strive towards

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the implementation of fairness principle, the outcome of which includes conflict reduction and satisfaction. Access and Legitimacy Paradigm emphasizes cultural peculiarities of employees, which may be used for market expansion and attracting of new customers. Such companies seek to win over new markets through employees of different cultures, and this pursuit results in maintenance of relationships with the customers and expansion of market share held. Learning and Effectiveness Paradigm emphasizes learning and more effective planning of work process. Companies pursuing this strategy seek to implement the concept of the learning organization, which enables successful international cooperation. Holistic model of cultural diversity management (Kppel et al., 2007) enables creating economic benefit for the organization while invoking strategic management of cultural diversity (see Fig. 2).

Figure 2. Holistic model of cultural diversity management (by Kppel et al., 2007) Emphasizing the differences of employees as a value and developing their global mindset, organizational culture constitutes the basis for cultural diversity management. Cultural diversity is related to organizational culture that determines which of the two types the organization belongs to: companies creating the culture of a homogenous, indiscrete organization and believing that strong culture with unified rules, clear orientation and common values helps survive in the market and reduces internal controversy; however, they lose competitive position due to insufficient tolerance of employees, flexibility and ability to adapt to new conditions in a dynamic environment; companies appreciating, tolerating and using the differences between individuals and groups approach and perceive diversity as a resource promoting employee creativity, innovations, constructive problem solving and customer-orientation (Kppel et al., 2007). Another element of cultural diversity management refers to structures, i.e., two groups of management systems, in which the management of variety can be entrenched: classical functions of product or service management (strategic management, personnel or distribution channels management, marketing, production systems, accounting/control); survey areas, which encompass the following management functions: process and performance planning, knowledge and project management, information systems, internal communications, public relations. Individual competencies distinguish human resources as the factors conferring the most substantive, unique competitive advantage to the company. Individuals knowledge about other cultures and ability to interact with the diversity are distinguished as key capabilities and defined as structural elements of individuals intercultural competence. In summary it can be stated that different authors declare varying opinions on the notion and dimensions of cultural diversity, however, they are unanimous about the benefit of cultural diversity management obtained through possible synergic effect: promotion of cooperation is promoted that ensures international success, new markets (segments) are occupied and better relationships are maintained with customers and employees. Cultural diversity management models suggested in scientific context form global mindset of employees and positive approach to cultural diversity; they also enable reorganizing the company structure and development of employees intercultural competences.

Intercultural competence dimensions

Over the last two decades, scientists have been actively studying intercultural competence and its development, while differently defining and interpreting the terminology and notion of intercultural 884

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competence. Scientists (Byram, 2000; Kerien & Savaneviien, 2005; Fantini, 2006; Sinicrope et al., 2007) suggested such names of intercultural competence that are used as synonyms: intercultural communication, international communication, international interaction, cultural competence, communicational competence, cultural literacy etc. Nonetheless, multicultural competence and international competence are the ones encountered the most frequently. When analyzing scientific literature, different definitions of intercultural competence are encountered. In the most common meaning, intercultural competence is construed as individuals ability to communicate and interact with individuals of other culture/group/community. Intercultural competence is also described as the set of attitudes, approaches, special behavioural and reflection abilities facilitating integration in intercultural situations (Deardorff, 2006); ability to perceive the differences between the requirements and habits of ones own and foreign culture and to conduct oneself appropriately (Bolten, 2007); attitudes, knowledge, skills (to interpret, relate, discover, interact) and cultural awareness (Byram, 2000). Thus, intercultural competence is multi-layered and the dimensions of intercultural competence, which express in various models suggested by scientists, therefore, depend on its notion. The Rubens behavioural approach comprises seven dimensions of intercultural competence (Sinicrope et al., 2007): display of respect (ability to show respect for others); interaction posture (ability to respond to others without diminishing and criticizing); orientation to knowledge (ability to recognize that individuals see and understand the surrounding world differently; they have different viewpoints of what is truth and what is not); empathy (ability to identify with another persons situation); self-oriented role behavior (ability to deal with the arising problems though adaptation); interaction management (ability to initiate, direct and terminate communication); tolerance for ambiguity (ability to act constructively and creatively in an ambiguous situation). The Intercultural Behavioral Assessment Indices (IBAI) (Byram, 2000) refer to intercultural competence as Intercultural Communicative Competence, comprising five key dimensions: attitude (openness, curiosity, qualitative communication between representatives of other group, social class, sex or race, learning from another social community); knowledge (about social communities of ones own as well as different cultures, ability to compare value attitudes of another community with those of ones own); skills of interpreting and relating (ability to interpret the events of another cultural community while relating them to the events of ones own culture); skills of discovery and interaction (communicating with individuals from another community, display of flexibility and understanding, mimics, understanding of non-verbal communication); critical cultural awareness (helps evaluate critically negative attitude to another community while perceiving oneself as different with regard to another community, i.e., how specific (e.g. religious, political) context affects my relationships with others). Researchers (Byram, Khlmann, Mller-Jacquier and Budin) have developed intercultural competence assessment tool named INCA (intercultural competence assessment) which distinguishes six dimensions (Sinicrope et al., 2007): Tolerance for Ambiguity (ability to tolerate the lack of ambiguity and to conduct oneself appropriately); Behavioral Flexibility (ability to adapt flexibly to the changed situation); Communicative Awareness (ability to determine the connection between ways of linguistic expression and content of culture, to align ones form and content of communication to the partner of the foreign country); Knowledge Discovery (knowledge about different cultures and the ability to use them while communicating); Respect for Otherness (preparedness to cease distrust in another culture); Empathy (ability to intuitively understand what other people think and how they feel in a specific situation). When analyzing the intercultural competence models it is evident that scientists do not adduce a unified structure of intercultural competence; however, they do not refute the viewpoint that intercultural competence comprises 4 key elements knowledge, attitudes, abilities/skills and critical/cultural awareness.

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Considering this, links can be sought between the individuals capability to deal with cultural diversity and intercultural competence dimensions (see Table 1). As mentioned before, cultural diversity management encompasses the development of global mindset and reorganization of companys structure as well as the development of employees personal abilities. However, scientific context does not unambiguously outline what competences should be possessed by an individual acting in the context of diversified culture. Analysis of the individuals ability to deal with cultural diversity and of structural elements of intercultural competence revealed that the key competence of the individual helping them to successfully operate within the context of diversified culture is intercultural competence. Table 1. Comparison of the ability to deal with diversity and intercultural competence dimensions
Ability to deal with cultural diversity Individuals knowledge about other cultures (Kppel, 2007) Ability to interact with diversity (Kppel, 2007) Cultural awareness: perception of differences (Iles, 1995) Communication competence: communication with different people (Iles, 1995) Evaluation of differences (Iles, 1995) Obtaining synergy through differences (Iles, 1995) Self-control (Brownell, 2003) Empathy (Brownell, 2003) Heart-feelings: cultural changes and sensitiveness (Stuber, 2002) Head-mind: understanding and solving of problems, distinguishing of economic aspects (Stuber, 2002) Arm-behavior: compatibility of objectives and self-control (Stuber, 2002) Intercultural competence Knowledge-orientation (Ruben, 1976) Knowledge (Byram, 2000; Mller & Gelbrich, 2004; Kerien & Savaneviien, 2005) Intellectual abilities and their control (Petkeviit & Budait, 2005) Skills of interpreting and relating (Byram, 2000) Abilities (Kerien & Savaneviien, 2005) Critical cultural awareness (Byram, 2000; Fantini, 2000, 2006) Interaction management (Ruben, 1976) Skills of discovery and interaction (Byram, 2000) Communicative awareness (Sinicrope et al., 2007) Interpersonal skills (Petkeviit & Budait, 2005) Respect for otherness (Sinicrope et al., 2007) Attention to others (Petkeviit & Budait, 2005) Synergetic effect of strategic competences (Bolten, 2007) Flexibility and adaptation (Petkeviit & Budait, 2005) Empathy (Ruben, 1976; Sinicrope et al., 2007) Affective/motivational level (Gertsen, 1990) Motivation (Mller & Gelbrich, 2004) Self-oriented role behavior (Ruben, 1976) Cognitive/knowledge level (Gertsen, 1990) Behavioral level (Gertsen, 1990) Behaviour flexibility (Sinicrope et al., 2007) Behaviour (Mller & Gelbrich, 2004) Flexibility and adaptation (Petkeviit & Budait, 2005)

Having developed intercultural competence, individual can positively evaluate cultural diversity (global mindset is formed), organizational changes occurring as a consequence of the latter and tolerate other elements of cultural diversity management (reorganized structures).

Research methods and organization

Methodology of the research of employees intercultural competence expression was based on the performed theoretical- conceptual analysis of scientific literature and the holistic model of cultural diversity management suggested by authors (Kppel, 2004, 2007; Kppel et. al, 2007) that is defined as the entirety of three elements global mindset, reorganization of structures and personal competencies of employees. Having developed intercultural competence, individual adopts positive viewpoint to representatives of other cultural groups and is able to work and learn together with them. The aim of the research is to study the expression of intercultural competence of employees while revealing its links with cultural diversity. While striving to attain the research aim, two research diagnostic blocks were distinguished and research criteria were selected based upon works of other scientists (Cox & Blake, 1991; Bennet, 1993; Iles, 1995; Byram, 2000; Thomas & Ely, 1996; Deardorff, 2006; Fantini, 2006; Bolten, 2007; Kppel, 2004, 2007, 2009; Kerien & Savaneviien, 2005; Radzeviien, 2004; Kppel et. al, 2007). The first diagnostic block expression of intercultural competence comprises knowledge, attitude, skills and critical cultural awareness; the second aspects of cultural diversity, i.e., approach to diversity and cultural diversity management. 886

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Empirical research involves two parts: 1. When studying the expression of intercultural competence of employees and their approach to cultural diversity and its management, a quantitative research was carried out in two companies of similar type (production) and size, situated in Panevys city (Lithuania) and having international experience, which were selected considering the findings of studies on cultural diversity carried out by scientists (Kppel et al., 2007) in different companies in the USA, Great Britain, Germany and other countries as well as recommendations suggested, showing that cultural diversity is more likely to express (and the need to manage it emerges) in large companies engaging in production operations and having international experience. General population of the research comprised (N = 405) employees. Sample was selected using purposive non-probability method for selection of subject group, i.e., in each company, employees of certain divisions, which have been described by the company managers as having international experience, were chosen. Consequently, the sample of the research comprised (N = 55) employees from the mentioned companies. Based on intercultural competence evaluation methods (Your Objective, Guidelines, and Assessment, (YOGA) Format, by Fantini, 2000) and multi-dimensional model of intercultural competence (The Intercultural Behavioral Assessment Indices (IBAI), by Byram, 2000), research instrument questionnaire has been developed for employees of studied companies, where the respondents had to rate the statements from 1 completely disagree to 5 completely agree. 2. In order to identify the aspects of cultural diversity management, a qualitative research (interview) was carried out, during which senior and middle level managers of the companies were surveyed (N = 5). In the interview sheet, respondents were submitted 15 questions about cultural diversity and pre-requisites for applying cultural diversity management concepts and possibilities in company management. Interview sheet was prepared following the cultural diversity management typology (Ely & Thomas, 2001) and holistic model of cultural diversity (Kppel, 2004, 2007, Kppel et al., 2007). Statistical analysis of the research data was carried out using statistical data package SPSS version 19.0. Descriptive statistical method was applied for initial processing of quantitative data, calculation of averages and values in per cent. Demographical characteristics of quantitative research participants. The majority of the respondents were males (63 %). Fifty-nine per cent of research participants were in 29 45 year age group, 31 % - below 29 years and 9 % - older than 45 years. All respondents (100 %) indicated that they knew at least one foreign language, 56 % - two foreign languages, 34 % - three and 3 % - four foreign languages.

Findings of the research of employees intercultural competence expression and cultural diversity management
Expression of employees intercultural competence. When evaluating the expression of respondents intercultural competence, four key dimensions of intercultural competence were invoked: knowledge, attitude, skills and critical cultural awareness. Knowledge is the main dimension of intercultural competence and each interculturally competent individual should, therefore, have knowledge about their own and other cultures or social groups, their customs, values and norms of behaviour, and be able to compare them with their own culture (Byram, 2000). After conducting the research it turned out that the rating of this dimension equalled 3.4, i.e., the knowledge of all respondents participating in the research about other cultures and social groups could be rated as average (see Fig. 3). This implied that employees of companies under consideration who participated in the survey had insufficient knowledge on different cultures (social groups) and were not capable of using it in real communications, to comprehensively describe and explain the behaviour inherent to people of another culture (social group) (3.3), they were not well familiar with different religions and could not clearly distinguish their key features (3.1). By sex, females had better-developed intercultural competence (all dimensions) than males, however particularly large differences were observed between ratings of knowledge dimension: females (4.4), males (2.5). Knowledge dimensions ratings implied that respondents should pay more attention to the development of this dimension. Attitude is another important dimension of intercultural competence. It includes openness, curiosity, reciprocal and quality interaction between representatives of different groups, social classes, sexes or races, willingness to communicate with representatives of other cultures and to learn from them. As can be seen from Fig. 1, attitude dimension of intercultural competence was rated by respondents sufficiently highly (3.7). This showed that respondents were open and capable of accepting norms and values of another culture

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without prejudice, they did not avoid individuals from another culture (social group), although sometimes their behaviour seemed incomprehensible to the first ones (4.3); they also tried to overcome their negative feelings, if such arose from interaction with people from another culture (social group) (3.9). It is very important that employees of the companies under consideration are curious and interested in culture and customs of other countries; they try to communicate with the people of other nationalities in their language and behave in a way appropriate in the host country (3.6).
5 4,5 4

3,4

3,7

3,3

3,7

Rating

3,5 3 2,5 2 1,5 1

Knowledge

Attitude

Skills

Cultural awareness

Figure 3. Rating of respondents intercultural competence expression The third dimension of intercultural competence skills: skills of interpreting and relating (ability to interpret the events in a different cultural, ethnic or racial community, while explaining and relating them with the events in ones own culture) as well as skills of discovery and interaction (communicating with individuals from another community, display of flexibility and understanding, mimics, understanding of non-verbal communication). In the course of the research it turned out that this dimension was the least-expressed (3.3) (see Fig. 1.). This revealed that respondents skills of interpreting and relating were not sufficiently developed they experienced difficulties when relating the cultural events of other country with those in their own (2.9) and could not explain the events, festivals, customs and traditions of other cultural community (2.4). The fourth dimension of intercultural competence critical cultural awareness refers to respect for otherness, understanding people that are different, ability to respond to others without denigrating and criticizing. Critical cultural awareness helps to critically assess negative approach to another community while perceiving oneself as different with regard to that community, i.e., to understand how specific (e.g., religious or political) context affects individuals relationships with others. Some of the scientists (Fantini, 2000) have lay stress on the significance of critical cultural awareness, indicating it as the key composite of intercultural competence. It has been determined that critical cultural awareness dimension of intercultural competence of the respondents was expressed rather strongly (3.7). Nonetheless, comparing between sexes, cultural awareness of males (3.4) was weaker than that of females (4.2). Respondents approach to cultural diversity and its management. Cultural diversity refers to differences and similarities between members of one group in a certain company or society, comprising the following dimensions: race, sex, culture, disability, religion, sexual orientation and age (Thomas & Ely, 1996). After summarizing the findings of the research it became clear that respondents were positive about cultural diversity dimensions, except sexual orientation (see Fig. 4).
5 4,5 4

4,4

4,4

4,7 3,9

Rating

3,5 3 2,5 2 1,5 1

2,9

Sexual Religion orientation

Age

Disability

Culture

Figure 4. Rating of respondents approach to cultural diversity 888

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When evaluating the respondents approach to cultural diversity it was determined that they were capable of working in one team with people of another generation (much older or younger), they did not experience communication problems and this did not hinder satisfactory execution of tasks (4.4). Moreover, they approved of the attitude that people with disability were equally valuable employees of the company, capable of performing jobs consistent with their abilities (4.7), while peers of different sexual orientation did not cause them psychological discomfort (2.9). It is noteworthy that ratings of this dimension particularly varied between females (4.2) and males (2.1). Considering the expressed attitudes of employees who participated in the research towards cultural diversity it can be stated that cultural diversity offers more opportunities to enhance the performance regardless of the employees race, sex, nationality, age or religion, while all employees are capable of being flexible and adapting to each other for the common cause. Findings of the qualitative research disclosed positive approach of the surveyed companies managers to cultural diversity, i.e., according to them, individual belonging to another culture or social group is useful to the company because diversity of employees promotes different approaches, creativity and innovation. Cultural diversity management is doubtless beneficial to the company due to synergic effect: promotion of cooperation ensuring international success, maintenance of better relationships with clients and employees, occupation of new markets (segments), reduction of the number of conflicts with employees and enhancement of their job satisfaction. To manage cultural diversity, companies apply one of the following paradigms: discrimination and fairness, access and legitimacy or learning and effectiveness (Ely & Thomas, 2001). Companies of European countries generally apply discrimination and fairness paradigm (Kppel et al., 2007); however after conducting the research it became evident that employees of the surveyed production companies were the most positive about learning and effectiveness paradigm (4.3), i.e., they approached cultural diversity as the opportunity to learn from one another and plan work process more effectively (see Table 2). Table 2. Rating of cultural diversity management paradigm
Cultural diversity management paradigms Discrimination and fairness paradigm Access and legitimacy paradigm Learning and effectiveness paradigm Paradigm rating 3.9 3.5 4.3

In the course of the research it was also established that approach to cultural diversity management also depended on age: individuals below 29 were more positive about cultural diversity management (4.1) than those in the age group of 29 - 45 years (4.0) or above 45 years (3.9); and on sex: women more positive (4.3) about aspects of cultural diversity management than men (3.7). Findings of the qualitative research revealed that managers, when assigning tasks, did not take the employees age, sex, nationality etc. into account, because employee skills and nature of work were more significant factors to them. Furthermore, when assessing problems associated with cultural diversity management managers did not face employee resistance and intolerance to diversity and problems, therefore, did not arise due to application of cultural diversity management principles in companies. Results of interviews with the managers revealed that in researched companies cultural diversity was expressed weakly: only 10-15 of the employees from the companies participating in the research had direct contacts with partners, managers and customers of other cultures; the staffs of both companies were homogenous in terms of culture. It was observed that these production companies could be classified as monolithic organizations (Kppel et al., 2007); hence, in view of cultural social composition of the staff, the need for cultural diversity management was not established.

Conclusions
Global environment affects cultural diversity formation in organizations and this diversity is perceived as differences and similarities between members of one group. National culture is the key dimension of cultural diversity; however, the notion of cultural diversity includes other dimensions as well: age, sex, sexual orientation, disability, religion, social status etc. There are no doubts about the usefulness of cultural diversity management. Effectively managed, diversity can become a resource enhancing competitive advantage of the company. The key point of cultural diversity management is defined by two directions: creation of multi-cultural organization or cultural

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diversity management applying one of the following paradigms: discrimination and fairness, access and legitimacy or learning and effectiveness. Intercultural competence is the individuals competence helping them to successfully act in the context of diversified culture. It is defined as the individuals ability to act effectively and appropriately in the context of different cultures interaction, acquired based on certain knowledge, skills and attitudes. Four dimensions of intercultural competence are distinguished: knowledge, attitude, abilities/skills and critical cultural awareness. Empirical research of intercultural competence expression and cultural diversity management showed that intercultural competence of research participants was developed adequately, attitudes and critical cultural awareness were the most prominent dimensions of intercultural competence; staffs of production companies were homogenous, cultural diversity was expressed weakly and consequently there was no need to manage it; positive approach of employees to cultural diversity and its management created the prerequisites for possible application of principles of cultural diversity management concept in the companies while giving priority to learning and effectiveness paradigm.

References
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