Contribution of Cultural Diversity in Promotion of Innovation in Workplace
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This study aims to analyze the contribution of cultural diversity in promoting innovation in the workplace, with a focus on Volkswagen. It explores the impact of cultural diversity on the work environment and its role in promoting innovation. The study uses literature review and research methodology to gather and analyze data.
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Contribution of Cultural Diversity in Promotion of Innovation in Workplace
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Contents Abstract............................................................................................................................................4 1.1 Title of study..............................................................................................................................1 1.2 Introduction................................................................................................................................1 1.2.1 Background.........................................................................................................................1 1.2.2 Questions of Research........................................................................................................2 1.2.3 Aim of study.......................................................................................................................2 1.2.4 Objectives of Research.......................................................................................................2 1.2.5 Significance of research......................................................................................................2 2.0 Critical Review of literature......................................................................................................3 2.1 Introduction............................................................................................................................3 2.2.2 The concept of workplace diversity....................................................................................3 2.2.3 impact of maintaining cultural diversity on work environment of company.....................4 2.2.4 the way cultural diversity assists in promotion of innovation in company........................5 2.2.5 The way workplace helps the organisation in attaining success in market........................6 2.2.6 Conceptual framework of diversity in workplace..............................................................7 3.0 Research Methodology..............................................................................................................8 3.1 Ethical Consideration...............................................................................................................10 3.2 Timeline...................................................................................................................................10 .......................................................................................................................................................11 4.0 Results and Findings................................................................................................................12 5.0 Discussion................................................................................................................................13 6.0 Conclusion and Recommendations of research.......................................................................14 Conclusion.................................................................................................................................14 Recommendation.......................................................................................................................15 REFERENCES..............................................................................................................................16
Abstract The aim of study is to ascertain the contribution of culturaldiversity in promoting innovation at workplace. Volkswagen is one of the leading organisation which has culturally diverse workplace.The key purpose ofthis investigation is toanalyse the impact of cultural diversityonworkingenvironmentofcompanyalongwithitscontributioninpromoting innovation. There were many amounts of actions doneby researcher. Literature review is the activityof research that was used for gathering secondary data from books and many other aspects. Research gap was fulfilled by using research questions. Different approaches such as interpretivisim philosophy, inductive method, exploratory study project etc. were used by researcher for gathering and analysing secondarytype of data. Gantt chart was done by explaining time period of each activity effectively.
1.1 Title of study A study on contribution of cultural diversity in promotion of innovation in workplace. A study on Volkswagen. 1.2 Introduction 1.2.1 Background Diversity in the workplace is employingemployees who belong to different cultures and are not similarwith each other.These differences may be associated with thenational origin, education, age, gender, physical appearance, sexual orientation or religion of an individual. Cultural diversity is defined as the diverse cultures, as opposed toglobal monoculture or a homogenization of culture. Cultural diversity within the workplace is an outputs of values, practices, beliefs or traditions of workers based on race, ethnicity, religion, age or gender. The modern workforce is made up of people of different genders, ages, ethnicity, religions, and nationalities. There are different benefits of having diverse workforce at workplace for an organisation such as increase productivity, increase creativity, a Varity of perspectives, help in boosting brand reputation, increase innovation etc. These are major benefits of workplace diversity that helps an enterprise in improvement of its success at national as well as global level (Al-Jenaibi, 2017). However, there are number of issues that can be face by a companylike high employee turnover, poor innovation, reduced success, lack of growth, etc.if it is having lack of cultural diversity. All these are major issues that an organisationmay face is due to lack of diverse staff in the workplace (Cho, Kim and Mor Barak, 2017). For addressing these issues and ensuring growth and success of company, it is very crucial to properly execute and manage diversity in workplace as it will assist organisation by enhancing innovation, gaining competitive advantage and increasing creativity etc. that ultimately leads the company to success and growth. Thisresearchgroundedonautomotiveindustrythatcomprisesawiderangeof organisations and companies involved in the development, manufacturing, promoting and selling of motor vehicles. Volkswagen is a given automotive organisation that was founded in 1937 by German Labour Front. Key basis for choosing this topic is to increase awareness regarding the impact of diversity at workplace. This research is wide scope because it will help individual, organisations and societies by providing information regarding the workplace diversity in promoting of innovation 1
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(Burke, 2016). Along with this, main reason for selecting automotive industry or Volkswagen is it is a large organisation that supports societies by providing job opportunities, improving living of standards etc. 1.2.2 Questions of Research What is the concept of workplace diversity? What is the impact of maintaining cultural diversity on work environment of company? In what way cultural diversity assist in promotion of innovation in company? How diversity in workplace help the organisation in attaining success in market? 1.2.3 Aim of study The aim of this investigation is “To study the contribution of cultural diversity in promotion of innovation in company. A study on Volkswagen.” 1.2.4 Objectives of Research To understand the concept of diversity in workplace. To assess the impact of cultural diversity on workplace environment. To determinethe contributionof culturaldiversity in promotion of innovationin company. To identify the relation between diversity in workplace and success of company. 1.2.5 Significance of research This investigation is based on the topic “to investigate the contribution of cultural diversity in promotion of innovation in work place”. Investigating this topic is significant for researcher as it helps in gaining deep insights on the topic. It assists in understanding the workplace diversity concept along withthe impact of cultural diversityon work environment of firm.This research also assists in analysing the contribution that cultural diversity makes in promoting innovation at workplaceanddeterminingtherelationshipbetweenworkplacediversityandsuccessof organisation(Barak, 2016).The study is also significant for academic purpose as other scholars can use it as base for doing further investigation. This helps the company in determining the influence and maintain cultural diversity in the work place so that creativity and innovation can be promoting effectively in the workplace on continuous basis and help organisation to get competitive advantage over rivals in the market and attain sustainability for long term in an effective and efficient way. 2
2.0 Critical Review of literature 2.1 Introduction LiteratureReviewischaracterisedasthesystematicprocedureforidentifyingand synthesizing data and information. In the review of different literatures, the opinions and ideas of different authors are compared and the gaps existing in the literature are determined. In addition to this, critical evaluation of information is done in literature review section in which a lot of information over the topic is collected by the researcher. In this investigation, different article and journals which are published previously are reviewed by the investigator on the specific topic on which this particular investigation is based (Ellemers and Rink, 2016). This is the appropriate way to gather secondary information on the topic.This literature review is performed on the title “To study the contribution of cultural diversity in promotion of innovation in company”. In this, the review of articles and journals is done based on the distinct themes associated with the area of study (Burke, 2016). The literature review in relation to different themes associated with this investigation is discussed below: 2.2.2 The concept of workplace diversity According to the view point of Talathi (2020), Workplace diversity is the concept which is associated with the workplace which is composed of workforce with different characteristics including ethnicity, gender, race, sex, sexual orientation etc. When there is broad range of characteristics as well as experiences available in the organisation among the employees, then it can be said as workplace diversity. Variety of differences exist in the organisation provide it with various advantages including innovative culture, improve productivity, enhanced performance, competitive advantage etc. Diversity not only involves the way people determined themselves, but the way other people perceive them (Cho, Kim and Mor Barak, 2017). As per the view point ofSophia Lee, (2019),Workplace diversity helps in fostering mutual respect among workforce and provides a variety of benefits to the organisation in terms of improved productivity, wider talent pool, more innovation and creativity, better performance of employees, increase profits (Diversity in workplace – challenges and benefits, 2019). It helps in developing good environment and culture within the workplace where employees are able to work more productively towards accomplishment of organisational goals. It helps in bringing innovation and creativity in the workplace as when different ideas and talents are available in the 3
organisation then it leads to innovation. Having culturally diverse workforce in the workplace provide an opportunity to company to gain competitive advantage in market over the rivals and operate its business successfully at both national and international level(Davis, Frolova and Callahan, 2016). 2.2.3 impact of maintaining cultural diversity on work environment of company According to the opinion of Vaux (2019), the companies frequently struggle for better multiplicity in their staff members and for this, they are recruiting workforce of dissimilar age, gender, ethnicity, religion, colour, culture etc. to ensure more diverse knowledge in workplace. Multiplicity at workplace transmits by means of it a palpable amount of advantages. There is positive impact of cultural diversity on working environment of business entity as it will assist in developing the workforce which is of diverse nature. Cultural diversity provides the company with the advantage to get competitive edge in market and attain high growth along with sustainability for long term. As per the view point ofMazibuko and Govender, (2017),cultural diversity in workplace influence positively on working atmosphere of company. It provides various advantages to companyintermsofimprovingcreativityandproblemsolving,costbenefits,resource acquisition etc. A culturally diverse workplace creates a sense of harmony among employees that in turn increases productivity of company. It also allows manager to execute the plans effectively and reach to the goals which are pre-set by the organisation. Improve the efficiency of employees as well as organisation that leads to improving productivity. However, workplace diversity also brings some challenges for the company including communication issues that may hinder the performance of employees. Resistance to change is the another challenge that an organisation may face due to workplace diversity(Ellemers and Rink, 2016). As per the opinion ofMary Jones,2019, the factor of cultural diversity in the working environment in the organization perspective where it brings the equality opportunity driven in the premises. To reduce the discrimination and biasness factor in terms of age, gender and diverse of the working process handle by employees and it brings flexibility which enhance the productivity, it facilities to which opportunity driven in the context of the new platform where workforce contribute their effective performance through optimum skills and knowledge by an individual. The regulation of pay structure would be conduct in compliance format and distribute through equal mannerism. By not promoting the gender discrimination as in men and women to 4
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procuring the more importance to the men as in salary basis and promotion where women are not get equal rights. This type of propaganda should not have promoted in the organization premises it will create conflict in the organization. By enhancing the effective laws and acts should applicable like employment act, sexual harassment, bonus acts and many more all these regulations will persuasion positive environment in internal premises(Enoksen, 2016). 2.2.4 the way cultural diversity assists in promotion of innovation in company According to the Hewlett, Marshall and Sherbin (2013), Maximum of the directors of an organisations are accepting that managers advantage as of a varied staff, nonetheless the impression can be solid to display or enumerate, particularly at what time it originates to determine in what way assortment impacts a business’s aptitude to revolutionise. Assortment helpsanorganisationbyunlockinginnovationanddiversemarketgrowth.Workstation assortment solves novelty by developing a setting where “outdoor the box” thoughts are caught. Whilst sections practise a significant mass and leader’s value differences, entire workforce can analyse senior persons to drive to paddle for enthralling thoughts as well as can encourage those within custody of resources to organize capitals to create those thoughts (Fletcher, 2017). As per the view point of Ruthie Miller, (2018), cultural diversity promotes innovation by developing an environment where all the employees think out of the box. Cultural diversity brings diversity of opinions and ideas can lead to creativity and fuel innovation. When multiple perspectives and background are represented and the differences are valued by leaders, all the workers feel comfortable in sharing ideas and opinions. Apart from this, in today's economy, competition for talent is high. If an organisation wants to attract talent, it is very necessary to cultivate an inclusive as well as diverse workforce (5 Reasons of Diversity Drives Innovation to Small Businesses, 2018). By emphasizing on providing safe environment to make mistakes and decisionstoemployees,theorganisationcanprotectbuddinginnovationinworkplace. Innovation and diversity are highly interlinked with each other as if workforce with diverse skills and competencies are available in the workplace then it helps in bringing innovation. As per the opinion of theLouise Petty, 2016. By the cultural diversity to scrutinize the lacking factor which helps to improvisation the organizational structure as well as enhance the new creativity and innovative activity through providing the platform where participation is engaging for sharing new ideas related with working related. By facilitating the training program where underperformer employees could learn new skills and techniques to assort in their work it 5
will enhance the productivity.Equality brings many opportunities to company and supports in attaining good position in market. It provides organisation with the advantage to accomplish high productivity and profitability and achieve competitive advantage in market over the rivals. Cultural diversity helps in bringing different skills and talent in the workplace which ultimately promotes creativity and innovation in the organisation.(Flood, and Howson, 2015). 2.2.5 The way workplace helps the organisation in attaining success in market According to the opinion of Sling(2020),workplace diversity is one of the crucial aspect of an organisation that leads the firm towards success in marketplace.The diversity in workplace support it by rendering numerous advantages like better employee performance, competitive advantage, development of skill, a larger talent pool, excellent knowledge base, original novelty, admittance to a wider client sordid, etc. All these are key benefits that company will get of maintaining diversity in workplace that supports it in attaining success in market. According to the view point ofFry, 2015, workplace diversity helps in developing a large pool of talent in workplace who have different ideas and opinions, when work collectively then leads the company towards attaining success in market.It assists in developing culturally diverse workplace where there has been diversity of ideas and opinions which helps in promoting innovation and creativity in the organisation and leads the company towards growth and success. It also helps an organisation in gaining competitive advantage in market and developing good brand image. It helps in increasing productivity and performance of employees as when diverse workforce working together, they are able to perform their roles and responsibilities more effectively which leads to improving the productivity of company, and thus helps in attaining success in market (Fujimoto, and Härtel, 2017). On the point of view ofSomen Mandel, 2020. Through the influence from the workplace diversity can effectively bring positive outcomes in different situational to making engaging the higher workforce more platform of benefits and provide the proficient training and development to the unskilled employees where they get to experience new optimization of objective in workplace to accomplish successfully. Employees should have good communication and better formation of coordination allows the flexibility in organizational work and objectives attains in the positive manner, to not promote any segment of discrimination factor to reduce the negative environment in the organization(Gabriel, 2015). 6
2.2.6 Conceptual framework of diversity in workplace Figure1Conceptual framework of workplace diversity (Source: Conceptual framework of diversity in workplace, 2020) 7
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3.0 Research Methodology Research methodology introduces as the procedure of collection and analysis, interpretation of information regarding the research topic.Different methods are involved in the research methodology that help investigator in performing the investigation systematically. Different methods which are utilized in relation to this research are mentioned below: Research philosophy:The research philosophy is classified as positivism, interpretivism, realism and pragmatism. It deals with nature, source and development of knowledge. It is defined as the belief regarding the ways through which data must be collected and utilize. In pragmatism philosophy, details collected through mixed method, highly structured data is collected in positivism philosophy, in realism The chosen method should fit the subject matter and in interpretivism small samples are used to collect data. In this investigation, interpretivism philosophy is considered as it is based on naturalistic approach and related to high validity level (Fujimoto and Härtel, 2017). ResearchApproach:Twoapproachesofresearchinvolveinductiveanddeductive. Inductive research approach is not based upon a particular theory and includes observation and development of theory. On the other hand, deductive approach initiates with theory and testing of those theories. It involves formulation of hypothesis and its testing to analyses results. Inductive approach is taken into consideration in this study as it is relevant according to the topic and assist the researcher in drawing valid research outcomes(Jin, Lee and Lee, 2017). Research design:The research design consists of experimental, exploratory and descriptive. Exploratory research involves exploration of new phenomena. Descriptive research helps in getting large amount of data to answer the research question of appropriately and experimental research is based on scientific research design. In this investigation, the researcher considers exploratory research design as this help investigator in gaining better understanding about the topic(Syed and Ozbilgin, 2019). Data gathering methods:It is the process through which the data about particular study is collected. It can be done in two ways through primary and secondary methods. Fresh information is gathered in primary research and articles and journals are used to collect secondary data (Mazibuko and Govender, 2017).This investigation considers secondary data collection method as through this, researcher is able to gather large amount of information. The secondary method 8
of collecting data helps the researcher as this will help in gathering adequate amount of data over the particular research topic which assist in ensuring the accuracy of research outcomes. Sampling:It is referred as the process through which researcher select sample size from large population. In context of probability sampling, the chances of selection for each respondent is equal whereas, the selection is done on the basis of subjective judgement. In this investigation, random sampling is used to select sample from population. The main reason behind selecting this sampling is that it provides each respondent with similar chances to get select as a participant from research(Gordon, 2018). It also helps in ensuring that no biasness takes place at the time of choosing respondents. 20 respondents are selected who are the employees of Volkswagen. Method of data analysis:In research, data can be analysed through qualitative and quantitative methods.In quantitative data analysis, data can be analyzed through descriptive and inferentialanalysis. And thequalitativedatacan beanalysed throughnarrativeanalysis, grounded theory, content analysis and discourse analysis. In this study, the data is analysed through descriptive analysis method as this assist researcher in find out absolute numbers for summarizing individual variables. Reliability:Research reliability is defined as the extent to which the methods of research produces consistent and stable outcomes. In research, it is highly important aspect as it assists in ensuring the affective outcomes of research. It also helps in ensuring that it has positive implication on other areas of study and allow a researcher to develop further investigation in the similar field.In order to ensure reliability of data, the research will gather the data from authentic and relevant sources and ensure that the data older than five years can not be included in the investigation(Hideg and Ferris, 2016). Validity:Research validity is defined as an indication of how is effective the research is. At the time of collecting data, it is required by researcher that it ensures validity of research. Validity in collection of data means that the findings of research truly represent phenomena that an individual claiming to measure. In order to ensure the validity of data, researcher will take into consideration various aspects at the time of collecting data and drawing outcomes. Apart from this, the researcher ensures that all the data is collected through authentic sources so that valid outcomes of investigation can be drawn(Jin, Lee, and Lee, 2017). Limitations of study:Limitations of research includes those constraints that influence the outcomes of research. There are some limitations in the study including lack of reliable data 9
which limits the scope of research. Apart from this, sample size is the another limitation as it is directed by the type of study. If the sample size is small, it is not easy to find out significant relationship from data. Moreover, time and cost are also the two key limitations of research. Lack of time and inadequate funds may create issues in performing the research successfully on time. 3.1 Ethical Consideration It is very crucial for the investigator to ensure that the research is performed systematically so that valid outcomes can be drawn. In the research, some ethical considerations are there considerationofwhichassistresearcherinperformingthestudyethicallyandinmore appropriate manner (Ordu, 2016).The ethical considerations associated with this investigation includes anonymity and confidentiality of data, privacy of personal information of respondents, informed consent of participants etc. The investigator is required to take informed consent from participants prior to the investigation at the time of collecting primary data. Apart from this, it is very essential to ensure privacy and confidentiality of personal information of participants and other information regarding research. 3.2 Timeline A Gantt chart is a representation of horizontal of graphical presentation of significant task and group which are to the research point of view. It helps to makes the researcher clarity, transparency, about the data simplicity in research(Kato, and Kodama, 2015). Gantt Chart is very useful for essential for researcher as it facilitates time distance for each particular task which helps to leads the better understanding from starting and ending of particular task and also reaching to accomplish the objectives and completion of research data work(Shore, Cleveland and Sanchez, 2018).Gantt chart assist in identifying the initiation time of particular activity along with its finishing time. The Gantt chart associated with thisinvestigation is mentioned below: 10
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4.0 Results and Findings Workplace diversity is characterized by the variety of differentiations between people in an organisation.Theworkplaceiscomposedofworkforcewithdistinctcharacteristicslike ethnicity, race, gender, age, colour, caste, creed, sexual orientation, education etc. In the diverse workplace, workers with wide range of experiences and characteristics are found who highly contributes in leading the organisation towards success and growth. It has been found from the review that diversity in workplace assist in fostering and encouraging mutual respect among the employees and also render the organisation with wider talent pool, more innovation, better performance, enhance productivity, maximize profits and many more(Klarsfeld, and et. al., 2016). With the help of diverse workforce, an organisation like Volkswagen enable to bring innovation and creativity within workplace that ultimately helps company in getting competitive advantage in market over the rivals. It provides the opportunity to business entity to run its business operations successfully at National as well as international level. Apart from this, it has been found that cultural diversity highly influences the working atmosphere of company.From the review and analysis of secondary data, it has been found that Cultural diversity is representing the existence in the society where set of beliefs and ethics are regulated which occur disciplinary action. In organization context, the presence of cultural diversity allows the equality and diversity in terms of equal job role and responsibility as well as salary as well as individual get the probability to accomplish his targets through the potential aspect.There is positive impact of cultural diversity on workplace environment. Cultural diversity encourage innovation by enabling employees to think out of the box.The employees who are belonging from different cultures have distinct ways of thinking and they think in different manner which helps in promoting creativity and innovation in the company(Koskinen Sandberg, 2017). It has been found that culture is referred as an integrated system of behaviours, values and beliefs which are shared by the employees in the organisation. Diversity initiatives taken by company help indevelopinggood cultureof organisationand alsoencourageemployeesto work collectively with each other and perform their roles and responsibilities in more effective manner. Maximizing cultural diversity force the company to learn and motivate individuals with widerrangeof valuesystem(Krishnaswamy,2016). Thecompanyneedstoacceptand understand communication and cultural differences, show respect, treat individuals equally, 12
provide them with equal opportunities to grow and develop, be flexible to communicate issues or problems in workforce environment etc. It has been found from the review of literature that cultural diversity in the organisation help workforce to learn from one another and to understand their differences. It affects the business in various ways involving staff retention, decision making process, management styles and relationship with company(Oyet, Arnold, and Dupré, 2019). It often develops and improve the workplace by helping employer and employees to get learning experiences. When diversity is embraced within the organisation and the company realise its benefits, it can able to compete and succeed more effectively. It also has been found from the review that employees belonging to diverse backgrounds imbue companies with new creative ideas as well as perspectives which are informed by their experiences. Diverse work place assist company to better understand the target demographics and align with the organisation culture in better way. It will help in increasing the satisfaction of customer by enhancing the way employees interact with them. It has been analysed from the review that workplace diversity highly contributes the company to attain success in the market. By providing various benefits to company in terms of development of skills, wide talent pool, increasing profitability, it leads the organisation towards success(Panicker, Agrawal, and Khandelwal, 2018). 5.0 Discussion From the above results and findings, it has been analysed that the organisation must maintain equality in diversity in workplace as it is the crucial aspect of company. By maintaining diversity at workplace, an organisation can maintain wider pool of talent that lead it towards success and growth. Apart from this, the way of thinking of each individual is different, so if company maintains diverse workforce in the workplace, it helps the employees in learning with each other as the ideas and views of each individual are different. Employees can learn many things from each other by working collectively and are able to perform their roles and responsibilities in more effective way(Ravazzani, 2016). Cultural diversity in the organisation enable employees to think out of the box which resulted to promoting creativity and innovation in the workplace. If diverse range of skills and knowledge base are available in the company, then it becomes easy to gain competitive advantage over the rivals. So, it can be said that it is very essential for the organisation to maintain diversity at workplace and promote healthy culture by recruiting workforce with diverse characteristics. In 13
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addition to this, cultural diversity and success of company are linked with each other. cultural diversity helps in improving productivity of work force which lead the company towards success (Rojas, 2018). Diverse workplace is also beneficial for the employees as it helps them in learning so many things by working with each other. This also helps in promoting collective working within the firm which makes the employees enable to perform their duties more effectively and contribute in the success of organisation. So from the overall discussion, it can be said that maintaining diversity in workplace impacts positively on the innovation capability and success of organisation and highly contributes in leading it to growth and success and attaining long term sustainability in the market.So, it can be said that this study proves to be very effective in attaining all the objectives of the research(Wiek and Lang, 2016). 6.0 Conclusion and Recommendations of research Conclusion From the above analysis, it can be concluded that diversity in workplace as essential aspect for company and it must put its efforts in maintaining diversity in the workplace by hiring employees from diverse backgrounds, provide diversity awareness training to employees etc. Apart from this, it impacts positively on the workplace environment as it helps in maintaining effective culture within the workplace which allow the employees to work effectively. Healthy workplaceenvironmentencouragesemployeestoworkmoreproductivelytowards accomplishment of organisational goals. Moreover, cultural diversity also helps in promoting innovation and creativity in the workplace. If the organisation has diverse people, then it helps in promoting a lot of ideas in the workplace which leads the company towards growth and success. It also assists in promoting innovation within the organisation and provide competitive edge to the company over its rivals. The success of company and the cultural diversity are linked with each other. Both these aspects have direct link as cultural diversity in the organisation leads it towards success. It provides various advantages to company including improved profitability, reduced employee turnover, healthy workplace culture etc. The organisation needs to put continuous efforts towards maintaining diversity in the workplace and sustaining its position in the market for long term. 14
Recommendation It is recommended to the company that it should provide training on diversity awareness to employees so that they get aware about significance of diversity in the workplace and enable to understand each other and work collectively for achieving success of organisation. In addition to this, the company must recruit employees with diverse backgrounds so that a pool of diverse candidates can be developed and the organisation have skilled and knowledgeable employees which are able to accomplish goals of organisation. Recruiting diverse workforce will help in encouraging creativity and innovation in the company that provide it with a competitive advantage in market. Apart from this, the company should promote mutual trust and respect among employees so that each individual has the feeling of respect towards one another and they all work together for attaining company's goals and objectives in an effective way. 15
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