importance of multinational companies and its scope

Student Name: ShaistaParveen
Registration Number: 2101280
Course Name: Research Methods
Course Module: BE-955
Date: 15/1/2022
Word count: 2000

Table of Contents
1. Introduction.................................................................................................................................3
2. Rationale for the research...........................................................................................................3
3. Objectives and Scope of research...............................................................................................4
4. Literature Review........................................................................................................................4
4.1 Key Definitions:.....................................................................................................................4
4.2 Role of leaders.......................................................................................................................6
4.3 Existing studies......................................................................................................................6
4.4 Gaps in literature....................................................................................................................7
5 Methodology.................................................................................................................................7
5.1 Research philosophy, approaches and design........................................................................7
5.2 Main data collection and analysis techniques........................................................................8
6 Expected outcomes......................................................................................................................8
7 TIMEFRAME..............................................................................................................................9
REFERENCES..................................................................................................................................10

Managing cross-cultural differences in the workplace
1. Introduction
As the world is becoming a global village, companies and organizations are spread far and wide over
the world, functioning in multiple countries at once(Richardson, 2005; Singh, 2008). These
multinational companies are workplaces of multicultural employees working in unison. These
companies present opportunity for cultural growth, social interaction and financial advantage by
creating global competitiveness(Kundu, 2001). Therefore, challenges and opportunities in cultural
diversity need to be outlined. Thus Cultural diversity offers potential for competitive and innovative
thinking. However, multicultural employees also present cultural differences which have the potential
to hinder productivity and positivity in a workplace. These cultural differences occur at national level,
organizational level, and occupational level and gender levels(Issa Kawar, 2012). In order effectively
manage these cultural differences, managers and leaders need to be aware of their workplace
dynamics and find ways to promote organizational well-being through the cultural diversity. This
research will focus on finding manager’s perceptions of managing diversity in the workplaces.
2. Rationale for the research
Martin Khor predicted in 2017 that politics and dialogue are expected to become limited and divisive
across American and European landscape, in light of the changing leaderships and
secularisation(Khor, 2017). In such situation, international business owners and workers are crucial
to maintaining positive relations with cultures and nourishing international dialogue. This strategy can
only help businesses grow more successful and competitive in the international market(Reynolds,
2019).Cullen, J.B. and K.P. Parboteeah(2008) reported that managers of multinational companies
need to be culturally intelligent. They are expected to have knowledge and understanding of external
and internal politics in workplace to be efficient at managing diversity(Cullen & Parboteeah, 2008).
Leaders are required to be aware of the cross-cultural differences in order to efficiently play them to
advantage. However, there are gaps in literature including a lack of analysis on organizational level,
tokenism and highly arbitrary research situations. Additionally, the interplay and role of managers and

leaders in culturally diverse workplaces hasn’t been studied(Jonsen et al., 2011).Therefore, it is
essential to fill the gap on roles of managers and leaders in managing cross-cultural conflicts and
promoting intercultural collaboration in workplaces.
3. Objectives and Scope of research
Due to the challenges faced in managing a culturally diverse workforce, organizational managers and
leaders of the future need to be aware of management tactics and strategies employed by leaders
today(Singh, 2008). This research may help initiate conversation regarding efficient management of
culturally diverse workforce. Kaiser Permanente is a USA based company which employees a wide
range of culturally diverse workers. The company is known for being included in the Hall of Fame on
DiversityInc.(Socialtalent, n.d.). This study will focus on the strategies employed by Kaiser
Permanente in managing its diversified workforce. The objectives of this study are:
 To study how different kinds of cultures are represented in workplaces
 To study what kind of challenges are created due to these differences
 To study what potential benefits cultural diversity has for companies
 To study how managers and leaders perceive the conflicts arising due to cultural differences
 To study what tactics and strategies managers use to overcome the issues
The main research questions of the study are as follows:
1. What are the challenges faced due to cultural differences in workplace?
2. How does cultural diversity benefit the workplace?
3. How do leaders manage cultural issues in the workplace?
4. Literature Review
4.1 Key Definitions:
4.1.1 Culture
The word ‘culture’ is originated from the Latin word cultura.Cultura is derived from colo in Latin,
meaning to cultivate, to tend etc. Thus it is associated with agriculture, horticulture etc. Culture, thus,
means to cultivate the human character(Minkov, 2014). Culture is defined as the motivations, beliefs

and perceptions that lead us to take certain decisions in a specific way. Culture is inhabited in the
thoughts, emotions, and reactions of a person and rooted in beliefs and values(Antonio Lebrón, 2013).
Hofsted defines culture as the the shared design of the mind which differentiates the fellows of one
group from another, passed down through generations and constantly changing as affected by each
generation(Hofstede, 1980). Culture affects the way we communicate, react and negotiate in the
workplace(Belshek, n.d.).
4.1.2 Kinds of cultures
IssaKawar (2012) outlined four main kinds of cultures that are typically experienced in a workplace.
The first are National level cultures are those which are unaffected by individuals perceptions and stay
firm in their values despite surface practice changes. The Organizational level cultures occur at the
level of practices and differ from company to company in any country. The third are Occupational
level cultures that occur between national and organizational level cultures, rooted in social values
and beliefs of any occupation. The fourth are Gender level cultures, which define how a gender
defines, acts, reacts and communicates in the workplace through the beliefs and values rooted in their
national culture(Issa Kawar, 2012).
4.1.3 Cultural differences
Cultural differences occur in thinking patterns, reactions, way of communication and values. Hofsted
defined four aspects which differentiate cultures. The first aspect is Individualism versus
Collectivism; who is valued more, person or groups. The second aspect is Power distribution; whether
a culture believes that the power in an organization should be distributed equally or in a hierarchy.
The third aspect is Uncertainty avoidance; how open are cultures to changes and how rigid are their
beliefs. The fourth aspect is Masculinity vs. Femininity; read in values, perceptions, roles and
expectations(Hofstede, 1980).

4.1.4 Cross Cultural Conflicts:
Cross Cultural conflicts are defined as the competition between people or groups to achieve
incompatible goals, power or resources. Cross-cultural conflicts in a workplace occur due to the
individuals’ divergent perceptions of goals, resources, power and success(Avruch, 1998).
4.1.5 Cultural Diversity
Cultural diversity is defined as an open-ended concept, referring to the reality of synchronous
occurrence of diverse thoughts, values, arts, customs, traditions, abilities, perceptions, genders, races,
languages etc.(Lin, 2020). Cultural diversity in a place can depend on the four kinds of cultures
mentioned above.
4.2 Role of leaders
When a company spreads geographically, it tends to transform into a multi-cultural organization. This
provides the company with a culturally diverse workforce(Singh, 2008). Due to the cultural
differences, managers and leaders may face challenges and issues in managing their workplace.
Moreover, the leaders need to recognize opportunities for creative thought and innovation in the
workplace(Singh, 2008). The role of the leaders in a culturally diverse workplace is to recognize
cultural diversity, understand cultural differences and the conflicts arising from these differences,
mitigate issues and provide opportunities to motivate cooperative communication to ensure higher
productivity(Erar Yusuf & Meitientje, 2016).
4.3 Existing studies
There are several studies over the year which have focused on studying the diversity management in
workplaces. Tutar, Altinoz and Cakiroglu (2014) conducted a study to reveal the perceptions of
company managers in managing cultural differences. The study covered a range of notable
multinational companies operating in Ankara. These included Coca Cola, Siemens, Metro, Carrefour,
IKEA, Bauhaus and Media Market among others. The research was conducted through structures
questionnaires. This study revealed that multinational company managers of these companies were
aware of the cultural differences and the challenges and opportunities. Moreover, they had the skills to

transform differences into positive outcomes(Tutar et al., 2014). Raewf and Mahmood (2021)
conducted a study to research the value of cultural diversity in workplaces in Iraq. The research was
framed to evaluate the perceptions of leaders regarding cultural diversity in workplace. The study
concluded that the respondents did not face racism due to cultural differences. However, this study
has gaps because the chosen companies don’t represent a large number of culturally diverse
workforce. Moreover, this study doesn’t discover the methods and strategies used by leaders in
management (Raewf & Mahmood, 2021). Rajesh Mankani also conducted a study on assessing the
strategic management tactics of two major IT companies in managing cultural diversity. This study
focuses on methods used by the companies to transform the diversity weaknesses into strengths
(Mankani, 2017). Kamal and Ferdousi (2019) also conducted a study to find out the diversity
management tactics of a multinational company, HP. This study analysis HP’s diversity management
model in detail with a trends analysis over the years. However, the study lacks one-on-one
conversation with the leaders and managers at HP (Kamal & Ferdousi, 2009).
4.4 Gaps in literature
The aforementioned studies have great potential in developing a theoretical base for further research
on workplace diversity management. However, there is a lack in outlining clear problems and their
solution tactics used by managers and leaders. Insights into the exact methods used by managers can
help us understand how cultural differences can be transformed into beneficial opportunities in a
culturally diverse workplace.
5 Methodology
5.1 Research philosophy, approaches and design
The philosophical approach for this research is Ontological. Ontological approach is employed to
study the reality of being, the study of relationships and structure(Crotty, 1998). The study is directed
at relationships formed between people in socially diverse workplaces, as well as the impacts and
challenges faced by the managers in a socially diverse workplace. Moreover, the relationship between
leaders and employers is studied, thus an ontological approach is appropriate. The approach to theory
development will be deductive. This approach will allow me to confirm if my existing hypotheses are

correct; and how researchers have approached these questions in the past researches. This will be
done by formation of a theoretical base through critical review of previous studies and literature.
Qualitative research approach will be used for research as it is most appropriate for discovering
relationships between participants. Here the participants are managers or leaders and the workers.
Research strategy will be through surveys. Survey strategy will be used as it is most suited to
deductive theory development; allowing qualitative surveys of participants. This will allow to directly
interview and question the employees and managers, who are the participants, and ask open-ended
questions for qualitative survey. The time horizon for research will be cross-sectional.
5.2 Main data collection and analysis techniques
Main data collection method will be through online survey instruments for employees and interviews
of managers. The online survey instrument allows users at the company to fill survey questionnaires
at their ease without any pressure of time as well as preserving anonymity. Moreover, it is best suited
in Covid scenario by reducing risk.It will also ensure efficient collection of results. The collection
methods are mixed, I-e: survey and instruments. The data collected in survey instrument will be
analyzed through thematic analysis. The employees’ diversity will be recognized in establishing
targeting groups. Thus the exact sample will be identified. The employees will be asked questions in
survey to judge their perceptions of diversity, the challenges they face and the conflicts they have had
due to cultural differences. The data will go through thematic analysis to judge patterns and recognize
realities of a diverse workplace. The interviews with managers will help understand their perceptions,
the difficulties they face, and the methods they use in order to mitigate consequences as well as
encouraging opportunities.
6 Expected outcomes
The expected outcomes of this research are to find the existing knowledge regarding management of
diversity in workplace, to identify the challenges and issues faced by the workers and managers due to
cultural differences and to layout the tactics used by the leaders to reduce conflicts and encourage
productivity. This research will give us insights into the managerial tactics of one company and allow

us to build more studies and research on this basis. This research will also allow us to develop an
understanding of contributions of a diverse workforce to a workplace.
7 TIMEFRAME
TIME FRAME GOAL
February The first step is secondary data collection
through establishing theoretical base through
primary research. This will be conducted
through critical review of existing literature.
March Outlining questionnaire and interview questions
for both employees and managers.
March Achieving ethical approval
April Approaching the company and establishing
communication
April-May Primary research which will include the
conduction of surveys and interviews as well as
establishing data on the company itself
May-June Analysis of collected data
July Final submission
The contingency here is that the company may not consent to communication. In that situation, I will
need to find another company to study. For that situation I have left a period of two weeks, which will
allow me to find another company in case the first doesn’t consent.

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