Impact of Managing Cultural Diversity on Business Performance and Productivity

This study investigates the impact of managing cultural diversity on business performance and productivity, focusing on Lotus Car Ltd. It explores the significance of cultural diversity, key strategies for its creation, and the use of questionnaire and quantitative research methods. The research aims to review the concept of equality and diversity, determine the impact of managing cultural diversity on business performance, and investigate key strategies for better development of cultural diversity and equality at Lotus Car Ltd.

Unit - 11
Executive summary
The current study is based on topic of Impact of managing cultural diversity on business
performance and productivity for which chosen company is Lotus Car Ltd which is a well known
British automotive company. This particular report facilitates enhanced information about the

significance of managing cultural diversity along with its impact on company performance and
success along with key strategies for better creation of cultural diversity. Use of questionnaire
and quantitative method of research is made which provided a more measurable and specific set
of recommendation and conclusion.
Table of Contents
Executive summary..........................................................................................................................1
Research Title: Impact of managing cultural diversity on business performance and productivity.
A research project on Lotus cars ltd................................................................................................1
Chapter 1: Introduction....................................................................................................................1
Background to the study.........................................................................................................1
Research aim and objective....................................................................................................1
Rationale for the research.......................................................................................................1
Research questions.................................................................................................................2
Chapter 2: Literature Review...........................................................................................................2
Chapter 3: Methodology and data collection...................................................................................4
Chapter 4: Data analysis and interpretation.....................................................................................8
Chapter 5: Research outcomes.......................................................................................................14
Covered In PPT....................................................................................................................14
Chapter 6: Conclusion and recommendation.................................................................................14
Conclusion............................................................................................................................14
Recommendation..................................................................................................................15
Chapter 7: Reflection and Recommendation of alternative research methodology......................15
Refection on effectiveness of current method......................................................................15
Alternative research methodologies and lessons learnt........................................................16
REFERENCES..............................................................................................................................16

Research Title: Impact of managing cultural diversity on business
performance and productivity. A research project on Lotus cars ltd
Chapter 1: Introduction
Background to the study
Managing cultural diversity has become vital and crucial for all organisation as the concept
globalisation and enhanced level of competition had lead an enhanced pressure on companies to
have a more competent and skilled workforce with diverse talents (Arenas and et. al., 2017).
Thus, the concept of cultural diversity is mainly associated with a fair recruitment and selection
process that emphasis on recruitment of talented candidates from diverse culture without any
kind of discrimination. Therefore, current investigation is lead out on Lotus car Ltd which is well
known British automotive company the headquarter of which is located in Norfolk, England to
analyse about the impact of managing cultural diversity on business performance and
productivity.
Research aim and objective
Research aim
To review about the concept of equality and diversity along with impact of managing
cultural diversity on business performance and productivity. A research project on Lotus cars ltd.
Research objectives
 To review about the concept of equality and diversity along with its significance for a
business organisation.
 To determine the Impact of managing cultural diversity on business performance and
productivity of Lotus car Ltd.
 To investigate about key strategies and practises which support better development and
creation of cultural diversity and equality at workplace of Lotus Car Ltd.
Rationale for the research
The selection of current research topic is rationale and significant for business firm as it
facilitates information about the key strategies which support better development and creation of
cultural diversity and equality which is vital to improve creativity and efficiency level of a
workforce to achieve higher performance. Further, selection of current research topic also meets
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the personal interest and academic needs of researcher along with facilitating improvement in
skills and knowledge level.
Research questions
 What to be meant by the concept of equality and diversity along with its significance for
a business organisation?
 What Impact of managing cultural diversity is seen on business performance and
productivity of Lotus car Ltd?
 Which are the key strategies and practises which support better development and creation
of cultural diversity and equality at workplace of Lotus Car Ltd?
Chapter 2: Literature Review
It is a review that is developed of a scholarly paper by which better knowledge is presented
that also consists of substantive findings in addition to methodological and theoretical
formulation as about specific topic. It provide sustained summary of relative field by which
identification and relevance of source is processed and it is processed with professional and
academic articles (Boone, 2017).
To review about the concepts of equality and diversity along with its significance for a business
organisation
As per according to the viewpoint of India Wentworth, 2019, equality is all about to
ensure that all the working employees get equal and balanced level of opportunity under which
working society and its effectiveness both get advanced in systematic manner. In this every
individual never get discriminated about the difference creation and characteristic. It offer better
opportunities in which each individual get equal chance as with this its ability to make better
working standards is processed in effective manner. In this no one get differentiated on the basis
of age, culture, colour, race, gender and many other factors as well. In this working potential and
its effectiveness both get advanced and in this balanced opportunity to enhance strength and
development is promoted in balanced manner (Caponi, 2017). It induces better level of success
and development as with this unconscious bias also get reduced and removed by which rate of
complexity that is faced by the business also get managed in systematic form. In order to
maintain temporary shifting working accessibility and its control is induced with perfection as
with this rate of offering training and development is increases. The diversity is related to the
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difference by which individual get place as per placing positive values under which strong
working culture is promoted with effectiveness. In this working standards also get advanced by
which working attitude and its behaviour also gets developed by which attitude and overall
personality of employee get advanced. It is also be resultant towards flexible and adaptive
culture by which all individual and their idea, thinking get incorporated that assist to perceived
better working standards (Coleman, 2019).
To determine the impact of managing cultural diversity on business performance and
productivity of Lotus car ltd.
According to the point of view of Richard T, Alpert, 2020, the cultural diversity is an
essential prospect within the business as it is related to values, norms, traditions and competence
that get developed as per concern to working effectiveness. It also has direct impact over daily
working schedule and deadlines by which improvised working condition is facilitate in
productive manner. It also promote cultural competence by which effective interaction and its
ability both get advanced in which individual of different working culture work all together as
with this balanced awareness is induced about the cultural practices and cross cultural skills. The
development of cultural competence is induced by which ability to communicate, understand,
interact with the employees of cross culture is promoted. In this communication provide prompt
and accurate information as with this effective working standards get developed and in this team
performance also increases (Di Marco and et. al., 2018). The team building also get promoted as
with this individualism and capability to reduce problem get resolved as with this potential
benefits are increases so that cultural diversity get benefited within the working place. The
cultural prospect get changes on timely basis in which work and family time get differentiated as
with this social behavior also promoted in significant manner. The adequate scheduling also has
direct impact over cultural advancement and improvisation as with this business has celebrate the
festival of different culture as with this all the employee get accept each other culture that
furthermore induce better working clarity and transparency with certain balance (Gordon, 2018).
To investigate about key strategies and practices which support better development and creation
of cultural diversity and equality at workplace of Lotus car ltd.
As per the viewpoint of Anja Zojceska, 2018, in order to build, promote and manage
workplace diversity is directly incorporated with support to maintain and create inclusive and
diverse culture. The workplace diversity is promoted in relation to acceptance of various factors
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such as gender, age, orientation, race, religion, ethnicity, cultural background, political review
and many other factors as well. There is different benefits that is supported within the working
place and with this social responsibility is enhanced and boost by which company reputation and
values both get advanced in productive manner. In induces various benefits as to induce higher
innovation, faster problem solving, effective decision making, enhancement of creativity, various
working prospect, higher employee advancement and involvement, better and higher reputation
of business, higher and improvised hiring outcome, reduction of employee turnover (Jozwiak,
2019). In addition to this business has induce diverse range of creation and policies that is
implemented in relation to diverse friendly by which flexible working, scheduling, choices and
recreational practices is induced so that long term benefits is attained systematically. It also
reassess better benefits to employee and with this employee get motivated and encouraged so
that long term profit is attained over continuous period of instance. The workplace diversity has
significant impact over productivity and engagement by which direct success and development is
induced so that long term success is attained. In addition to this balanced technology is
implemented and in this better acceptance and successful implementation of strategies is induced
by which employee get better connection so that long term effectiveness is promoted in balanced
manner (Kumar, 2019).
Chapter 3: Methodology and data collection
This section is an important part of every research project which provided information about
the research method and approach which are used and applied by a researcher to perform an
investigation. Use of research onion model has been made to select and apply a most suitable set
of research method for current investigation on Lotus car Ltd.
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Figure 1: Research Onion, 2020.
Research philosophy- It is the first layer of research onion model that is divided into four
main parts consists of interpretivism, positivism, realism and pragmatism kind of research
philosophy. From these four set, use of positivism research philosophy is most suitable for
current investigation as it facilitates an objective nature of study which leads to more systematic
and practical form of conduct an investigation (Madsen and Scribner, 2017).
Research approach- It is basically of two types i.e. deductive and inductive from which one
is opted by researcher as per the nature of research philosophy and investigation. Thus, for
current investigation, use of deductive approach is applied by research as it is more appropriate
and suitable as per the nature of positivism research. Beside this better scanning and testing of
objective and numeric set of data is also provided by use of deductive approach thus, it is
justifiable.
Research strategy- Observation, survey, action research, experiments, interview, etc are
some common form of strategy that are applied by research for better data collection that sets out
a base for investigation. For current project on Lotus car ltd use of survey strategy of research is
made as it lead most efficient way of data collection with the help of a questionnaire in one of
the most easiest and economical way from a larger number of participants (Truxilloand et. al.,
2017).
Choices of method- Qualitative and quantitative form of resrch method are commonly used
form a research out of which qualitative is mainly applied for in-depth research where as
quantitative support an objective form of research. In order to accomplish and achieve set
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objective in an efficient manner use of quantitative method of research is made as it lead to
collection of data in numeric form that is easy to collect and present along with leading a
measurable and specific set of results (Arenas and et. al., 2017).
Time Horizons- Longitudinal and cross sectional are common types of time horizons from
which use of cross sectional are made for current investigation on Lotus car ltd to present all
research activities within a shorter span of time which is represented with the help of below
Gantt Chart.
Data collection- For current research work on Lotus car ltd both primary and secondary
sources of data collection are applied by researcher to have significant data for conducting
current investigation. Primary data has been collected with the help of questionnaire that
provides first hand and most reliable set of data where as secondary form of information had
been collected from online articles and journals to facilities a base and framework for current
investigation with the help of past findings.
Sampling method- It is mainly associated with the selection of pre determined number of
observation and units from a larger population to lead out and complete a research work with
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more efficiency (Manfredi, 2016). Thus, with regard to current investigation use of random
method of sampling is made to select a sample size of 40 participants from the employees of
Lotus Car Ltd. Use of following questionnaire is made for collection of data on the topic of
Impact of managing cultural diversity.
Questionnaire
Q1) Do you having any idea or perception about the concept of maintaining equality and
diversity at workplace?
a) Yes
b) No
Q2) Why do you think the concept of creating equality and diversity is significant and vital
for a business orgnisation?
a) Enhance morale of employees
b) Boost brand Reputation
c) Enhanced productivity
d) Positive workplace environment
Q3) Why Lotus Car Ltd required to have better management of cultural diversity at its
workplace?
a) To attract more talented employees
b) To enhance creativity of workforce
c) Improved expansion opportunity
d) Better company reputation
Q4) Are you agreed with the fact that some issues related with cultural and language
difference would also faced by Lotus Car ltd while managing cultural diversity at its
workplace?
a) Strongly Agreed
b) Agreed
c) Disagreed
d) Strongly Disagreed
e) Neither agreed nor Disagreed
Q5) What key steps and strategies can e adopted by Lotus Car ltd to overcome above stated
challenges in order to create and support better development of cultural diversity and
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equality at its workplace?
a) Effective communication
b) Fair and smart recruitment process
c) Anti- discriminatory policy
d) Cultural training
e) Equality act, 2010
Q6) What perspective do you having regarding the overall impact of managing cultural
diversity on the business performance and productivity of Lotus Car Ltd?
a) Positive
b) Negative
c) No impact
Q7) Any further recommendation and suggestion for the Lotus car Ltd to have better
creation of cultural diversity and equality at its workplace?
Costs, access and ethical issues – The estimated cost of current study is near around 300 £
which consists of all possible costs and expenses made on transportation, data collection,
presentation, internet and all other expanses. To maintain reliability of gathered information data
accessibility is only permitted to researcher and tutor. At last, use of BERA code of ethics along
with data protection act is made to overcome and eliminate the ethical issues related with privacy
and safety of collected data.
Chapter 4: Data analysis and interpretation
Use of following frequency table is made for analysis of collected raw data along with use
of pie charts for better interpretation and presentation of collected facts.
Theme 1: Perception about the concept of maintaining equality and diversity at workplace
Q1) Do you having any idea or perception about the concept of
maintaining equality and diversity at workplace?
Frequency
a) Yes 36
b) No 4
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Interpretation
On the basis of above pie chart an analysis can be made out that from a total of 40
participants 36 were having a vital idea or perception about the concept of maintaining equality
and diversity at workplace where as 4 were seemed to be unaware about this fact and concept of
maintaining equality and diversity.
Theme 2: Creating equality and diversity is significant and vital for a business orgnisation
Q2) Why do you think the concept of creating equality and diversity
is significant and vital for a business orgnisation?
Frequency
a) Enhance morale of employees 11
b) Boost brand Reputation 9
c) Enhanced productivity 8
d) Positive workplace environment 12
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Interpretation
The above pie chart is reflecting that 11 participants were having a view point that
concept of creating equality and diversity is significant and vital for a business orgnisation as it
lead to enhanced morale of employees where as 9 individuals were seemed in support of boost
brand Reputation. Apart from this, it has been also interpreted that 8 respondents were having a
view point that enhanced productivity is also a reason behind concept of creating equality and
diversity is significant and vital for a business orgnisation where as 12 other left out participants
seemed to be in favour of Positive workplace environment.
Theme 3: Lotus Car Ltd required to have better management of cultural diversity at its
workplace
Q3) Why Lotus Car Ltd required to have better management of
cultural diversity at its workplace?
Frequency
a) To attract more talented employees 7
b) To enhance creativity of workforce 12
c) Improved expansion opportunity 9
d) Better company reputation 12
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Interpretation
With respect to above drawn diagram an analysis can be made out that Ltd required to
have better management of cultural diversity at its workplace as it leads to attract more talented
employees as per the view point of 7 respondents where as 12 opt to be in favour of enhance
creativity of workforce. Beside this, 9 other individuals were having a feeling that Lotus Car Ltd
required to have better management of cultural diversity at its workplace as it lead to improved
expansion opportunity where as the other 12 left out participants were seemed to be in support of
Better company reputation.
Theme 4: Some issues related with cultural and language difference would also faced while
managing cultural diversity
Q4) Are you agreed with the fact that some issues related with
cultural and language difference would also faced by Lotus Car ltd
while managing cultural diversity at its workplace?
Frequency
a) Strongly Agreed 6
b) Agreed 18
c) Disagreed 8
d) Strongly Disagreed 3
e) Neither agreed nor Disagreed 5
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Interpretation
The above pie chart is depicting that the from the total of 40 participants 6 seemed to be
strongly agreed with the fact that some issues related with cultural and language difference
would also faced by Lotus Car ltd while managing cultural diversity at its workplace where as 18
were agreed on above stated fact. Apart from this, 8 participants opted for disagreed option
where as 3 other were strongly agreed along with the remaining 5 who were having a neither
agreed nor disagreed thinking on the fact that some issues related with cultural and language
difference would also faced by Lotus Car ltd while managing cultural diversity at its workplace.
Theme 5: Key steps and strategies to create and support better development of cultural
diversity and equality
Q5) What key steps and strategies can be adopted by Lotus Car ltd
to overcome above stated challenges in order to create and support
better development of cultural diversity and equality at its
workplace?
Frequency
a) Effective communication 8
b) Fair and smart recruitment process 10
c) Anti- discriminatory policy 6
d) Cultural training 9
e) Equality act, 2010 7
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Interpretation
An interpretation had been made out from current investigation that 8 participants were
having a thinking that effective communication is the key steps and strategies can be adopted by
Lotus Car ltd to overcome above stated challenges in order to create and support better
development of cultural diversity and equality at its workplace where as10 were in favour of Fair
and smart recruitment process along with 6 more individuals who opted for Anti- discriminatory
policy. Beside this, 9 respondents were in support of Cultural training to create and support
better development of cultural diversity and equality at workplace of Lotus car ltd while
remaining 7 individuals had favoured for Equality act, 2010.
Theme 6: Overall impact of managing cultural diversity on the business performance and
productivity
Q6) what perspective does you having regarding the overall impact
of managing cultural diversity on the business performance and
productivity of Lotus Car Ltd?
Frequency
a) Positive 35
b) Negative 2
c) No impact 3
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Interpretation
One of the key findings of current investigation comprises of the fact that from a total of
40 participants, 35 respondents seemed to have perspective that positive impact of managing
cultural diversity is mainly seen on the business performance and productivity of Lotus Car Ltd
while only 2 supported for its negative impact along with 3 other respondents who seemed to be
in favour of no impact of managing cultural diversity on the business performance and
productivity of Lotus Car Ltd.
Chapter 5: Research outcomes
Covered In PPT
Chapter 6: Conclusion and recommendation
Conclusion
With respect to findings of current investigation, a conclusion can be made that concept
of maintaining equality and diversity at workplace is significant and vital for a business
orgnisation as it leads to Enhance morale of employees, Boost brand Reputation, Enhanced
productivity and Positive workplace environment. Further, attract more talented employees,
enhance creativity of workforce, Improved expansion opportunity and Better company reputation
are also the key advantages and benefits of better management of cultural diversity at its
workplace. Beside this, it has been also observed that some issues related with cultural and
language difference would also faced by business orgnisation while managing cultural diversity
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at its workplace. A summarisation can also be made out that Effective communication, Fair and
smart recruitment process, Anti- discriminatory policy, Cultural training and Equality act, 2010
are vital ways to create and support better development of cultural diversity and equality at
workplace which lead out a positive impact on the business performance and productivity.
Recommendation
On the basis of current research project, following recommendation and suggestion can
be made for the Lotus car Ltd to have better creation of cultural diversity and equality at its
workplace:
 Adoption of effective communication and participative form of leadership is highly
recommended for Lotus car ltd as it ensures and leads it to enhanced bonding and
interaction among cultural diverse employees to ensure better and positive relationship
among workforce.
 Implication of Fair and smart recruitment process is also suggested for Lotus car Ltd as it
lead to better selection of candidates from diverse background and cultures to have better
creation of cultural diversity and equality along with facilitating more talented and skilled
workforce with a fair recruitment of employees in the basis of their skills and knowledge.
 Providing regular cultural and diversity training is also suggested for Lotus Car ltd as it
lead to enhanced awareness among people about norms of various culture s that they can
effectively respect all employees and candidates who belongs to diverse culture and
background therefore lead to better creation of cultural diversity and equality at
workplace of Lotus car Ltd.
Chapter 7: Reflection and Recommendation of alternative research
methodology
Refection on effectiveness of current method
I have make adequate usage of positivism philosophy as with the support of deductive
form in which effective outcome is achieved as per completion of research. In this I am able to
maintain balanced effectiveness towards attaining of certain goals and objectives that is related
to the completion of task. For this I have also uses quantitative method of research and for that I
have make better collection of questionnaire as with this I have collected all the outcomes of
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research in sustained manner. For this the only drawback is that this research is processed with
less support of theoretical prospect and it is typical for me to develop in detailed information.
Alternative research methodologies and lessons learnt
In relation to alternative method of research I have make adequate usage of qualitative
research as with inductive approach by which detailed information is collected in relation to
theoretical aspect. I have learned from this research about the basis of equality and diversity as
with this managerial and communication skills of mine get advanced. In addition I have also
understand the managing of cultural diversity that is essential within the business as with this
long term sustainability is maintained with perfection.
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