Impact of Cultural Diversity on Employee Performance at Next plc

This report investigates the impact of cultural diversity on employee performance, using Next plc as a case study. The report begins with an introduction defining cultural diversity and its significance, followed by a literature review exploring the advantages of cultural diversity, its impact on employee performance, associated issues, and potential solutions. The research methodology section details the use of a research onion, including positivism philosophy, deductive approach, survey strategy, quantitative choice, primary data collection via questionnaires, and random sampling with a sample size of 50. The analysis and interpretation of data, utilizing thematic analysis and MS Excel for graph creation, is presented alongside a questionnaire and frequency tables. The findings, conclusion, and recommendations are provided, along with a reflection and exploration of alternative research methods. The report emphasizes the importance of understanding cultural diversity to enhance employee performance, innovation, and overall organizational success. It also addresses ethical considerations, ensuring the confidentiality of the respondents.

Unit 11 – Research
Project

Table of Contents
INTRODUCTION...........................................................................................................................3
Background of Research.........................................................................................................3
Research Aim.........................................................................................................................3
Research Objectives...............................................................................................................3
Research Questions................................................................................................................3
Rationale of Research.............................................................................................................3
LITERATURE REVIEW................................................................................................................4
Advantages of cultural diversity.............................................................................................4
Impact of cultural diversity on the employee performance of Next plc.................................4
Issues are faced by an organisation from cultural diversity...................................................4
Ways through which company can overcome from cultural diversity issues........................5
RESEARCH METHODOLOGY.....................................................................................................6
ANALYSIS AND INTERPRETATION OF DATA.......................................................................9
FINDINGS.....................................................................................................................................22
CONCLUSION..............................................................................................................................24
RECOMMENDATIONS...............................................................................................................24
REFLECTION...............................................................................................................................24
ALTERNATIVE RESEARCH METHODS..................................................................................25
REFERENCES..............................................................................................................................27

TITLE: “To evaluate the impact of cultural diversity on the employee performance. A
study on Next plc.
INTRODUCTION
Background of Research
The cultural diversity refers to quality of the different culture as oppose to the global
monoculture and the monoculture. It can prefer to having the various culture respect to
differences of each other (Ang and Van Dyne, 2015). It views that the ethnicities, cultures and
races that particularly minority groups, deserve the acknowledgement of differences within
political culture. Next plc is multinational footwear, home products and clothing retailer which
has headquarter is in England. Cultural diversity in the workplace has positive impact in
employee’s performance that will lead to creativity and productivity because of differences in the
nationalities, languages and background.
Research Aim
“To evaluate the impact of cultural diversity on the employee performance. A study on Next plc.
Research Objectives
 To examine the benefits of cultural diversity.
 To identify impact of cultural diversity on the employee performance of Next plc.
 To determine the issues arisen from cultural diversity within an organisation.
 Recommend ways through which company can overcome from cultural diversity issues.
Research Questions
 What are the advantages of cultural diversity?
 What is the impact of cultural diversity on the employee performance of Next plc?
 Which issues are faced by an organisation from cultural diversity?
 What are the ways through which company can overcome from cultural diversity issues?
Rationale of Research
This investigation is based on the impact of cultural diversity on the employee
performance. Conducting the present investigation helps in providing the in-depth knowledge
regarding the cultural diversity. This research helps in enhance the skills and abilities of learner
to conduct the similar kind of investigation in future (Banks, 2015).
3

LITERATURE REVIEW
Advantages of cultural diversity
As per opinion of Christine Hanks (2020) Cultural diversity can inspire the innovation and
creativity within an organisation. The local market insight and knowledge makes business more
profitable and competitive. There are some benefits of cultural diversity mention below:
Minimize employee turnover- Firm that mainly embraces the cultural diversity at
workplace would entices wider candidate pool for job vacancies. Large number of candidate
applied for job with an organisation would enjoy more candidates.
Positively on reputation- In this, firm those hire and motivate the people wider
backgrounds are gain reputation for being better employer. The potential consumers feel values
and provide business to firms (Hatipoglu and Inelmen, 2018).
Improves insights and reduces racism- Through enjoying cultural diverse workforce, this
is found that staff members spend time in daily lives with the people from cultural backgrounds
which they never expose.
Impact of cultural diversity on the employee performance of Next plc
On the basis of Gumede, Manqoba Starnslaus (2013) cultural diversity implies the
similarities and differences between people which are working in company. The performance as
effective and efficient duty discharge for which it hired to perform the task. Cultural diversity
impact on employee’s performance that lead to the creativity and productivity of business. The
workforce diversity is determined as most necessary organisational tool in context to attain
company objectives to give better services to customers. With the cultural diversity comes the
issues which company require to understand as well as manager to perform better and make
competitive (Hofhuis, van der Zee and Otten, 2016).
Issues are faced by an organisation from cultural diversity
As per opinion of Sheryl Sandberg (2020) the cultural diversity arise several issues for
company that develops the negative impact on productivity of firm. There are different issues
faced through company regarding cultural diversity mention below:
Communication issues- When company have diverse workforce, communication among
the team members that become more challenging. The language barriers could mean that team
members are communicate ineffectively and have the complexities in understanding another.
4

Too many opinions- With various experiences and backgrounds, the diverse staff
members have the various ways regarding approaching similar scenario and putting forth ideas.
Staff members which are valuable to company they will keep driving the innovative ideas and
determine problems (Joubert, 2017).
Diversity implementation challenges- Developing diverse workforce looks better on the
paper but this can be more challenging to execute this effectively. There are more guides there as
there is not the single size that fit all the diverse plan that mainly works.
Ways through which company can overcome from cultural diversity issues
On the basis of Lynda Shaw (2020), Overcome from the cultural diversity challenges is
effective for company to enhance the reputation of company. There are some of the effective
ways given below through which firm can be overcome from the issues regarding cultural
diversity:
Develop positive communication- It is necessary for the company to develop the positive
communication among the staff members and managers. Agree on common language and
workplace discourse to be avoid the miscommunication (Klarsfeld and et. al., 2016).
Take opinions- Elect committee regarding the high performing of executives which will
hear opinion and make final decisions. If consensus cannot have reached, then committee can be
examined all options and determine better one.
Provide diversity training- It is necessary for company to provide the diversity training to
staff members as it provides the advantages to employees to understand the culture of each
other’s and give respect to them.
5

RESEARCH METHODOLOGY
In the research methodology, there has been research onion used. It was developed through
Saunders et al in year 2007 in order to explain stages by which an investigator should pass when
developing the better methodology. The different layers consist in the research onion mention
below:
Research philosophy- The interpretivism and positivism are two different research
philosophies. In conducting the present investigation, there has been positivism research
philosophy used as it is effective for an investigator to examine the different components and
getting positive outcomes (Kottak, 2015).
Research Approach- Inductive and deductive are two different kinds of research approach.
In present investigation, deductive research approach has been used. This research approach is
effective as it is based on the quantitative method as it provides the facts and figures regarding
particular area.
Research strategy- It provides the different techniques to collect data. There has been
survey used as effective research strategy because this helps in collect more data and time saving
(Laroche, 2012).
Research choice- In conducting this research, there has been quantitative research choice
used as it is more effective in providing the accurate outcomes and getting the effective facts and
figures.
Data collection method- Primary and secondary are two different types of data collection
methods. In this research, there has been primary method by developing the questionnaire.
Sampling- Through using the random sampling method, there has been 50 sample size
used. This method has been used because it provides the equal chance to chosen respondents
(Leach, 2014).
Time horizon-
6

7

Ethical consideration- It is one of the important responsibilities of investigator to undertake
research activities in ethical way. In this, researcher has to ensure that all the collected
information related to respondents keep confidential. This can be effective in building trusts of
selected respondents so that they can easily share their views points (Hofhuis, van der Zee and
Otten, 2016).
8

ANALYSIS AND INTERPRETATION OF DATA
Data analysis is explained as the process of inspecting, transforming and also cleansing the
data with an aim of searching the Useful information and getting the better conclusion. In order
to analyses the data that collected from primary method, there has been a thematic analysis tool
used. There has been questionnaire developed by using the primary method of Data Collection.
In the thematic analysis, researcher develop the themes as for the questions mentioned in
questionnaire and also make the graph by using the MS- Excel (Kottak, 2015). After this, an
investigator makes the interpretations and getting the positive conclusion regarding the particular
research area.
QUESTIONNAIRE
Q 1) Do you have knowledge about the cultural diversity?
a) Yes
b) No
Q 2) What are the benefits of cultural diversity within an organization?
a) Create Innovation
b) Leadership
c) Makes a business more competitive and profitable
Q 3) In which manner, cultural diversity impact on the employee performance of Next
plc?
a) Positive manner
b) Negative manner
Q 4) Does cultural diversity helps in increasing the employee’s productivity?
a) Yes
b) No
Q 5) What are the different factors influencing the performance of employees?
a) Working environment
b) Diversity at workplace
c) Flexible working hours
Q 6) What are the different trends related to the cultural diversity?
a) Growth of a minority workforce
9

b) Growth of stereotyping and prejudices
c) Sensitivity or diversity training
Q 7) As per your opinion, how does employees support the cultural diversity within
organization?
a) Increase understanding about other cultures
b) Interacting with others
c) Intervene in an appropriate manner
Q 8) What are the issues arisen from cultural diversity within an organization?
a) Rise complaint level
b) Language barriers
c) Accommodation of Beliefs
Q 9) What are the different ways company should be used to manage the cultural
diversity at workplace?
a) Cultural diversity training
b) Teamwork
c) Communication
Q 10) What are the ways to promoting the cultural diversity within an organization?
a) Learn Challenges Different Cultures
b) Encourage Personal Evaluation
c) Acknowledge Differences
Q 11) Recommend ways to sustain employees by managing the cultural diversity.
Frequency Table
Q 1) Do you have knowledge about the cultural diversity? Frequency
a) Yes 40
b) No 10
Q 2) What are the benefits of cultural diversity within an
organization?
Frequency
a) Create Innovation 15
b) Leadership 10
c) Makes a business more competitive and profitable 25
10

Q 3) In which manner, cultural diversity impact on the employee
performance of Next plc?
Frequency
a) Positive manner 35
b) Negative manner 15
Q 4) Does cultural diversity helps in increasing the employee’s
productivity?
Frequency
a) Yes 40
b) No 10
Q 5) What are the different factors influencing the performance of
employees?
Frequency
a) Working environment 15
b) Diversity at workplace 15
c) Flexible working hours 20
Q 6) What are the different trends related to the cultural diversity? Frequency
a) Growth of a minority workforce 10
b) Growth of stereotyping and prejudices 10
c) Sensitivity or diversity training 30
Q 7) As per your opinion, how does employees support the cultural
diversity within organization?
Frequency
a) Increase understanding about other cultures 25
b) Interacting with others 5
c) Intervene in an appropriate manner 20
Q 8) What are the issues arisen from cultural diversity within an
organization?
Frequency
a) Rise complaint level 12
b) Language barriers 18
c) Accommodation of Beliefs 20
Q 9) What are the different ways company should be used to manage
the cultural diversity at workplace?
Frequency
a) Cultural diversity training 25
b) Teamwork 10
11

c) Communication 15
Q 10) What are the ways to promoting the cultural diversity within
an organization?
Frequency
a) Learn Challenges Different Cultures 20
b) Encourage Personal Evaluation 20
c) Acknowledge Differences 10
THEME 1: Knowledge about the cultural diversity
Q 1) Do you have knowledge about the cultural diversity? Frequency
a) Yes 40
b) No 10
Interpretation: There are 40 respondents and according to them that they have
understanding about the cultural diversity in a detailed manner. Cultural diversity is a system of
the beliefs as well as behaviour that identify presence of all the diverse groups within an
organization. It acknowledges the socio cultural differences and also encourage the contribution
with in inclusive culture that empowers an organization. The cultural diversity is helpful in
identify and respect way of saying that are necessary and interact with the other people in order
to bridge the gap to trust from understanding and respect across the culture. Regarding the other
12
a) Yes b) No
0
5
10
15
20
25
30
35
40
40
10