A Comprehensive Analysis of Cultural Diversity in the Workplace

This essay provides a comprehensive analysis of cultural diversity in the workplace, highlighting its importance for organizational growth, innovation, and productivity. It explores the advantages, such as improved financial results, enhanced global level competition, and creative thinking, as well as the disadvantages, including transition challenges, potential cultural conflicts, and short-term cost outlays. The essay emphasizes the need for organizations to embrace diversity while effectively managing its challenges through communication and adaptability. Ultimately, it argues that the benefits of a diverse workforce outweigh the costs, leading to increased productivity and a competitive edge in the global market. Desklib provides access to similar solved assignments and resources for students.

Running Head: Cultural Diversity
Cultural Diversity

Cultural Diversity 1
“Cultural Diversity at Workplace”
Cultural diversity is the process of appreciating differences in individuals. This difference can be
based on gender, sex, age, social status, culture or religion etc. Organizations in today’s world
have analyzed the importance of working with a diverse workforce. Cultural diversity is also
known as multiculturalism, it refers to the group of people with different background and
orientation come together to work on a single motive in an organization. Corporate diversity is a
tool which helps many organizations to grow in international market (Rice, 2015). Cultural
diversity in an organization matter a lot to its profits and growth as well. It creates a status of the
company which states that the organization believes in increasing communication with people of
different origin and employing them. This helps the organization in gaining adequate target
market as well. Further, the below mentioned paper talks about cultural diversity at workplace
and opinion of different people on this topic; it also talks about its advantages and
disadvantages in an organization. According to my concern, cultural diversity is an important
aspect which should be taken care by the company; also they should to increase cultural diversity
by creating a diversified workforce. Along with this, if such diversity is not handled properly
then it can negatively affect the workplace environment as well (Martin, 2014).
Yes, cultural diversity is good for organizations as adoption of this feature gives an opportunity
to companies to extend their activities in different part of the world. With the introduction of
globalization, these activities increased which also gave rise to the feeling of brotherhood
worldwide. Organizations now a days wants to initiate cross cultural transactions to grow and
cultural diversity is the key place themselves in external world. Adding the opinion of people to
this statement, it should be noted that, multicultural activities at workplace adds a feather to the
innovative activities, as people with different minds will provide different point of view. With all
such thoughts an organization can easily grow in terms of innovation. Also market growth is
increased with this process, but some reasons are also there which resist the growth. Cultural
conflict is one of them. Also flow of communication is another aspect that can create problem in
an organization (Cascio, 2018).
The fact should be noted that the ratio of people accepting cultural diversity and properly dealing
with it is more than the people suffering from this issue. Also, it should be noted that every
decision in an organization has its pros and cons just like this. So, it should be stated that

Cultural Diversity 2
although accepting cultural diversity in an organization can create problem for them but if all
employees work together then they can easily deal with it. If right types of people are combined
together, then they can double the productivity of an organization. Change is the only constant
present in the environment so people now days should adapt change in order to initiate a
sustainable living. Diversity welcomes different cultures from worldwide at one place which
initiates positivity in an organization. However, if people do not try to understand and adapt each
other’s culture then it might create dissatisfaction and feeling of outside within them which can
lead to workplace issues (Ang, & Van Dyne, 2015). Communication at workplace is a strong tool
that can solve all such problems. People working together should communicate often so that they
can know and understand different cultures and they should respect each culture as well.
Different people have different point of view on this topic but the end result of the discussion is
same, this it is a positive aspect that fosters creativity and productivity in an organization. Also
different people come with different work ethics, if the management likes their work then they
can use same ethics in their organizations as well, this will also make the expatriate familiar with
the environment. But the mix in the organization should be initiated in a right way as it should
not hamper the sentiments of another person or their culture. Lastly, it should be noted that
people also believes that workplace diversity can bring healthy competition in the organization
which can enhance the skills and capabilities of many employee as well (Hofhuis, van der Zee, &
Otten, 2015).
Furthermore talking advantages of diversity at workplace is that it provides better financial
results to the companies. Many studies have concluded that companies that use diverse teams are
to be regarded as more profitable than the homogenous businesses. The Mckinsey 2015 report
on public companies stated that the organization with diversified workforce and cultural ethnicity
were 35% more successful than other organizations. Global level competition is also increased
with this process that gives an opportunity to companies to gain competitive advantage in the
target market as well. Also, mostly people now days are employed with foreign owned
companies only which gives a push to global economy as well. The employees also help the
organization in understanding different which gives them an option to choose the best suited
market for them to enter. The employees can also the guide the company with the taste and
preference their natives (Barak, 2016). This will help to organization to expand without facing
risks, and work on a global level. Creative thinking and innovation is another aspect that helps

Cultural Diversity 3
organization to produce the products that holds a different place in the market. With the
information of techniques and resources used by different countries the organizations can also
apply such techniques to create identification of their product in the market. Also, ideas of
different people coming from a different cultural background increase the scope of innovation
and invention as well. Additionally, another advantage of diversity at workplace is that fact
based decision making is initiate (Suedekum, Wolf, & Blien, 2014). Researches have evaluated
that group of people with diverse thinking tend to focus on facts while making any decision.
They look for new and innovative ways that examine and then re-examine the case to become
fully secure about their decision. And such thinking is important for an organization to grow.
Thus, these are the advantages which an organization gets while initiating diversity at workplace
(Kundu, & Mor, 2017).
As discussed above every aspect have its pros and cons, so talking about the cons it should be
noted that transitioning is the biggest issue which is faced by organizations while initiating
diversity at workplace. It is difficult for organizations to leaving behind the traditions and
cultures and adopts new ad diversified culture at workplace. IT questions their past activities and
decision making process as well. Also, combination of two cultures might be good or bad as
well. If the teaching of two cultures collides then it might be considered as disrespectful for one
or another (Cavusgil, et. al., 2014). The management also needs to employ people who are
adaptable to change and educated enough to understand and use diversity as a tool. Finding such
people for organization is difficult enough; also all people are not same. Background of one
person might hamper to other person that can create a problem for the organization (Prause, &
Mujtaba, 2015). Further short term cost outlay is another issue which is attracted to the working
of the organization. It should be noted that diversity needs its own flexibility otherwise it will
lose its effect on the organization. The organization needs to gives time and space to the people
according to the demand of their culture. Like if some Muslims are employed in the organization
then the company needs to give them time and space for daily prayers and the company also
needs to give special facilities to the transgender employees. This can create an expense for the
organization; also this cost will go on increasing with the increase in diversification of employee
force in the organization. Thus, these are the disadvantages which an organization faces while
initiating the activity of diversification at workplace (Al-Jenaibi, 2017).

Cultural Diversity 4
Thus, in the limelight of above mentioned events, it should be noted that cultural diversity at
workplace is an important topic to think of. Different people in the society have their different
option to this matter but at the end the result is same, diversity is important to happen as it brings
productivity, innovation and creativity in the organization. Despite of all such disadvantages
organizations are still incurring such cost because they think that the results are more successful
than the cost. Thus, as a final opinion it should be noted that yes organizations should move
ahead and serve the cost for diversification as they employees will return it to them by increasing
productivity for the company. This is a good practice which should be used by all organization.

Cultural Diversity 5
References
Al-Jenaibi, B. (2017). The scope and impact of workplace diversity in the United Arab
Emirates–A preliminary study. Geografia-Malaysian Journal of Society and Space, 8(1).
Ang, S., & Van Dyne, L. (2015). Handbook of cultural intelligence. Routledge.
Barak, M. E. M. (2016). Managing diversity: Toward a globally inclusive workplace. Sage
Publications.
Cascio, W. (2018). Managing human resources. McGraw-Hill Education.
Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., & Rose, E. L.
(2014). International business. Pearson Australia.
Hofhuis, J., van der Zee, K. I., & Otten, S. (2015). Measuring employee perception on the effects
of cultural diversity at work: development of the Benefits and Threats of Diversity
Scale. Quality & Quantity, 49(1), 177-201.
Kundu, S. C., & Mor, A. (2017). Workforce diversity and organizational performance: a study of
IT industry in India. Employee Relations, 39(2), 160-183.
Martin, G. C. (2014). The effects of cultural diversity in the workplace. Journal of Diversity
Management (Online), 9(2), 89.
Prause, D., & Mujtaba, B. G. (2015). Conflict management practices for diverse
workplaces. Journal of Business Studies Quarterly, 6(3), 13.
Rice, M. F. (2015). Diversity and public administration. ME Sharpe.
Suedekum, J., Wolf, K., & Blien, U. (2014). Cultural diversity and local labour
markets. Regional Studies, 48(1), 173-191.