Investigating Cultural Diversity Impact on Business: Ernst & Young

This research project investigates the impact of cultural diversity on the business performance of Australian organizations, using Ernst & Young (EY) as a case study. It examines how factors like religion, employee value systems, and race-ethnicity influence organizational outcomes, measured through profitability, customer relations, and market niche. The study aims to determine whether implementing cultural diversity management has a positive or negative effect on EY's customer service delivery and overall business performance. It also explores the advantages and disadvantages of cultural diversity in management, comparing EY's performance before and after adopting culturally diverse practices. The anticipated output includes an analytical framework for assessing the impact of cultural diversity, insights into employee motivation, and policy recommendations for promoting cultural diversity in Australian businesses. This research contributes to understanding the significance of cultural diversity in management and its potential to improve business performance.

Running head: RESEARCH IN BUSINESS 1
Research in Business
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Table of Contents
SECTION I.................................................................................................................................1
Introduction..................................................................................................................................1
Problem Statement.......................................................................................................................2
Main Objectives...........................................................................................................................3
Justification of the Project............................................................................................................4
Potential Research Output............................................................................................................5
SECTION II................................................................................................................................6
Conceptual Framework................................................................................................................6
Religion and Organization Performance......................................................................................7
Employee Value System and Organizational Performance.........................................................8
Race-Ethnicity and Organizational Performance.......................................................................10
Methodology..............................................................................................................................11
SECTION III............................................................................................................................13
Organisation of Study.................................................................................................................13
Project Budget and Justification.................................................................................................14
Gantt Chart.................................................................................................................................15
References..................................................................................................................................16

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Running head: RESEARCH IN BUSINESS 1
SECTION I
Introduction
The idea of diversity management is proposed as a wide-ranging management style in which the
right work environment is developed for all the staff at an organization. This is done regardless if
of race, gender and religion of any particular employee and are all treated equally. The research
study that will be undertaken seeks to investigate if cultural diversity has an impact on Australian
business organization’s performance. The research study will use Ernst & Young as its case
study for purposes of data and empirical evidence. Cultural diversity is the recognition of the
different backgrounds that different groups of people come from. The differences in cultures as
stated earlier vary due to a myriad of reasons such as religion, age, race-ethnicity et al. These
will be the variables that the study will seek to understand what impact they have on
organization’s performance. The performance of an organization such as Ernst & Young, will be
weighed through the comparison of their previous performance before adopting cultural diversity
management and post-performance after adopting cultural diversity management
Problem Statement
A blend of people that derive from various diverse backgrounds distinctiveness but
within the same social system and these traits are allied to their race, ethnicity, age, religion et al.
Accordingly, treating and coordinating individuals fairly according to their diverse background
and shared outlooks among work staff in the company is known as diversity management.
Lately, diversity with regards to culture has developed as the dominant component of diversity in
Australian organisations. Australia is considered to be culturally diverse in due to the fact that
27% of people are not Australian natives (van Niekerk et al., 2017).

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As a result of emergence of globalization and underlying demographic trends, there has
been increased competition in the labour market among employers to try and get the smartest of
people. Ernst& Young has not been left behind on this craze as it has taken up a shift to its hiring
culture towards a more cultural diverse labour force (van Niekerk et al., 2017). The top firms in
Australia are adapting this new strategy in order to create globally experienced top management
and training their workforce with the necessary know-how to lead the 21st century personnel that
is more cultural diverse.
For instance, Ernst & Young (EY) is a company which provides internationally
acclaimed professional services such as financial audit, tax, consulting and advisory services to
other companies. EY has about a total of 270,000 members of staff all in different countries in
the world who are from different cultural backgrounds. This research study will take Ernst &
Young (EY) as a case study to investigate whether a workforce of cultural diverse background
impact the anticipated management performance of an organization. The research study will find
the research gap through empirical data of the correlation between cultural diversity and business
management performance. The management performance will be measured in terms of
profitability, customer relations and market niche of the company (Rice, 2015).
Main Objectives

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Overall, the goal of this research study is to investigate the effect of having a cultural diverse
workforce management on the business performance of a company through a case study of Ernst
& Young. The main objectives of this study will be to provide answers the following research
o Does the implementation of cultural diversity management among workforce having a
positive or negative effect on Ernst & Young’s customer’s service delivery?
o Is cultural diversity relevant to the Australian business management organization
performance?
o What are the positive and negative effects on Ernst & Young’s cultural diversity in
management?
o What was the business performance of Ernst & Young after implementation of cultural
diverse practices by the top management?
This research questions will be important to answer if there is need for business organization’s to
adopt cultural diverse management design to attain better general business performance.
Justification of the Project
The advantages of workforce and workplace diversity are well known to many business
managers and firm owners (Wagner et al., 2017). Diverse teams, with their vast knowledge and
skills to look at different problems that may arise at the work place, looking at this different
challenges at different angles and understanding from each member of the team, results in better
solutions that help improve business performance. This is the case of a diverse team compared to

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one that is more homogenous in its structure. However, as simple and straightforward diversity
might sound many firms in Australia are yet to adopt this strategy in their management practice
(Rice, 2015).
Diversity is represented in ethnicity, age and sex or other categories, is not easily
achievable. Business organisations have lagged behind in terms of their profitability and market
share due to poor management practices such as lack of cultural diverse management.
Consequently, the importance of conducting this research study cannot be understated when it
comes to helping business organisations in the following circumstances:
 It will help business managers understand the significance of having a cultural varied
management practice in their organisations.
 The research project will highlight the specific practices and tactics that need to be
adopted in order to gain maximum impact on business performance
 Moreover, it would show to what degree/extent overall business performance is
impacted.
Potential Research Output
The anticipated outcome of the research study through analytical structure for purposes of
examining the impact of cultural diversity in a firm in relation to overall business performance.
This will be shown through the measurement of initial business performance before adopting of
cultural diverse practices with comparison to the improved performance after adopting this work
ethic. It would also get the feel and reaction of different employees that are at firms which have

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implemented cultural diverse practices. It will yield results showing the level of increased
motivation amongst the workforce and give a reason to other firms to take up the practice in their
own firms.
Additionally, the research study is expected to answer all the questions put forward in the
objective section of this study. This will help policy makers going forward to come up with
effective policies such as those that will require all companies in Australia to implement the
cultural diverse management practice. All this research queries will be responded to by the study
through the data collected, outcomes and analysis of data that will be conducted during this
period of study. The final research document will be analyzed and regarded as an vital academic
paper used for reference.

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SECTION II
Conceptual Framework
Diversity management as a practice includes different categories such as policy
declaration on diversity and hiring activity to mirror diversity. All human capital deeds are
considered very essential in advancing the needs of minorities within an organization. The more
traditional approach with regards to diversity include different parameters such as race, gender,
age and physical abilities that are determined by birth. However, the modern-day method with
regards to diversity is more inclusive and it tends to assume that all of the aspects that tend to
differentiate an employee changes and evolves over a period of time. It considers new factors
and parameters for example income, job background, marital status and political alignment as
variables of diversity management (Schindler, Armstrong & Reed, 2015).
Previous theoretical studies seem to show that there was a positive correlation between
organizational overall performance and diversity management practice. Organizational diversity
stimulates work and cost association through ensuring that the organization has the best crop of
talent. Furthermore, diversity improves creativity and innovation. Thirdly, it promotes the
creation of development and sustainable business advantage.
For this study, we will focus on the more traditional approach of viewing diversity
management at a work place by focusing on three variables and their correlation to
organizational performance. These three variables are, how an employee’s religion influences

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organization performance. Secondly, employee’s value system impact on organization
performance. Finally, race-ethnicity effect on organization performance (Rice, 2015).
Religion and Impact on Organization Performance
Religion refers to the association of religious belief, involvement in religious institutions
such as churches, temple and commitment in religious practices such as scripture reading,
worship, and prayer. Religion has two factions which include both beliefs and religious behavior.
Apparently a person’s religion has an influence on his values system and therefore has an impact
on his output at his particular organization (Offermann & Basford, 2014). This therefore can
positively or negatively impact business performance. Additionally, religion was seen to
positively contribute to healthy organizations in terms of the effectiveness.
Previously, the association between work and religion was previously seen as that which
cannot and should not be mixed. Gradually though, this has evolved very quickly. Studies have
shown that there are positive effects that accompany religious deeds which has led to
increasingly more Australians to want religion integrated in all aspects of their lives including
work spaces. Organisations are now more open and inclusive of religion due to studies showing
that religion has great effect on mental well-being and moral decision making among individuals.
Employees who are allowed to express their faith have been seen to improve their work quality
at their respective organizations. Apparently, there is increasing proof that the correlation
between workplace and religious beliefs is increasing by the day.

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Recently, studies have investigated the association between religious faith and job
satisfaction, job performance and company frustration. Although, researchers have not been able
to investigate if there is direct relationship between an individuals’ religious and spiritual faith on
their commitment to work inclusive of their performance which impacts on an organization
performance. Even though, people that are considered highly religious usually allocate a lot of
their time and energy to their religious activities thus having little time for secular and leisure
events. Consequently, this has an impact the organization’s commitments and performance.
Therefore, if this is the case an organization might find itself suffering from poor business
performance due to its highly religious activities. In addition, organisations might be faced with a
situation of high employee turnover form their vastly religious employees than from the less
religious staff (Imose & Finkelstein, 2018).
Employee Value System and Organizational Performance
Diverse groups of people have dissimilar goals and objectives about their work depending on
their cultural backgrounds. The ideals and views held by members of the same cultural group
influence the extent to which individuals’ behavior of, groups, and institution within cultures are
enacted and the notch to which they are viewed as acceptable, and effective. Additionally,
through values which determine an individual’s moral inclination and how they conduct
themselves even at their workplace. A company is likely to get hurt in terms of its performance
in terms of things such as good customer relation as a result of individuals that lack ethical

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values. A company is only able to try and coerce the best of behavior of employee in the
workplace after hiring an employee (Herring, 2009).
In order to achieve good employee behaviour incentives through a system of rewards and
punishments need to be put in place by organisations. Furthermore, when an individual realizes
more need and genuine orientation between their personal values linked with those of his
employer such as Ernst & Young, a more stronger alignment is developed and hence better
output from the particular employee. The best way of making decisions is through value-based
leadership at one’s place of work. In addition, he goes on to state than a company and its
workforce have to unite around a common set of values. Consequently, this will make the
organization more flexible and low amounts of bureaucracy as they develop (Dimovski et al.,
2019). Apart from shared value, there is also need for a common similar vision. All this value
systems at a place of work will serve one purpose; the improvement of overall business
performance. Value-based leadership is one of the methods that should be used by companies in
order to make realistic decisions which create trust among every stakeholder of an organization.
Importantly, trust is viewed as the foundation on which relationships are proven. Consequently,
organisations should be willing to cater for the different value system of employees within their
ranks, as it has been found to have an impact on the organizational performance (Zhong & Li,
2018).
Race-Ethnicity and Organizational Performance