The Impact of Cultural Diversity on Innovation at Volkswagen

This report investigates the contribution of cultural diversity to innovation within the workplace, using Volkswagen as a case study. The study explores the concept of workplace diversity, examining its influence on the working environment and its role in fostering innovation and organizational success. The research includes a critical review of literature, addressing key questions such as the understanding of workplace diversity, its impact on the working atmosphere, how it promotes innovation, and its relation to market success. The methodology involves an exploratory study using secondary data, including ethical considerations and a timeline for the research process. The findings and discussion sections analyze the impact of cultural diversity on innovation and the importance of managing diversity to enhance creativity and gain a competitive advantage. The report concludes with recommendations for promoting cultural diversity and innovation in the workplace, emphasizing the benefits for both the organization and its employees. The report is contributed by a student to Desklib, a platform offering AI-based study tools.

Contribution of Cultural
Diversity in Promoting
Innovation at Workplace

Contents
Abstract............................................................................................................................................4
1.1 Title............................................................................................................................................1
1.2 Introduction................................................................................................................................1
1.2.1 Background.........................................................................................................................1
1.2.2 Research Questions.............................................................................................................2
1.2.3 Research Aim......................................................................................................................2
1.2.4 Research Objectives............................................................................................................2
1.2.5 Significance of research......................................................................................................2
2.0 Critical Review of the literature review.....................................................................................3
2.1 Introduction............................................................................................................................3
2.2.2 What do you comprehend by the idea of workplace diversity?..........................................3
2.2.3 What will be the influence of cultural diversity on working atmosphere of an
organisation?................................................................................................................................4
2.2.4 How cultural diversity helps in promoting of innovation in an organisation.....................5
2.2.5 How workplace diversity aid to attain success in market?.................................................6
2.2.6 Conceptual framework of workplace diversity...................................................................7
3.0 Methodology and methods of enquiry.......................................................................................8
3.1 Ethical Consideration...............................................................................................................10
3.2 Timeline...................................................................................................................................10
.......................................................................................................................................................12
4.0 Results and Findings................................................................................................................13
5.0 Discussion................................................................................................................................14
6.0 Conclusion and Recommendations of research.......................................................................15
Conclusion.................................................................................................................................15
Recommendation.......................................................................................................................16
REFERENCES..............................................................................................................................17

Abstract
The aim of study is to ascertain the contribution of cultural diversity in promoting
innovation at workplace. Volkswagen is one of the leading organisation which has culturally
diverse workplace. The main purpose of this investigation is to analyse the influence of cultural
diversity on working environment of company along with its contribution in promoting
innovation. There were many amounts of actions done by investigator. Literature review is an
activity of research that was used for gathering secondary data from books and many other
aspects. Research gap was fulfilled by using research questions. Different approaches such as
interpretivisim philosophy, inductive method, exploratory study project etc. were used by
researcher for collecting as well as analysing secondary type of data. Gantt chart was done by
explaining time period of each activity effectively.

1.1 Title
An investigation into the contribution of cultural diversity in promoting innovation at
workplace. A case study on Volkswagen.
1.2 Introduction
1.2.1 Background
Diversity in the workplace is employing employees who may be not similar with each
other and who do not all come from the similar background. These differences may be related
with the national origin, education, age, gender, physical appearance, sexual orientation or
religion of an individual. Cultural diversity refers to the quality of different or diverse cultures,
as opposed to global monoculture or a homogenization of culture. Cultural diversity within the
workplace is an outputs of values, practices, beliefs or traditions of workers based on race,
ethnicity, religion, age or gender. The modern workforce is made up of people of different
genders, ages, ethnicity, religions, and nationalities. There are different benefits of having
diverse workforce at workplace for an organisation such as increase productivity, increase
creativity, a Varity of perspectives, help in boosting brand reputation, increase innovation etc.
These are major benefits of workplace diversity that helps an enterprise in improvement of its
success at national as well as global level (Al-Jenaibi, 2017). However, there are number of
issues that can be face by a company such as high employee turnover, lack of growth, reduced
success, poor innovation etc. if it is having lack of cultural diversity. All these are major issues
that an organisation may face because of lack of diverse workforce at workplace. In order to
overcome these issues and improving business success and growth, management and
implementation of diversity at workplace is important because it will help company by
improving innovation, increasing creativity etc. that results in higher success and growth (Cho,
Kim and Mor Barak, 2017).
This research grounded on automotive industry that comprises a wide range of
organisations and companies involved in the development, manufacturing, promoting and selling
of motor vehicles. Volkswagen is a given automotive organisation that was founded in 1937 by
German Labour Front.
Key basis for choosing this topic is to increase awareness regarding the impact of diversity
at workplace. This research is wide scope because it will help individual, organisations and
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societies by providing information regarding the workplace diversity in promoting of innovation
(Burke, 2016). Along with this, main reason for selecting automotive industry or Volkswagen is
it is a large organisation that supports societies by providing job opportunities, improving living
of standards etc.
1.2.2 Research Questions
 What do you understand by the concept of workplace diversity?
 What will be the influence of cultural diversity on working atmosphere of an organisation?
 How cultural diversity helps in promoting of innovation in an organisation?
 How workplace diversity aid to attain success in market?
1.2.3 Research Aim
The aim of this investigation is “To investigate the contribution of cultural diversity in
promoting innovation at workplace. A case study on Volkswagen.”
1.2.4 Research Objectives
 To understand about the concept of workplace diversity
 To determine the influence of cultural diversity on working atmosphere of an
organisation.
 To analyse the contribution of cultural diversity in promoting innovation within an
organisation
 To ascertain the relation between workplace diversity and organisational success.
1.2.5 Significance of research
This investigation is based on the topic “to investigate the contribution of cultural diversity
in promoting innovation at workplace”. Investigating this topic is significant for researcher as it
helps in gaining deep insights on the topic. It assists in understanding the workplace diversity
concept along with the influence of cultural diversity on working atmosphere of company. This
research also assists in analysing the contribution that cultural diversity makes in promoting
innovation at workplace and determining the relationship between workplace diversity and
success of organisation (Barak, 2016). The study is also significant for academic purpose as
other scholars can use it as base for doing further investigation. This helps the company in
determining the influence and maintain cultural diversity in the work place so that creativity and
innovation can be promoting effectively in the workplace on continuous basis and help
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organisation to get competitive advantage over rivals in the market and attain sustainability for
long term in an effective and efficient way.
2.0 Critical Review of the literature review
2.1 Introduction
Literature Review (LR): It is a systematic, reproducible and explicit method for
identifying, analysing, and synthesizing the present body of completed as well as recorded work
produced by investigator, scholars, and practitioners. In addition, literature review is a critical
evaluation of a section of a published body of knowledge via summary, categorization, and
contrast of previous research studies, theoretical articles and reviews of literature.
Literature review is the process by which researcher can easily gather secondary data from
various number of secondary sources including, books, magazines, articles etc. It is a part of
subordinate investigation that helps investigator in gathering of secondary information from
different sources such as articles etc. These foundations further use for fulfilling research gap
(Burke, 2016). Within an examination, key opening of current learning is the impact of
workplace diversity over business success. There was data regarding the workplace diversity but
there is no or lack of information about its contribution in promoting of innovation that is a part
of business success (Ellemers and Rink, 2016). Research questions will be used for overcoming
research gaps. These will be described as below:
2.2.2 What do you comprehend by the idea of workplace diversity?
As per the view presented by Talathi (2020), diversity at workplace is the term that is used
for the working environment composed of workforce with varying characteristics including,
gender, age, sex, race, sexual orientation, ethnicity etc. Workstation variety is very significant for
workers as it establishes himself in developing an excessive reputation or image for the
organisation, primary to maximised success, increased innovation etc. Diversity in the workplace
is vita within the organization as well as outside (Cho, Kim and Mor Barak, 2017). Therefore, it
is a wide concept that supports business in its growth and success.
As per the view point of Sophia Lee, (2019), Workplace diversity helps in fostering
mutual respect among workforce and provides a variety of benefits to the organisation in terms
of improved productivity, wider talent pool, more innovation and creativity, better performance
of employees, increase profits (Diversity in the workplace – benefits and challenges, 2019). It
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helps in developing good environment and culture within the workplace where employees are
able to work more productively towards accomplishment of organisational goals. It helps in
bringing innovation and creativity in the workplace as when different ideas and talents are
available in the organisation then it leads to innovation. Having culturally diverse workforce in
the workplace provide an opportunity to company to gain competitive advantage in market over
the rivals and operate its business successfully at both national and international level (Davis,
Frolova and Callahan, 2016).
2.2.3 What will be the influence of cultural diversity on working atmosphere of an organisation?
As per the view point of Vaux (2019), Modern organisations frequently struggle for better
multiplicity amongst their staffs, recruiting employees of dissimilar sprints, genders, faiths and
eternities to carry a more diverse knowledge or knowledge to their positions. Multiplicity at
workplace transmits by means of it a palpable amount of advantages. There is positive influence
of diversity at workplace on working environment of Volkswagen as it will help them in building
of diverse workforce. All these are essential that will be beneficial for Volkswagen in
enhancement of its growth level ain international level.
As per the view point of Mazibuko and Govender, (2017), cultural diversity in workplace
influence positively on working atmosphere of company. It provides various advantages to
company in terms of improving creativity and problem solving, cost benefits, resource
acquisition etc. A culturally diverse workplace creates a sense of harmony among employees that
in turn increases productivity of company. It also allows manager to execute the plans effectively
and reach to the goals which are pre-set by the organisation. Improve the efficiency of employees
as well as organisation that leads to improving productivity. However, workplace diversity also
brings some challenges for the company including communication issues that may hinder the
performance of employees. Resistance to change is the another challenge that an organisation
may face due to workplace diversity (Ellemers and Rink, 2016).
According to the Mary Jones, 2019, the factor of cultural diversity in the working
environment in the organization perspective where it brings the equality opportunity driven in
the premises. To reduce the discrimination and biasness factor in terms of age, gender and
diverse of the working process handle by employees and it brings flexibility which enhance the
productivity, it facilities to which opportunity driven in the context of the new platform where
workforce contribute their effective performance through optimum skills and knowledge by an
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individual. The regulation of pay structure would be conduct in compliance format and distribute
through equal mannerism. By not promoting the gender discrimination as in men and women to
procuring the more importance to the men as in salary basis and promotion where women are not
get equal rights. This type of propaganda should not have promoted in the organization premises
it will create conflict in the organization. By enhancing the effective laws and acts should
applicable like employment act, sexual harassment, bonus acts and many more all these
regulations will persuasion positive environment in internal premises (Enoksen, 2016).
2.2.4 How cultural diversity helps in promoting of innovation in an organisation
According to the Hewlett, Marshall and Sherbin (2013), Maximum of the directors of an
organisations are accepting that managers advantage as of a varied staff, nonetheless the
impression can be solid to display or enumerate, particularly at what time it originates to
determine in what way assortment impacts a business’s aptitude to revolutionise. Assortment
helps an organisation by unlocking innovation and diverse market growth. Workstation
assortment solves novelty by developing a setting where “outdoor the box” thoughts are caught.
Whilst sections practise a significant mass and leader’s value differences, entire workforce can
analyse senior persons to drive to paddle for enthralling thoughts as well as can encourage those
within custody of resources to organize capitals to create those thoughts (Fletcher, 2017).
As per the view point of Ruthie Miller, (2018), cultural diversity promotes innovation by
developing an environment where all the employees think out of the box. Cultural diversity
brings diversity of opinions and ideas can lead to creativity and fuel innovation. When multiple
perspectives and background are represented and the differences are valued by leaders, all the
workers feel comfortable in sharing ideas and opinions. Apart from this, in today's economy,
competition for talent is high. If an organisation wants to attract talent, it is very necessary to
cultivate an inclusive as well as diverse workforce (5 Reasons Why Diversity Drives Innovation
for Small Businesses, 2018). By emphasizing on providing safe environment to make mistakes
and decisions to employees, the organisation can protect budding innovation in workplace.
Innovation and diversity are highly interlinked with each other as if workforce with diverse skills
and competencies are available in the workplace then it helps in bringing innovation.
As per the opinion of the Louise Petty, 2016. By the cultural diversity to scrutinize the
lacking factor which helps to improvisation the organizational structure as well as enhance the
new creativity and innovative activity through providing the platform where participation is
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engaging for sharing new ideas related with working related. By facilitating the training program
where underperformer employees could learn new skills and techniques to assort in their work it
will enhance the productivity. The equality upbringing the golden opportunities and provides the
neutral outcomes without any errors while the diversity having an advantages which helps to
develop the business in terms of infrastructure, training to new employees, generating the
external source of opportunities to existing employees where they can promote their skills and
knowledge (Flood, and Howson, 2015).
2.2.5 How workplace diversity aid to attain success in market?
As per the view presented by Sling (2020), diversity at workplace is important part for the
business success at marketplace. Workplace diversity support an organisation by providing large
number of advantages such as better employee performance, development of more skill, talent
and knowledge, a larger talent pool, original novelty, admittance to a wider client sordid, sooner
problematic resolving, more informed conclusion creation etc. These are major advantages that
support Volkswagen in development of its success at market.
According to the view point of Fry, 2015, workplace diversity helps in developing a large
pool of talent in workplace who have different ideas and opinions, when work collectively then
leads the company towards attaining success in market. It assists in developing culturally diverse
workplace where there has been diversity of ideas and opinions which helps in promoting
innovation and creativity in the organisation and leads the company towards growth and success.
It also helps an organisation in gaining competitive advantage in market and developing good
brand image. It helps in increasing productivity and performance of employees as when diverse
workforce working together, they are able to perform their roles and responsibilities more
effectively which leads to improving the productivity of company, and thus helps in attaining
success in market (Fujimoto, and Härtel, 2017).
On the point of view of Somen Mandel, 2020. Through the influence from the workplace
diversity can effectively bring positive outcomes in different situational to making engaging the
higher workforce more platform of benefits and provide the proficient training and development
to the unskilled employees where they get to experience new optimization of objective in
workplace to accomplish successfully. Employees should have good communication and better
formation of coordination allows the flexibility in organizational work and objectives attains in
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the positive manner, to not promote any segment of discrimination factor to reduce the negative
environment in the organization (Gabriel, 2015).
2.2.6 Conceptual framework of workplace diversity
Figure 1Conceptual framework of workplace diversity
(Source: Conceptual framework of workplace diversity, 2020)
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3.0 Methodology and methods of enquiry
Methodology introduces to the process of gathering, analysing and interpreting information
about the title. This includes secondary investigation and for collecting as well as analysing
secondary data; there are different methods that will be needed by investigator are explained as
below:
Research philosophy: This determine as gathering and analysing data about the topic. There
are basically dual kinds of investigation attitude which are interpretivisim and passivism. For
doing current study over the workplace diversity, interpretivisim philosophy is more suitable
because it emphasis on secondary information and also support researcher to gain valid and
proper outcomes of research as compare to positivism type (Fujimoto and Härtel, 2017).
Research Approach: It is another part of methodology that has two essential types which
are inductive and deductive. These approaches help to ascertain accurate data. Within an
investigation, inductive approach is used because this will support researcher in examining of
subordinate data about the workplace diversity that were collected from different number of
subordinate bases i.e. journals, books etc. for literature review. As compare to deductive
approach, inductive approach is more suitable because it helps in analysing of secondary data
within less time duration (Jin, Lee and Lee, 2017).
Research design: There are basically three types of investigation plan which are known as
descriptive, experimental and exploratory. All these are considering effective type of research
design but for executing current investigator, exploratory type of research design has been
applied by researcher because it supports investigator in evaluation of subordinate information
collected for literature review (Syed and Ozbilgin, 2019).
Data gathering methods: Present study is mainly based on secondary research that will be
effective for researcher because it provide accurate information regarding the topic. There are
lots of sources for collecting secondary information which are magazines, books, journals,
publication research etc. All these methods were used for literature review with purpose of
collecting secondary data regarding significance of workplace diversity in improving business
success (Mazibuko and Govender, 2017). Along with the secondary method of collecting data,
primary data gathering method is also utilizing by researcher as this will help in gathering
adequate amount of data over the particular research topic which assist in ensuring the accuracy
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of research outcomes. For collecting primary data, questionnaire tool is being utilized by
researcher which includes some questions that need to be answered by respondents.
Sampling: It is referred as the process through which researcher select sample size from
large population. In context of probability sampling, the chances of selection for each respondent
is equal whereas, the selection is done on the basis of subjective judgement. In this investigation,
random sampling is used to select sample from population. The main reason behind selecting this
sampling is that it provides each respondent with similar chances to get select as a participant
from research (Gordon, 2018). It also helps in ensuring that no biasness takes place at the time
of choosing respondents. 20 respondents are selected who are the employees of Volkswagen.
Method of data analysis: In research, data can be analysed through qualitative and
quantitative methods. In quantitative data analysis, data can be analyzed through descriptive and
inferential analysis. And the qualitative data can be analysed through narrative analysis,
grounded theory, content analysis and discourse analysis. In this study, the data is analysed
through descriptive analysis method as this assist researcher in find out absolute numbers for
summarizing individual variables.
Reliability: Research reliability is defined as the extent to which the methods of research
produces consistent and stable outcomes. In research, it is highly important aspect as it assists in
ensuring the affective outcomes of research. It also helps in ensuring that it has positive
implication on other areas of study and allow a researcher to develop further investigation in the
similar field. In order to ensure reliability of data, the research will gather the data from authentic
and relevant sources and ensure that the data older than five years can not be included in the
investigation (Hideg and Ferris, 2016).
Validity: Research validity is defined as an indication of how is effective the research is. At
the time of collecting data, it is required by researcher that it ensures validity of research.
Validity in collection of data means that the findings of research truly represent phenomena that
an individual claiming to measure. In order to ensure the validity of data, researcher will take
into consideration various aspects at the time of collecting data and drawing outcomes. Apart
from this, the researcher ensures that all the data is collected through authentic sources so that
valid outcomes of investigation can be drawn (Jin, Lee, and Lee, 2017).
Limitations of study: Limitations of research includes those constraints that influence the
outcomes of research. There are some limitations in the study including lack of reliable data
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