Multicultural Diversity's Impact on Team Productivity: Analysis

This report examines the effects of multicultural diversity on team productivity, focusing on the context of international workplaces, particularly in Saudi Arabia. It begins with an introduction that highlights the significance of team dynamics and the evolution of productivity theories from Adam Smith to Karl Marx and Max Weber. The literature review delves into various aspects, including workplace standards, social exchange theory, leadership theories, and team communications. It explores the impact of globalization, localization, and technological changes on workplace environments. The report analyzes the Saudi Arabian context, considering international workplace standards, cultural factors like Islamic rituals, gender separation, and legal frameworks. The report also discusses the Nitaqat program, sponsorship systems, and employment quotas, highlighting the challenges and opportunities related to diversity. Furthermore, it explores the application of social exchange theory in multicultural teams, examining factors like trust, communication, and organizational citizenship. The report draws on various research studies and provides a comprehensive analysis of how diversity impacts team performance, offering valuable insights for effective team management in diverse environments.

Effects of multicultural Diversity on
Team Productivity

Table of Contents
INTRODUCTION...........................................................................................................................1
LITERATURE REVIEW................................................................................................................1
Standards of international workplace in Saudi Arabia...........................................................2
social exchange theory...........................................................................................................5
Leadership theory...................................................................................................................6
Team communications ...........................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
In order to work in a team, relationship of several individuals work effectively in the
wider society. In addition to this, long standing research interest created to develop effective
results. With the help of Seminal Wealth of the nations, Adam Smith (1776) division of labor
determines as the pin in a factory to explains advantages of productivity. It will enhance
specialization that is essential for factory production. Further, productive benefits includes for
social benefits at large scale team production. As leading with the theory, industrialized
recognize as the capitalism. According to Karl Marx (1867), power of the collective workers
indeed to with harnessed in the revolutionary. It includes several ways that enhance productivity
to build different society.
It also helps to assess asymmetry that enhance capital labor relationship in the industry.
In order to move from Marx's inherent labor management conflict identified which began from
team structure. With the help of efficient team structure, Max Weber (1905) assessed that routine
task work in the emerging forms of large enterprises.
LITERATURE REVIEW
In the time of Frederick Taylor (1911), it has been assessed that science used motion to
find one of the best way of working that maximise output of workers. In the period of rising
industrial tension among workers and employers, Taylor used analogy of shovelling to show
productivity improvement which promote to them. In the productivity improvement, both
workers and employers can easily share extra output in the scientific management.
In the short time of historical and conceptual excursion, importance of the problems and
issues has been identified with evaluation of modern societies. In the theoretical projects,
understanding also includes that suggests changes as the nature for making social relations and
change characteristics. It is the essential aspect which require assessment of current thesis.
Working together in technology changes assists to make new business model among
globalisation and localisation. Assumptions about the organisational forms and policies of
workplace can longer than valid. In addition to this, it also includes practices which recognise
evolution of the workplace environment and uses of ubiquitous workplace. In the international
airport, test also conducted with several variables in term of social exchange theory. Outcomes
also set with new parameters for international employment and values at workplace.
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However, Saudi Aramco grew and prospered which exists as the multinational
corporation that comprising among 70 nationalities. Firm also develop as the model for
multicultural work environment. It is dedicated to the entrepreneurship and economic growth. In
the Aramco values of the community services, conservation and energy efficiency can be
develops. In the enterprises beverages diversity and work teams comprise among several
individual who respect each other. It also helps to contribute social development which have
career paths in educational programs and aligned to the needs of business and nation (Danforth.
2016).
Standards of international workplace in Saudi Arabia
At workplace, characteristics described in the broad term of the literature. There are
several standardised employment structure can be ascertain that advocate in international labour
organisation. In Geneva, Switzerland and interpreted by the member nations. Saudi Arabia is the
long standing member of the enterprise which has two core conventions and total 67 in term of
total. In addition to this, government policy also exist which remove foreigners such as Pakistani,
African, etc. It is based on the illegal and long term settlement for developing effective results.
International standards for diversity at workplace also measure to enhance equity which
compromised in Saudi workplace.
Beside this, in Arab region, working environment of the Saudi develop with several
things such as Islamic daily rituals, gender separation and dual legislation (Alfalih, 2016).
According to Alfalih, it can be identified that in the Saudi national and international firms,
religious and traditional Arab belief strongly. It could be influence to the standards of business
policies and practices. In the present study, Alfalih stated that paternalism of the Saudi society let
to the management addressing well-being and also development of society. Workplace relations
also important subject of the social dialogue which pointed to mosque which is the place where
people done their prayer on Friday. Therefore, at workplace relations create results of the social
dialogue between leader and their team members. It gives power distance of the Arab culture.
Employees also seek legal resources for the unfair management decisions. Nevertheless, subject
to the civil dispute structured that are based on the Shari's according to Islamic law and the
ultimate court with reducing exception of pardon through king (Al Rasheed, 2015).
Literature review is one of the most important part in the investigation by which various
information about the topic is collected. In this literature, there is no research analysis on the
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multinational team. In addition to this, there is a workplace studies which related to the foreign
employees with Saudis and their sex issue. Furthermore, other kind of studies has been also
included which provides the differences between nationalities. In addition to this, it considers on
the internationalizes which is based on the united states and which provides the detail knowledge
and understanding about their diversity. In this context, various international team has been
studied under which includes virtual teams, cultural sensitivities, communication etc. One of the
major effective study has been founded by the Knippenberg, van Prooijen, and Sleebos (2015)
who support company's citizenship and collectivism. In addition to this, there are various studies
which is based on the multinational team in a non standard labour jurisdiction. Furthermore,
another major study has been included about the Knippenberg, van Prooijen, and Sleebos (2015)
who define organisation citizenship and support along with collectivism.
In this present investigation, the social exchange model has been selected which major
focus on the productivity of team member in the national and itinerant team members. By this,
the systematic analysis of gap in the literature with respect of the present investigation.
Therefore, Trax, Brunow and Suedekum, (2015) stated that with the help of prior approval, non-
Saudi nationals may work in the Saudi Arabia. In this way, they are from the ministry of labour
and interior which is similar to other Gulf cooperation council countries. Saudi Arabia has the
effective sponsorship system that means expatriate workers can easily enter, work and leave the
host country with permission and assistance of their sponsor. All individuals who came to Saudi
Arabia to work must as the sponsor, they can either enter in several areas of international
companies. However, Alesina, Harnoss and Rapoport, (2016) argued that Saudi national may be
employed not only for fixed term corresponding to time in their work that permit and residency
visa. With pursuing the Nitaqat programme, ministry of labour and employers has been
implemented. Establishment also encourages to categories in premium, general and many other
aspects. It creates greater flexibility in recruiting and managing expatriate employees.
As per the view of Tröster, Mehra and van Knippenberg, (2014), recruiting female
workers also create effective results to promote them for employment. In this context, women are
permitted to work but restricted from the working in certain fields and hazards jobs as well. It
also includes setting of list which issued by ministry of labour. They need to work separately
from male employees. Therefore, they will get separate facilities as per regulation with regard to
women working in sectors such as factories, retail, etc. In the country, unique feature included to
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set targets for the employment of Saudi nationals. Under the labour law, almost 75% of the total
workforce comprises in the given quota. On the other hand, Moreland, Levine and Wingert,
(2013) said that each employer must require one Saudi national employee regardless of size.
There are certain functions also undertaken in the Saudi nationals. An employer required Saudi
national job before employing non Saudi national in that job.
According to Pieterse, Van Knippenberg and Van Dierendonck, (2013), employers are
required to train their Saudi national employees. In this view, technical skills can be enhances
which gradually accomplish records to show establishment of maximum probation. It makes
fixed term contract with maximum duration with extended from three to four years.
In the present dissertation, various author stated about the social exchange theory. In
addition to this, there are various view, opinion and statement about the leadership, multinational
team and effectiveness of the team working within an organisation. With help of this literature
review, scholar can able to get detail knowledge about the multinational team working.
In the present dissertation, in order to support studies for airport organisation, scholar
uses the social exchange theory. In this manner, high level of the staff participation has been
included in the Saudi working environment. With assistance of the social exchange theory,
scholar can get the detail about leader member and team member exchange. Social exchnage
theory provides an effective knowledge about the diversity and multicultural team under which
various kinds of people takes their active participation. These people have different culture,
region, language etc. An Knippenberg, van Prooijen, and Sleebos (2015) defines about the
individualistic culture and its impact on the team performance. Furthermore, working ability of
the people in the multicultural environment has been also studied in respect to the Saudi
working environment.
In the opinion of Lai, Singh, Alshwer, and Shaffer (2014) in the context of China, there
are major two forms with respect of trust in Chinese people that are co-location, modifying
organisational citizenship attitudes, virtual terms etc. With help of all these mentioned term,
chines trust can be identified. This assist in arising outcome which used in attaining the
objective. In this various variables and number has been partly used so as relevant outcome can
arise.
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With assistance of various views and opinion of the social exchange theory, a systematic
knowledge and information which has used to prepare the present study. The major focus and
consideration of the social exchange theory is to analyse the social relationship among work
peers, team leaders and subordinates. In the opinion of Brandes et al. (2004) in the figure 2 the
work behaviour of employees has been systematically defined. The social theory helps to the
organisation in understand and manage the various cultural people and their performance at
workplace.
Social exchange theory
According to the view of Wang and Noe, (2010) social exchange theory have main
objective is to conduct negotiation among the people. It is based on the human relationship by
which they can bale to share their information, knowledge, feeling, emotions etc. In the view of
Bordia and et.al., (2017) With assistance of this theory, people can improve their relationship and
address the major issue which occurs at the workplace. In the organisation, with help of this
social exchange theory, management can able to improve the team working, quality of product
and services and productivity of business.
Paraskevaidis and Andriotis, (2017) stated that In the China, if organisation adopts the
social exchange theory then it may able to improve its quality and productivity because with help
of this theory, personnels can able to improve their relationship at workplace and make an
effective working environment within the corporation. By applying this model, the relationship
between the top management and lower level management can also enhance as they understand
their issue related to the business and coordinate with each other for attaining the determined
objective. In the contradicting view Van Knippenberg, van Prooijen & Sleebos, (2015) Stated
that if company implies this theory in the workplace then it required to understand the each other
activities and assignment. In the contradicting view Li and Yu, (2017) team building is very
necessary for implementing this thing within the company. In order to improve the relationship
with employees, top management should invite an employee in the business decision making
process. In the opinion of Özel and Kozak, (2017) by using these criteria, company can easily
identify the actual issue and conflicts which occurs within the workforce. By taking active
participation within the decision making process of business, employees can easily make their
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loyalty and trust with employer so as their relationship can more improve. According to the view
of Zhao and et.al., (2017) Saudi social exchange studies focused on the employee's requirement
and needs related to their working in the company by which they can consider on the working
need. This theory is a strong vehicle by which among employer and employees relationship can
better improve. In the view of Wolfsen and Mathieu, (2017) stated that team can develop within
the corporation by share their social value, belief etc. This can make an impressive platform in
the corporation through which every one can put their strong efforts to attain the determined
objective.
As per this model defined by the Taking Brandes et al.'s (2004) the relationship between
the top management and lower level management has been systematically addressed. In this
model, the three work outcome and its impact on the local and global social exchange has been
defined.In the context of role behaviour, different employees and top management role and their
behaviour defines. This is concerned with judgement, capability of personnels to their
employment. It is very important for the employees to behave in an appropriate manner and
contribute their effective efforts for attain the determined objective. In the figure 2 the
relationship between the employees and management has defined. In addition to this, corporate
social responsibility have effective participation in the improvement of relationship between the
employee and employees. This figure define the relationship of top management with the
employees and lower level management. There is very important to maintain an effective
relationship so as they can collectivity accomplish the task.
According to the Saudi exchange studies, training is very significant aspect within the
corporation by which there may effective relationship can developed. In the view of Alamri and
Al-Duhaim (2017) by help of training and organisational commitment, corporation can
effectively focus on the needs and performance of employees so as they can excellently attain the
objective. Alamri and Al-Duhaim's (2017) Stated that with help of this social exchange theory
there may found an effective relationship between an employer and employees.
Leadership theory
The leadership is great term which brings collaboration in group by working together.
This is the wide range of theory which defines different practices of leadership. According to
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Dinh et al. (2016) argued that the leadership give it emphasises on the aspect like
transformational leadership, leadership trait and leadership member exchange. It can be taken as
three stage of procedures which relates as leadership as process, as combination of traits and
personality. These process are in manner of adaptive, authentic and appreciative. It encourages
person to be in group. There are various forms of leadership such are as ethical, destructive and
transformational form of leading activities. According to Dinh et al. coded 752 articles as follows
are as There are various leadership theory in relation to particular context are as individual as
trait and genetic theories, group relates to demographic diversity event as per affective event's
theory. After conducting the various research programmes the researcher came there are many
numbers of reviewers who found no unified leadership theory. The total number were as 66
identified theoretical domains and multitude of various methodologies. In this there are many
issues in relation to validity and reliability as analysing the data against standard performance of
international airport, the leadership theory is not persuaded in this kind of manner.
Illustration 1: Model of the research
(Source: Tröster, Mehra and van Knippenberg, 2014)
The leadership theory is great tool in order to satisfy the firm productive and profitability
Transformational Leadership in the Saudi Arabian Cultural Context: Prospects and Challenges,
(2017). After conducting various research programme it has found that the theory of leadership is
two be based on some approaches re trait, behavioural, contingency and participative leadership
in order to cope up with multicultural diversity in relation to team productivity. The trait usually
focus on qualities of leader and effectiveness and efficiency of work. According to Rubenand
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Gigliotti,2017 has sated that it is very essential in order to define how leader should behave in
multicultural diversity to enhance the team productivity. As per view of Collinson, Grint and
Smolovic-Jones, 2017 said that behaviour approach is very helpful in manner to identify specific
function of person so leader can lead them effectively. The contingency theory is overlook the all
kind of theory to encourage the importance of multicultural diversity.
The term leadership has very wider effect on organisation, business performance so that
people can interact properly with each other. In multi culture diversity the leader need to
understand the behaviour of person so they can work in tram manner (Antonakis and House,
2014). The productivity of fir can be enhanced only with the proper working of firm . It can not
be said that leadership is related to one particular aspect such as it is about being together. The
team communication can only increase with the effective forms of leadership. According to
Morgan, 2017 has stated that in present scenario the approach of leadership should be self
centred to being group focused. As per he views of Wolfsen and Mathieu, 2017 has argued that
the leader should have ability to inspire and guide their subordinate in well and effective manner
so they can work in manner to achieve organisational objectives of firm. According to Rubenand
Gigliotti, 2017 has stated hat the term leadership is very complex process in this leader need to
have critical logical knowledge and different practical skills in relation to this (Armstrong,
2016). As per the view of Morgan, 2017 state the leadership is process which help in manner to
achieve business performance, policies and strategies with proper guidance to multi diversified
people to enhance the team productivity.
The various term in relation to variable education system, communications and training
which largely affects on kinship of member between multi culture team. Lisak, Erez, Sui, and
Lee (2016) has argued that fluent communication skills work in manner to underpinned team of
innovation although this is in relation with Chinese branch of German corporation there are very
few numbers of nationalities involved because it is expected under the Saudi airport workplace
environment.
The knowledge sharing on every component is great tool in relation to government of
Saudi government. In the earlier time, Saudis focus to work along with skilled expertise,
transferring knowledge and skills in manner to saudisation (Aldosari, 2013; Nasief, 2015). In this
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the various changes in social environment it became difficult to adjust with many kinds of Arab
situations. However, social exchanges at this level were difficult to realise in other Arab
situations:
In an Emirati context, Al-Esia and Skok are taking various recommendation in relation to
recognise great leader and take effective steps in order to addressing emerge issues in relation to
multinational teams and various numbers of institute informal gathers to solve the issue in
relation to break down social barriers. The all programme and policies should be conducted in
well effective and impressive manner.
Team communications
As per view of Zhao and et.al., 2017 Team communications is the great tool in relation
to social exchanges which is inclusive of aspect like knowledge sharing as noted in various
phases as in the multinational team subsection, and some information should share to complete
inter-team tasks, such are as landing aeroplanes or loading baggage. Wang and Noe (2010) has
argued that the main contemporary issue is in relation to knowledge sharing of in-term and extra
team in his the main reason is language barrier which usually hamper the growth of production.
According to Bordia, P., and et.al., 2017 they work in manner to have discussion on personal
features and various constants of team cohesiveness such as many leader theories and trust, and
generalise these variables with the intention in relation to manage the attitude of individual
member and their willingness to sharing knowledge in wide manner. Reviewed the contemporary
literature regarding in-team and extra-team knowledge sharing.
In relation to well function of airport is not expecting to be an obstacle in terms of
knowledge sharing, but this kind of situation may be occur in area which are having non
operational work are as administration and commercial sectors of airport. However, as per note
of, According to Wolfsen and Mathieu, 2017 has stated that there are various manner in relation
to sharing of knowledge particularly under the multinational teams and this kind of team need
different types of reward structures for setting the operation efficiency in highly manner of
standards. In this manner the work and relation can be coordinated in effective way. The positive
aspect behind team communication is to work in manner to achieve one common goal, If team is
not working in one effective manner than there can be poor performance of work. Due to which
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the growth and productivity of firm can be harmed in large manner. As per view of Li and Yu,,
2017 has stated the success and failure of business is depended on team management function.
The other well identified aspect of team action is concerns with virtual kind of teams and
take effective steps in order to building trust and agreement between members and try to work in
team when they engage with other virtual teams (Hoch & Kozlowski, 2014; Pinjani & Palvia,
2013). This could have some internal kind of connection for this content if airport teams are
interrelated with borders, for instance, The airport controllers. However, like the work in relation
to leader-member exchange theory, interconnection is circumferential to define the team
efficiency in well and expertise way.
The system of social media use between teams is in relation to non core variable or
various aspects of airport teams. jomandy (2016) has argued that human resource management
should use social media services for forms of open/internal in relation to achieve desired
workplace aims and objectives. Gal-Tzur, Grant-Muller, Minkov, and Nocera (2014) are taking
steps in order to effective use of social media services in relation to transport service providers
(teams) at airports, and they work in manner to share information on policy, rules and status with
the public. Again, this is declarative of the literature, without the specialised focus on the teams'
operational aspect of this proposal.
Literature has stated that Arab region, working environment of the Saudi develop with
several things such as Islamic daily rituals, gender separation and dual legislation. It can be
identified that in the Saudi national and international firms, religious and traditional Arab belief
strongly. It could be influence to the standards of business policies and practices. Saudi social
exchange studies focused on the employee's requirement and needs related to their working in
the company by which they can consider on the working need. This theory is a strong vehicle by
which among employer and employees relationship can better improve. Multi diversity culture in
serious issue for population and corporation as well. Team communications is the great tool in
relation to social exchanges which is inclusive of aspect like knowledge sharing as noted in
various phases as in the multinational team subsection, and some information should share to
complete inter-team tasks, such are as landing aeroplanes or loading baggage. The leadership is
great term which brings collaboration in group by working together. This is the wide range of
10

theory which defines different practices of leadership. This issue is creating burden on multi
national forms that results in increasing turnover of staff. It is highly required to improve his
condition. In this context is very necessary to making some laws and legislation so that problem
in relation to multi culture diversity can get approved. It is very essential to make effective
smooth in multi culture diversity is by focusing on this all issues.
CONCLUSION
From the above report it has been concluded that the main aim of this project is to make
improvement in leadership and team communication so that better output can be achieved. It has
been assessed that science used motion to find one of the best way of working that maximise
output of workers. In the period of rising industrial tension among workers and employers,
Taylor used analogy of shovelling to show productivity improvement which promote to them.
Team building is very necessary for implementing this thing within the company.
11

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Transformational Leadership in the Saudi Arabian Cultural Context: Prospects and Challenges,
2017[Online]. Available through:
<https://link.springer.com/chapter/10.1057/9781137311573_11>. [Accessed on 16th
september 2017].
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