Impact of Cultural Diversity on Workplace Performance: A Report

This report investigates managing cultural diversity in the workplace, focusing on its impact on organizational performance, using Starbucks as a case study. The introduction defines cultural diversity and its significance, emphasizing the benefits of diverse teams and inclusive cultures. The literature review explores cultural diversity, its advantages like increased innovation and productivity, and the positive impact on a company's reputation. The research methodology outlines the research philosophy (interpretivism), approach (inductive), and strategy (case study with questionnaires). Data collection methods include primary data via questionnaires and secondary data from literature. The analysis employs thematic analysis to derive meaningful insights. The report aims to determine the impact of cultural diversity on organizational performance, identifying benefits and providing guidance for creating a positive and inclusive work environment.

RESEARCH
PROJECT

TOPIC: Managing cultural diversity in the workplace.
INTRODUCTION
Overview of Research
Diversity introduces as identifying, knowing and accepting the individual differences
irrespective of race, gender an, physical ability, class etc. Cultural diversity is quality of the
different culture as opposed to global monoculture, akin to the cultural decay and monoculture. It
is related to having the various cultures respect differences to each other. It impute that the
people use to be confirm with regard to that e others than a person is different. In this, cultural
diversity supports an idea that each person can make positive and unique contribution to large
society (Ang and Van Dyne, 2015). At workplace, cultural diversity is when the organisations
are open yo recruiting people from different backgrounds. When organisation hire and sustain
diverse people then it bring about various advantages to form and staff members.
Background of Research
The cultural diversity is when the people differences and represented with in community.
Diversity at workplace is necessary for staff members because this manifests in developing better
reputation for an organisation, enhanced profitability for employees. Starbucks is American
Coffee organisation and the largest coffee house chain. This was founded in tear 1971 and
operated more than 30000 locations in all over world. The organisational culture of Starbucks
company is culture of inclusion, diversity and belonging. In this company, embracing diversity
increase its working culture and it drives to business success. This is inclusion of diverse
perspectives and experiences that develop empowerment culture and foster innovation, create
new ideas and economic development (Cascio, 2015).
Significance of Research
This report is based on managing cultural diversity within workplace. It is most necessary
concept and there is a need to organisation to focus on this for making the business environment
positive. In an organisation, people belongs to the different culture and their values are differ so
it is necessary for an organisation to focus on develop the common culture which every
employees can follow easily and attain the set objectives. It provides the basic knowledge and
increase skills for conduct an investigation regarding the cultural diversity in an effective
manner. It gives the proper guidance to perform research activities in a systematic manner for
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getting the positive outcomes. On the other hand, this research helps in find the gap in an
investigation which need to be faced. It provoked through gap that left unfilled through
substantial research work that has been completed on the impact of culture diversity over
business performance of an organisation (Laroche, 2012).
Research Aim
The main aim of this research is “To determine impact of cultural diversity on
organisational performance”. A study on Starbucks.
Research Objectives
 To determine concept of cultural diversity.
 To examine the benefits of cultural diversity at workplace.
 To identify impact of cultural diversity over business performance of Starbucks.
Research Questions
 What is cultural diversity?
 What are benefits of cultural diversity at workplace?
 What is impact of cultural diversity on organisational performance of Starbucks?
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LITERATURE REVIEW
Cultural diversity
As per opinion of NICOLE HOFFMAN (2017) it has been stated that Cultural diversity
is an existence of variety of the ethnic and cultural groups within society. It is variety of
multiculturalism of group and organisation. It consist the various belief systems, social structures
and also strategies culture use for adopting life conditions in different part of world. In an
organisation, people belong to the different culture and sometimes they face some complexities
to understand people and also work with the different environment. When the people belong to
different culture or background are work together then they are open to differ ideas and the
viewpoints. It helps the people to hearing as well as sharing the various perspectives or
presenting ideas.
When the diversity is managed in a proper manner then staff members are subject to the
diversity or cross culture and employees feel validated. It helps in providing the opportunities to
staff members to work with the people which bring various viewpoints and skills. It assess them
to identify that each employee is important for the different reasons. They feel valuable to
employees and helpful in make improvement in their moral as well as promote the positivity at
workplace (Logan,2012).
Benefits of cultural diversity at workplace
From viewpoint of Kristina Marti (2019), it has been stated that Diversity at workplace
can enhance ROI, foster productive working environment and innovative ideas. In cultural
diversity, organisation hire the staff members from different background that consists culture,
race and religion. When an organisation hire and also retain large number of employees then this
brings benefits to company and staff members. In this, each employees are working together for
attaining specific objectives within given period of time. At workplace, cultural diversity
enhance creativity between team and also capabilities to have diverse solutions to particular
issues. There are some advantages of cultural diversity mention below:
Minimize employee turnover- Firm that embraces the cultural diversity would entices
large number of candidates for vacant job positions. High qualified and educated candidates
which have the experience of diversity at workplace may feel that diverse organisation is
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progressive. When a firm hire from diverse set of the potential staff members then they are likely
to recruit best of industry.
Enhance productivity- The diversity can enhance creativity between teams and have
diverse solutions to particular issues. In this, research on innovation and creativity has been
showing value of exposing people consistently to experience with many views and perspectives.
Firms encourage the diversity at workplace and it inspire all the staff members to perform high
ability. (Patrick and Kumar, 2012)
Brings innovation- In the fast changing economic environment, those forms which can
not innovate quickly to keep up then they will struggle to success. The culturally diverse
workforce does not bring any kind of differences and they develop the new way of the thinking
that can be cut by harmful impact of group think an conformity. In addition to this, diverse teams
are likely to generate the ideas and also creative solutions to issues.
Reflects positively on reputation- Under this, company hire and motivate employees
from wide range of the backgrounds are gain reputation for being better employer. The current
consumers feel valued to company and increasing organisational productivity. In context to this,
diverse collection of experiences and skills permit an organisation to give better services to
consumers globally because it can understand needs of consumers in a netter manner
(Podsiadlowski and et. al., 2013).
Impact of cultural diversity over business performance of Starbucks
As per opinion of EDWARD FERGUSON (2019) it has been stated that cultural
diversity management enables managerial ability to examine the organisational behaviour that
effect on performance level of Starbucks. In this, culture empowers the staff members and also
drives organisation towards better performance. Reliability of organisational performance and
cross- culture encourage determinants of the organisational performance. To understand the
culture diversity at workplace, there is a need for management to apply practices which help staff
members to understand the organisational events, staff members can interact and increase
cooperation level with the each other because they share the common ideas and goals effectively.
In addition to this, organisational culture of Starbucks company is distinct characteristics of
company, its culture influence staff members as well as performance level by traditions, customs
and behavioural expectations in business. In Starbucks company, employees learn from the each
other by cultural diversity. It is helpful in make improvement at workplace through helping as
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the learning experience for managers and staff members. The various employees bring the
individual experience and talent and also suggest the flexible idea to adapting the changing
environment or market. Starbucks organisation encourage the workplace diversity to inspire all
the staff members to perform in better manner by showing their high ability. This result in
increasing the high productivity and increasing performance level of Starbucks (Riccucci, 2018).
To protect the workplace environment, Starbucks company apply anti- discrimination
policy that give shape to organisational culture. It prohibits any discrimination on the basis of
race, gender, religion, cultural backgrounds etc. In addition to this, Starbucks company
facilitated the information sharing and also positive resonance between staff member. Cultural
facilitation support the employee motivation and helpful in reduce turnover. This kind of aspect
increase motivational level of employees and also enhance their performance level.
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RESEARCH METHODOLOGY
Methodology is defined as the theoretical and systematic investigation of different
methods which used to area of survey. This process will helps researcher in chosen, process and
also examine appropriate data about specific topic. This section of research provides the
techniques and tools to data collection and analyse. Research onion is considered as the most
necessary methodology and it is developed through Saunders in year 2007. The research onion
framework is mainly used in defining research methodology for study (Rockstuhl and Ng,
2015). Different components included in research onion mention below:
Research philosophy
It makes up outer- layer of research onion framework. It is set of the beliefs as well as
assumptions that help researcher in developing appropriate understanding on specific area.
Through this, researcher can clarified different number of strategies used in the research process.
Along with this, there are two philosophy which are interpretivism and positivism. Both are
helpful in doing investigation systematically. According to current study, Interpretivism research
philosophy is used because it helps in analysation of researcher's opinion and applied the
outcomes in the basis of situations.
Research Approach
Research approach is mainly related with searching investigation type. Inductive and
deductive are introduced two important types of research approaches. Inductive approach of
research is related with formulation of the hypothesis and searching outcomes (Spaaij, 2013). On
the other hand, deductive approach is another kind of approach that mainly works on the specify
hypothesis. In this present research, inductive research approach will use through researcher
because it helps in formulating research questions and analyse the collected data significantly.
Research strategy
The research strategy is helpful in analyse objectives through using the specific research
methods. This layer of the research onion aids in analyse research objectives through using the
effective methods. Under this, case- study approach will be considered with use of survey
questionnaire. Its main focus is on single contextual environment. Questionnaire is helpful in
collecting the data related to specific subject area.
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Research Choice
It consists mixed method, multi method and the mono method. In this, mixed method
comprises of quantitative and qualitative outcomes. This report is based on the qualitative
research method because it gives the detailed information and data regarding particular subject
area so that positive outcomes can be examined (Thomas, 2015).
Sampling
Probabilistic and non- probabilistic are two different sampling method. For selecting
sample size of current study, random data sampling method is applied through researcher and
select 40 respondents. Employees of company are main respondents which have proper
knowledge about the workplace and cultural diversity.
Data collection and Analysis
Data collection is useful process used by researcher for collecting and also measuring the
data about variable of interest in systematic manner. It helps in answer to the research questions
and examine outcomes. Primary and secondary are consider two useful methods used by
investigator for collection of reliable and detailed information. Both methods of data collection
provides relevant information related to specific area. From primary method, data and
information will collected by developing questionnaire (Yoder-Wise, 2014). On the other hand,
for conducting literature review part, secondary method will be use by considering different
sources like books, articles, internet sources etc.
Thematic analysis will be applied for analysing proper data about current investigation.
Along with this, this method of data analysis make interpretations for getting the positive
outcomes.
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REFERENCES
Books & Journals
Ang, S. and Van Dyne, L., 2015. Handbook of cultural intelligence. Routledge.
Cascio, W. F., 2015. Managing human resources. McGraw-Hill.
Laroche, L., 2012. Managing cultural diversity in technical professions. Routledge.
Logan, W., 2012. Cultural diversity, cultural heritage and human rights: towards heritage
management as human rights-based cultural practice. International journal of heritage
studies. 18(3). pp.231-244.
Nederveen Pieterse, A., Van Knippenberg, D. and Van Dierendonck, D., 2013. Cultural diversity
and team performance: The role of team member goal orientation. Academy of
Management Journal. 56(3). pp.782-804.
Patrick, H. A. and Kumar, V. R., 2012. Managing workplace diversity: Issues and challenges.
Sage Open. 2(2). p.2158244012444615.
Podsiadlowski, A. and et. al., 2013. Managing a culturally diverse workforce: Diversity
perspectives in organizations. International Journal of Intercultural Relations. 37(2).
pp.159-175.
Riccucci, N., 2018. Managing diversity in public sector workforces: Essentials of public policy
and administration series. Routledge.
Rockstuhl, T. and Ng, K. Y., 2015. The effects of cultural intelligence on interpersonal trust in
multicultural teams. In Handbook of cultural intelligence (pp. 224-238). Routledge.
Spaaij, R., 2013. Cultural diversity in community sport: An ethnographic inquiry of Somali
Australians’ experiences. Sport Management Review.16(1). pp.29-40.
Thomas, D. C., 2015. Cultural intelligence. Wiley Encyclopedia of Management, pp.1-3.
Yoder-Wise, P. S., 2014. Leading and managing in nursing-E-Book. Elsevier Health Sciences.
Online
FERGUSON, E., 2019. Starbucks Corporation’s Organizational Culture & Its Characteristics.
[Online]. Available through: <http://panmore.com/starbucks-coffee-company-
organizational-culture>.
Hoffman, N., 2017. ADVANTAGES OF CULTURAL DIVERSITY IN THE WORKPLACE.
[Online]. Available through: <https://global-lt.com/cultural-diversity-workplace/>.
Martic, K., 2018. Top 10 Benefits of Diversity in the Workplace. [Online]. Available through:
<https://www.talentlyft.com/en/blog/article/244/top-10-benefits-of-diversity-in-the-
workplace-infographic-included>.
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