Culture Diversity in Work-Place and Organizational Performance
Submitted by:
Nishant Gupta
Model Purbanchal College PU Regd. No: 112-2-3-000283-2021
DECLARATION
I Nishant Gupta declare that this seminar report entitled Communication and its role in change management submitted in partial fulfillment of the MBA Degree, the Faculty of Management, Purbanchal University is my original work carried out under the guidance of Dr. Ashok Shah, and has not been submitted anywhere for the award of any other degree or commercial purpose. In keeping with the ethical practice in reporting scientific information, due acknowledgements have been made wherever the findings of others have been cited.
Nishant Gupta PU Regd. No: 112-2-3-000283-2021
ACKNOWLEDGEMENT
I would like to thank Dr. Ashok Shah, Faculty Mentor, for his guidance and support during this process and my seminar reports committee members, for their recommendations throughout the process. I would like to thank all my family and friends for their love and support during this educational venture.
In this process of compiling this seminar report, I fell privileged to have the opportunity to express my appreciation to Purbanchal University, Model Purbanchal College Janakpur Dham for providing an opportunity to conduct this seminar as partial fulfillment of MBA program.
I great fully acknowledge all the staff of library of Model Purbanchal College Janakpur Dham, for making the literature available through different ways. I would also like to thank librarians and staff of Model Purbanchal College, for their encouragement and support during the entire period of my study.
EXECUTIVE SUMMARY
Cultural diversity is what binds all groups of employees at all levels in a company. Cultural diversity calls for a type of organizational culture where all members can pursue their aspirations without being inhibited by gender, race, nationality or other qualities that are irrelevant to performance. The importance of the need to have the concept of managing diversity embraced by top managers has also been emphasized.
A statement concerning diversity should always refer to certain facets such as age, gender, culture and disability. Scholars have not concentrated more on cultural diversity in the workplace and how it affects organizational performance, hence creating a gap. This study provides background knowledge on cultural diversity among employees at the workplace and provides measures of organizational performance.
The study further brings out the study theories under theoretical review, which comprises the resource-based theory, behavioral theories and competency theory. This study reviewed various literatures on cultural diversity in the workplace and organizational performance and found that cultural diversity in the workplace is a formidable competitive weapon in an organization.
The study recommends that organizations should have proper cultural diversity management since it enables an organization to achieve a competitive advantage, which in turn influences organizational performance. In addition, the paper recommends that organizations should effectively manage their cultural diversity. This is because it has been established that cultural diversity influences organizational performance.
TABLE OF CONTENTS
CHAPTER 2: OBSERVATION AND FINDINGS.................................................... 6
CHAPTER 1 INTRODUCTION
1.1 Background of the Study
In today’s world, globalization has almost removed national boundaries, making labor movement easy and further forced organizations to deal with people of diverse cultural backgrounds. A multicultural workplace has made Human Resource Managers deal with a set of new challenges as a result of much-needed changes in management practices. The aspect of increasing diversity and heterogeneity is beneficial if it is effectively managed. Diversity is quite an emergent field of research which began in the 1960s during the anti-discrimination movements in the United States of America (USA). Diversity began receiving attention in scientific literature in the 1990(Ayega & Muathe, 2018).
However, constructs need to be defined conceptually or constitutively since they are ideas that help to organize a domain of study, else it will be impossible in generation of knowledge in the domain under study. In today’s corporate world, customers are putting consideration on the speed of delivery of solution as one of the key components in determining a solution provider. Therefore, industries, regardless of their field, start to search for new methods of boosting the performance of the organization and for developing solutions to the challenges faced by their businesses. For this reason, organizations are thinking around the inclusion of workforce diversity against the monolithic structures that have traditionally been in place(Tamunomiebi & John-Eke, 2020).
In many states, staffs comprise people of different nationalities, cultures, generations and genders. Countries like Singapore have been positioned as being attractive foreign investment destinations because of their mature and experienced workforce as a result of multiculturalism. There is a range of opportunities created by the mix of competencies resulting from a broad diversity(Kundu & Mor, 2017). Therefore, this workforce diversity is considered as a valuable component for building contact with businesses from all corners of the world and for making it possible for foreign groups to engage their business within their locations. In a similar way that the performance of an organization is massively influenced by the performance of one employee, the
positive outputs of a diverse workplace force at the staff level would also be intrinsic as well as an extrinsic motivational factor for the staff. This would hence boost staff participation. It is on the basis of this that organizations pay close attention to the staff’s attitude acquired through individual experience while interacting with workforce diversity at the workplace, with reference to age, gender and ethnicity in their organizational setting. Research done by past scholars portrays diversity as beneficial to performance under facilitating context; on the other hand, it is detrimental under obstructing context (Mecheo, 2016).
On this basis, numerous studies give the status of diversity in the workplace environment. An attempt is also being carried out to point out potential solutions that staff consider would boost the benefit of workplace force diversity to the next level. When organizations comprehend the advantages of diversity, work put constrain turns into a vital resource and when overseen well, could likewise encourage the organization’s prosperity(Cox & Blake, 1991). A few organizations measure performance by evaluating the stewardship of the best administration or how effective the organization uses its assets to create a benefit.
Since the period considered is typically short, these measures can be translated as markers of how all-round fitted the organization is to current conditions. Others measure performance in view of the overarching cost of an organization’s stock. The productive markets speculation expresses that the stock cost increased by the quantity of offers is the best accessible gauge of the genuine estimation of an organization. A few examinations have demonstrated that group heterogeneity affected performance relying upon the measure of heterogeneity chosen (Suharnomo, 2017).
1.2 Literature review
There are several theories that explain how cultural diversity in the workplace would ensure organizational performance. This paper is based on the following three theories that underpin the study: resource-based view, behavioral theories and competency theory(Ogbo, Anthony, & Ukpere, 2014). The theory was advanced by Penrose, who viewed a firm as a bundle of resources and argued that it is the heterogeneity of resources that give each firm its unique character. The focus therefore is on the assets of the firm and specifically people, since they have been viewed as being vital in the
attainment of sustainable competitive advantage. Asset-Based View of the firm, is therefore established on the conviction that organizations inside an industry direct heterogeneous considered assets. Assets are for the most part resources, capacities, organizational procedures, firm properties, data, information, and so forth controlled by a firm that empower the firm to catch and actualize systems that propel its productivity and adequacy(Mateescu, 2017).
Expressed in an unexpected way, assets are the qualities that enable firms to actualize their procedures. As indicated by the Resource Based View certain benefits with specific highlights will prompt legitimate preferred standpoints. In any case, an asset- based view procedure can’t convey upper hand without being operationalized. Operationalization implies a formalization of the hypothesis’ thoughts and ideas into pertinent models, which empower all phases of technique detailing and basic leadership. The operationalization of hypothesis is key since it directs managers in their asset-based procedure execution(Atiyah, 2016). In Penrose’s view, the administration’s part is two- fold: the organization of assets, and administration as an asset parse, taking the supposition that managers convey and procure administrative assets and capacities. Both are firmly related on the grounds that administrators as assets render administrations for the administration of different assets. Likewise, the critical part of managers is instructed by the view that with respect to every different sort of beneficial administrations, administrative administrations are the main sort which each firm, on account of its exceptional nature as an authoritative association(Mazur, 2010).
A firm has an unobtrusive favorable position or competitive advantage over another firm when this preferred standpoint isn’t being acknowledged by any contender. In analyzing sources of competitive advantage, the Asset-Based View has two assumptions. Firstly, a firm within an industry may be heterogeneous with respect to the strategic resources it controls. Secondly, the model assumes that these resources may not be perfectly mobile across firms, and thus heterogeneity can be long lasting. The asset-based model of the firm examines the repercussions of these two suppositions for the analysis of sources of sustained competitive advantage.
Operative resource-based models should provide guidelines for resource identification and selection and address the dynamic aspect of bundling resources. Hence, they have
to face biases and errors arising from uncertainty, complexity, and organizational conflicts. Resource-based models support strategy design by providing operative tools that make it possible to trace consequences of different strategies. Therefore, operational resource-based models should “reveal flaws and inconsistencies in proposals that might not otherwise come to light until the proposals are implemented and under way”. To do this, operative resource-based models must embody four characteristics: provide guidelines to identify and select valuable resources, portray the resources’ intrinsic endowment dynamics, depict how managerial policies affect resource management and have the ability to trace consequences of potential strategies over time. The resource-based view distinguishes two variables that determine whether a resource is strategic or not: the imitability of a resource and imperfect mobility, contribute to the uniqueness of a resource and with this uniqueness to a potential sustained competitive advantage(BARAK & Travis, 2010).
When a resource can be imitated by a current or potential competitor, the firm loses the opportunity to gain a sustained competitive advantage. In other words, the company loses uniqueness. Imitability can be impeded by the following three factors: unique historical conditions. A leading company in technology development may be too large to be overtaken by potential and current competitors. This is because the leading company is more knowledgeable and developed and therefore, these potential and current competitors are probably not able to overtake the company. Causal ambiguity occurs when imitators do not know what to imitate, because they cannot draw a causal relation between the success of the “successful” firm and the actions of that firm. Social complexity arises when resources can be socially complex in a way that other firms are not able to manage and influence these resources themselves. Examples of social complexity include a firm’s organization culture and social networks(Nguyen, Yadav, Pande, Bhanot, & Hasan, 2022).
Imperfect mobility occurs when a resource that can be bought by another firm on a market cannot result in a competitive advantage. For example, a machine that can be bought on a market by firms cannot be unique for one of the buyers of that machine. Examples of resources that can be unique are property rights and reputation; other firms on a market cannot buy these unique resources. An abstract form of immobility is imperfect mobility. Imperfect mobility makes certain resources more valuable to one
firm compared to another firm. An example could be a product developer in a product- developing team. The value of the product developer separates from the product developing team is lower than the value within his team. So, when a competitor is interested to “buy” the product developer, he or she will be of less worth to the competitive firm since he or she performs best in the product-developing team of the current firm.
1.3 Objectives of the Study
The Objective is derived from existing problem and significance of the study. The main objective is to investigate the relationship between role of communication in change management. In Specific terms, the objective, as follows:
- To study culture diversity in different work place
- To study organizational performance by difference culture diversity.
1.4 Organization of the Project Report
In the first chapter introduction considered back ground of the study, Literature review, objective of the study and organization of the project reports, then we describe chapter two observation and finding in current scenario and last chapter three conclusion have summarizes the entire reports and presents the recommendations has been discussed. The this is follow by the reference and appendix.
CHAPTER 2: OBSERVATION AND FINDINGS
2.1 Observations
Various studies have been reviewed which established how workplace diversity affects organizations. Workplace diversity is the topic of this study. This study looks at the effects of workforce diversity and how it affects the presence of organizations and how its arrangement and challenges from different social foundations experienced by employees affect organizational performance. Therefore, the main purpose of the study was to find out how workplace diversity adds to the success of the organization. To collect the required information for this theory, the researcher has for the most part utilized the present material that contains Human Resource Management research gaps(Mateescu, 2017).
Subjective research technique has been utilized to accumulate and investigate the information on the organizations. To answer the examination question and additionally acquire viable and significant data on each organization, the creator directed a meeting in three of the organizations, and assembled data on the web on two of the organizations. The outcome demonstrates that workplace diversity assumes a compelling part in a few organizations. However, lack of coaching and direction could cause low profitability in an organization. Thus, there must be customary change in approaches to viably deal with a diverse workforce as the world continues progressing. determined workplace diversity administration impacts on execution of human asset administration in the Ministry of Health. The examination assessed literature from hypothetical and empirical reviews that considers last traces of the calculated structure of model(Nguyen et al., 2022).
This study takes perspective of interpretive and constructionist as its philosophical position. This has prompted the decision of leading a subjective research approach with blended technique that is a mix of both the deductive and inductive methods of gathering information. The exploration is directed through various contextual investigation outlines with semi-organized meetings as the method for increasing observed information. These meetings have been directed on seven organizations inside that speaks to various sorts of businesses inside this area. As it appears in this
investigation, social diversity is seen emphatically and figured out on how to accomplish cooperative energy inside the organizations in. The organizations trust that while keeping in mind the end goal is to create and increase upper hand, they have to suit to social diversity and make a climate that is open and adaptable. Still, the greater part of the organizations does not have the all-encompassing perspective as they neglect to express diversity at the vital level and thus in all measurements of the organization This examination has taken a subjective, exploratory, outline as a contextual investigation, which was the most suitable approach for this sort of research in light of the fact that the utilization of proficient administration of social diversity is a social marvel, which has turned out to be progressively powerful, as the world has kept on globalizing(Mecheo, 2016).
Holes and inconsistencies and in addition similitudes were found between the writing audit and the essential information, which is taken a gander at long in the discourse and conclusion sections. In light of the discoveries in this thesis, the scientist has formulated a model that structures the most vital components in successfully dealing with a socially diverse workforce. It is known as the 3 As of successfully dealing with a socially diverse workforce to Act, Acknowledge and Accredit. A standout amongst the hugest discoveries was that while culture matters, it appears it is most critical to become more acquainted with and comprehend the person to adequately lead them towards accomplishing the group objectives(Tamunomiebi & John-Eke, 2020).
2.2 Findings
This reports have reviewed literature on the concepts and found that cultural diversity in the work- place is a formidable competitive weapon in the organization. In addition, cultural diversity affects all other organizational functions and hence has become a subject of interest to all levels of management in an organization. Further, the paper has established that cultural diversity is an intangible and difficult to imitate asset of an organization comprised of useful information that other people have no access to and are incapable of using. Creating diversity management involves making decisions and coordinating activities facilitating the actual processes of creating core benefit for the organizational performance.
Value creating processes take place both inside an organization and in its external environment in collaboration with business partners and suppliers. From the review of the paper, the literature suggests that there is a positive relationship between cultural diversity in the workplace and organizational performance. However, there are several unexplored questions to be answered. It would be useful to research the relationship between managers’ view on cultural diversity and its influence on management of cultural diversity. The reason and the causes of no representation or poor representation in terms of equality instead need to be further studied. Finally, the relationship between positive and negative effects of cultural diversity needs to be studied in relation to the different cultures represented in an organization.
CHAPTER 3: CONCLUSIONS
The objective of this paper is to determine cultural diversity in the workplace and its influence on organizational performance. It is clear that demographic profiles that include age, gender and ethnicity do affect performance of employees in an organization. The differences that are evident in organization culture, human resource practices, nature of work and business strategies mostly impact the variable of employee performance, which varies from one company to another. So as to improve knowledge, interaction of organizational culture and national environment, it is necessary to compare the effects of workforce diversity of the same organizations that are situated in different countries.
Cultural diversity is further categorized as a primary dimension based on the different definitions of culture that are found. In connection to this, how cultural diversity could affect organizations is presented in terms of how it can be beneficial in certain situations and problematic in others, both in terms of difficulties but also through conflicts. From the literature review, this paper recommends that organizations should have proper cultural diversity management since it enables organizations to achieve a competitive advantage, which in turn influences their performance. In addition, organizations should effectively manage their cultural diversity. This is because it has been established that cultural diversity influences organizational performance.
REFERENCES
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