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Benefits of a Multicultural Workforce

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Final Research Paper

Global organizations are recovering from the 2008 financial crisis and are repositioning themselves for aggressive growth. As the economy recovers, organizations worldwide realize the need for highly connected, ambitious and valuable contributors forcing companies to develop innovative ideas and find human capital to develop capabilities and share expertise. Globalization has changed the face of 21st century workforce. In today's fast paced and growing economy, there is an exponential increase of cultural diversity within big businesses and corporations. There is an opportunity to "achieve higher levels of productivity and extraordinary performance" (Nykiel) for large corporations with a multicultural workforce. At the same time, it may also "be more challenging in a multicultural work and managerial environment" (Nykiel).

Workforce Diversity Statistics

The term "multicultural workforce" which represents the personal characteristics of employees in an organization is today superseded and replaced by a much broader term, "cultural diversity". Diversity refers to the way organizations respond to a multicultural workforce. The strategy in large organizations is to leverage differences in employees to increase creativity and have a competitive advantage in a fierce market. In the 2014 survey conducted by Diversity Inc; which is the leading publication for the education and benefits of large organizations, 1215 companies participated in an empirically driven and ranked competition for a diverse workplace. It was carried out to help acquire and retain a multicultural workforce. . Competition got assessed on the talent pipeline, equitable skill development, CEO commitment, and supplier diversity. The top ranking companies had 76 percent more African- Americans on their Board of Directors. They also had 54 percent more women on their board of directors compared to Fortune 500 companies. Approximately 16.6 percent of African-Americans, Asians and Latinos are in the top level positions. Sodexo has taken the top two positions four years in a row which is indicative of an organization that known for talent enrichment and philanthropy.

Benefits of Diversity

A multicultural workforce is essential to new ideas and innovations because of the varying points of view and different perspectives. However advantageous it may be to have a multicultural workforce, it is not without its drawbacks. One such company, Worldwide Telecommunications, Inc., is an example of a business that may face multicultural changes and challenges. Some potential changes and challenges that Worldwide Telecommunications, Inc. may face that will affect teamwork, communications, varying opinions, people creating social groups based on their backgrounds, racism, and different beliefs/religion. The model for cultural diversity is individual acceptance and respect of cultural differences for the workplace. A balance in perspective is achieved with a clear understanding and acknowledgment that people and cultural experiences are different. Cultural diversity can include race, dress, values, religious preferences, politics, and language to name a few. Creativity and productivity increases when people of different cultures collaborate to merge qualitative and quantitative skills to find an inspiring solution to a common goal. In the United States of America, businesses believe "time is money" and getting to the "bottom line" is paramount to the success of the company. In most other countries such as India, Japan, and China a relationship between two businesses must be made before a business transaction can be made. As more and more companies function on an international platform, it is crucial to consider those candidates with multilingual skills to support the future expansion of businesses in countries outside the United States.

Challenges

There are no two people who think exactly alike. In a large company, there will be employees who do not come from the same background; this in turn affects how a person thinks. Because of this, each and every employee will not agree on every subject. Cultural differences will further lead employees to have varying expectations and cause diversity tensions. Disagreements are inevitable and will cause disruption in teamwork. A disruption in teamwork can only result in reduced productivity or even cause the loss of an employee. Also, disagreements can also cause a disruption in communication. Similarly, the implications of the lack of communication will cause a reduction in productivity. Another issue that may arise is the creation of exclusive social groups or cliques. As a company hosting a multicultural workforce, there will be those who will associate themselves with others that share similarities. "Many employees seek out co-workers most like themselves as a way to reduce culture shock" (Schreiber). The formation of these cliques may be harmful because it can create tension between other employees and create a glass ceiling effect. One possible problem with the formation of a clique is that there will be those who choose not to collaborate or work with another person because that person does not belong to a particular social group. If those who are not willing to work with a team member that they have no affiliation; the end results can create the reduction of quality of productivity or no productivity at all. Also, if there is a person has no affiliation with a particular clique, the originating group may choose to not communicate with that person. For example, if the other person was assigned to work with another existing group on an assignment. The group may willingly choose not to disclose certain information. Which can thus have an adverse impact on that other person. Vice versa, the other person may also have ill intentions towards this group and create a negative impact, by not communicating particular instructions. The next issue that may arise is, and quite possibly the most common, is racism. It has been quite some time since the day Dr. Martin Luther King Jr. spoke of equality for all in his "I Have a Dream" speech. Although we have come far as a society in the aspect of equality, we still have a long way to go because racism has not disappeared. In the instance of teamwork, racism can create implications simply because of the color of a person's skin color. For example, there may be those who will refuse to work with another person merely because they "do not look the same". Racial bias can lead to tension between employees and cause a halt in operation because of something so trivial. On a similar note, on the occasion a person is forced to work with another person of a different skin color or ethnic background. That person may refuse to communicate with the person of a different ethnicity; thus, also causing a disruption in productivity.

The last issue that may arise in a multicultural workforce is the varying beliefs or different religions that each person has an affiliation. There are those who feel so strongly that their religion is the only correct religion to follow. Which they might refuse to work with another person who affiliates with a different religion than their own or has no affiliation with any religion at all. Differing religious beliefs not only can cause a disruption in teamwork and communication, but creates a rift between employees.

Diversity issues could also stem from gender. Today’s workforce has an increasing level of employment participation by women. There are an rising number of dual income families and single working mothers. Over time there is been a drastic change in the basic family structure; this means that there are fewer men and women in their traditional family roles. Changing family roles can be a problem as many prestigious jobs require long work hours. Thus leaving the mundane aspects of daily life, like cooking, grocery shopping, and picking up the kids to other people such as husbands, nannies, and various other assistants. For many women in the workplace, this is a disadvantage. It is unrealistic to expect gender equality if workplaces demand that women be available all the time. On another note, gender differences may become an issue if workplace sexual harassment is not taken care of adequately. The US Equal Employment Opportunity Commission has a law that states “it is unlawful to harass a person (an applicant or employee) because of that person’s sex. Harassment can include “sexual harassment” or unwelcome sexual advances, requests for sexual favors, and other verbal or physical harassment of a sexual nature. Harassment does not have to be in the form of a sexual nature, however, and can include offensive remarks about a person’s sex. Both the victim and harasser can be either a woman or man, and the victim and harasser can be the same sex” (EEOC). Therefore, diversity issues can stem from gender just as much is any other difference between people.

Possible Solutions/Pre-emptive Measures The first possible solution to combat how a multicultural workforce might affect collaboration and communication is to create small groups or teams. The purpose of these groups is to "work together cooperatively to reach a common goal" (Schreiber); which is the underlying principle of the team management theory (Schreiber). The existence of teams has proven itself to be quite useful. Companies such as Toyota, Nissan, and Harley-Davidson have implemented teams and have shown an increase in "customer satisfaction, improved revenues, and reduced operating costs" (Schreiber). There is another effect that happens as well: these team members get to know more about one another. It is especially important because it breaks down the diversity barrier in a multicultural workforce and refocuses these teams to complete the assignments and disregard the fact that not every person hails from the same background. Also teams become successful because of the shared success or shared failure. Another pre-emptive measure in anticipation of challenges in a multicultural workforce is to require mandatory cultural seminars, classes, or training. The purpose of these workshops educate the employees to understand and appreciate the different "values, beliefs, customs, and preferences of other groups" (Schreiber). Cultural awareness affects communication because not everyone responds or listens the same way. In other particular cultures, they are not as direct, are more reserved, and not as involved physically when listening (Purdy and Manning). Although these people may not seem to be as engaged in a conversation, it is wrong to say that they are not listening nor are they disinterested. In a multicultural workplace, it is important to emphasize the adaptability of communication as both a sender and a receiver (Purdy and Manning). Lastly, a solution to overcome challenges that may affect teamwork and communication in a multicultural workforce is to provide incentives. Using incentives as a motivator causes an increase in teamwork and communication. As a part of a team, each member may be responsible for a portion of the assignment and may also have to communicate to one another to accomplish the task. If one person fails, then the entire team fails, and no one can receive any rewards. An incentive or rewards initiative can not only be applied to small groups and tasks, but can also be applied to an entire department of a company.

Conclusion

As a society becomes more diverse over time and, the workplace will become more diverse. Globalization of corporations is becoming more common, thus leading to a larger global workforce, marketplace, and eventually a world economy. Diversity will become more of a business concern, than that of a social concern, and will be an integral link to strategies giving companies a competitive edge. It is this diversity that must be tested ahead of time as a pre-emptive measure to avoid any conflicts and challenges that may arise within a multicultural workforce. If no action is taken to prevent these conflicts or challenges, then those who choose to not act will only be left behind the rest of the world. Therefore is it imperative that today's companies embrace cultural diversity in the workplace which embody industries to thrive in our global economy.
References
EEOC. Sexual Harassment. (n.d.). Retrieved March 30, 2015, from http://www.eeoc.gov/laws/types/sexual_harassment.cfm
Green, K., Lopez, M., Wysocki, A., & Kepner, K. (2002, June 1). Diversity in the Workplace:
Benefits, Challenges, and the Required Managerial Tools. Retrieved March 30, 2015, from http://edis.ifas.ufl.edu/hr022
Nykiel, R. A. (2003). Achieving Top Level Performance from a Multicultural Workforce. Journal Of Human Resources In Hospitality & Tourism, 2(1), 69. doi:10.1300/J171v02n01•05
Purdy, M. W., & Manning, L. M. (2015). Listening in the Multicultural Workplace: A Dialog of Theory and Practice. International Journal Of Listening, 29(1), 1-11. doi:10.1080/10904018.2014.942492
Schreiber, E. J. (1996). Muddles and Huddles: Facilitating a Multicultural Workforce Through Team Management Theory. Journal Of Business Communication, 33(4), 459-473.
The 2013 Diversity Inc. Top 50 Companies for Diversity (2013) Retrieved on 28 Mar 2014 from http://www.diversityinc.com/diversity-management/the-2013-diversityinc-top-50- companies-for-diversity/
The State of Diversity in Today’s workforce (Aug, 2012) Retrieved on 28 Mar 2015 from URL https://www.americanprogress.org/issues/labor/report/2012/07/12/11938/the-state-of- diversity-in-todays-workforce/

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