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Impact of Cultural Diversity

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ABSTRACT
This paper examines the impact of cultural diversity on productivity in the workplace. In this paper, we will identify how diversity in an organization contributes or detracts from an organization. What is cultural diversity? Cultural diversity is defined by Cox (1991) as “the variation of social and cultural identities among people existing together in a defined employment or market setting.” This paper will focus on national and racial diversity as it relates to culture, and the impact of such a diverse team on an organization. The evolvement of an integrated global economy has made diversity essential in this present day world. The paper will explore the pros and cons of such a diverse culture to an organization. A diverse culture within an organization is one that will comprise of benefits such as innovation, the introduction of new ideas and the expansion of a consumer base. All of which increase the productivity of an organization. Diversity may be regarded as a double-edged sword in that a diverse environment could lead to team members creating subgroups and creating conflicts and tension within the group, in essence reducing the productivity of the team. Approaches to reducing the negative effects of diversity on an organization are addressed, and include education and increased awareness. This will in turn reduce bias and stereotypes in the group or organization.

Impact of Cultural Diversity on Productivity in the Workplace

An increase in human connectivity and the exchange of products, ideas and worldviews have made diversity an important asset in today’s workplace. Globalization and the potential for companies to branch out and expand overseas have made diversity a vital resource to companies and a widely accepted concept (Lockwood, 2005). Lockwood (2005) states that many companies these days are “focusing on corporate

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