In an open and globalized space the economy is characterized by an increasing degree of urbanization ( Sahin et al, 2009). Regarding to this more and more individual feel free to move, live and work in different part of the world creating in this way a diverse workforce. Derivate of this is e cultural diversity among organizations. The base of this cultural diversity is that each culture perceive the information in a different context, resulting not only in confusion but wasteful mistakes too ( Mitry 2008).The focus of this critical literature review is the cultural diversity workforce and how different organizations react toward it.
Which are the positive and the negative aspects and what are the right practices and policies to develop into companies in order to enlarge the profits. Literature Review Widespread labor shortages and market changes in combination with demographic,
...globalization and economic factors ( Devines et al, 2007) such as reducing cost ( Theotokas, Progoulaki; 2007) are leading companies to hire employees from different countries less developed and with transition economy.As organizations become more ethnically diverse, it makes sense to pay attention to how different groups interact with one another at work (Pitts and Jarry 2007 ). Cultural diversity nowadays it is one of the most critical challenges into organizations (De Meuse et al; 2007) and may suffer from diverse cultural values of their international members (Bouncken et al 2007) According to Panaccio and Waxin;( 2007) diversity is divided in core dimensions which include age, ethnicity and culture, gender, race, religion, sexual orientation and in the other hand secondary dimensions include education, status, language, income levels, etc.
As a core dimension cultural difference
influence the organizational performance of a firm by a complex interaction between individuals and environment (Pauluzzo, 2010). The simplest concept of culture is the way we see the world and how world sees us ( Theotokas, Progoulaki; 2007). Culture has been defined through values, which are similar within a society but in the same time may be differentiate between societies (Bouncken et al 2007). One of the most important implications is that culture includes deep level constructs, which influence behaviors.
We regard cultural diversity as dissimilar values and behavioral norms in a group resulting from the individual’s national background. Diversity management can be defined as a process of creating and maintaining an environment that naturally allows all individuals to reach their full potential in pursuit of organizational objectives According to academics the outcomes of cultural diversity have positive and negative effects in the same time.The largest part of academics assumes that diversity in work groups creates challenges and opportunities that are not present in homogeneous work groups and in the same time a cross cultural team having members of diverse cultural backgrounds will deliver richer insights of cultural diversity and as such more experiences of cross-cultural work (Bouncken et al 2007). According to Walter and Salas employee diversity can and will increase imagination, creativity, innovation, group problem solving and productivity (p. 18).It is obviously that diverse workforce allows better service to customers, who are diverse as well, and it enhances the image and the credibility of the organization (Panaccio and Waxin 2010).
In the other hand many antidiversity arguments appear to rest upon the belief that diversity, particularly because of race, will foster negative interpersonal dynamics
among employees and will threaten productivity ( De Meuse et al, 2007) and in the same time can create interpersonal conflict. Moreover racism, homophobia, and other forms of prejudice can foster discrimination within a workplace.Unless well managed, social identity differences can create emotional conflict among employees. These negative effects are associated with an alleviated level of conflict, decreased effectiveness of communication and in commitment and coherence within groups, which stem from the existence of diverse cultural backgrounds (Bouncken et al 2007).
This is mainly due to the fact that individuals tend to use their own cultural values to interpret actions and behaviors of other members of different cultures (Pauluzzo, 2010).This often leads to serious miscommunication problems. For these reasons it is important for managers into organizations to know that cultural diversity is an existing reality and they have to take the necessary human resource practice and policies in order to gain the desired profit from diversity among employees. In order to manage increasingly workforce diversity and to prevent discrimination, diversity management is now considered as a major part of strategic human resource management (Ozgener; 2009).
It is important to understand the link between diversity and cultural competency to general organizational effectiveness ( Kien , 2009). A well-managed diverse workforce can provide businesses the competitive edge needed to compete in global markets (Ozgener; 2009). Understanding communication issues and knowing how to communicate effectively provides a smoother path for management and can avoid costly misunderstandings (Cruickshank, 2007).It is leaders, entrepreneur (Sahin et al; 2009) and managers responsibility to create a strong organizational culture that has values and norms that upersede national culture, values and norms in order to
minimize the adverse effects of cultural diversity ( McLaurin, 2008) Conclusions An important outcome from the above mentioned is not to take cultural diversity for granted. First of all it should be recognized, respected and utilized if a company is looking for social and economic prosperity.
In the base of e business organization are people and as core advantage they need to be respected despite their culture and origin.Avoiding misunderstanding, discrimination and cultural conflict among employees create a pleasant work atmosphere which in the same time arise effectiveness and profits. The main responsibility for the implementation of a cultural diversity into the organization is related directly with the entrepreneur, managers and especially HR managers. They are the first whom with the communication and the necessary policies into the organization to rise the commitment of all employees.
This will avoid the feeling of being different and in the same time will influence in reaching the mutual goals and objectives.
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