Palich, L.E. and Gomez-Mejia, L.R. (1999) admit that their claims... "regarding the deleterious effects of cultural diversity for global firms clearly diverge from the "value-in-diversity" perspective that dominates contemporary theory."
Through a detailed review of the relevant literature, examine the arguments supporting the view that cultural diversity can have a positive impact on global firms.
Throughout the following pages I will explain the reasons why there is support for cultural diversity within the workplace even though it has been exploited as having a detrimental affect upon domestic and international companies. Having examined the literature there are a number of key topics which I feel benefits from cultural diversity within business.
Diversity is defined as all of the ways in which we differ. If we stop today and look around, we will see many workers of different ages, sex, nationality and culture working together side by side, this has caused companies to adjust to this unique situation.
Hofstede defines culture as "the collective programming of the mind which distinguishes the members of one group or category of people from another" (Hofstede, 1997).
Culture is the learned ways of group living and the group's responses to various stimuli. It is also the total way of life and thinking patterns that are passed from generation to generation. It encompasses norms, values, customs, art, and beliefs. Culture is the patterns of behaviour and thinking that people living in social groups learn, create, and share. Culture distinguishes one human group from others. A people's culture includes their beliefs, rules of behaviour, language, rituals, art, technology, styles of dress, ways of producing and cooking food, religion, and political and economic systems.
Due to the changes in workforce demographics resulting from globalisation this has resulted in a practical concern of multi-cultural companies.
According to a study held...