Changes in society have impacted how organizations conduct businesses. The advent of liberalization and globalization has opened enterprises to more diverse avenues and opportunities (“Managing Cultural Diversity” 1). Companies have to contend with differences that characterize various categories of people that they serve. Participating in a globally competitive market has compelled institutions to engage people from distinct cultural backgrounds. Individuals have different customs, values, beliefs, and attitudes (Eriksson and Christoffer 7). Thus, embracing cultural diversity at the workplace is a concern that business managers need to address as it can lead to poor performance and organizational inefficiency.

The difference in cultural backgrounds is a diversity issue since globalization has created a varied working environment. Many organizations have culturally diverse workforces. The value of such a labor force has increased over time. However, working with people from different cultural backgrounds requires a certain level of awareness to ensure that corporations reap numerous benefits. Cultural diversity is a management concern given the increase in interest on the effects of a cross-cultural workforce (Eriksson and Christoffer 7). Organizations have heightened attention to nurturing multicultural competence. There is a need to understand variations in aspects of culture, how they interrelate, as well as the characteristics of specific contexts. This knowledge is critical for employers to ensure that multicultural backgrounds do not affect employees’ activities. Thus, cultural differences are a diversity issue since it impacts organizational performance.

Cultural diversity is a source of difference in business environments due to the heterogeneity of the people that work with a given entity. People develop unique work style preferences or personal needs within a company based on their culture (Jonsson and Dhakshayene 8). For instance, some workers may prefer teamwork while others may opt to work independently. The value placed on either approach varies from one culture to another. In such a scenario, firms need strategic methods of establishing appropriate monitoring techniques to accommodate for the diversity. Besides, culture impacts how people think and act in certain situations (Eriksson and Christoffer 7). Therefore, cultural diversity thrives on existence of different values, perspectives, attitudes, and behavior across a workforce.

Organizations interact with clients, suppliers, and employees of diverse backgrounds regularly. Such multicultural environments can have potential impacts on businesses. One of the significant effects that arise due to variation in personnel composition is a breakdown in organizational efficiency (Eriksson and Christoffer 7). Cultural diversity increases the likelihood of miscommunication. Workforces with different cultures experience challenges in relaying information. Difficulties arise due to differences in meaning, context of communication, and interpretation of shared messages. For instance, an aspect such as language barrier leads to ineffective communication (“Managing Cultural Diversity”16). When there is a hindrance to transfer of information, other problems like delays and unsatisfied clients arise. Hence, when poorly managed, cultural diversity poses a threat to organizational success.

The issue also can heighten conflicts among employees. Disputes may emerge due to misunderstandings among workers within cultural lines. Thus, it is essential for business leaders to learn ways of handling disagreements (Eriksson and Christoffer 7). Issues such as ego-clashes are likely to occur in areas with multicultural workforces (“Managing Cultural Diversity” 1). Some issues such as resistance to change in policies that guide how employees work in a multicultural organization can cause conflicts. For instance, disagreements can arise when supervisors make it compulsory for employees to participate in diversity training (“Managing Cultural Diversity” 16). Therefore, a culturally diverse labor force can result in low organizational performance and poor relationships.

Adequately managing cultural diversity in businesses can result in desirable outcomes. An organization that effectively succeeds in integrating different cultural backgrounds into its day to day operations earns a well-deserved competitive edge over others (Jonsson and Dhakshayene7). The primary advantage of a diverse employee base is that it improves the quality of customer interaction and service provision. Businesses serve broad categories of clients. Thus, effective management of a diverse labor force enables enterprises to meet the needs of consumers. Another significant outcome associated with a culturally diverse workforce is increased tolerance. Businesses can benefit from work environments and employees who tolerate different views and values (“Managing Cultural Diversity” 17). Conflicts and misunderstandings reduce as people learn to interact with others respectfully. Hence, when properly handled, diversity can generate positive outcomes.

Overall, diversity issues pose a challenge to organizational performance. Cultural diversity entails differences in beliefs, traditions, values, and behavior that distinguish members in present-day organizations. These differences can contribute to the success or failure of businesses in a globally competitive world. The topic is a source of variance due to variations in impacts of culture on how people think and act. Their perspectives at the workplace vary from one person to another. Failure to manage the differences has negative implications such as increased misunderstandings among employees. However, strategic integration of cultural diversity in businesses can lead to positive outcomes such as enhanced customer service delivery. Thus, it is a critical issue in management of organizations that can cause success or failure.

Works Cited

Eriksson, Sofie, and Hägg Christoffer. Cultural Diversity: How to Manage a Cross-Cultural Workforce in a Global Organization. A Case Study between India and Sweden. 2016. Mälardalens Högskola University, BA Thesis. DiVA. www.diva-portal.org/smash/get/diva2:954206/FULLTEXT01.pdf. Accessed 25 Feb. 2019.

Jonsson, Anneli, and Dhakshayene Holmgren. Cultural Diversity in Organizations: A Study on the View and Management on Cultural Diversity. 2013. Umea University, Master Thesis. DiVA. http://www.diva-portal.org/smash/get/diva2:634168/FULLTEXT01.pdf. Accessed 25 Feb. 2019.

“Managing Cultural Diversity: An Introduction.” n.d. PDF file. http://shodhganga.inflibnet.ac.in/bitstream/10603/202359/9/09_chapter%201.pdf

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