Multiculturalism Because of the Growing

Multiculturalism

Because of the growing diversity of the workforce across the world, intra-national differences and similarities can often be as important as cross-national variables. As cultures evolve, it is important to take such differences into consideration and be alert to the paradoxes inherent among societies. Companies will increasingly have to find the correct relationship between cross-national and intra-national teams in order to significantly understand cross-cultural phenomena and enhance the outcome of cross-cultural collaboration. In fact, today's most successful firms are already adept at using diversity and cultural differences as tools to contribute to their bottom line rather than as obstacles (Vallario, 2006).

A few decades ago, the word globalization was just coming into its own. Now, there are few places where this term is not applicable. Organizations of all sizes and types now have to learn how to enhance communication between different people from the same country as well as individuals from different countries. For example, when the Chinese company Lenovo bought IBM's personal-computer business, it had to implement a wide-ranging strategy to unify its culturally and geographically diverse workforce. As a result, it developed a program that goes much further than the traditional sensitivity training in order to educate Lenovo's personnel about their colleagues' cultures, customs and languages. One of the reasons for enhancing multiculturalism is to leverage the diversity within the company. Lenovo's competitive advantage is having a very diverse senior management team with different perspectives. To reach the company's full potential, it is necessary to determine how to take advantage of these differences. (Egodigwe, 2005)

In the past, diversity was primarily a human resource issue; that, too, has changed significantly with globalism. Workplace global diversity is not just a human resources issue, but needs to be a total business strategy that consists of many corporate elements (Vallario, 2006). It needs to combine people skills and cultures with varying perspectives that challenge traditional ways of thinking. In fact, the best means of innovation is a collaboration of individuals from different backgrounds. "The 21st century reality is that businesses are increasingly global, be it their workforce, suppliers or customers" (ibid.)

Actually, many companies are devising entirely new strategies to reach global scale more quickly. To retain workers in China, for example, PepsiCo snacks department brought in almost 300 extra people to its talent assessment program in 2007 and promoted three times as many managers as it did the year before. In the middle of last year, storage equipment manufacturer EMC began a global innovation network for R&D employees at half a dozen labs around worldwide. EMC set up a website for scientists and engineers to develop technologies and product concepts together (McGregor & Hamm, 2008).

Such incidents stress that the traditional manner of managing across borders is disappearing. In the first half of the 20th century, the globalization of business was based on the Western model. Headquarters, functions, and capital were in one place, with managers sent to run regional operations as if they were colonies. In the second half of the 1900s, organizations began to adopt the multinational model, duplicating their home country operations in other places where conducting business.

According to a Conference Board and Focus Consultancy survey with 900 respondents from the European Commission, 83% agree that diversity policies make good business sense. Removal of specific employment barriers lead to recruitment from a wider talent pool, longer retention of better personnel and enhanced community relations and corporate image. However, almost half of all these firms have not yet implemented diversity policies. Regardless of how the idea of multiculturalism is beginning to move into organizations worldwide, there is yet a long way to go.

This proposed report would research the validity of cross-national diversity and how it is being successfully implemented in various organizations as those noted above. It should be seen as a sharing of best practices and suggestions on how interested companies can progress in the future to reach similar goals and aims. It is recognized by many organizations that diversity policies are the most successful when they are completely integrated throughout the firm along with vehicles of support of executive leadership, ongoing training and accountability.