Benefits of Cultural Diversity
The establishment of diversity programs in any organization is of great significance, and companies that make use of diversity initiatives show various levels of achievement and growth. Diversity itself refers to all manner of ways in which people differ such as sex, age, nationality, race, and culture. Brazzel (12) defines cultures as the various aspects of mindsets that make people differ from one another. It also refers to the ways of life and patterns of thinking accepted by one generation and passed on to others. The components of culture include customs, beliefs, art, values, and norms. Due to the changes in the composition of workforce as a result ...view middle of the document...
On the other hand, the creation of good work environment by the employer minimizes the time taken in recruiting new employees. Doing every possible to get positive evaluations helps an organization save in recruiting and retention costs. In addition, a all inclusive company approach combined with good company image affects incomes, according to a study that evaluated stock performance in relation to both negative and positive announcements reflecting their ability to embrace diversity. Furthermore, research findings show that diversity enhances creativity, improve decision making as well as enhancing problem solving.
Diversity is at the core of competitive advantage. According to Brazzel (45), competitive advantage is about being the market leader and most companies aspire to bet competition at their own game. It also refers to the idea of being preferred to first by the customers. To have a competitive advantage over others, a company must have good market intelligence, right resources in the right place at the right time. A diverse workforce is crucial in achieving a competitive advantage by allowing a company to meet the needs of clients, compete effectively in the market place and also get workers from an expanded labor pool.
Companies are increasingly becoming aware of the need of having knowledge as a basis for gaining competitive advantage and are therefore looking for strategies that will help in creating knowledge management capabilities. In a diverse workforce, relationships with suppliers also benefit a lot. Knowledge of other languages and cultures is useful to the companies competitive advantage when seeking new supplier relationships or maintaining current ones.
Another advantage of diversity is that, people from other cultures are able to bring in new attitudes in the organization. For example, Americans may want to know the ideas other people attach to time. American culture believes that time is money and getting to the bottom line is of utmost importance in the business. However, in other cultures, tie is important for building business relationships and thus it is an integral part of having to know the other party before completing any transaction (Skinner 22).
Another notable advantage of diversity is that it symbolizes the local face to the customer. Successful national operations require workers who are knowledgeable in local languages, traditions, norms and rules of behavior. The connection between workforce diversity and development of international business capabilities is not well understood. International businesses...