An Analysis of Diversity Impact on International Business
ABSTRACT
The research aim of this study is to give consideration towards the impact of cultural diversity on employee performance while analyzing the ways to manage employee diversified values and attitude to achieve sustainability in organization. Additionally, this study aims to explore different dimensions in diversity which employee performance. In the same concern of this, the researcher has aimed to develop the understanding of the culture diversity on employees’ performance. Furthermore, the researcher analysed the way to manage employee diversified values and attitude to achieve sustainability in organization. In this, how to explore different dimensions in diversity which effect employee performance. At the same time, the researcher also explored the different dimension in diversity which effect employee performance.
In order to achieve the aim and objective of this research study, the researcher took the help of the research methodology by applying its sufficient knowledge on the research methodology. In the context of this, the researcher focused on inductive research approach, the interpretivism research philosophy and survey through questionnaires was been used by the researcher to accomplish the valid outcomes of the research and conducting the research on time and effectively. Moreover, the researcher also concerned to both primary and secondary data sources and for primary data, survey methodology is used where 100 participant were given their views. To analyse the collected data, statistical data analysis method is used by the researcher that represented the data in tabular and graph format.
From the data analysis, it is identified that there is a vital role of the culture diversity in the success or the failure of the firm. It is also found that the cultural diversity impacts both positively and negatively on the work performance of the employee. The employee can gain new skills of working at diversified place according to the self-capacity and interest and accomplish the organizational goals. It is also found that employee learns the skills of handling the challenges which are faced due to change workplace environment. It is concluded that the diversified place can affect negatively on the health of the employee due to change in the habits of environment and change in the food and it can affect the working performance.
The future researchers have the opportunities to conduct this research study by taking interview of key management executives in order to achieve more reliable data related to impact of diversity on the international business.
In the current scenario, due to increase in industrialization and foreign trade, the trend of cultural diversity has increased in several dimensional. Cultural diversity supports to influence the international business by offering readily availability of information, rapid advancement in technology, decrease in the labour cost, trade agreements, effective distribution methods, standardization, etc. which enables to manage the organizational operations in an innovative manner. It supports to involve the employees of different values, culture, age, gender and beliefs which support to make effective decisions on the basis of variety of opinion and views (Clarke, Tamaschke and Liesch, 2013). It supports to deal in a global market in an effective manner. However there are various challenges which are faced by the firms towards the management of cultural diversity within the organization. If diversity is not managed in an effective manner, then it can create the issue towards the success of International business. The major reason behind challenging situation of diversity is that there is huge difference between the ideas, views, perceptions, values, languages, ethnicity and way of communication between the people of different culture which creates issue towards the organizational management (Lee, Kirkpatrick-Husk and Madhavan, 2017). Moreover, diversity has positive and negative impact but management can use their ability to increase the positive side. In this context, this study remained highly assistive to offer in-depth knowledge regarding the impacts of cultural diversity on employee performance while discussing the positive aspects as well as challenges. Moreover, this study has recommended the ways to manage employee diversified values and attitude.
The cultural diversity is supports to an organisation by providing international market for the development of the business. It provides the advanced technology to the organisation that can be helpful to improve the satisfaction level of the customer. Additionally, this new technology can reduce the labour cost of the company by the use of advanced technological machines in production. The cultural diversity impacts positively in the international market if an organisation operates the business in an effective manner and employees understands the different culture to satisfy the customer. The employees are able to increase their performance level by understanding the different culture of the international market. In addition to this, the organisation also provides the specific training to the employees that are helpful to improve the performance of the employee. The employees are able to improve the standard of living according to the diversified place that is provided by the organization. There are several international or multinational organisations such as Tesco, McDonald’s, Starbucks, Wal-Mart etc. which are facing the challenges by the cultural diversity due to change in the taste, habit and culture of the customer. These organisations are using effective strategies to sustain in this competitive international market and solving the problems of employees in diversified place. The cultural diversity effects on the performance of an employee by change in the working environment and meat with the cross culture environment of the different country. An employee faces the problem of live with the changed culture and he/she have to adjust according to the different culture.
1.2 Research Aim and Objectives
The research aim of this study is to give consideration towards the impact of cultural diversity on employee performance while analyzing the ways to manage employee diversified values and attitude to achieve sustainability in organization. Additionally, this study aims to explore different dimensions in diversity which affects employee performance.
The research objectives of this research paper are as follow:
- To understand the impact of cultural diversity on employee performance
- To analyze the way to manage employee diversified values and attitude to achieve sustainability in organization
- To explore different dimensions in diversity affect employee performance
The research questions of this research paper are as follow:
- What is the impact of cultural diversity on employee performance?
- What are the ways to manage employee diversified values and attitude to achieve sustainability in organization?
- How to explore different dimensions in diversity which effect employee performance?
The motivational factor to undertake this study is that it has supported to offer in-depth knowledge regarding the impact of diversity in the context of international business. In the contemporary world, the trend of diversification is increasing. So, it is essential to analyse its positive and negative impact towards the organization while finding the ways to overcome from the challenges (Lee, Kirkpatrick-Husk and Madhavan, 2017). In this context, this research paper has remained quite assistive and has supported to offer managerial as well as academic implications. This study has enabled to discuss the impact of cultural diversity while recommending the ways to overcome from the challenges.
Chapter 1: Introduction
This chapter has supported to introduce the research topic on the basis of research background, research aim and objectives, research questions and research significance. This chapter has enabled to familiarize the researcher from the study topic. This part of the research remained quite effective to conduct the study in an effective manner as it has supported to successfully accomplish the research. In this research, the researcher used various kinds of tools and techniques that help him to complete the study in an effective manner and provided guideline to complete this research study effectively.
Chapter 2: Literature Review
In this chapter of the research, secondary data collection has taken place. It has supported towards critically analyse the research topic. For this purpose, various blogs, articles, reports, books, etc. has referenced by the researcher which has supported towards understanding the point of view of various past researchers regarding the cultural diversity and its impact towards international business. In this section, researcher has utilized various theories, frameworks and concepts which have supported to understand the research topic on the basis of various past findings. This chapter of the research is provided the critical evaluation of the research topic to fulfil the research objective by the researcher. On the other hand, this chapter is very helpful for the researcher to develop the theoretical understanding about the research topic.
Chapter 3: Research Methodology
This chapter has supported to select the methods which need to be utilized to conduct the study in a systematic manner for the purpose of collecting the data. This chapter has also supported to discuss the ethical consideration and research limitations too. This chapter provides the systematic plan for conducting research on the research topic. The research methodology includes two types of research methods like quantitative research method and qualitative research method. The research methods are useful to collect the data by the use of primary and secondary data collection methods in the research.
Chapter 4: Data Analysis
In this chapter, researcher has analysed the findings of the primary data while correlating it with the literature review. In this section, researcher has utilized various tables, charts and graphs to statistically represent the data. This chapter has supported to offer high contribution towards effectively accomplishment of the research. The data analysis methods are useful to analyse the data that are collected by the researcher and it provides the valid outcome of the research. The researcher uses the analytical tools like statistical analysis, content analysis, cluster analysis etc. for the perfectness in the research data.
Chapter 5: Conclusion and Recommendations
In this chapter, researcher has concluded the study in the context of research objectives and has supported to offer in brief knowledge about the study. Additionally, it has enabled to recommend the ways to overcome from the challenges which are faced by the firm while dealing with diverse culture. It provides the suggestions that can be helpful for improving the research area and some specific guidelines for implication on the future research. In this chapter, the researcher provides objectives that are achieved by the findings of the research study.
This section of the research paper has supported to collect the data on the basis of past findings. In this study, researcher has critically analysed the research topic on the basis of theoretical framework. In this literature, different theories, models and concepts are utilized by the researcher which has supported to offer the insight of the research topic. It has enabled to collect the data from various blogs, articles, newspapers, reports, etc. which has supported to reference the past findings and has enabled to understand the research topic from the point of view of various past researchers (Stahl and Tung, 2015). In this section of the research paper, initially, researcher has discussed the theoretical concept regarding the diversity and international business. After that, researcher has discussed about the impact of cultural diversity on employee performance and ways to manage employee diversified values and attitude. Additionally, researcher has explored different dimensions in diversity which affects employee performance.
Diversity can be defined as multiculturalism. According to the views of Hoogendoorn, Oosterbeek and Van Praag (2013), cultural diversity has varying forms which plays a diverse role towards the success or failure while interacting at the work place. Diversity at a work place can be understood from various perspectives and effective communication plays vital role to actively mould and formulate the strategies effectively to get adequate outcome. Majorly business diversity takes place while dealing in a diversified market due to which difference in business culture takes place.
Lee and Kramer (2016) defined that diversity at workplace covers wider area as it is not only related to race or ethnicity. Diversity at workplaces take place on the basis of varying characteristics, which include various parameters such as religious, political beliefs, gender, education, socio-economic background, geographic location, etc. However, it has much broader aspect as diversity at workplace is not limited to these parameters.
Nielsen and Nielsen (2013) defined that managing a business in the diversified market or in foreign country is international business. Under international business, there is a need of managing various cultural and environmental differences as different country has different political, economic, socio-cultural, technological, environmental and legal parameters. Due to this reason, international business needs all commercial transactions which are based on private, governmental, logistics, transportation, sales, investments, etc. These factors are considered on the basis of two or more regions, countries, nations as well as beyond the political boundaries. Dealing in the international market, offers new opportunities however there are various challenges also take place which needs to be managed effectively.
Multinational organization has an approach on a global platform. To manage the diversified market, it becomes important for the organizations to hire the employees from diverse culture. Multinational organization includes differences in the terms of legal and political systems. In like manner, there is a difference found in economic policy, accounting standards and language. Additionally, labour standards, living standards and environmental standards also differ from one country to another (Ahonen, et al., 2014). Furthermore, local culture, corporate culture and foreign-exchange market also differ from one country to another. In like manner, cost, tariffs, import–export regulations, climate, trade agreements, etc. also show differentiation. All these factors create opportunity as well as challenge for the firm which is dealing at an international level. So, while dealing in international level firms need to give concern towards various parameters to get success in the global market.
2.3 Impact of Cultural Diversity on Employee Performance
García-Meca, García-Sánchez and Martínez-Ferrero (2015) depicted that in the current scenario, due to increase in the foreign trade, dealing in a diversified culture become necessary for the organization as it enables the firm to get the opportunity of getting the skills, knowledge, values, and beliefs of different culture. So, it enables to deal in multi-cultural perspective and supports the firm to get the success in diversified market. De Jong and van Houten (2014) depicted that cultural diversity hugely impacts the work environment as there are lots of differences can be found between different culture employees. Cultural diversity impacts the work place positively as well as negatively. According to the views of Miller Lavie and Delios (2016), cultural diversity impacts the employee performance which directly impacts the employees’ behaviour which gives direct impact towards the increase or decline on individual performance.
According to the views of Oswick and Noon (2014), the values, belief, culture, age and gender differences of an individual involve represents the employee performance and enables towards effective decision making. Diversity offers positive impact to the work place while offering the strategic management on the basis of the experience of different areas and skills in diversified business area which supports to take sensible business decision. Richard, Kochan and Mcmillan-Capehart (2002) analysed that the effective composition of board structure while utilizing different diversity such as age, gender, education, ethnicity, skills, knowledge, intelligence, etc. enables towards effective composition of business. It supports to improve the skills, experiences, knowledge and independent decision making capability of the employees. It is essential to have versatile skills in board members as it enables to manage and handle different business situations and support to take effective decisions and leading the team members in an effective manner which supports to achieve the organizational operations in a successful manner. Moreover, Harrison, et al. (2002) stated that diversity in board members enable to hire the new employees while judging their skills on various parameters which supports to increase the organizational performance. De Jong and van Houten (2014) stated that diversification at the workplace supports to improve the employee performance as it enables towards increasing the innovation. In like manner, it supports to provide new and different ideas to solve the problem while involving the staff members who have different perspectives, views and backgrounds, knowledge in the context of the issue. Diverse cultural workforce allows developing better product with varying features and supports to innovate product according to the current market need.
However, Miller, Lavie and Delios (2016) depicted that it is essential to utilize the effective strategies to increase the staff retention as it supports to offer the ability to achieve the goal in an effective manner while attracting and recruiting the best staff. Recruiting diverse workforce enables the firm to recruit the employees from the wide talent pool which supports to enhance the capability of hiring more skilled and knowledgeable employees for the available positions. It supports towards giving best to the consumers which assist to increase strong customer base while increasing the skills of problem–solving, creativity, innovation, etc. among the employees. It also supports to increase competitiveness and better company image. Moreover, it enhances productivity and employee job satisfaction too while increasing the morale.
However in the contrary, Ambos and Håkanson (2014) argued that diversity also creates various challenging situation too and communication gap is one of the major challenges. In the views of Clarke, Tamaschke and Liesch (2013), diversity creates challenging situation as there are various differences in different cultural employees in the context of ideas, views, languages, perception, ethnicity, way of communication, etc. which creates the situation of conflict and also slow down the speed of success of the organization. Lee and Kramer (2016) determined that there are various management issues take place while dealing at a global platform such as leadership, difference in thought, communication gap, and many other parameters which are the negative aspects of the diversity.
Nielsen and Nielsen (2013) stated that diverse culture enables to increase the employee performance. Due to this reason, multinational and cross-cultural teams have become common. Businesses can benefit from diversification on the basis of increased knowledge base which supports to give insightful approaches in the context of resolving the business problems. It enables to benefit the firm by offering insight knowledge and expertise while dealing at a global platform and enables to increase long-term sustainability and competitive advantage. However in the contrary, Jiménez, et al. (2017) argued that it creates the situation of uncertainty when the diversification does not handle in an adequate manner and decreases the employee performance too. According to the views of Ahonen, et al. (2014), there are number of ways which defines culture on the basis of common and accepted set of norms which are shared by the society. However in the context of international business, the norms of a country could be completely differ from the other country which can create the situation of conflicts and miscommunication.
In the context of diversity, De Jong and van Houten (2014) argued that diversity in culture supports towards increasing the creativity skills in the employee. In like manner, it enables towards developing problem-solving skills. However it is negatively related with cohesiveness and cooperation. Moreover, Clarke, Tamaschke and Liesch (2013) identified that effective work force diversity enables to enhance the efficiency of the human resources which supports to enhance the employee as well as organizational performance. Furthermore, it enables to develop better problem solving skills while utilizing more alternatives and applying better solutions. Cultural diversity supports the employees to develop equal opportunities and diversity management policies for the purpose of maintaining the skills in the diverse backgrounds which enables to protect the competitive position at the market place. However in the contrary, Ali, Ng and Kulik (2014) argued that work place diversity generates dissimilarity between the employees which increases the situation of conflicts. These dissimilarities may be in terms of difference in perceptions, ideas, views, behaviours, interest, attitudes, religion, political parameters, etc. which reflects unjustified distribution of resources. At the same time, Harrison, et al. (2002) stated that the conflicts taken place due to diverse culture does not always create negative situation and does not always create hostilities. However, it is necessary to handle the conflict in an adequate manner. In support of this, Ahonen, et al. (2014) determined that ignoring the conflicts between the co-workers can create the situation of clashes amongst them.
This clash can convert into personal and emotional conflict and can remain for longer time span which can damage the organizational culture, worker morale, as well as overall organizational performance. On the other hand, Clarke, Tamaschke and Liesch (2013) identified that these kinds of conflicts can also negatively impact the creativity, innovation, performance and quality of the team members. It overall negatively affects the individual and team performance as well as organizational performance. So, it is essential to resolve the issues related to the diversity in a timely and effective manner. Diversity enables the firm to increase the chances of creativity as well as supports to develop the skills of effective decision making. At the same time, diverse team has huge difference in opinions and perspectives but it also remains assistive to increase the options as well as alternatives as it enables to think outside of the box while taking the decisions related to products (Ahonen, et al., 2014). While thinking about the problem, the team members of the organization support to identify effective solutions. Diverse team shows higher quality decisions as compare to the team of similar background. So, diverse workforce remains helpful to show direct impact towards the bottom line of the company as it supports towards increasing the creativity in the context of decision making.
2.4 Ways to Manage Employee Diversified Values and Attitude
According to the views of Ali, Ng and Kulik (2014), there are various pros of dealing in diversified culture as it enables to get the skills, knowledge and efficiency of various cultures. At the same time, it supports to share the skills, knowledge, intelligence and efficiency between the team members which enable towards improving employee performance. However, Poulis, Poulis and Plakoyiannaki (2013) argued that it is an essential task to manage the cultural diversity in an effective manner. Effective management enables to manage the issues in an adequate manner which supports to achieve competitive business advantage. Every perspective has two faces, one is positive and another is negative. In like manner, diversity also has positive and negative impact but management plays crucial role towards increasing the weight of one side. In this context, Ahonen, et al. (2014) depicted that capable management convert the diversity challenges into new opportunities which supports to find out the best alternative for stimulating the challenges into opportunities in an adequate manner.
Büthe and Milner (2014) identified that the main motive or purpose of an organization is to achieve success and to expand the business. To expand the business, it is essential to achieve the business objectives. For this purpose, the need of cultural diversity takes place. To make the cultural diversity, the strength of the organization, there is a need of effective leaders as they enable to lead the team in the direction while eliminating any kind of challenge, hurdle or risk factors. In support of this, diversity in board members enables to create positive working environment which supports to manage the employees, shareholders, investors, suppliers, etc. in the context of taking diversified business decision (Ali, Ng and Kulik, 2014). There is a need of handover the responsibilities to each and every team members while updating them regarding the expectation of the firm. There is a need of eliminating the chances of any kind of communication gap. In like manner, there is a need of updating all the team members regarding the upcoming events and challenges while involving all the members in the decision making sop that new ideas, views and solutions can take place for the purpose of mitigating the challenges while generating new alternatives which will support towards increasing the effectiveness of the operations (Lee, Kirkpatrick-Husk and Madhavan, 2017).
In addition, Moosa (2015) identified that there is a need of adequate training of the Board members to deal effectively with the people of different culture. In like manner, employees should also be trained regarding dealing with the individuals of different skills, language, knowledge and views in a friendly manner. So, that exchange of the skills can be taken place adequately. There is a need of educating the Board members regarding the new standards and code of conduct to improve and enhance the discharge their duties time to time while setting new codes (Lin, et al., 2017). Additionally, organizations need to evaluate the performance of the board members in a timely manner to assess the performance of all board members so that firm will retain those members who have satisfactory performance and motivate them by offering rewards. This parameter remains highly assistive to manage the diversified employee values and attitude adequately which supports towards achieving the sustainability within organization. It creates improved inter-staff relations while creating effective satisfying work environment. So, it is essential to manage the diversified working environment in an effective manner, which enables to improve the quality and better customer services too. According to the views of Clarke, Tamaschke and Liesch (2013), majorly culture affects the international business in three core areas, they are – communication, organizational hierarchy and etiquette. Effective management remains assistive to avoid the misunderstandings with colleagues as well as the clients and enable towards maintaining effective globalized business environment.
Poulis, Poulis and Plakoyiannaki (2013) depicted that effective communication plays vital role towards the success of the organization. However it is a critical task in a real world. So, in this context, there is a need of providing effective training to the managers so that they become skilled to handle the personalities of different culture. Moreover, it will remain assistive to understand the belief, value and culture of diverse workforce. However, English is an international language and fluency in English remains assistive to deal professionally in the global market. But to manage the workforce of diverse culture, understanding the regional language is also remain highly assistive to improve the performance of the employees. There is huge difference in the value of different culture which is related to different perspective such as while welcoming firm handshake, making direct eye contact, or kiss on the cheek could be unusual or offensive for a particular country culture but usual for other culture (Clarke, Tamaschke and Liesch, 2013). While dealing with the cross-cultural communication, there is a huge challenge which is faced by the company which can directly impacts the employee performance. However, Oswick and Noon (2014) argued that effective leader can eliminate the situation of risk by utilizing the strategy of sensitivity, openness, and curiosity which enables towards put the human resource at ease. Moreover, there is a need of focusing towards body language too as it plays vital role towards handling cross-cultural employees.
Analyze the way to manage employee diversified values and attitude to achieve sustainability in organization.
2.5 Different Dimensions in Diversity
There are different dimensions which need to be focused while dealing with the diverse workforce as different individual has different ideas, views, psychology, values, beliefs, perceptions, way of behavior, etc. which make an individual differ from other. So, as there are various dimensions, so it is not possible to consider all of them (Moosa, 2015). Due to this reason, organization only considers those dimensions which give major impact on employee performance such as demographic diversity and gender diversity. Oswick and Noon (2014) depicted that different types of diversity generate different impact towards the employee performance. It also creates the situation of conflicts and creates hurdle towards the achievement of effective team performance. Diversity can be handled through effective management which supports to lead the team in a right direction. In this context, diversity in different dimensions have discussed by the researcher.
2.5.1 Demographic diversity and team performance
According to the views of Hoogendoorn, Oosterbeek and Van Praag (2013), demographic diversity gives huge impact towards the individual attitude so the people from different workforce have different attitude. Due to this reason, it affects the team performance too. In this context, Stahl and Tung (2015) depicted that social identity theory supports to indicate the individuals’ perceptions and it enable to design it by themselves while shaping it with the help of common group associations. Demographic diversity creates difference in perceptions and ideas, while creating the limitations towards the individual understanding regarding the external environment. According to the views of Ali, Ng and Kulik (2014), demographic diversity reflects the matter related to color, gender and age parameters too. Moreover, it also includes differences in information, education, experience, values, goals, etc. which influence the perception of an individual to achieve the organizational mission. However Clarke, Tamaschke and Liesch (2013) depicted that diversity among employees remain assistive to develop better performance and enables towards innovate something new according to the current market need. It supports to develop the new product while cracking the markets. Ambos and Håkanson (2014) stated that different gender, personality, attitude and physical abilities enable to raise the values of the team and supports to improve their performance. It helps to increase the better understanding regarding the organization while improving the efficiency of customer services. In like manner, it supports towards increasing the satisfaction level in the workforce while increasing the higher stock prices. Moreover, Oswick and Noon (2014) illustrated that demographic diversity enables to increase the team performance while decreasing the litigation expenses and improving the company performance. However, in the contrary, Jiménez, et al. (2017) argued that the employees from different culture also creates challenging situation too towards the organization. In like manner, it is identified that an individual remains friendlier with the people who are similar to them. In this context, demographic diversity can create the issue of effective communication which can indirectly affect the team performance. So, there is a need of increasing the interaction with each other so that they become familiarize with each other. Stahl and Tung (2015) explained that if demographic diversity has a potential of increasing company performance and creativity, then it is also adverse power of negatively impact on employee performance. So, there is a need of managing the demographic diversity in an effective manner as it has a potential of offering the advantage of increasing the satisfaction level of employees.
According to Casillas and Moreno-Menéndez (2014), every factor has two faces, one is positive and another is negative. In like manner, there are pros as well as challenges of demographic diversity. This is the major reason behind that the big organizations have increased the consideration towards employing diverse culture employees while managing them in an effective manner. There is a need of executing team building sessions time to time which remains highly assistive to increase the interaction between the employees of different culture.
According to the views of Ambos and Håkanson (2014), demographic diversity enables towards taking effective decisions and supports to resolve the problem adequately. It supports towards offering measurable improvements by offering additional perspectives. It supports to enhance the opportunities for the team but for this mutual understanding is necessary as it remains supportive to achieve the organizational goal.
2.5.2 Gender diversity and innovation outputs
García-Meca, García-Sánchez and Martínez-Ferrero (2015) identified that gender also impacts the employee performance. So, gender diversity enables to develop some specific types of performance. It supports to improve the employee performance through the exchange of views, perceptions and values. In this context, Nielsen and Nielsen (2013) depicted that gender diversity enables to develop new products in an effective manner while utilizing innovation and creation. Employee performance also depends on gender as different gender has efficiency in different arena. Gender diversity enables to enhance the employee performance as it supports to take the decision on the basis of male and female employees. Both the gender has different perceptions and views, which support to take adequate decisions while designing the product for the consumers. In the current scenario, in the context of remuneration, both the gender gets equal remuneration and value in organization but some responsibilities are strongly divided on the basis of specific gender (Hoogendoorn, Oosterbeek and Van Praag, 2013). Due to this reason, gender diversity is focused by the firm to increase the innovation within the organization while increasing the employee performance. Effectively management of gender diversity remains highly assistive towards the generation of innovation and fresh ideas. This is the major reason behind firm utilizes diversity strategies to manage the employees of diverse gender.
2.5.3 Age Diversity and Experience
Age diversity is one of the major determinants of performance within the organization. In most of the cases, age and experience goes hand in hand. Experience personality supports to offer adequate guidance to the team members. It supports to offer the guidance and to show the right path to the team members on the basis of their experiences. It supports to increase the skills, knowledge and efficiency of the team members and enable to develop lead effective results. Mohr, Wang and Goerzen (2016) illustrated that age diversity also creates difference in salary as the worker who has given his years in the organization get higher pay as compared to the fresher. Moreover, Liao, Luo and Tang (2015) depicted that some older people gets top-heavy salaries for their experience and skills which they are sharing within the organization. On the other hand, Stahl and Tung (2015) demonstrated that certain older employees get early retirement however some employees are retained by the organization after the retirement too which supports to ensure the success of the firm. However Nielsen and Nielsen (2013) depicted that managing age diversity is also a big challenge as different age group personalities have their different perceptions as well as age diversity also creates the situation of generation gap.
CHAPTER 3: RESEARCH METHODOLOGY
This part of the research is very significant in its own terms and also for the accomplishing the research on time and successfully. This part of the research is having due consideration as it helps and assists the researcher to have a clear and in-depth understanding of the research’s aspects such as, approaches, philosophy, techniques, methods adopted, etc. At the same time, having knowledge about these different ways help the researcher to generate a valid research outcome and also the reliable outcomes of the research.
In addition to this, this chapter of research will also help the researcher to obtain a new insight and understanding regarding the various diverse and different methods of collecting and obtaining data, the techniques used for data analysis, etc that helps the researcher in return to attain the major objectives of the research and also to complete the research successfully and by time. At the end, it can be stated that research methodology has an effective and significant role to play in the success of the research and to generate its valid and reliable outcomes.
Research philosophy is having its due significance as it helps or assists the researcher in obtaining the information and realizing that which effective data is to be used and which to be analyzed by the researcher. The initial or the very first stage and also the exterior layer of the research methodology are the research philosophy. In research philosophy there are generally three various kinds of philosophies which are positivism research philosophy, the interpretivism research philosophy and the realism research philosophy (Gray, 2013). The positivism philosophy is been adopted by the researcher when he feels that there exist a need of natural phenomenon. On the other hand, the interpretivism philosophy is assist the researcher to gain a clear and in-depth knowledge regarding the issues involved in the research that will help to make it easy and the researcher can compare the research findings which are already existing with the literature. At the same time, realism philosophy is one which is adopted by the researcher when there exists a requirement to assume the data and information and it is based on natural reality. Further, in the realism research philosophy the overall facts which are associated to the natural are also considered by the researcher.
In context or regard of this research, the researcher has used the interpretivism philosophy. The interpretivism philosophy is used when the researcher is needed or required to conclude the research due to dependability on the subjective nature. This research philosophy is used over the other two research philosophy. To gain the result this philosophy was required and should be used as the other two was not giving the possible needed outcomes (Creswell & Poth, 2017).
At the same time, it is concluded that positivism philosophy was not been adopted by the researcher as there was no requirement of using the already experimental data in the research. Also, the realism philosophy was not been adopted as there was no need of the neutrality in the research. So at the end by concerning and analyzing all the aspects, it was found that the researcher used the interpretivism philosophy for accomplishing the research on time and successfully.
Research approach will help the researcher to obtain and gain an understandable and thorough insight in the context of the various issues that exist in the research that will in return help the researcher to accomplish the research successfully and on time. Further, the research approach is also considered as a crucial element of the research as it help the researcher to get and obtain a high understanding regarding the research study. In the research approach there are usually two kinds of research approach that is inductive research approach and the deductive research approach that are used by the researcher in accordance with the aims and objectives of the research.
When the researcher has to work on the theories which are been already developed or established the researcher use or adopts the deductive research approach. The researcher uses these theories in order to develop the hypothesis of the research. At the same time, in this deductive research approach there is an availability of lots of resources which are been used by the researcher to carry the work on the hypothesis (Friend & Jessop, 2013). On the other hand, the inductive approach is opposite of the deductive approach. The reason behind this is that in inductive approach the researcher there is a need to develop the hypothesis by the researcher on self basis as in accordance with the issues of the research and the different various objectives and also the data collected is been considered by the researcher during the time of developing or creating the own theories.
In respect of this research, the approach been adopted or used by the researcher for carrying the research study is the inductive research approach instead of the deductive approach. the main reason behind using the inductive approach is that this research approach is very simple for the researcher as it helps to develop its own new kinds of theories instead of focusing on the theories which are already been developed for testing the hypothesis. At the same time, the inductive research approach also helps the researcher to develop the valid and accurate research outcomes for the research and also helps to accomplish the research on time and successfully (Maxwell, 2012). One of the reason why the deductive research approach is not been adopted by the researcher is that in this research approach, the researcher was obliged to make use of the theoretical aspects only rather working on the facts and figures. This was not suitable for the researcher as per the issues of the research are considered. So as a result, the researcher has used the inductive approach despite of the deductive approach.
This chapter of the research has its own significance in the research study. This chapter of the research make it possible for the researcher to conduct an investigation on the various issues of the research that exists in the research and also the objectives in the research study. There are various kinds of techniques that are been adopted by the research in accordance with the size of the research and the issues of the research, the techniques used are interviews, case studies, survey, etc (Farrington, et al., 2012). In this research study the aim is to is to give consideration towards the impact of cultural diversity on employee performance while analysing the ways to manage employee diversified values and attitude to achieve sustainability in organization. It also helped and assisted the researcher to gain a clear and in-depth and thorough understanding regarding the topics of the research and the objectives of the research.
This part of the research study also assists the researcher to create an authentic and accurate result in context of the research objectives and also in developing a good and valid research outcome. At the same time, the researcher has also used the literature review as a way to explore the topics of the research. The main reason behind using the literature review was that it helped the researcher to obtain the valid and accurate responses in context of the interviews been conducted which further made it simple to conduct the research successfully and on time.
Research methods help the researcher to obtain and generate the kind of information that is required by the researcher in a way to conduct the research successfully and on time. Research methods are having three kinds which help the researcher to conduct the research effectively. The three different kinds of research methods been adopted by the researcher in conducting the research study are qualitative method, qualitative method and mixed research method. The qualitative method is been adopted by the researcher when there is a need to obtain and gather a thorough understanding regarding the behaviour of the human and also the nature by the researcher (Taylor, et al., 2015). In the context of the research, to obtain and attain valid and accurate outcomes of the research there are few important measurable factors that are been analysed by the researcher at the time of conducting the research study. At the same time, the researcher use the quantitative method when there exists a need to analyse the statistical data which are gathered by the polls, the numerical, questionnaires, etc for conducting the research study on time and effectively accomplishing its objectives. This research method is also very significant for the researcher as it help the researcher in finding the actual needs of the people on certain things and conditions.
The last method of research method is the mixed research method. Mixed research method is one which contains or includes the other two kinds of research methods that is qualitative method and the quantitative method. In context of this research study, the researcher has used the qualitative research method for conducting the research effectively and accomplishing its objectives successfully (Bernard, 2011). The researcher has used the survey method by the help of questionnaires for performing the research study. This research method further assists the researcher to gather data and information about the impact of cultural diversity on employee performance.
Data collection is a significant part of the research study. It is needed by the researcher to produce the important and vital data and information. The researcher collects the relevant data in order to make research study successful. The knowledge of data collection method is helpful for the researcher that includes survey, observation, interview, reading books, articles etc. It is required that the data collected is authentic in nature and should have the power to cease the necessary outcomes of the research. It is also required in the selection of hypothesis. There are two kinds of methods for collecting the data that is primary data collection method and the secondary data collection method. As per the issues of the research these two methods are been adopted by the researcher (Andrews & Herzberg, 2012).
3.7 Primary data collection method
Primary data collection is a method of collecting data which doesn’t exist and is been gathered or obtained for the first time by the researcher. This data is very authentic and valid in its nature and help to provide opinions, suggestions of the respondents to the researcher. The ways used to gather primary data are interview, case study, survey, observation, etc.
3.8 Secondary data collection method
Secondary data collection method is the method of collecting data not for the first time but using the data which is already been available to the researcher. The ways for collecting this type of data are thorough magazines, newspapers, journals, company websites, blogs, etc. It helps in providing validity to the primary data and also for achieving positive conclusions for conducting the research.
3.9 Sampling and sampling technique
To generate and obtain valid and accurate data and information sampling technique is been adopted. There are two different kinds of sampling techniques which are used by the researcher probability sampling technique and non-probability sampling technique. The probability sampling technique is used when there is a requirement for the researcher to furnish an equal chance for the candidates to be a part of the research. On the other hand, in the non-probability sampling technique, it is not practicable for the researcher to furnish an equal chance for the candidates to attain the research effectively. Researcher has used the probability sampling technique method (Levy, P. S., & Lemeshow, 2013).
3.10 Sample Size and Sample population
The number of respondents selected was 100 employees’ respondents which were targeted from the international firms.
This part is a vital part of the research methodology. It is important as it assist the researcher to provide effective consideration upon the ethics of the research. This part helps to accomplish the research on time and effectively. Research ethical issues are plagiarism, copyright, etc that may hinder the research study and the accomplishment of its objectives (Miller, et al., 2012). As the primary data method is been sued so it is required that the information of the respondents is not disclosed and their confidentiality is maintained thoroughly. It is required as it can have an impact on the personal and professional lives of the respondents.
It is also one important part of the research study. There are two types, the Cross-sectional and longitudinal time horizon that are used by the researcher as per the research convenience. The researcher adopts the cross-sectional when he collects the data by observing the aspects like income, age, etc.
On the other hand, the longitudinal time horizon is used by the researcher when there is a requirement for the researcher to collect the data multiple times. This method of the time horizon is quite helpful for the researcher to get the adequate information about the research issues. This method can be risky as collecting data many times can result in manipulation of the data.
In this research, the cross – sectional time horizon is used by the researcher for the better research accomplishment of the research. At the same time, in this research, researcher didn’t use the longitudinal time horizon method because there is no need for the researcher to collect the data at multiple times (Bell, 2014).
Data analysis consists of the data which is collected by the respondents for the aim of attaining the valid results. In context of this research, statistical data analysis method is used by the researcher. In statistical data analysis, SPSS is used which allows to collect and represent the data in tabular and graph format (Ramsey & Schafer, 2012).
3.14 Limitation of the research
There are certain limitations in this research study. There are some of the respondents that do not give accurate and valid information while filling up the questionnaires. Some of the respondents were also not very interested. Time was also been utilized more as some respondents didn’t answer the questions in a proper manner.
It can be concluded from the research that, inductive research approach, the interpretivism research philosophy and survey through questionnaires was been used by the researcher to accomplish the valid outcomes of the research and conducting the research on time and effectively. Further it can be concluded that, the ethics part was also been given due consideration by the researcher for conducting the research thoroughly and appropriately.
CHAPTER 4: DATA ANALYSIS AND FINDINGS
This chapter is significant in this research study as it allows the researcher to analyse the primary data that is collected through the survey. It also enables the researcher to represents the finding of the data analysis in the effective manner. The main purpose of data analysis chapter is to analyse the collated primary and secondary data to get the data in the reliable and valid form. In the context of this research study, the researcher used SPSS software with the use of the statistical method. It represents the outcomes in tables and graphs.
In the references of this research study, the researcher took 150 employees as the sample size. From this, 120 people are selected for giving their opinion and views on the research topic and only 100 participants gave the accurate response of the questionnaire. In this research, the questionnaire was sent to participants on their persona mail ID and response of them collated in the same manner by mail. The collected data and finding of the data are below:
- Demographic Results
It is first section of the questionnaire that includes the demographic question such as gender and work experiences. In the context of the gender response are below:
| Frequency | Percent | Valid Percent | Cumulative Percent | ||
| Valid | Male | 64 | 64.0 | 64.0 | 64.0 |
| Female | 36 | 36.0 | 36.0 | 100.0 | |
| Total | 100 | 100.0 | 100.0 |
The above graph shows that in the questionnaire, both male and female are participated in the survey. But, males were in the majority with 64% as compared to the female participants 36%. In other words, it can be interpreted that in this survey, there are large number of male participants in comparison to the female participants. On the basis of work experience in the firm, results are as follows:
Table 2: Work experience in the firm
| Frequency | Percent | Valid Percent | Cumulative Percent | ||
| Valid | 0-5 Years | 41 | 41.0 | 41.0 | 41.0 |
| 6-10 Years | 23 | 23.0 | 23.0 | 64.0 | |
| 11-15 Years | 18 | 18.0 | 18.0 | 82.0 | |
| 15 Years or More | 18 | 18.0 | 18.0 | 100.0 | |
| Total | 100 | 100.0 | 100.0 |
Figure 2: Work experience in the firm
The above table shows that in the questionnaire, different work experience group employees were participated. But, employees from the group of 0.5 years were in the majority (approx 41%) over others. From this analysis, it can be determined easily that there are large numbers of people who have at least or less 5 years experience in the organization. This help in understanding that there are large number of people who worked with the organization for less than 5 years continuously because participants also prefer to diversify in other areas also. In concern to this, concept of culture diversity is analyzed as below:
- Concept of culture diversity
In this section, the researcher asked the questions related to the culture diversity knowledge of the participants. In this, first question was asked that you have the knowledge of what is cultural diversity at workplace. The responses of participants are as follows:
Table 3: Knowledge of what is cultural diversity
| Frequency | Percent | Valid Percent | Cumulative Percent | ||
| Valid | Yes | 66 | 66.0 | 66.0 | 66.0 |
| No | 34 | 34.0 | 34.0 | 100.0 | |
| Total | 100 | 100.0 | 100.0 |
Figure 3: Knowledge of what is cultural diversity
The table and graph 3 determine that out of 100 participants 66 participants (Both male and female) were have sufficient knowledge in the culture diversity. On the other hand, 34 participants were not aware about concept of culture diversity. This indicates that there are 65% of participants who knows the actual concept of cultural diversity in depth at their workplace. In simple words, it can be stated that there are some firms which provides training to their employees at workplace to make them understand the concept of cultural diversity. Furthermore, it was asked from the participants that in your views, whether culture diversity has varying forms which plays a diverse role towards the success or failure while interacting at the work place?
Table 4: Culture diversity has varying forms which plays a diverse role
| Frequency | Percent | Valid Percent | Cumulative Percent | ||
| Valid | Strongly agree | 27 | 27.0 | 27.0 | 27.0 |
| Agree | 40 | 40.0 | 40.0 | 67.0 | |
| Neutral | 6 | 6.0 | 6.0 | 73.0 | |
| Disagree | 19 | 19.0 | 19.0 | 92.0 | |
| Strongly disagree | 8 | 8.0 | 8.0 | 100.0 | |
| Total | 100 | 100.0 | 100.0 |
Figure 4: Culture diversity has varying forms which plays a diverse role
The above graph indicates that approx 67% participants believed that culture diversity has varying forms which plays a diverse role towards the success or failure while interacting at the work place. It is because culture diversity at the workplace affects the success of the project. In support of above interpretation, the views of Hoogendoorn, Oosterbeek and Van Praag (2013) determined that culture diversity plays a significant role in the success or failure while interacting at the work place. The diversity at the workplace contains the various character statistics likes as varying characteristics, which include various parameters such as religious, political beliefs, gender, education, socio-economic background, geographic location. In the questionnaire, the next question was asked to the participants, how much you are agreed that each country has different political, economic, socio-cultural, technological, environmental and legal parameters or system. The responses of participants as follows:
Table 5: Each country has different political economic socio-cultural
| Frequency | Percent | Valid Percent | Cumulative Percent | ||
| Valid | Strongly agree | 29 | 29.0 | 29.0 | 29.0 |
| Agree | 40 | 40.0 | 40.0 | 69.0 | |
| Neutral | 6 | 6.0 | 6.0 | 75.0 | |
| Disagree | 18 | 18.0 | 18.0 | 93.0 | |
| Strongly disagree | 7 | 7.0 | 7.0 | 100.0 | |
| Total | 100 | 100.0 | 100.0 |
Figure 5: Each country has different political economic socio-cultural
The above table and graph depicts that 69% participants were agreed and strongly agreed that each country has different political, economic, socio-cultural, technological, environmental and legal parameters or system. This interpretation helped in understanding that cultural diversity has impact from these different parameters because each parameter of different countries is developed according to their cultural environment. In support of above finding, Lee and Kramer (2016) and Oswick and Noon (2014) said that in the international business environment, each country is separate entity in the context of political, economic, socio-cultural, technological, environmental and legal parameters or system. In concern to this, the participants also responded towards the impact of culture diversity on employee’s performance as below:
III. Impact of Cultural Diversity on Employees’ Performance
This is also significant section of this research study that contains the questions regarding the impact of the culture diversity on the employees’ performance. In this section, by the first question, it was asked by the participants that cultural diversity has a huge impact on the work environment and it contains various differences among the employees’ culture. Regarding to this question, the responses of participants are as follow:
Table 6: Cultural diversity has a huge impact on the work environment
| Frequency | Percent | Valid Percent | Cumulative Percent | ||
| Valid | Yes | 66 | 66.0 | 66.0 | 66.0 |
| No | 34 | 34.0 | 34.0 | 100.0 | |
| Total | 100 | 100.0 | 100.0 |
Figure 6: Cultural diversity has a huge impact on the work environment
The above table and graph determined that cultural diversity has a huge impact on the work environment and it contains various differences among the employees’ culture because 64 participants out of the 100 were replied positively. These survey findings are consistent with the findings of literature review as several researchers including García-Meca, García-Sánchez and Martínez-Ferrero (2015) and De Jong and van Houten (2014) stated that culture diversity has huge impact on the employees’ performance as well as overall performance. In an organisation, difference can be found in the as the culture background of employees. Moreover, it was asked by participants that an effective management of employees in different term enables the organization to increase the employees’ performance. The responses of participants are as follow:
Table 7: An effective management of employees increases employees’ performance
| Frequency | Percent | Valid Percent | Cumulative Percent | ||
| Valid | Strongly agree | 20 | 20.0 | 20.0 | 20.0 |
| Agree | 40 | 40.0 | 40.0 | 60.0 | |
| Neutral | 7 | 7.0 | 7.0 | 67.0 | |
| Disagree | 23 | 23.0 | 23.0 | 90.0 | |
| Strongly disagree | 10 | 10.0 | 10.0 | 100.0 | |
| Total | 100 | 100.0 | 100.0 |
Figure 7: An effective management of employees increases employees’ performance
The above response table points out that 60% participant were agreed and strongly agreed that an effective management of employees in terms of age, gender, education, ethnicity, skills, knowledge, intelligence, etc. enables the organization to increase the employees’ performance. Regarding to this, Richard, Kochan and Mcmillan-Capehart (2002) support the above interpretation by exhibiting that an effective management of the employees in the various perspective enhances the overall performance of the employees.
The next question was asked as whether, the use of effective strategies to increase the staff retention is helpful for the organization to attract and hire the best staff and the related responses are as below:
Table 8: Use of effective strategies to increase the staff retention
| Frequency | Percent | Valid Percent | Cumulative Percent | ||
| Valid | Strongly agree | 19 | 19.0 | 19.0 | 19.0 |
| Agree | 42 | 42.0 | 42.0 | 61.0 | |
| Neutral | 6 | 6.0 | 6.0 | 67.0 | |
| Disagree | 23 | 23.0 | 23.0 | 90.0 | |
| Strongly disagree | 10 | 10.0 | 10.0 | 100.0 | |
| Total | 100 | 100.0 | 100.0 |
Figure 8: Use of effective strategies to increase the staff retention
On the basis of the above graph, it can be determined that the use of effective strategies to increase the staff retention is helpful for the organization to attract and hire the best staff. It is because 59 participants out of the 100 given their responses in the positive manner. This interpretation is supported by the views of Miller, Lavie and Delios (2016) as they were exhibited in their research that an effective strategy for employees’ development improves their skills and ability in the organisation. In the next question, the researcher demanded opinion of participants that culture diversity at the workplace creates communication gap that is one of the major challenges of the firm. In concern of this question, the below responses are obtained:
Table 9: Opinion that culture diversity at the workplace creates communication
| Frequency | Percent | Valid Percent | Cumulative Percent | ||
| Valid | Strongly agree | 23 | 23.0 | 23.0 | 23.0 |
| Agree | 43 | 43.0 | 43.0 | 66.0 | |
| Neutral | 5 | 5.0 | 5.0 | 71.0 | |
| Disagree | 20 | 20.0 | 20.0 | 91.0 | |
| Strongly disagree | 9 | 9.0 | 9.0 | 100.0 | |
| Total | 100 | 100.0 | 100.0 |
Figure 9: Opinion that culture diversity at the workplace creates communication
On the basis of the frequency table, it can be determined that 66% participants were agreed and strongly agreed that culture diversity at the workplace creates communication gap that is one of the major challenges of the firm. From this analysis, it can be stated easily that cultural diversity is actually a best opinion for firm to use at workplace in order to avoid the miscommunication and conflict which arises because of communication. In support of these interpretations, Ambos and Håkanson (2014) and Clarke, Tamaschke and Liesch (2013) depicted that diversity encourages the employees to communicate the right information to right candidate on time in order to avoid the confusion and delay in communication of information.
In the next question, it was asked that whether an effective management of culture diversity is helpful for human resource to increase employees as well as organizational performance. In respective to this question, the below responses are obtained:
Table 10: Culture diversity is helpful for HR to increase employees as well as company
| Frequency | Percent | Valid Percent | Cumulative Percent | ||
| Valid | Strongly agree | 21 | 21.0 | 21.0 | 21.0 |
| Agree | 42 | 42.0 | 42.0 | 63.0 | |
| Neutral | 6 | 6.0 | 6.0 | 69.0 | |
| Disagree | 22 | 22.0 | 22.0 | 91.0 | |
| Strongly disagree | 9 | 9.0 | 9.0 | 100.0 | |
| Total | 100 | 100.0 | 100.0 |
Figure 10: Culture diversity is helpful for HR to increase employees as well as company
On the basis of the above table, it can be observed that 63 participant said that an effective management of culture diversity is helpful for human resource to increase employees as well as organizational performance. The above interpretation is supported by the views of De Jong and van Houten (2014) and Clarke, Tamaschke and Liesch (2013) as it was described in their research that the human resource management is liable to manage the workforce and an effective strategy of HR increases employees as well as organizational performance.
In this section, by the last section, it was asked that whether cultural diversity enables the firm to increase the chances of creativity as well as supports to develop the skills of effective decision making. These responses can be clearly understood with the help of the below graph:
Table 11 : Cultural diversity enables the firm to increase the chances of creativity
| Frequency | Percent | Valid Percent | Cumulative Percent | ||
| Valid | Strongly agree | 23 | 23.0 | 23.0 | 23.0 |
| Agree | 44 | 44.0 | 44.0 | 67.0 | |
| Neutral | 6 | 6.0 | 6.0 | 73.0 | |
| Disagree | 19 | 19.0 | 19.0 | 92.0 | |
| Strongly disagree | 8 | 8.0 | 8.0 | 100.0 | |
| Total | 100 | 100.0 | 100.0 |
Figure 11: Cultural diversity enables the firm to increase the chances of creativity
The above graph shows that 67% participants were agreed and 27% disagreed that Cultural diversity enables the firm to increase the chances of creativity as well as supports to develop the skills of effective decision making. This analysis helped in understanding that nowadays company are focused towards the cultural diversity as this diversification is helping the company to increase & develop their skills and knowledge in creative form. Further, different ways to manage the diversified values and attitude of an employee are also discussed in-depth. In support of these interpretations, the research of Ali, Ng and Kulik (2014) recognized that by culture diversity at the workplace increase the chances of reativity, innovation, performance and quality of the team members.
- Ways to Manage Employee Diversified Values and Attitude
This section includes the questions on the different ways to manage employee diversified values and attitude. In this, it was asked that whether effective management enables to manage the issues in an adequate manner which supports to achieve competitive business advantage. The responses of participants are follows:
Table 12: Effective management enables to manage the issues
| Frequency | Percent | Valid Percent | Cumulative Percent | ||
| Valid | Strongly agree | 21 | 21.0 | 21.0 | 21.0 |
| Agree | 47 | 47.0 | 47.0 | 68.0 | |
| Neutral | 4 | 4.0 | 4.0 | 72.0 | |
| Disagree | 19 | 19.0 | 19.0 | 91.0 | |
| Strongly disagree | 9 | 9.0 | 9.0 | 100.0 | |
| Total | 100 | 100.0 | 100.0 |
Figure 12: Effective management enables to manage the issues
The above table and graph show that majority of participant 68% were said that role of effective leadership is important to make the cultural diversity and provides the strength of the organization. This analysis helps in interpreting that management plays an important role in a firm to manage the issues efficiently and effectively in order to avoid conflict among employees, workers. These survey findings are also consistent with the findings of Poulis, Poulis and Plakoyiannaki (2013) as they also stated in their research findings that Effective management enables to manage the issues in an adequate manner which supports to achieve competitive business advantage. Every perspective has two faces, one is positive and another is negative.
By the help of next question, the researcher inquired that whether the role of effective leadership is important to make the cultural diversity and provides the strength of the organization. The answers of the participants are below:
Table 13: Role of effective leadership is important to make the cultural
| Frequency | Percent | Valid Percent | Cumulative Percent | ||
| Valid | Strongly agree | 22 | 22.0 | 22.0 | 22.0 |
| Agree | 47 | 47.0 | 47.0 | 69.0 | |
| Neutral | 6 | 6.0 | 6.0 | 75.0 | |
| Disagree | 19 | 19.0 | 19.0 | 94.0 | |
| Strongly disagree | 6 | 6.0 | 6.0 | 100.0 | |
| Total | 100 | 100.0 | 100.0 |
Figure 13: Role of effective leadership is important to make the cultural
On the behalf of above table and graph, it is stated that role of effective leadership is important to make the cultural diversity and provides the strength of the organization. It is because 69% participants were replied in this favour that leader plays an important role in maintaining and developing a culture of a firm to large or extreme level so that employees feel comfortable and satisfied while working. Büthe and Milner (2014) support this interpretation by describing that the role of leader is crucial in the organisation to manager the diversity system.
In this section, through next question, it is asked that whether adequate training of the Board members enables them to deal effectively with the people of different culture. Concerning, the responses of the participants are as below table
Table 14: Adequate training of the Board members enables them to deal
| Frequency | Percent | Valid Percent | Cumulative Percent | ||
| Valid | Strongly agree | 18 | 18.0 | 18.0 | 18.0 |
| Agree | 47 | 47.0 | 47.0 | 65.0 | |
| Neutral | 5 | 5.0 | 5.0 | 70.0 | |
| Disagree | 20 | 20.0 | 20.0 | 90.0 | |
| Strongly disagree | 10 | 10.0 | 10.0 | 100.0 | |
| Total | 100 | 100.0 | 100.0 |
Figure 14: Adequate training of the Board members enables them to deal
On the basis of the above table and graph, it can be determined that adequate training of the Board members enables them to deal effectively with the people of different culture. It is because 65 participants were agreed and strongly agreed on the above statement. Supporting to this interpretation, Moosa (2015) depicted that adequate training enables the Board members to deal effectively with the people of different culture.
Furthermore, the researcher expected from the participant to provide their concern whether timely evaluation of the performance of the board of member is an effective way to manage employee diversified values and attitude. In concern of this, collected responses are following:
Table 15: Timely evaluation of the performance of the board of member
| Frequency | Percent | Valid Percent | Cumulative Percent | ||
| Valid | Strongly agree | 26 | 26.0 | 26.0 | 26.0 |
| Agree | 46 | 46.0 | 46.0 | 72.0 | |
| Neutral | 4 | 4.0 | 4.0 | 76.0 | |
| Disagree | 15 | 15.0 | 15.0 | 91.0 | |
| Strongly disagree | 9 | 9.0 | 9.0 | 100.0 | |
| Total | 100 | 100.0 | 100.0 |
Figure 15: Timely evaluation of the performance of the board of member
On the behalf of collected responses, it is identified that timely evaluation of the performance of the board of member is an effective way to manage employee diversified values and attitude because 72% participant believe in this. All these above interpretations are consistent with the literature review findings as Lin, et al., (2017) recognized that organizations need to evaluate the performance of the board members in a timely manner to assess the performance of all board members so that firm will retain those members who have satisfactory performance and motivate them by offering rewards.
At the same time, the researcher also generated views of the participant by asking that an organization can manage employee diversified values and attitude by the help of developing the effective communication. In response to this question, the below responses are obtained:
Table 16: Developing the effective communication
| Frequency | Percent | Valid Percent | Cumulative Percent | ||
| Valid | Strongly agree | 25 | 25.0 | 25.0 | 25.0 |
| Agree | 45 | 45.0 | 45.0 | 70.0 | |
| Neutral | 6 | 6.0 | 6.0 | 76.0 | |
| Disagree | 18 | 18.0 | 18.0 | 94.0 | |
| Strongly disagree | 6 | 6.0 | 6.0 | 100.0 | |
| Total | 100 | 100.0 | 100.0 |
Figure 16: Developing the effective communication
From the above table, it can be determined that mostly (70%) participants agreed in the positive manner that an organization can manage diversified values and attitude of employee with the help of developing the effective communication. In support of these interpretations, the findings of Poulis, Poulis and Plakoyiannaki (2013) also recognized that this development of effective communication is highly supported by the cultural diversity program which is organized by the firm for welfare and improvement of employee and business performance. In addition to this, different dimensions in diversity are also analyzed further in other section:
- Different Dimensions in Diversity
This section determines the various dimensions in diversity. In this, it was asked by the participants that what the major dimensions of culture diversity are. In regard of this, survey outcomes are below:
Table 17: Demographic diversity
| Frequency | Percent | Valid Percent | Cumulative Percent | ||
| Valid | Strongly agree | 26 | 26.0 | 26.0 | 26.0 |
| Agree | 44 | 44.0 | 44.0 | 70.0 | |
| Neutral | 7 | 7.0 | 7.0 | 77.0 | |
| Disagree | 19 | 19.0 | 19.0 | 96.0 | |
| Strongly disagree | 4 | 4.0 | 4.0 | 100.0 | |
| Total | 100 | 100.0 | 100.0 |
Figure 17: Demographic diversity
From the above table and graph, it can be stated that demographic diversity is one of main dimension of culture diversity because 70% participants believed that demographic diversity determine the culture diversity. However, this study helped in identifying that 70% of participants are fully agreed that cultural diversity is huge influence over the demographic dimensions. In support of above interpretation, Hoogendoorn, Oosterbeek and Van Praag (2013), demographic diversity plays an important role in the organisation that is affected by the individual attitude and organisational performance.
| Frequency | Percent | Valid Percent | Cumulative Percent | ||
| Valid | Strongly agree | 20 | 20.0 | 20.0 | 20.0 |
| Agree | 46 | 46.0 | 46.0 | 66.0 | |
| Neutral | 4 | 4.0 | 4.0 | 70.0 | |
| Disagree | 19 | 19.0 | 19.0 | 89.0 | |
| Strongly disagree | 11 | 11.0 | 11.0 | 100.0 | |
| Total | 100 | 100.0 | 100.0 |
On the behalf of above graph and table, it is found 66 participants out of the 100 believe that team performance is an important dimension of the culture diversity. This analysis helped in interpreting that cultural diversity supports and encourages the employee to work in a team and develop team performance effectively to next level. In the supportive view of Ambos and Håkanson (2014) depicted that the team performance can be improve the quality of the work at differentiated workplace. But at the same time, it is also found that there are 19 % of participants who don’t agreed fully that in diversity, team performance has influence and considered as effective dimension which develop the firm’s performance.
| Frequency | Percent | Valid Percent | Cumulative Percent | ||
| Valid | Strongly agree | 17 | 17.0 | 17.0 | 17.0 |
| Agree | 42 | 42.0 | 42.0 | 59.0 | |
| Agree | 5 | 5.0 | 5.0 | 64.0 | |
| Disagree | 23 | 23.0 | 23.0 | 87.0 | |
| Strongly disagree | 13 | 13.0 | 13.0 | 100.0 | |
| Total | 100 | 100.0 | 100.0 |
As concerning of the above findings, it can be said that gender diversity at the workplace is also known as a dimension of the culture diversity. It is because mostly 59% participants were said that gender diversity measure the culture diversity at the work place. García-Meca, García-Sánchez and Martínez-Ferrero (2015), gender diversity impacts on the performance of the employee through exchange of the views of an individual.
| Frequency | Percent | Valid Percent | Cumulative Percent | ||
| Valid | Strongly agree | 25 | 25.0 | 25.0 | 25.0 |
| Agree | 44 | 44.0 | 44.0 | 69.0 | |
| Neutral | 4 | 4.0 | 4.0 | 73.0 | |
| Disagree | 19 | 19.0 | 19.0 | 92.0 | |
| Strongly disagree | 8 | 8.0 | 8.0 | 100.0 | |
| Total | 100 | 100.0 | 100.0 |
From the above graph and table, it can be interpreted easily that innovation outputs is one of the essential dimensions in cultural diversity and in support to this, 69 % participants agreed that cultural diversity helps the employees of the firm to provide the innovative output. This dimension indicates that cultural diversity is most important factor which is to be considered by all the firms. Hoogendoorn, Oosterbeek and Van Praag (2013), supports that the cultural diversity impacts on the innovative ideas of the employee and they provide the innovative outputs according to the situation. Similarly, the next dimension is age diversity is also analyzed as below:
| Frequency | Percent | Valid Percent | Cumulative Percent | ||
| Valid | Strongly agree | 25 | 25.0 | 25.0 | 25.0 |
| Agree | 42 | 42.0 | 42.0 | 67.0 | |
| Neutral | 4 | 4.0 | 4.0 | 71.0 | |
| Disagree | 18 | 18.0 | 18.0 | 89.0 | |
| Strongly disagree | 11 | 11.0 | 11.0 | 100.0 | |
| Total | 100 | 100.0 | 100.0 |
In above table and graph, it becomes easier to interpret that age diversity has high influence dimension due to cultural diversity. In concern to it, it is found that 67 % of participants agreed and strongly agreed that age diversity is also dimension which is to be considered in cultural diversity program. In support of this, Nielsen and Nielsen (2013) states that high age persons have different perceptions due to generation gap so management of the age diversity is a big challenge. However, this study analysis that age diversity is major aspect which affect or impact on the firm performance to a large extent. Furthermore, this section also discussed below experience as dimension in diversity:
| Frequency | Percent | Valid Percent | Cumulative Percent | ||
| Valid | Strongly agree | 21 | 21.0 | 21.0 | 21.0 |
| Agree | 44 | 44.0 | 44.0 | 65.0 | |
| Neutral | 6 | 6.0 | 6.0 | 71.0 | |
| Disagree | 19 | 19.0 | 19.0 | 90.0 | |
| Strongly disagree | 10 | 10.0 | 10.0 | 100.0 | |
| Total | 100 | 100.0 | 100.0 |
In this table analysis, it can be summarized that experience is other dimension that denotes that cultural diversity provide a neutral experience to the employees and firm. With the help of participants, it can be interpreted easily that 71% of participants are mutually agreed that there are chances that cultural diversity provides a better or worst experience to the company. Mohr, Wang and Goerzen (2016) defines that age diversity helps the employee to provide more salary than a fresher according to the knowledge and skills. But at the same time, it is also observed that 65% participants also strongly agreed or agreed that experience is better dimension in diversity program.
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS
This is also one of the most important parts of the research that play a high contribution in the success of the research. In this part of the research, all findings of the research are presented by the researcher in a systematic manner. In this part of the research, some recommendation for the further research or the researcher on the same topic is also discussed in this part of the research. At the same time, in this part of the research, the limitation of the research is also determined that created the issues and the hurdle for the researcher to accomplish the research on time successfully. Because of this, it can be determined that this chapter of the research play a major role in the successful accomplishment of the research.
From the above discussion, it can be concluded that there is a vital role of the culture diversity in the success or the failure of the firm. The reason of this is that in the culture diversity, there are different changes related to the political, economic, socio-cultural, technological, environmental and legal those are occurred and create the issues and the hurdle for the firms in the successful accomplishment of the research and to produce the valid and the effective research outcomes as well. In addition to this, it can also be concluded that cultural diversity has a huge impact on the work environment that also creates the various differences in the employees’ culture. The reason in this is that in the culture difference of the employees is identified in different segments such as age, gender, skills, education, ethnicity, knowledge, intelligence, etc. Because of this, it can be determined that due to the difference between these above aspects, the cultural diversity has a huge impact on the work environment and the work culture of the employees. At the same time, it can also be concluded that staff retention is one of the major ways that can be used by the firms to manage the culture diversity and the diversity issues. It is because staff retention assists the firm to effectively handle the all process of the working as well as it also helps the firm by managing the different issues and the challenges. Because of this, it can be concluded that staff retention is one of the best and effective to use for managing the workplace diversity and also assists by improving the performance of the firm as well. Apart from this, it can also be concluded that culture diversity at the workplace creates communication gap that is one of the major challenges of the firms. The reason in this is that due to increasing level of the competition and the change in the customer’ need, there are different employees from different culture are hired by the people. Due to difference in the culture, people also have the difference in the language, climate, etc that creates the communication issues for the employees to get the understating about the different language. Due to this concern, it can be concluded that diversity at workplace creates communication gap and also affect the work of the firms as well as.
Additionally, it can also be concluded that management of culture diversity is also quite helpful for human resource in order to increase employees’ performance and the organizational performance as well. It is because there are different programs related to management of the culture diversity that are used and managed by the firm and these all ways help the firm to develop an effective environment by developing the understating of the people regarding the different ages and the culture. So, due to this concern, it can be concluded that management of culture diversity plays a significant role in the development of the firm performance and to manage the entire work effectively. Furthermore, it can also be concluded that cultural diversity also assists the firm by increasing the possibilities of creativity and also supports to develop the skills of effective decision making. It is because due to the diversity, different culture of people works so the difference in the culture makes the cause of generating the new ideas and the ways that make more creative the firm and also contribute in the success of the firm as well. Because of this, it can be determined that the cultural diversity is quite helpful for the firms to manage the business in the diversify culture.
On the basis of the above discussion, the researcher provides some recommendations for dealing with the diversity in the organisation.
- In order to effectively manage the organisational diversity at the workplace in the international business, the companies should recognize the difference, in the context of the physical, generation and cultural. It means that an organisation must develop the understanding of the discrimination at the workplace to management a diverse workforce. In regard of this, company can give this responsibility to top manager to understand the diversity at the workplace.
- It can be also recommended to a multinational organisation that it should emphasize to develop an effective communication system at the workplace. It will be helpful fro employees to understand the organisational policies, norms, procedure and rules and etc. It will also be helpful to under overcome the language and culture barriers in the organisation. In the same concern of this, an organisation can also organize a meeting or seminar. It will provide a chance to all employees of an organisation together at single place.
- At the same time, it is also recommended to international organisations that they should review employees at the individual level. The company should avoid the concept of the positive and negative stereotypes. The company should not bias among the employees on the basis of the different culture or groups. It the company should develop a strategy by this it can measure performance of an employee separately. At the same time, the firm should also encourage the employees to support the their co workers in their tasks.
- In order to manage the issue of the diversity at the international business, it can be suggested to companies that it should encourage the employees to work in the diverse groups. It can be seen that in the multination firm, there are different groups as the different perspectives such as age, gender and culture. The company and human resource management should prepare the employees to work in the different groups.
- Along with this, it can be also recommended to the multinational organisation that it should make the base decision on objective criteria. In the organisation, each decision should be develop with one objective that all the employees from the all the background and culture should get the equal benefit of the decision. It will be helpful to manage the diversity at the great extent in the organisation.
- On the behalf of above finding and discussion, it can be also recommended that a multinational organisation should also try to develop an open minded working environment where it can mitigate the concept of biasness and diversity at the workplace. At the same time, the top manager should take initiative for this step. It is because it will help to motivate the employees.
- The researcher developed a recommendation and from this it tried to suggest that the company should try to team build and free flow of the communication at the workplace. The company also develop the equal opportunity for each employee regarding the career growth and skill development. Additionally, the working environment of the organisations should also allow each employee to participate and communicate freely.
5.4 Research Limitation and Future Opportunity
This research study mainly focuses on the impact of the diversity on the international business but this research study does not focus in a particular research study that is limitation of this research study. In order to analyse the impact of the diversity on the international business, the research could choose an organisation as the case study that will be effective or attractive research study. At the same time, this research study is based on the survey questionnaire to collect the views of participants on the research topic. It allows the researcher to collect data in the quantitative manner. As concerning of this, the future researchers have opportunity to collect the data by the help the other data collection methods. It can improve the reliability and effectiveness of the collected data and the researcher can also get the experience of using the different research tools.
In the same concern of this, future researchers also have the opportunities to increase the number of participants in survey questionnaire to access the more accurate and reliable information related to the impact of diversity on the international business. At the same time, in the undertaken study, researcher faced some limitations related to data access due to time and cost restrictions. It is because this research study is based on the survey that it time consuming method to collect the primary data in the research. The future researcher can also increase the research duration and budget that will help them to focus on the each aspect of the research effectively. It will help the future researcher to develop the depth understanding of the research methods.
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Appendices
In this research study, the researcher conducted this questionnaire to complete the academic purpose such as develop employee performance enhancement program and techniques to lead their performance in diversified business environment. The obtained data will only use for the academic purpose and it will not be used or disclosed for other purpose. At the same time, participants have flexibility to leave the questionnaire any time if they feel insecure. Additionally, the questionnaire will not contain any question on the personal life the participant that can affect their privacy and job.
- Demographic information
Gender:
- Male
- Female
Work experience in the firm:
- 0-5 Years
- 6-10 Years
- 11-15 Years
- 15 Years or More
- Concept of culture diversity
Do you have the knowledge of what is cultural diversity at workplace?
- Yes
- No
In your views, where culture diversity has varying forms which plays a diverse role towards the success or failure while interacting at the work place?
- Strongly agree
- Agree
- Neutral
- Disagree
- Strongly disagree
how much you are agreed that each country has different political, economic, socio-cultural, technological, environmental and legal parameters or system?
- Strongly agree
- Agree
- Neutral
- Disagree
- Strongly disagree
III. Impact of Cultural Diversity on Employee Performance
Do you think that cultural diversity has a huge impact on the work environment and it contains various differences among the employees’ culture?
- Yes
- No
An effective management of employees in terms of age, gender, education, ethnicity, skills, knowledge, intelligence, etc. enables the organization to increase the employees’ performance?
- Strongly agree
- Agree
- Neutral
- Disagree
- Strongly disagree
Whether, the use of effective strategies to increase the staff retention is helpful for the organization to attract and hire the best staff?
Strongly agree
Agree
Neutral
Disagree
Strongly disagree
Provides you opinion that culture diversity at the workplace creates communication gap that is one of the major challenges of the firm?
Strongly agree
Agree
Neutral
Disagree
Strongly disagree
An effective management of culture diversity is helpful for human resource to increase employees as well as organizational performance?
- Strongly agree
- Agree
- Neutral
- Disagree
- Strongly disagree
Cultural diversity enables the firm to increase the chances of creativity as well as supports to develop the skills of effective decision making?
- Strongly agree
- Agree
- Neutral
- Disagree
- Strongly disagree
- Ways to Manage Employee Diversified Values and Attitude
Effective management enables to manage the issues in an adequate manner which supports to achieve competitive business advantage?
- Strongly agree
- Agree
- Neutral
- Disagree
- Strongly disagree
The role of effective leadership is important to make the cultural diversity and provides the strength of the organization?
- Strongly agree
- Agree
- Neutral
- Disagree
- Strongly disagree
In your views, adequate training of the Board members enables them to deal effectively with the people of different culture?
- Strongly agree
- Agree
- Neutral
- Disagree
- Strongly disagree
Do you think that timely evaluation of the performance of the board of member is an effective way to manage employee diversified values and attitude?
- Strongly agree
- Agree
- Neutral
- Disagree
- Strongly disagree
An organization can manage employee diversified values and attitude by the help of developing the effective communication?
- Strongly agree
- Agree
- Neutral
- Disagree
- Strongly disagree
- Different Dimensions in Diversity
Please response for the extent at which the below Different Dimensions in Diversity
| Strongly agree | Agree | Neutral | Disagree | Strongly disagree | |
| Demographic diversity | |||||
| Team Performance | |||||
| Gender diversity | |||||
| Innovation Outputs | |||||
| Age Diversity | |||||
| Experience |
