Cultural Diversity in Organizations: the impact of cultural diversity in organizations

Abstract

The thesis aims to investigate the experiences of individuals who have worked in culturally diverse environments in order to gain a better understanding of the effects that cultural diversity has and ultimately reach a conclusion on whether organizations should strive to diversify. The research questions are: What sort of impact does cultural diversity have on organizations and Should organizations culturally diversify? The study applies a qualitative approach, utilizing semi-structured interviews and open-ended survey questions. Respondents are six, from various cultural backgrounds whose experiences are analyzed, categorized into themes, and compared to a couple of theories, the Cultural Intelligence theory and the Social Identity Theory. The findings of this study indicate that cultural diversity in the workplace offers numerous advantages. The participants emphasized some of the main advantages such as enhanced communication, increased cultural intelligence, and new ideas/innovations being direct outcomes of working in diverse settings. Based on the results, organizations should embrace and promote cultural diversity. By doing so, organizations gain many competitive advantages. Furthermore, this research highlights the importance of inclusive environments that value and support differences, ultimately leading to improved business communication, innovations and performance.