Cultural Diversity in Organizational Comm
Cultural Diversity in Organizations
Dameon Robinson
Liberty University
STCO 622
Dr. Kevin Rawls
July 14, 2024
Abstract
Cultural diversity within organizations is an increasingly important topic in today's
globalized business environment. It is a topic that continues to increase over the years, with
people of different backgrounds consistently being hired for crucial professions. This literature
review explores the layered impacts of cultural diversity on organizational communication, while
making connections to overall performance of businesses. The theoretical frameworks provided
by analyzing cultural diversity in organizations will highlight the benefits of having cultural
diversity in organizations. This review will also aim to address specific challenges and common
barriers when incorporating various different cultures, beliefs, and backgrounds in the
workplace. By analyzing research, this literature review will highlight the role cultural diversity
Cultural Diversity in Organizational Comm
plays in organizations and offer insights into embracing cultural diversity and transforming it
into success.
Introduction
Cultural diversity in organizations refers to the inclusion of employees from various
cultural, ethnic, and racial backgrounds within a workplace (Fuentes et al., 2021). Over the years,
society has slowly become more integrated and connected, leading to cultural diversity
impacting the inner workings of organizations. Modern companies with hopes of further growth
must realize the complexity and relevance of cultural diversity. In operating a business today,
there is an increased need for understanding how cultural diversity affects organizational
dynamics and overall communication performance.
Cultural diversity allows for an environment that integrates diverse perspectives, beliefs,
and techniques on solving issues. People from different backgrounds who have experienced
various things may bring new, fresh ideas to contribute to the business. Research suggests that
companies who are taking steps to embrace cultural diversity are more knowledgeable about
changes to markets. Companies that give fair opportunities to people of diversity also have been
able to attract brilliant talent while opening a broader customer base (Nielsen et al., 2017). There
are even examples that have shown that businesses with more diversity have been shown to have
higher competence in creativity and problem-solving techniques (Rock & Grant, 2016).
Though cultural diversity is a great element to incorporate in organizations, it is not
devoid of challenges. Some of the challenges include difficulties in communication due to
diversity in background and language (Shore et al., 2018). If issues persist that relate to
important decision makers being unable to coherently understand one another, it can create rifts
in morale and company performance. A proper way to combat the difficulties in creating
multicultural environments is promoting inclusion and respect among the workplace throughout).
Cultural Diversity in Organizational Comm
This literature review will provide overview and insight of research on the impact of
cultural diversity on organizational communication and performance. It will explore theoretical
frameworks that relate to the dynamics of cultural diversity, highlight and examine the benefits
and challenges that having diversity in the workforce presents, and effective management of
intercultural communication. Additionally, it will analyze the impact of cultural diversity on
organizational communication.
Literature Review
Benefits of cultural diversity
Cultural diversity is beneficial to organizations, allowing for larger amounts of creativity,
innovation, and other useful tools. Workplaces with diversity create a wider pool of ideas and
allow for many different perspectives on issues and innovation. This provides stronger teams
with different strategies on problem-solving and planning. Large companies (Otike et al., 2022).
Furthermore, cultural diversity creates a workplace more adept with adapting
organizationally and quick with changing markets. Organizations that embrace diversity put
themselves in a better position to understand diverse customer needs, leading to increased
customer satisfaction and market share (Ozgen, 2020). A diverse workforce also enhances the
organization with a wide range of skills and experiences (Williams, 2019). In addition to tangible
benefits, cultural diversity contributes to a more inclusive and equitable workplace culture
(Seliverstova, 2021). When employees feel valued and respected by their employer, it makes
them feel important and a sense of belonging. Employees who are happy at work are employed
longer and contribute to attracting prospects (Shore et al., 2018). A study by McKinsey &
Company (2020) found that companies in the top quartile for ethnic diversity were 36% more
likely to have above-average profitability.
Challenges of Cultural Diversity
Despite its various benefits, cultural diversity also creates obstacles and several
challenges that organizations must address at their earliest convenience. Communication barriers
are among the most significant challenges, mainly stemming from the bevy of different
languages that can be implemented in a single workplace. (Lauring & Selmer, 2018). When
individuals feel they are misunderstood and cannot interpret what their peers are saying, it
creates a way for conflicts as well as more individualistic work rather than collaboration. Taylor
et al, (2022) mentions humor as a pathway to building connections with coworkers. Having
communication barriers makes it difficult to use humor, small-talk, and other barrier-breaking
methods of establishing rapport with coworkers.
Cultural biases and stereotypes can also lead to a less collaborative work environment.
(Plaut et al., 2018). There is no secret that some workplaces have toxic environments that
alienate and exclude minority groups (Livingston, 2020). Conflict in the workplace is a
Cultural Diversity in Organizational Comm
contributing factor to organizations not maximizing their full potential A study by Catalyst
(2019) revealed that 50% of employees from diverse backgrounds reported experiencing bias at
work, which negatively impacted their engagement and productivity. In certain cases, there have
been large organizations worth billions of dollars that were revealed to have racist ownership. An
infamous example is the case of Donald Sterling, former majority owner of the Los Angeles
Clippers professional basketball team. Audio of Sterling making racist remarks about African
American players and businessmen around the league surfaced in 2012 (Hoyt & Morris, 2021).
Companies also may have employees and ownership who are hesitant to embrace cultural
diversity. Resistance to change is another obstacle to effectively managing cultural diversity.
Employees and owners who have built homogeneous environments may resist efforts to diversify
the workforce, with fears of major organizational changes and newfound favoritism for positive
PR (Podsiadlowski et al., 2018). If this is the case, companies limit their overall potential by
refusing to diversify the workplace.
Managing Cultural Diversity
To fully reap the benefits of cultural diversity and overcome the challenges it presents,
organizations are tasked with implementing effective management strategies. In recent years,
plenty of companies have begun incorporating diversity training programs and educational
systems that promote diversity and inclusion(Jung & Welch, 2020). Comprehensive diversity
training programs educate employees on the value of diversity and equip them with the skills to
navigate cross-cultural interactions (Bezrukova et al., 2016). Having programs such as these will
enhance cultural awareness and slowly create the most effective inclusive environment possible.
Inclusive leadership is crucial for managing culturally diverse workplaces. Company
leaders play a pivotal role in setting the tone for inclusion and showing deserving employees
their value and appreciation. Effective organizations have leaders that seek to include diversity
driven perspectives and opportunities (Deloitte, 2019). Organizations that value growth as well
as keeping up with innovation must seek out top talent despite cultural backgrounds. If presented
the opportunity, potential employees will discuss their experiences in a workplace. By creating
positive, inclusive environments, organizational leaders deliver a company that people are
excited to work for.
Organizations also benefit from clearly establishing diversity and inclusion policies that
highlight employee expectations and repercussions for violating said measures. (Jonsen et al.,
2019). These policies must be heavily assessed and enforced as well as revisited to identify
areas that can be enhanced (Mousa et al., 2020). Companies that stress diversity and inclusion
policies are able to track progress and receive feedback from employees. When employees are in
an environment they feel they are safe and respected in, it maximizes the work efforts that
employees produce.
Impact on Organizational Communication
Cultural diversity significantly impacts organizational communication. Effective
communication is crucial for major aspects of organizational success at all levels of a company
(Taylor et al., 2022). In diverse workplaces, communication can be complicated by differences in
language, cultural norms, and communication styles (Lauring & Selmer, 2018).
Cultural Diversity in Organizational Comm
Organizations can implement training and practices within the workforce to develop a
high level of cultural humility within. Cultural humility uses the elements of cultural competence
that helps individuals respect and understand different cultures (Agner, 2020). Organizations can
keep their employees updated on cultural events and promote communication between
employees. By being an organization that takes diversity and inclusion seriously, organizations
open themselves up for unique, brilliant individuals that can further boost the company’s success
(Livingston, 2020).
Cultural diversity allows companies to introduce different organizational ideas by
introducing diverse viewpoints and enhancing creativity (Sawyer & Henriksen, 2024). When
employees from different backgrounds share their unique perspectives, it can lead to more
innovative ideas and solutions (Homan et al., 2020). Creating this environment is contingent on
emphasizing inclusivity with organizational communication. Outside of the benefits of the inner
workings of the organization, cultural diversity can improve the organization's ability to reach a
more broad customer base (Rijsdijk, 2023). Having an organization that is educated on their
customer base maximizes that customer base and is able to cater to specific needs.
Conclusion
In conclusion, cultural diversity in organizations is a multifaceted aspect that brings
numerous benefits, challenges, and opportunities. When implemented effectively, cultural
diversity creates an organizational environment where employees feel included and respected.
This environment enhances the company’s potential and allows it to be successful in diverse
markets and realms. Cultural diversity, while having challenges such as language barriers and
cultural biases, challenges leaders to make a strong, inclusive workplace. Plenty of training
programs and education systems should be incorporated to fill employees with as much cultural
awareness as possible. By promoting cultural diversity in organizations, workplaces benefit from
harnessing that full potential and explore a large stream of ideas and perspectives. Cultural
diversity is a strategic advantage that can contribute to further success and improved
organizational communication within a company.
Cultural Diversity in Organizational Comm
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