Managing Cultural Diversity

Purpose:

The aim of this study is to examine how the organisation gets better managers of cultural diversity in this global market. From the beginning with this article, the cultural diversity in an organisation can be defined by Breshears & Contributor (n.d.) that "The modern workplace is a mosaic of different ideas, beliefs and opinions, which taken together create an atmosphere of cultural diversity" and Contributor & Lai (n.d.) present that it could help the organisation improve their productivity. Besides that it could also bring the competitive advantage of the organisation.

In this study of cultural diversity is discussed with multinational enterprise how to manage the diversity. The cultural differences consist of value differences, institution differences and policy differences. Organisation should understand how they could get the most efficiency according to the managing diversity due to the differences.

Background:

With the scale of continuous expansion and the scope of multinational activities, the cultural difference and conflicts in corporate have become increasingly apparent. Specifically, management of multinational enterprise can be understood as cross-cultural management, and among one of the key factors of influence the success of multinational enterprise is the effectiveness of cross-cultural difference in management. Moreover, cultural differences have a double impact on multinational operation management, and it can become the driving force while become the resistance force. As a consequence, according to this advantage and disadvantage, organisation should be able to understand properly of the cultural difference, and based on this through understanding, effectively to implement cross-cultural management to establish the management of a cross-cultural enterprise, thereby creating a global competitive advantage.