Cultural Diversity in MNC’s

When the workforce of a Multinational Organization (MNC) is diverse, they are able to generate a unique set of ideas for the company to help it grow and expand. This occurs when the employees come from different backgrounds and also have the ability to come up with creative solutions for the growth of the business (Larson & Schiehle 2016). When employees in a corporation come from different cultures, they are able to brainstorm ideas to help achieve the overall company’s goals (Levy, Boyacigiller & Beecher, 2008). Larson & Schiehle (2016) argue that “a company with diverse ideas has better chances of understanding the new markets and to help it tackle issues that may hinder its growth” (p. 20). They also sometimes strategically placed to help their business gain market share and become successful in the long run. This helps show how people from different backgrounds express different ways in solving a problem (Daniels, Radebaugh & Sullivan 2018).

Cultural diversity can help avoid groupthink in employees in a business organization. When all the employees think alike, they lose the ability to solve complex problems, which most corporations will encounter as the company grows. According to Larson & Schiehle,, most of these problems arise due to “social conformity and pressures on employees to conform and agree” (p. 13). Employees who think alike usually feel intimidated to express their opinion because they want to fit in with their peers (Levy, Boyacigiller & Beecher, 2008). This can hinder creative thinking and significantly affect the process of sharing and execution on new business ideas. However, in diverse workforce, they are able to avoid most of the problems that occur, because employees will not feel pressured to follow the group (Daniels, Radebaugh & Sullivan, 2018). Due to this, they are all able to openly debate, share opinions and learn newer perspectives of problem solving in foreign markets. Discussion and arguments in these organizations are resolved by collectively and creatively sharing ideas to come up with an analytical solutions.

A diverse workplace not only enhances an MNC’s internal operations, but also it’s external relationships with their customers (Daniels, Radebaugh & Sullivan, 2018). Research shows that a diverse workforce is well equipped to connect and deal with people from different nationalities, which in return creates quicker development of trust and understanding between consumers and employees of the company (Larson & Schiehle, 2016). For instance, if the customers of a multinational business come from different cultures, then each group should be represented in the workforce. Both the textbook and article illustrates how a diverse workforce is key to guiding an entity into expansion, better strategies and newer innovative ideas for the market growth.

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