Running head: MULTICULTURAL ORGANIZATIONS

Multicultural Organizations Name Institution

MULTICULTURAL ORGANIZATIONS Multicultural Organizations Introduction The number of multicultural organizations has been in the increase in the last decade. This rise has been influenced by globalization and economic pressures that have made put immense pressure on companies to diversify their work force. Having a diverse work force can

be a source of competitive advantage and can help the organization to break to new markets with ease. Firms that have fully embraced Multiculturalism have been able to take their businesses to the global market and have enjoyed competitive advantage in their respective industries. This paper will discuss the characteristics of Multicultural organizations and the ways that such companies can obtain competitive advantage. Characteristics of Multicultural Organizations According to Cox (1991) Multicultural Organizations are organizations whose workforce consists of a diverse work force and that has minorities in executive and management positions. In such organizations, different races, religions and gender backgrounds are equally represented and have a voice in the management as well as in the executive positions. The movement up the ladder in Multicultural is based on talents and skills and this ensures that the management positions are full of people from diverse cultures. Multi cultural organizations are discrimination and prejudice free environments. All people in the organization have equal rights and opportunities regardless of race, gender of physical disabilities. There are no racial prejudices in such environments and people are not given labels basing on their racial and cultural identities. Everyone is judged based on the skills

MULTICULTURAL ORGANIZATIONS and talents that they have to offer and the promotion to higher positions is done basing on skills and not basing on physical attributes (Jakonis, 2010). Pluralism is clearly evident in multi cultural organizations. These organizations allow different cultures to interact and to shape the behavioral norms, policies as well as the values in the organization. This ensures that peoples individual cultural beliefs and values are not infringed upon by the overall cultures. The organization also ensures that it understands the values and beliefs of all the members of the organization. For instance, in workforces that consist of Muslims, these organizations ensure that allow for Muslim dress codes in the HR policies (Jakonis, 2010).

Multi cultural organizations also have full structural integration. This integration involves the full incorporation of diverse people in management positions and ensuring that all the people in the different work groups work together harmoniously. In such organizations, minorities hold leadership positions and all people have the chance to get to those positions due to merit. This ensures that the percentage of minorities representation in management is high (Cox, 1991). Different cultures have full integration in the informal networks. As a result, the different people representing diverse cultures are included in business events like business lunches or other activities outside office hours. There are no limitations put in place to bar some people from participating in different organizational activities. This fosters improved relationships between employees in neutral environments and improves the working relationships (Cox, 1991). There are Low levels of intergroup disagreements in Multicultural organizations. This is because these organizations have conflict resolution mechanisms that deal with every conflict

MULTICULTURAL ORGANIZATIONS equally. Training programs have also been created in those organizations and the offer guidance

on how to avoid conflicts in the multicultural environments. People who are found to contravene the organizational polices are severely dealt with and this reduces the number of people who engage in discriminatory and abusive behaviors towards members of different cultural groups (Cox, 1991). People are not identified and defined by their cultural identities groups. They are identified by their talent and skills and are all given equal opportunities to compete for any position in the organization. People also identify themselves by the organization they work for due to the job satisfaction in that company (Jakonis, 2010). Multiculturalism and competitive advantage Competitive advantage refers to the superior position that an organization occupies in comparison to its competitors as a result of having processes or resources that are better than those of its competitors. In a multi cultural environment, the organization is able to take advantage of the superior human resource position to stay ahead of competition. By having a diverse work force, the organization is able to reap numerous benefits that contribute to their competitive advantage (Muna, 2011). Multicultural organizations have high levels of employee productivity. This is because the employees feel that their efforts are important and that their efforts will get them better positions in the organization with absence of discrimination. High employee productivity will result in increased customer satisfaction and this will contribute to the organizations competitive advantage (Muna, 2011).

MULTICULTURAL ORGANIZATIONS Decision making in multicultural organization is highly enhanced because people from diverse backgrounds offer different insight to issues. This offers the organization competitive advantage because the organization is able to approach its problems from different points and they are able to steer the organization forward (Pasi, 2002). Multiculturalism encourages innovation. This is because it places people who have

different ideas and viewpoints together. By placing these people and tasking them with problems that require solutions, these people are able to combine their skills and come up with creative solutions for the organizations. These people will offer different creative ideas based on their individual backgrounds and this will be of great benefit to the firm. This will ensure that the firm stays ahead of its competitors due to their innovative products and solutions (Pasi, 2002). Multiculturalism provides market expansion opportunities for organizations. By including employees from various races and cultures, the organization is able to understand the needs of the different cultural groups that are represented in the organization. They will also get perspective on how to market the products in these different markets. This will give the organization unique perpective and will provide opportunities to venture into those markets with a clear understanding of the market needs. Market expansion will give the organization increased competitive advantage (Pasi, 2002). Multiculturalism fosters brand loyalty. This is the different employees from different cultures give insight to the company in terms of market sensitivity, back grounds and expectations. This helps the company while branding the products that it will supply to the different communities around the world. By taking market sensitivity into consideration, the organization improves brand loyalty and this helps in increasing its competitive advantage.

MULTICULTURAL ORGANIZATIONS When members of the communities see people from their cultural group working for the organization, they are likely to form an attachment to that product. It also fosters global mindsets that are effective for companies that intend to operate on the global level (Crockett, 1999). Multiculturalism in organizations improves the company image. Companies that have embraced Multiculturalism have good brand images .This makes them attract high quality personnel and also increases employee retention. As a result, hiring costs are reduced and this brings the companys operational costs down and thus increases the net revenues. With high revenues, the organization is able to engage in expansion and research activities that will increase its competitive advantage (Crockett, 1999). Law compliance: Some companies require firms to have diversity in the work force. Firms that comply with such requirements escape legal and financial consequences that may occur as a result. By complying with the laws, the customers in that country are likely to view the company positively and this may make penetration to local markets easy (Muna, 2011).

By having a diverse workforce that works harmoniously, the firm saves on litigation costs that may be filed due to internal conflicts. Companies that have not embraced different culture are likely to deal with numerous law suits as people sue them for discrimination or prejudice. When a firm embraces the different cultures into the organization, the cases of discrimination go down because there are internal mechanisms that deal with such conflicts. The organization will be in a position to maintain a good public image and reduce on operational expenses (Muna, 2011).

MULTICULTURAL ORGANIZATIONS Conclusion Diversity is a great asset for any organization that is keen on becoming a globally competitive entity. As a result; Organizations that have fully integrated different cultures into their organizations are likely to reap monumental benefits from it. As the world turns into a global village, it is imperative that firms find a way to be accommodative to Multiculturalism because it will be a source of great competitive advantage to them and can help the company attain massive growth.

MULTICULTURAL ORGANIZATIONS References Cox, T. 1991. The multicultural organization. Academy of Management Executive.5:2. pp 34-40. Crockett, J. 1999. Diversity as a business strategy. Management Review.88:5. pp 62-70. Jakonis, A. 2010. Organizational Culture in Multicultural Organizations Mexico. Journal of Intercultural Management.2:2. pp 8396 Muna, F. 2011. Multicultural Talent: A powerful competitive advantage. Meirc Training and consulting. Retrieved from: http://www.meirc.com/component/content/article/28/1140multicultural-talent-powerful-competitive-advantage.html Pasi, R. 2002. Contributions of Multiculturalism to the Competitive Advantage of an Organization. Singapore Management Review. 24:1. pp 81-85.