Cultural diversity is a source of competitive advantage. Discuss

Extract

[...] It includes personnel transfers across cultures in order to contribute to organisational development. the extent that organizations can capitalize on the potential benefits of cultural diversity in workgroups, they will gain a competitive advantage in creativity, problem solving, and flexible adaptation to change.” (The Multicultural Organization, Academy of Management Executive, Taylor Cox, 1991) This perspective insists on the fact that organizations can utilize the individual skills of their employees and embrace their differences in order to obtain more flexibility in developing strategies. [...]

[...] However even if employees' training courses are organized by firms to improve the resistance of the staff in a context of quick adaptation, it is important to underline the fact that diversity is sometimes perceived as a threat by individuals. The main cause is the fear to be replaced by somebody with better qualifications. It can also be difficult to build a strong corporate culture internationally, a technical culture worldwide or a strong financial / planning system (E.g. IKEA, Elf Aquitaine, Emerson Electric were concerned). [...]

[...] To conclude, to have Cultural Diversity in an organization is a high source of competitive advantage when all characteristics are present to create a harmony between all factors. One of the most important argument concerns the management. To integrate several cultures and to incorporate different values is a hard task. The first step is to consider diversity an opportunity to improve an organization. Undoubtedly, leaders are the first that have to implement the new vision and to challenge themselves and their employees to adhere to the new standard. [...]

[...] How does Cultural diversity offer a potential source of competitive advantage? Globalisation and Businesses have created a need for cultural diversity within international organizations. Cultural diversity is an argument in many areas to develop brands, products and international companies. It permits to merge many different processes in areas where the national culture had been stopped. To achieve new strengths and new capabilities in a system, a firm can mix different services. E.g. a merger between the design in Italy and the Japanese distribution (Toyotism) can be imagined to improve the efficiency. [...]

[...] Cultural diversity is a Talent argument because the limitation of one product to one group implies a selection. To focus on one group denies the full talents of the “entire employment pool” and also of the entire consumption pool. The previous argument has been explained by Kevin Sullivan, VP of Human Resources at Apple Computers. The Cost is an argument too. Indeed, Cultural Diversity in organizations can create more problems and conflicts that we can imagine. Time lost due to misunderstandings, tensions among staff, and absenteeism are disadvantages in a case of a non-adapted management or a lack of harmony even if anticipations can be made to define potential areas of conflicts. [...]