Managing cultural diversity in a multinational corporation

by

ACKNOWLEDGEMENT

I would like to thank my supervisors, friends and family, without their support this research study would not have been possible.

DECLARATION

I adjudge that the entire content of this dissertation is entirely my own work; the content used in this dissertation has not been submitted before in any educational institution and represents my own opinion.

Signed __________________ Date _________________

ABSTRACT

The research study aims to analyze the cultural diversity management in a multinational corporation. This particular research study is designed to examine the opinions of individuals in relation to cultural diversity and its impact on organizations. The research study assessed the state of diversity in MNCs from the perspective of ethnic and cultural backgrounds, spiritual belief, and gender. This research study also shade light on the relationship between the state of workplace diversity in the MNCs sector and factors related to organizational outcomes. People from various cultures, backgrounds, religions, age groups, gender, races, and experiences comprise today's workforce. This research study also examines the following hypothesis:

H1: Employees' ethnic backgrounds do not have a positive impact on their perception of workplace diversity.

H2: Employees' cultural backgrounds do not have a positive impact on their perception of workplace diversity.

H3: Employees' spiritual beliefs do not have a positive impact on their perception of workplace diversity. H4: Employees' genders do not have a positive impact on their perception of workplace diversity.

The findings of this study are important because it gauged the level of diversity in organizations and provided the input leaders need to understand their organizational cultures, and the perceptions that exist in order to devise programs focused on improving performance, loyalty and a sense of belonging in a workplace climate that agrees with employees' values and beliefs.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER # 1: INTRODUCTION1

Background of the Study1

Problem Statement3

Purpose of the Study4

Research Questions4

Significance of the Study5

CHAPTER # 2: LITERATURE REVIEW7

Introduction7

Definition of Workplace Diversity7

Workplace Diversity7

Globalization9

Theoretical Framework10

Typology of Organizational Diversity11

The Lewin-Schein Model12

Change theory12

Other Theories14

Organizational Theory14

Organizational Theory of Diversity16

The Need for Organizational Diversity18

Workplace learning19

Cross-cultural learning activities20

Pre-departure CCL activities20

On-site CCL activities20

Multinational Corporations21

Summary21

CHAPTER # 3: METHODOLOGY22

Introduction22

Research Design22

Instrument for data collection23

Sample23

Data analysis24

Validity and Reliability24

Ethical Considerations25

CHAPTER # 4: FINDINGS26

Demography of Respondents26

Descriptive Statistics29

Hypothesis Testing34

Correlation Analysis36

CHAPTER # 5: CONCLUSION39

Implications40

Recommendations for Future Research42

Limitations43

REFERENCES45

APPENDIX50

Questionnaire50

CHAPTER # 1: INTRODUCTION

Background of the Study

Worldwide interest in the topic of diversity management has grown steadily in recent years, and this interest has come in the wake of two significant changes that have taken place in the work environment. One of these significant changes occurred during the final decades of the 20th century. This was a demographic change in the workplace in many countries. The other significant change that occurred at this time was the rise of a globally integrated knowledge economy around the world. Both of these changes have impacted the needs of diversity management in organizations in order to include the best diverse talent and to remain competitive in the worldwide marketplace (Amaratunga & Newton 2002 17). Although organizations have been using a broad range of initiatives in their efforts to manage diversity in the workplace, training ...