Organization's way of Value Creation through Multicultural Teams

Table of Contents

Introduction2

Background of the Study3

Purpose of the Study4

Research Questions4

Research Method5

Scope of the Research6

References8

Organization's way of Value Creation through Multicultural Teams

Introduction

Businesses are increasingly using their teams to achieve their functional objectives. The rationale for team work is the inherent synergy. The output of a team is considered to be greater than the sum of its parts. The multicultural or diverse teams offer greater value to organisations. The value of multicultural teams exists in their ability to tackle complex problems and offer unique solutions. Since multicultural teams have diverse ideas, they have the potential to outperform homogenous teams. Multicultural teams evaluate existing and potential problems from diverse perspectives (O'Reilly et al, 1989, pp. 37). As a result, businesses are able to understand problems in a sophisticated manner. There is a vast amount of research conducted on diverse teams and their productivity. According to these studies, diverse or multicultural teams have the potential to product more creative solutions and provide innovative ideas (Salomon & Schork, 2003, pp. 38).

There is no denying the fact that diverse teams provide businesses with several benefits. However, it is also important for businesses to consider and analyse different problems that might arise in multicultural teams (Paulus, 2000, pp. 238). One of the most common problems faced by multicultural teams is communication. The conflicts that arise in multicultural teams limit the flow of information as well as effective communication and interaction. It can be comprehended from this argument that it is a challenging task to manage multicultural teams. If managed properly, multicultural teams can provide businesses with a sustainable competitive edge (West, 2002, pp. 355). In today's business environment, the challenge for businesses is to manage multicultural teams in order to improve the overall performance. Therefore, this research will determine and investigate the role of multicultural teams in the context of global business management. Value creation is one of the most important goals of businesses in the current era. The study will also analyse how organisations can create value through multicultural teams. It is important to conduct study on the topic because there is an increase in the number of organisations that are going global. Survival in the global marketplace is not an easy task because businesses need to consider several factors. Businesses adopt different strategies for successful survival in the global marketplace. Yet, the issue of diversity management hinders the progress and success of many businesses. Diversity is a global opportunity for businesses operating in a global environment. Diversity provides businesses with diverse ideas and solution. Organisations make multicultural teams in order to utilise the benefits of diversity. However, just making multicultural teams is not enough for businesses. It is also important to manage those teams effectively in order to create a competitive edge.

Background of the Study

The modern economy demands people of different cultures to work in teams. In the current economic and business environment, there is a greater need for thinking and working beyond cross cultural as well as ...