The size of the organization tends to influence its design. Organizations often become more mechanistic in structure as they increase in size. Since larger numbers of employees are more difficult to control, larger organizations generally require more formal policies, rules, and procedures to guide employees. Decision making, too, in larger organizations tends to be centralized at higher levels of the hierarchy. Although large mechanistic organizations may enjoy adequate performance, there is evidence that employees obtain greater satisfaction when working for smaller companies and in smaller departments (Wendell et. al., 1985). Present era is the era of globalization.
Globalization is the process of expanding global preferences in cultural, environmental, political, social and economical issues. The key economic characteristic of globalization is the free movement of goods throughout the world (Schaeffer, 2003). It is necessary for anyone and everyone to think global in doing business in this global village. Diversity and Globalization in the new economy and the present business situation has produced a work force made up of people all around the world. They have different life experiences, perspectives, preferences, values and style.
This diversity of work force is reshaping and rewriting the way of doing business. Globalization presents a series of challenges and opportunities for Small and mid sized organizations especially for their human resource managers. We will discuss some of these challenges and opportunities in this report. Multicultural organizations Every company has its own individuality in the market; this individuality or the isolated quality can be taken as its competitive advantage. Competitive advantage of the company is something on what company is far ahead from it competitors. Organizations having a diverse workforce are bound to have its impact on the effectiveness of the organization as well as on the career growth of an individual.
One of the most important advantages of having a multicultural or diverse workforce is to attract the best available talent towards the organization. Such organization, which does not show any prejudice in recruiting, retaining and promoting the employees from diverse cultural and racial backgrounds easily gain competitive advantage and become able to sustain highest caliber of human resources (Adler, 1991). Different studies have proved that organizations having diverse workforce and multicultural environment usually display better problem solving ability (Adler, 1991).
Due to their multicultural workforce such organizations are more capable to understand the problem with different perspectives, meanings and interpretations and hence have more capability to solve problems. Multicultural organizations are designed specifically to find, accept, and use new ideas and so they are more able to adapt change and show more organizational flexibility. Different studies depicted that women possess higher tolerance for ambiguity than men (Rotter & O’Connell, 1982), similarly bilingual people possess more cognitive flexibility than monolingual (Lambert, 1977).
Thus diverse workforce is an asset for the organizations while adapting change. It can easily be summed up that having a diverse workforce and its proper management provides a number of advantages to the organizations. “Manage diversity well are more likely to gain competitive advantages, attain increased productivity from available human resources, and reduce the inter-group conflict cost” (Triandis, Kurowski, and Gelfand 1994, p. 775).