The paper 'International Business and Cultural Diversity' is a wonderful example of a Business Case Study. The management of different sorts of people from different backgrounds is one major challenge facing the majority of top managers all over the world today. Merchant, 2003 in his research on international business states that it is not as easy as it may seem for an individual to accommodate the whole social trend of diversity and value at the same time. He also states that diversity is one of the major factors in today’ s expanding business world that impacts on both leaders and employees in companies towards being more sophisticated.
It is therefore essential for managers to understand it in order to be able to contribute sustainably to their organizations in this competitive business world. Christian, et al. , 2006 research indicate that most businesses are today going globally to seek more profit. International business is a business conducting transactions globally. These transactions are in the nature of goods, services, technology, managerial knowledge, and capital. Therefore international businesses involve both importations and exportation of the above-mentioned business transactions. Business Culture and Diversity Culture refers to a set of beliefs, values, and behaviors practiced in a particular society (Brickson, 2000).
In business organizations, however, culture is defined as a system in which the staffs share values and beliefs that are connected to the organization’ s people, structure, and control system to produce behavioral norms (Gonzales, 2009). There are four organizational culture types namely market, clan, adhocracy, and bureaucratic hierarchy. Each of these four culture types is characterized by a certain set of shared believes. Taking a global approach, studies indicate that national and ethnic cultures have got influence on organizations and employees well being.
However, organizational leaders have noted the importance of having businesses in a global economy. This is following the discovery by more than a third worldwide CEO who viewed foreign competition as a major contributor to organizational success (Horwitz, 2005). For this reason, most businesses are going globally. Effective plans have therefore been put in place by different organizations to ensure that they meet the global perspective on human and organizational performance (Christian, 2006). Due to stiff competition in the business field, it is expected by experts that only those businesses, firms, industries, and whole societies that meet the international business expectations in the world economy can survive to prosperity. To successfully manage the workforce from different backgrounds, organizations are expected to first of all put into consideration the planning of the human side of the organization which should consist of staff from a multicultural workforce (Shinbu, 2012).
This staff panel must be trained to thoroughly understand the group cultures they are supposed to lead as well as organizational cultures (Alderfer, 2008).
There are two major classifications that can help organizational top managers to understand diversity and their effects on organizations. These include the information and decision making perspective and the social organization perspective. Information and Decision Making perspective Diversity in an organization increases the level of creativity and decision-making process (Ely, 2001). This is as a result of a conclusion reached upon after Ely’ s research observing a number of team types which included flight crew and virtual teams. This though observed simply on teams, there is an assumption that an organization is made up of several departmental teams of which if affected the entire organization can be said to be affected in the same manner.
According to Horwitz, (2005) cultural diversity would impact on six direct organizational aspects. This includes the ability to attract human resources, cost, innovation, creativity, and problem-solving, the marketing advantages of a diverse workforce, and organizational flexibility.
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