Effect Of Cultural Diversity On Employees’ Performance

CHAPTER ONE

1.0                                                         INTRODUCTION

• Background Information to the Study

With the increase of globalization in the world, cultural diversity in the workplace has grown as a trend. Cultural diversity is when differences in race, ethnicity, language, nationality, religion, and sexual orientation are represented within a community. Cultural diversity can affect the workplace in numerous ways. Negative effects can include miscommunication, creation of barriers, and dysfunctional adaptation behaviors. Positive effects can include building a sound knowledge base with in-house talent, which can make for smoother integration of the organization into foreign cultures (Lakshmipathiaiah, 2020). Cultural diversity in the workplace reflects the existent of demographic, social and cultural differences on a societal level (Mateescu, 2021). At level of the European Union, diversity management is considered to be an important pillar of the Europe 2020 strategy in creating a sustainable and inclusive economy (Mateescu, 2021). This is due to the belief that through an effective diversity management, organizations gain numerous benefits, such as: an increase in creativity, an increase in staff retention and job satisfaction, an increase in consumer engagement, etc. (Mateescu, 2021). Cultural diversity is when differences in race, ethnicity, language, nationality, religion, and sexual orientation are represented within a community (Gillian, 2022). Although the media and contemporary literature embark upon the benefits of cultural diversity in the workplace, citing enhancements to employees’ competence and creativity, this recognition does not reflect, in actual practice, as strongly as in theory (Gillian, 2022).

Al Raisi, et al., (2019) opined that cultural diversity is a term that define different aspects of cultural or ethnic groups that exist within the society. Cultural diversity focuses more on ethnicity, customs, religious, backgrounds, languages and nationality. Whereas, diversity has a broad dimension such as age, gender, race, disability, maternity, ethnicity, religious, customs etc., where people should respect other cultures. Having cultural diversity in society is one of the ways to reduce any discrimination that may happen, especially at workplace. Moreover, cultural diversity leads to the success of the organization if the diversity was managed in a positive way. In case the diversity was not managed properly, then it will reduce the morale and performance of the employee and will increase conflict and misunderstanding. Therefore, because of this many organization pay a great attention on how to manage and maintain cultural diversity at workplace (Al Raisi et al., 2019).

Al Raisi et al. (2019) further posit that many companies are encouraged to hire diverse employees that are from different nationalities, backgrounds, ethnicity and languages to run their companies more effectively, because having cultural diversity will help the company to be in global basis, increasing productivity and innovation which can be done through teamwork. Teamwork is one of the ways that leads to reduce conflict and misunderstanding and encourage others to be open to other cultures. Also, cultural diversity has many advantages for the people as well as organization as whole. It improves the knowledge and performance of employee, increase mutual respect to others, ability to speak different languages which lead to better company reputation and customers’ satisfaction. Besides, it increases the value of the organization and job promotion. Eventually, cultural diversity should be managed properly to gain it benefits and respect other cultures and helps to reduce conflict and encourage people to be open and flexible to others (Al Raisi, et al., 2019).

According to Fudamu (2023), cultural diversity can be discerned from multiple dimensions. Herein, we look at language, value and religious diversity. Language is the key to a person’s self-identity. Language allows us to relate to and understand each one another (Fudamu, 2023). Language is defined as a system of conceptual symbols that allows individuals to communicate (Fudamu, 2023). It is an artifact of how thoughts are formulated as well as how they are communicated and discussed (Fudamu, 2023). Language affects almost every aspect of life. It not only aids communication, but is also a link to individuals’ identity (Fudamu, 2023). It enable people express emotions, share feelings, tell stories, and convey complex messages and knowledge (Fudamu, 2023).Value is a system of beliefs and assumptions that are shared among people (Fudamu, 2023); and which influences their behaviours and interactions (Fudamu, 2023). Fudamu (2023) describe values as beliefs that are meaningful to a given people; they are worthwhile and desirable principles followed, and revered by a people across generations. Values can range from common place beliefs in hard work and punctuality, to more psychological principle, such as self-reliance, concern for others, and harmony of purpose. Employee value diversity is thus acceptable standard that governs individuals’ behaviour within an organization (Fudamu, 2023).

Religion involves a high level of belief, frequent involvement in religious institutions such as churches, synagogues, mosques, and temples, and participation in religious practices such as scripture reading, worship, and prayer (McCullough & Willoughby, 2019). Religion comprises both religious belief and religious behaviour. Religious belief, which is also referred to as internal religiosity or faith, is defined as belief in God and a trusting acceptance of God’s will (Fudamu, 2023). Gillian (2022) posit that normally, organizations that do not have a culturally diverse workforce have to incur expenses of getting their workers informed about the culture and work procedures of the foreign countries. Investments might include hiring trainers from foreign countries, purchasing documentaries about foreign cultures to show to employees or distributing books, journals, and pamphlets to increase their knowledge about foreign cultures. All of these measures not only take a lot of time to be arranged, but also cost the company substantial amounts. With a culturally diverse workforce, this time, cost, and energy can be saved as workers in-house serve as trainers and practitioners. Thus, the process of integration of such an organization into a foreign country becomes smoother (Gillian, 2022). Similarly, cultural diversity of the workforce helps an organization shift its business from the brick-and mortar office to the online marketplace. Diversity helps in the expansion of an organization’s perspective, approach, strategic tactics, launch of a new product, development of a marketing plan, creation of a new idea, design of a new operation, and assessment of emerging trends (Gillian, 2022).

As a result, much attention has been devoted to impact of cultural diversity in workforce, less attention has been given to issues associated with multicultural diversity in the manufacturing sector. Only a few studies have been carried out on effect of cultural diversity on manufacturing firms’ performance in Nigeria. This study therefore, seeks to fill the knowledge gap by investigating how cultural diversity affects performance of manufacturing firms, with particular focus on more employees’ cultural (language, value, and religion) diversity, using Dangote Cement Plc, Ibese as case study.