The role played by multi-cultural teams in the success

of the modern multinational organization

MASTERS OF BUSINESS ADMINISTRATION

London Metropolitan University

ESOFT Metro Campus- Kandy

Academic Year 2021-2022

People and Organizations Principles and Practice in Global Contexts

Lecture: Dr. Mohamad Razi

Assignment - 02

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 Acknowledgment

This assignment's success and outcome required a lot of guidance and assistance from many
people, and I am extremely fortunate to have had this all along with the assignment work.
Whatever I have accomplished is solely due to such guidance and assistance, for which I am
grateful. I am grateful to Mr.................... for allowing me to do this assignment and for providing
all of the support and guidance that allowed me to complete it on time. I am thankful because I
was able to complete the assignment within the time frame specified. I'd like to thank all of my
friends and respondents for their encouragement and willingness to spend time helping me out.

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 Abstract

In today's globalized world, multicultural teams' (MCT) role in international corporations is

important. Senior managers, executives, and staff all recognize the value of ethnic teams in the
workplace. However, several related dysfunctional conflicts impair MCTs' functionality. The
focus of this essay is on defining multicultural teams and their significance to businesses. The
advantages and disadvantages that a multi-cultural team might offer to a company will also be
covered. The focus of this article will be on how multicultural teams contribute to the success of
contemporary multinational corporations. Theoretical frameworks and other materials will be
utilized to discuss this previous literature. It was shown that teams with various backgrounds
may be advantageous for multinational firms involved in international marketing campaigns. As
successful global marketing demands a grasp of the preferences of international customers, using
multicultural teams in international marketing can assist businesses in better understanding the
wants and wishes of worldwide customers. To sum up, a multi-cultural team is a crucial part of
contemporary multinational enterprises since it fosters variety, inclusivity, creativity, and
competitiveness. Teams with diverse backgrounds are essential to the success of today's
international corporations since they profit greatly from having them. Businesses that make an
investment in developing multicultural teams and utilizing their capabilities will be better
positioned to thrive in today's international business environment.

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Contents

1.0 Introduction 1
2.0 What is a multicultural team? 2
3.0 Importance of a multi-cultural team 4
4.0 Role played by multi-cultural teams in the success of modern multinational organizations 6
5.0 Conclusion 8
6.0 Self-reflection 10
7.0 References 12

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1.0 Introduction

In today's globalized and linked world, multicultural teams are becoming more and more
common. These teams are made up of people from various cultural origins, resulting in a varied
range of experiences, viewpoints, and abilities. Although this diversity can be a great benefit, it
also offers certain difficulties that call for careful management and thought. We will go into the
idea of multicultural teams in this introduction and examine their importance, advantages, and
potential drawbacks (Chua , et al., 2015).

Multicultural teams are important because of their capacity to capitalize on cultural variety.
Members of these teams frequently come from different nations, ethnic groups, linguistic groups,
and belief systems. Due to this diversity, teams are able to approach problem-solving and
creativity from a variety of perspectives and use a wide range of cognitive and creative
resources. The capacity to draw on these various viewpoints is a competitive advantage in a
globalized economy where enterprises operate across national boundaries and cultural
boundaries (Carton & Cummings , 2012).

The ability of ethnic teams to foster creativity and invention is one of their most obvious
advantages. When people from various cultural backgrounds work together, they bring original
perspectives and ideas to the table (Chua , 2016). This variety of viewpoints can provide more
creative solutions and better judgment. Multicultural teams are better able to see opportunities
and challenges in many industries, adjust to shifting consumer preferences, and create goods and
services that appeal to a wider market. Multicultural teams, however they may have some
advantages, also confront many difficulties. Conflicts and misunderstandings can result from
poor communication, different working styles, and different expectations. To establish a
productive team dynamic, cultural differences in hierarchy, decision-making, and conflict
resolution may need to be carefully managed. Furthermore, fostering diversity and managing
cultural sensitivity are crucial for increasing trust and cohesion among these teams (Kanter &
Corn, 2018).

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The multicultural teams that make up our globalized world are essential. Although they bring
difficulties that must be successfully overcome, they also hold up the prospect of more creativity,
invention, and adaptation. Understanding how to capitalize on ethnic teams' strengths while
resolving their specific problems is more important for success in today's interconnected
business environment as organizations embrace diversity more and more. The dynamics of
multicultural teams will be covered in more detail in the parts that follow, along with techniques
for productive teamwork and solutions to prevalent issues.

2.0 What is a multicultural team?

In today's globalized and linked world, multicultural teams are becoming more and more
common. These teams are made up of people from various cultural origins, resulting in a varied
range of experiences, viewpoints, and abilities. Although this diversity can be a great benefit, it
also offers certain difficulties that call for careful management and thought. We will go into the
idea of multicultural teams in this introduction and examine their importance, advantages, and
potential drawbacks (Kanter & Corn, 2018).
Multicultural teams are important because of their capacity to capitalize on cultural variety.
Members of these teams frequently come from different nations, ethnic groups, linguistic groups,
and belief systems. Due to this diversity, teams are able to approach problem-solving and
creativity from a variety of perspectives and use a wide range of cognitive and creative
resources. The capacity to draw on these various viewpoints is a competitive advantage in a
globalized economy where enterprises operate across national boundaries and cultural
boundaries (Mäkilouko, 2020).

The ability of ethnic teams to foster creativity and invention is one of their most obvious
advantages. When people from various cultural backgrounds work together, they bring original
perspectives and ideas to the table. This variety of viewpoints can provide more creative
solutions and better judgment. Multicultural teams are better able to see opportunities and

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challenges in many industries, adjust to shifting consumer preferences, and create goods and
services that appeal to a wider market (Matveev & Milter, 2020).

A multicultural team is one whose members have varying cultural backgrounds, according to
Hofstede, (1980). Most notably, they acquired distinct values, manners, and languages as a result
of spending their formative years in several nations (Kurtzberg, 2005). Another way to describe a
multicultural workplace is the presence of people from different backgrounds in the workforce.
This considers features including age, education, and handicap in addition to traits like color,
gender, race, and religion.

innovation spanning cultures Despite the fact that diversity can foster team innovation through
different ideas, informational benefits, and team spirit, teams nonetheless struggle with the issue
of differing values resulting from unique national backgrounds. Value differences can make
conflicts worse, lower team morale and productivity, which can inhibit creativity. (Brem &
Wolfram, 2013). As a result, a crucial area of research focuses on the effects of multicultural
innovation teams on creativity.

Cultural dimensions can be organized according to their degree of visibility, similar to how
diversity dimensions are arranged by (Harrison, et al., 2002). We take this perspective and use
the visibility idea to arrange the cultural components of well-known cultural categories, drawing
on the works of Hall & Hall and Hofstede. Three characteristics that vary between civilizations,
according to (Hall & Hall, 1990), are distinct levels of information coding through language use,
a particular demand for territorial space, as well as variations in how people use time and work
(especially monochromic versus polychromic work). Instead, (Hofstede, 1980) concentrates on
less evident elements like power distance, avoiding uncertainty, individuality vs. collectivism,
and masculinity versus femininity. Later, Confucian dynamism, or a country's long-term
orientation was introduced.

In multicultural teams, management problems are common. Cultural barriers can make it
difficult for teams to function effectively, but they can be subtle and hard to spot until real
damage has been done. By acting, managers have the potential to exacerbate issues, as was the

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case in the situation the manager in question recounted above. Understanding the underlying
cultural causes of conflict and intervening in ways that will both get the team back on track and
equip its members to handle new challenges independently are difficult skills for managers of
multinational teams to learn. We conducted interviews with managers and team members from
racial teams all around the world.

3.0 Importance of a multi-cultural team

The repercussions of globalization are still being felt in the industrial workplace. In economically
successful western nations, there is a tendency towards diversity and inclusivity, which is
associated with demographic changes. A multicultural organization hires people from various
backgrounds across all disciplines and provides equal opportunities for input and progress.
Furthermore, multicultural organizations do not tolerate prejudice or discrimination against
people based on their race, gender, ethnicity, sexual orientation, generation, sexual preference, or
medical condition. (Adler, 2002). Skill, ingenuity, and effectiveness are requirements for
promotion under the merit system in a multicultural workplace. Employers should desire a varied
company culture because it has many benefits, regardless of whether employees are from various
socio-ethnic backgrounds or other nations. Think about how you, as an entrepreneur, can
improve the diversity and tolerance of your hiring practices and management style. (Canen &
Canen, 2008).

Multiculturalism brings together individuals from many cultures and ethnic backgrounds in the
workplace. Regardless of whether the employees come from different socio-ethnic origins or
other countries, employers should seek out a varied business culture because it offers many
advantages. Consider ways that you as a business owner might improve multiculturalism and
diversity in your hiring procedures and management style.

Numerous studies have demonstrated the value of variety of thought, background, and people to
an organization. Many CEOs now fully realize the advantages of having ethnic teams thanks to
rising global immigration and the use of remote work. Businesses that support cultural diversity

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in the workplace hire people from various walks of life based on their background and role-
relevant skills, regardless of their religion or worldview, colors, ethnicity, or county of origin.
(Gibson & Zelimer-Bruhn, 2001). Leaders must, however, get a deeper understanding of their
multicultural teams if businesses are to fully realize the benefits of having a multicultural
workforce. But how is that even possible? Is there a correct method for managing multicultural
teams? So that you, as a team leader or team member, can effectively utilize the cultural variety
in your workplace and improve your ability to manage the multicultural teams you're a part of,
let's examine the advantages and difficulties of multicultural teams. Following are some of the
major reasons why multicultural teams are important:

Divers’ perspective - Individuals from various cultural origins are brought together in
multicultural teams, each with their own viewpoints, experiences, and worldviews. This variety
of ideas can result in more thorough problem-solving, creative solutions, and a wider range of
concepts. These teams are better able to properly handle complicated difficulties by taking into
account a larger variety of perspectives (Lisak & Erez, 2016).

Enhanced creativity and innovation - Creativity and invention are frequently sparked by
cultural diversity. When team members from various cultural backgrounds work together, they
can take fresh approaches to jobs and projects. This innovative thinking can result in the creation
of novel goods, services, and business plans, offering organizations a competitive edge in today's
marketplaces that are continually changing (Lisak & Erez, 2016).

Market expansion - Businesses must diversify their markets in a globalized environment where
cultural norms and consumer tastes vary widely. A multicultural team can provide crucial market
insights, assisting businesses in customizing their offerings and marketing plans to appeal to
regional consumers. Increased sales and market share may result from this market awareness
(Lisak & Erez, 2016).

Builds respect among employees - Because of outmoded ideals and ignorance, disrespectful
behavior and actions are commonly displayed by people. Employers who conduct diversity
training sessions and educate team members about diversity may see positive results. Employees

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can develop perspective by putting themselves in one another's shoes through role-playing. At
potluck dinners, coworkers can converse about their personal or cultural history while enjoying
cuisine together. These unimportant topics promote further conversation. Employees who have
better communication skills and show more respect for the opinions and appropriate answers of
their coworkers grow to respect one another (Oertig & Buergi, 2019).

Enhances work environment - People who work in settings that respect multiculturalism feel
appreciated for who they are as individuals and the unique skills they bring to the table. Even
though many of these skills may have little to do with cultural background, the fact that diversity
is valued by employers sends a positive message to staff (Oertig & Buergi, 2019). Employees
who feel valued tend to be happier, and happier employees frequently produce more. A diverse
corporate culture is incredibly advantageous for business owners and has a direct impact on how
successfully work is completed.

Access to a wider talent pool – Supporting cultural diversity gives businesses an advantage,
especially when trying to fill positions for highly educated workers in fiercely competitive
industries.

More inclusive, supportive, and stronger teams – A multicultural workforce promotes

inclusion, understanding, empathy, and mutual support because they may connect with a larger
group of people who have different lived experiences and belief systems.

Fresh perspectives, creativity, and innovation - The diversity of thought and experience found
in multicultural teams fosters creativity and innovation. It is inevitable that workers from
different cultural backgrounds will approach an issue from multiple angles and offer varied
solutions (Oertig & Buergi, 2019).

Better communication and marketing initiatives - Your company can substantially benefit
from a varied workforce as it expands into new markets in terms of geography and

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demographics. Their knowledge, experience, and sensitivity to other cultures can help a business
produce marketing communications that are more focused and effective (Oertig & Buergi, 2019).

Opportunities to learn a new language - Even if working in an international workforce doesn't

necessarily result in true multilingualism, it can provide a context for language learning. It is
always better to speak a language instead of formally studying it. There are more opportunities to
practice new languages or switch to speaking your mother tongue among a group of people with
diverse cultural origins.

4.0 Role played by multi-cultural teams in the success of the modern

multinational organizations

Numerous studies have shown that diversity of opinion, experience, and personalities is
beneficial to the company. With increased global immigration and the use of remote work, many
CEOs now fully understand the benefits of having ethnic teams. Regardless of their religion or
worldview, color, nationality, or country of origin, businesses that encourage cultural diversity in
the workplace hire people from all walks of life based on their background and role-relevant
skills (Tirmizi, 2008).

According to Matveev & Miter, 2004, working closely with team members from different
backgrounds and having the potential for both personal and professional growth are two benefits
of managing a multicultural team for leaders. Operating a team with really diverse members,
however, presents a number of difficulties that must be overcome in order to foster a productive
work atmosphere. To better understand personnel from varied origins and find a method to assist
them to operate as a team, leaders must be aware about various cultures and be open-minded to
them.

By reevaluating their conventional modes of operation, organizations are responding to the

difficulties posed by globalization. Teams are made to produce productive work quickly and
effectively. With the inclusion of individuals from other cultures, traditional collaboration has
changed. Teams and their activities are significantly impacted by this change. Now that the

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world has become more globalized, teams have the right to manage not only the traditional team
tasks and the diversity that goes along with them, such as diversity in terms of demographics and
functional background, but also the additional task of managing cultural diversity or
multiculturalism in teams. Multicultural teams are being used more frequently by businesses all
over the world to establish and operate new manufacturing facilities, develop new goods, come
up with marketing plans, and other tasks (Maznevski, 1994).

Teams with members from the same national culture made up the businesses' traditional
workforce. Culturally homogenous teams were sufficient when firms only responded to the
needs of their domestic markets in the past, but when the phenomena of globalization evolved,
organizations could no longer rely on them. People from many different cultures must
collaborate in order for global firms to prosper in the global economy. Organizations can make
better judgments due to diverse opinions in multicultural teams. Multicultural teams help firms
respond to the needs and wants of particular markets since organizations are constantly searching
for ways to take advantage of the opportunities present in the various regions of the world as a
result of globalization. Multicultural teams, which are made up of members from various
cultures, are able to solve challenges in ways that homogenous teams cannot.

Teams with a diversity of backgrounds might be important for multinational businesses engaged
in global marketing initiatives. The employment of multicultural teams in international
marketing can help firms better understand the needs and wants of international customers since
successful worldwide marketing requires understanding the likes and dislikes of international
customers. According to Starren et al, 2013, Multinational organizations can improve their
relationships with international clients by utilizing multicultural teams. Diversity in the
workplace aids firms in enhancing their capacity to comprehend and relate to their
client's demands. Less diverse teams lack the global expertise that multicultural teams provide to
decision-making and managerial activities.

Each member of a multicultural team brings with him a distinct perspective and approach to the
challenge because they all come from various cultural backgrounds. According to Hoffman
(1961), diverse groups of people are more likely to have a wide range of information, expertise,

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and opinions than homogeneous ones. Traditional teams' skill sets were constrained because they
belonged to a homogenous culture. On the other hand, multicultural teams, which include
personnel from many cultures, offer variety and innovation in problem-solving approaches. Due
to the collaboration and teamwork that occurs when people from many cultures are present in an
organization, multiculturalism frequently improves the global understanding of markets. A firm's
exposure to culturally different business contexts improves its knowledge stock through learning
based on interactions with local knowledge bases new and diverse ideas from other marketplaces
and cultural viewpoints, according to (Zahra et al., 2000). Additionally, multiculturalism and
cultural variety present significant growth potential that is even more alluring than those found in
domestic markets.

When team members come from different cultural origins, they frequently offer a reasonable
awareness of individual cultures and conventions, according to the management. But having
dealt with diversity, one can manage the workforce more effectively. Businesses that compete in
the global marketplace must introduce innovative goods, services, and procedures quickly and
successfully. Since multinational businesses must access globally dispersed technological and
market information to preserve their competitive advantage, building an expert team with
members from various cultural backgrounds can also improve the performance of the team
(Zhou, 2007).

People are better able to hone their talents and skills in an environment that values diversity of
culture. Having a variety of opinions and skills enables one to pick up knowledge from a wider
range of coworkers. Additionally, it can improve one's capacity for problem-solving and raise
enjoyment and productivity. A business will be seen as a good employer if it hires people from
all different kinds of cultures and backgrounds. A multinational company's reputation will grow
throughout the world due to its reputation among its workforce, which will also draw more
people to apply for jobs there. One of the most crucial factors is the company's reputation among
its customers around the globe (Halverson, 2008). A diverse workforce can significantly enhance
customer service and reputation because varied employees can help consumers in a more
personalized approach because they have common experiences and understandings.

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Multicultural teams play a crucial role in the success of modern multinational
organizations in several key ways:

Global market Understanding – The marketplaces in which multinational corporations operate

have a variety of legal frameworks, consumer preferences, and cultural norms. Multicultural
teams offer personal knowledge of various areas, assisting businesses in understanding regional
subtleties and successfully modifying their plans. This knowledge may result in market growth
and raised market share (Carton & Cummings , 2012).

Innovation and adaptability – To be competitive in the global market, multinational

organizations must continuously innovate and adapt. By uniting people from various origins and
viewpoints, multicultural teams promote an innovative culture (Chua , 2016). This variety of
viewpoints can provide original ideas, ground-breaking products, and quick reactions to shifting
market conditions.

Cultural sensitivity – Teams with a variety of backgrounds foster cultural sensitivity and
awareness. Avoiding cultural misconceptions, insensitivity, and potentially harmful cross-
cultural errors requires doing this. Organizations can forge closer connections with regional
stakeholders, such as clients, partners, and suppliers, by practicing cultural sensitivity.

Language skills – Multilingual team members are frequently found in multicultural teams. In
international business discussions, customer service, and communication with various
stakeholders, this linguistic diversity can be a considerable value. Additionally, it can lessen
linguistic hurdles that might impede cross-border activities (Stahl, et al., 2015).

Employee engagement and retention – Top talent from around the world is more likely to be
attracted and retained by multinational organizations that value and promote diversity and
inclusion. Multicultural teams give workers a sense of inclusion and belonging, which raises job
satisfaction, reduces turnover, and boosts productivity.

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Global perspective - Multicultural teams give problem-solving and decision-making a global
perspective. They take into account a larger range of perspectives and prospective outcomes,
which can result in more informed and impartial decisions. This global viewpoint is especially
helpful in international organizations because decisions there can have broad effects.
Cross – culture collaboration - Collaboration across borders and time zones is commonly
necessary for multinational organizations. Because team members are used to working with
coworkers from various cultural backgrounds, multicultural teams are well-suited to handle this
kind of collaboration. They can fill cultural gaps and promote successful international
collaboration.

Brand reputation – Multinational corporations can improve their brand perception by actively
promoting diversity and inclusion both within and publicly. Being recognized as a company that
values and benefits from cultural diversity can draw clients, financiers, and partners with similar
principles.

Compliance and risk management - International businesses must navigate a variety of

complex legal and regulatory frameworks. By offering insights into local laws, regulations, and
business cultures, multicultural teams may assist in navigating these intricacies and minimize
compliance risks.

5.0 Conclusion

In this essay, a multi-cultural team is defined as a collection of people from various cultural
backgrounds who cooperate to achieve a shared objective. The variety of viewpoints and ideas
that a multicultural team brings to the table is crucial. Members of a multicultural workforce can
provide original solutions to issues and aid in spreading awareness and acceptance of many
cultures inside the company. Multinational businesses are active across several nations and cater
to a variety of clientele in the modern, globalized commercial environment. Findings show that a
multicultural team can be extremely important to the success of these organizations by giving
them access to a larger talent pool, more inclusive, supportive, and powerful teams, new
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perspectives, creativity, and innovation, better communication and marketing initiatives, and
chances to learn a new language. Organizations are also engaging in global competition as the
world becomes more connected. Multicultural teams are incredibly beneficial in this situation
because they bring a wealth of knowledge, network, and abilities that enable them to work across
cultural barriers and better meet the demands of various stakeholders, including customers,
employees, and stakeholders. Teams with members from different cultures can solve challenges
in ways that monocultural teams cannot. Teams with a variety of backgrounds may be
advantageous for multinational firms taking part in international marketing campaigns. As
successful global marketing demands a grasp of the preferences of international clients, using
multicultural teams in international marketing can assist businesses in better understanding the
wants and wishes of worldwide customers. To sum up, a multicultural team is a crucial part of
contemporary multinational organizations since it fosters variety, inclusivity, creativity, and
competitiveness. Teams with diverse backgrounds are essential to the success of today's
international corporations since they profit greatly from having them. Businesses that make an
investment in developing multicultural teams and utilizing their talents will be better positioned
to thrive in today's globalized business climate.

6.0 Self-reflection

As a student, the People and organizations module has been a valuable addition to my
professional development journey. Through this module, I have learned about various HRM
practices and strategies, including Strategic Employee Resourcing and Talent Management,
Learning and Development, Employee Relations, HRM and the Design of Work, Managing
Performance, Rewards and Employee Engagement, The Global context for HRM and
Organizational culture. One of the most impactful learnings from this module was the
importance of multicultural team engagement in maintaining a positive and productive work
environment. I learned that multicultural teams bring a wealth of knowledge, skills, and
perspectives that can help organizations to navigate the complexities of the global market, foster

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innovation and creativity, and improve communication and collaboration with international
partners and stakeholders.

The module also helped me to understand the Ethics of HRM and the importance of diversity,
equity and inclusion in the workplace. The discussions and case studies in the class have
broadened my understanding of the challenges and opportunities that organizations face in
managing a diverse workforce. Additionally, the module has provided me with practical skills
that I can apply in my future professional endeavors. For instance, I learned about the
recruitment and selection process which can be helpful in my professional journey.

Digital literacies have played a key role in helping me complete this assignment by providing
access to various online resources and tools that have assisted me in gathering the information
and knowledge required to complete the assignment. Additionally doing this module and
assignment helped me to improve my English language skills, which was essential in completing
the assignment.

To plan the studying of this module I have applied learning theories such as Kolb's learning
theory, which emphasizes the importance of actively engaging with and reflecting on new
information. For example, I was able to engage in activities such as assessments and case studies,
group discussions, and simulations to apply theoretical knowledge and develop my skills.

Completing the assessment has increased my knowledge in my field and successfully apply my
energy and knowledge. The most significant benefit I received from enrolling in this module, in
my opinion, is that this module and assessments and presentations made me believe in my
abilities and skills, and they also reawakened my desire to approach studying as a lifelong
process. Furthermore, as a result of completing the assessment, I have gained a number of
professional and personal benefits, including the development of a critical mindset, improved
writing and time management skills, and increased self-confidence.

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In conclusion, this module has been a valuable learning experience for me. It has helped me to
understand the importance of effective people management in creating a positive and productive
work environment, and has provided me with practical skills and knowledge that I can apply in
my future professional endeavors.

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