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A STUDY ON MULTICULTURAL TEAM 
AND THE CULTURAL DIVERSITY IN 
MULTI-NATIONAL COMPANIES 
M.Jayanthi1 and Dr.KVR.Rajandran2
Introduction 
• Multicultural teams are an essential part of 
today’s global business environment. 
• It is clear that mul...
Introduction 
• The food we eat 
• Social lives we live 
• The buildings around us 
• The people we associate with 
• The ...
Reasons for Multicultural environment 
• International Corporate business Growth 
• Global Economic Changes and challenges...
Adaptation 
Environmental adaptation became more crucial 
for the business success, but 
• Adaptation is driven by cultura...
The concept of culture 
• Culture is generally defined as a pattern of deep level 
values and assumptions concerning socie...
Cultural Diversity 
• Cultural diversity refers to the representation 
of people within a social system “the group 
which ...
Review of Literature 
• The basic theoretical assumption of diversity 
research asserts that diversity with respect to 
th...
Review of Literature 
• Diverse work groups experience strong 
conflicts (Pelled, 1999), communication 
between group memb...
Methodology 
• Sample size: 50 
• Random sampling method 
• Multicultural team from countries includes India, 
Australia, ...
Data Analysis 
 Influences of cultural diversity in multicultural team 
 The benefits of a multicultural team 
 Problem...
Influences of Cultural diversity 
Have 
Influence 
(74%) 
No 
Influence 
(26%) 
0 5 10 15 20 25 30 35 40
Influences of Cultural diversity 
• This finding of the research was inline with the 
previous study that “culture affects...
Benefits of Multicultural Team 
35 
30 
25 
15 
10 
5 
0 
20 
Different skills 
Better capabilities 
Creativity 
Benefits ...
Benefits of Multicultural Team 
• Lazear (1998, 1999) asserts that a diverse 
team can generate productivity gains if thre...
Benefits of Multicultural Team 
• Second, the different skills, ability, or 
information of team members must be 
relevant...
Causes of problems in a Multicultural 
Team 
29 
Problems in multicultural team 
32 
35 
40 
35 
30 
25 
20 
15 
10 
5 
0 ...
Causes of problems in a Multicultural 
Team 
• This finding is inline with previous literature 
that a major challenge for...
Causes of problems in a Multicultural 
Team 
• A lack of culturally appropriate 
communication can create animosity and 
d...
Stages of project sensitive to problem 
Stage of project sensitive to problem 
70% 
30% 
Beginning Middle
Stages of project sensitive to problem 
• “The Beginning” of the project is accordance 
with the framework of Tuckman’s mo...
Need of Cross Culture training 
62% 
38% 
Need of cross culture training 
YES NO
Need of Cross Culture training 
• The finding is in line with Mendenhall Model. 
• Training knowledge of corporate etiquet...
Key skills required 
• better communication capabilities 
• respect, value and tolerance towards other’s 
culture 
• open-...
Key skills required 
• A: Better communication capabilities 
• B: Learning attitude 
• C: Respect and acceptance for other...
Key skills required
Conclusion 
• Cultural diversity has impact in multicultural team 
work. 
• Diversity offers both opportunity and challeng...
Thank you 
My Sincere Thanks to 
• PMU, Vallam, Tanjore. 
• Dr.KVR.Rajandran, HOD, Dept of Management. 
• Conference Organ...
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CULTURE DIVERSITY IN MULTI-NATIONAL COMPANIES

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Culture diversity

CULTURE DIVERSITY IN MULTI-NATIONAL COMPANIES

  1. 1. A STUDY ON MULTICULTURAL TEAM AND THE CULTURAL DIVERSITY IN MULTI-NATIONAL COMPANIES M.Jayanthi1 and Dr.KVR.Rajandran2
  2. 2. Introduction • Multicultural teams are an essential part of today’s global business environment. • It is clear that multiculturalism have huge effect on many aspects of our daily life
  3. 3. Introduction • The food we eat • Social lives we live • The buildings around us • The people we associate with • The corporate offices run around us • Our own out look on the world • Note: Nepalyees @Norway & Immigrant Labors @ Germany
  4. 4. Reasons for Multicultural environment • International Corporate business Growth • Global Economic Changes and challenges • Cross boundary transactions • Complex business environment
  5. 5. Adaptation Environmental adaptation became more crucial for the business success, but • Adaptation is driven by cultural diversity (Salas, Goodwin and Barke, 2009) • Adapting to cultural diversity is a demanding process, since culture is still much slower to change. (C.Thomas & Inkson, 2004)
  6. 6. The concept of culture • Culture is generally defined as a pattern of deep level values and assumptions concerning societal functioning, which is shared by an interacting group of people. (Adler, 2002). • Cultural values are learned very early in life as people are socialized into their respective environments with in particular societies and are very difficult to relearn or change. (Hofstede, 2001) • Note : 164 Definitions
  7. 7. Cultural Diversity • Cultural diversity refers to the representation of people within a social system “the group which collectively share certain norms, values or traditions that are different from those of other groups” (Cox, 1993). • Often the term cultural diversity is applied to ethnic or national diversity in work groups as well (Watson, 1993).
  8. 8. Review of Literature • The basic theoretical assumption of diversity research asserts that diversity with respect to the group composition influences group processes and that these processes in turn affect group performance (Williams, 1998). • Diversity research has established that diversity offers both a great opportunity for companies as well as major challenges (Adler, 2002).
  9. 9. Review of Literature • Diverse work groups experience strong conflicts (Pelled, 1999), communication between group members becomes more difficult (Caldwell, 1992), the willingness to cooperate with fellow group members diminishes (Thomas, 1999) and group cohesion decreases (Harrison, 2002). All these process losses often result in higher turnover and absenteeism rates (O’Reilly, 1989) and lower the work satisfaction (Tsai, 1992).
  10. 10. Methodology • Sample size: 50 • Random sampling method • Multicultural team from countries includes India, Australia, Singapore, USA, Saudi Arabia Canada and UAE • Data Collection through: E- Mail • Data analysis done using: Multiple Response Analysis (SPSS) and Percentage Analysis Technique
  11. 11. Data Analysis  Influences of cultural diversity in multicultural team  The benefits of a multicultural team  Problems in multicultural team  Stage at which problem arises  Need of cross cultural training  Key skills required for a multicultural team
  12. 12. Influences of Cultural diversity Have Influence (74%) No Influence (26%) 0 5 10 15 20 25 30 35 40
  13. 13. Influences of Cultural diversity • This finding of the research was inline with the previous study that “culture affects our perception”, “culture affects our verbal and nonverbal language”, “and “The culture affects our identity” (Cooper, Thomas and Simonds, 2007).
  14. 14. Benefits of Multicultural Team 35 30 25 15 10 5 0 20 Different skills Better capabilities Creativity Benefits of multicultural team No of Respondents 34 22 22
  15. 15. Benefits of Multicultural Team • Lazear (1998, 1999) asserts that a diverse team can generate productivity gains if three factors are present. • First, team members must have different skills, ability, or information.
  16. 16. Benefits of Multicultural Team • Second, the different skills, ability, or information of team members must be relevant to one another. • Third, communication is necessary for team members to perform the relevant joint tasks and engage in knowledge transfer to enhance productivity.
  17. 17. Causes of problems in a Multicultural Team 29 Problems in multicultural team 32 35 40 35 30 25 20 15 10 5 0 Miscommunication Unawareness of culture Attitudinal and perception issues No of Respondents 29 32 35
  18. 18. Causes of problems in a Multicultural Team • This finding is inline with previous literature that a major challenge for multicultural management is the different cultural beliefs, practices and traditions that are embraced by various segments of employees (Edwer, 2010).
  19. 19. Causes of problems in a Multicultural Team • A lack of culturally appropriate communication can create animosity and division between employees, leading to internal challenges that will hinder overall performance (Devine, 2007).
  20. 20. Stages of project sensitive to problem Stage of project sensitive to problem 70% 30% Beginning Middle
  21. 21. Stages of project sensitive to problem • “The Beginning” of the project is accordance with the framework of Tuckman’s model (1965). From Tuckman’s model it is apparent that all stages have some challenges for teams, but especially in the storming stage.
  22. 22. Need of Cross Culture training 62% 38% Need of cross culture training YES NO
  23. 23. Need of Cross Culture training • The finding is in line with Mendenhall Model. • Training knowledge of corporate etiquette can improve the skills of future team members and prepare them for the diverse issues in multicultural team (Mendenhall Model, 1987).
  24. 24. Key skills required • better communication capabilities • respect, value and tolerance towards other’s culture • open-mindedness to accept other’s culture and views • flexibility to accept the changes taken place • continuous learning attitude • culture awareness • positive approach towards the problems
  25. 25. Key skills required • A: Better communication capabilities • B: Learning attitude • C: Respect and acceptance for others culture • D: Open mindedness • E: Flexibility Mixture of these skills in correct proportion will form Effective Multicultural work group which indeed required.
  26. 26. Key skills required
  27. 27. Conclusion • Cultural diversity has impact in multicultural team work. • Diversity offers both opportunity and challenges. • The beginning stage of the project is more sensitive to the problems. • A multicultural group which has better qualities will be able to establish a good working atmosphere • Proper cross cultural training is required.
  28. 28. Thank you My Sincere Thanks to • PMU, Vallam, Tanjore. • Dr.KVR.Rajandran, HOD, Dept of Management. • Conference Organizers and Team members.
  • CarolaLempke

    Nov. 7, 2020
  • KyungheeLee22

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    Apr. 12, 2016

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