Project Overview
Cultural diversity is the existence of different cultural or ethnic groups within a given group of people or population (Stahl et al., 2010). It represents a heterogeneous cultural environment, where the cultural differences are respected by the members of the population or group (Bittner and Leimeister 2014). Team is referred to as a collection of people working towards a common goal. It has been widely supported that cultural diversity can significantly influence the performance of the team (Marcelino et al. 2017). The aim of this report is to perform a literature review on how team performance can be influenced by cultural diversity. This will help to understand the different factors that are involved in team performance and how cultural diversity influences them. Understanding such factors can also help to appreciate the significant of cultural diversity, and how such factors can be utilized in a team to improve its performance. In the given project report, key journal articles would be used to identify important themes related to the research topic and discussed to understand any relevant patterns that can be utilized in the improvement of team performance.
The project aims to identify the important factors that influence team performance, and how cultural diversity can influence such factors. Here specific research questions are identified through the literature review, through which the views of different authors about cultural diversity and team performance is identified and compared. Using an appropriate research methodology, academic journals on these topics are searched to identify common themes which can then be incorporated into practice in order to develop strategies to improve the performance of a team. This can also help to identify any gaps in literature, which can be researched upon as future study scope.
The scope of this project would be limited to the factors influencing team performance and how cultural diversity affects team performance. Here team can be used in various contexts and different professions in order to increase the generalizability of the research findings. The study would however be limited on those factors that can affect teams and would not include individual factors such as skills and competencies, even though relations could be made on how personal attributes too might be affected by cultural diversity.
The project would utilize secondary review of literature, where academic journals published between 2010 and 2018 would be researched. The research would involve qualitative approach, which would help to identify the qualitative information from the researches to support or contradict the research questions. Secondary data would be used for the research through different publications, books and reports in academic literature. Research is academic research repositories such as CDU Library, PubMed, Wiley, Cochrane Library and search engines such as Google Scholar. The qualitative information is arranged according to the research questions and themes in order to represent the findings in a comprehensible and meaningful way, and support easy interpretation (Taylor et al. 2015; Silverman 2016).
Project Scope
The important research questions that was used to guide the literature review includes:
- What is cultural diversity in teams?
- What are the factors that affect team performance?
- Can cultural diversity improve team performance?
- Can cultural diversity increase innovation and creativity in team work?
- What is the effect of cultural diversity on communication?
- What is the effect of cultural diversity on conflicts?
- What are the opportunities of cultural diversity?
- What are the management tensions in a culturally diverse workplace?
- What is the effect of demographic diversity in a workplace on employee voices and trust on employer?
According to Stahl et al. (2010) cultural diversity in teams can have both positive and negative influences on the performance of the team. The authors suggest that cultures provide a source of identity for the team members, and therefore benefit international businesses that focus on country based cultures. The study shows that cultural diversity in teams can help to increase creativity, improve communication between the members, improve satisfaction of the members and support better social integration. These aspects have been proposed to improve team performance. On the other hand, diversity can also lead to conflicts within the team. The authors also analyzed the different levels of diversity that can exist in a team, such as surface level diversity (involving differences only in demographic characteristics of the team), deep level diversity (involving differences in the personalities, values, psychological characteristics and values of the team members), cross national (involving members from multiple nationalities) and intra national (involving diverse members across the nations). It can therefore be understood that cultural diversity within teams can both benefit and challenge the businesses, and therefore it is vital to analyze how each of these factors affects the performance of the team, so that the factors that benefit the performance can be enhanced and the factors that challenge the performance can be mitigated (Trittin and Schoeneborn 2017).
Jim and Zhong (2014) studied the influence of perceived organizational support on team performance. According to the authors, a high level of perceived organizational support to the team can improve the attitudes towards work, and help to develop effective work behavior among the members. Moreover, organizational support can also improve innovative performances of the team through the integration of knowledge in work. It also helps in the development of an organizational context that further creates an atmosphere of innovation and efficiency in the workforce. This climate or environment of innovation can therefore help to improve team performance (Wang et al. 2017). From the study, it can be understood that cultural diversity within a team can help to increase the perceptions of organizational support, through the focus of the organization to maintain a culturally diverse environment, providing equal opportunities for members of culturally diverse backgrounds to participate in team work and work at the same platform with others (Hoogendoorn and Van Praag 2015). This can help to increase a sense of inclusiveness within the team. Other authors have suggested that organizations that support cultural diversity in its workforce can foster a sense of support within the employees, thereby showing how it can lead to better team performance and job satisfaction. Perceptions of organizational support also develop a sense of job satisfaction, which can help in individual as well as team development, thereby improving the overall performance.
Methodology
Studies by Bouncken et al. (2016) suggests that multicultural teams can be seen as important and active sources of creativity and innovation and that diversity in teams helps in the inclusion of insights and knowledge from members with different cultural backgrounds, due to which different points of view can be incorporated in the development of the knowledge gained by the team. Every member has the potential to provide their unique perspectives that helps in a better analysis of a scenario or a challenge and support ‘out of the box thinking’ and innovative ideas (Wang et al. 2014). Parrotta et al. (2014) also supported that that within a team, ethnic diversity can plays in important role to increase the innovative outcomes of the organization. The authors suggested that a diverse team can have higher chances of filing patents, increase the number of patent applications and increase the diversity in the patient applications. This shows that creativity and innovation can be supported within a culturally diverse team, thereby improving team performance. As per Ozgen et al. (2014), a cultural diversity of migrant workers in organization from migrant receiving countries can incorporate heterogeneity of skills and knowledge that can improve innovation and productivity of the organization. It can also me stated that through the improvement of creativity and innovation, performance can increase both at the individual level (supported by improved problem solving and reasoning skills and also by mutual learning and sharing of knowledge) as well as at the team level (through the development of a team knowledge and experience). Such aspects can further support better teamwork and cooperation in a team (Albornoz 2016).
Trittin and Schoeneborn 2017 focused on the perspectives of communication (Communicative constitutions of organizations) to conceptualize diversity management. The authors opined that cultural diversity supports better management and performance of the team through a constitutive-polyphonic approach that can be developed in a culturally diverse team and ensure better articulation and mediation of opinions of the members. Stahl et al. (2010) also supported that cultural diversity can help in the better communication between the members. Effective communication can also improve understanding and bonding between the team members which is vital for team performance (Jin and Zhong 2014). Studies have also shown that within a culturally heterogeneous workplace, employees often adapts to effective communicating styles, develop understanding and tolerance towards diversity in cultures and helps in the revision of the policies that support cultural sensitivity and competence in the workplace. Similarly, diversity in workplace can also improve diversity in communication styles thereby improving the overall communication within the workforce (Hoogendoorn and Van Praag 2015). According to Stahl et al. (2010), heterogeneous work culture supports the sharing of common meanings and work practices as well as improving cohesion and better conflict resolution, all of which ultimately can improve team performance (Väyrynen 2018).
Research Questions
Stahl et al. (2010) pointed out a heterogeneous workplace can lead to differences in opinions between the employees due to the diversities in their own though processes (deep level diversity). Such differences in opinions can cause conflicts within the team and members, which can adversely affect the performance of the team. Opposing ideas, beliefs and demands of a heterogeneous workforce can increase discord and misunderstanding between the members, and lead to polarizations within the team. This can also adversely affect the communication with the members which can lower team performance. According to Arbatl? et al. (2018) interpersonal diversity within a population significantly contributes to the risks and intensity of internal conflicts that could be seen through the historical and contemporary accounts of human conflicts. The authors proposed that geographic, institutional, cultural and economic diversities among people often leads to the loss of interpersonal trust, divergence in individual preferences and increase the degree of fractionalization and polarization within ethically, linguistically and religiously diverse group. This shows that even though diversity can improve team performance through better communication and innovativeness, it can also increase the risks of conflicts due to differences in the personal opinions and values of the diverse groups, which can inhibit communication and lower team performance (Stahl et al. 2010).
Laitin and Jeon (2015) explored the opportunities of cultural diversity within an organization. The author proposed that higher levels of cultural diversity reduce the generalized trust and economic performance in the context of a wider population. However, in the context of organizational behavior, a diverse team is better able to solve complicated problems and come up with creative solutions. The authors also point out that the differences in the outcomes are likely to be influenced by the type of diversity such as functional (based on the skills and cognitive abilities) and social (based on demography, ethnicity or linguistic). Additionally, the authors also proposed that acknowledging the advantages of cultural diversity in a team can help to develop coordination between the members and support effective intergroup exchange of ideas and information. Studies by Stahl et al. (2010) also supports the same findings, which led to the proposition that a culturally heterogeneous team can have better performance through improved communication, cohesion and satisfaction of the employees, while at the same time can also adversely affect integration of individuals from different cultures.
From the above studies, several aspects could be identified that can influence team performance. Studies by Stahl et al. (2010) support that creativity, communication, social integration and work satisfaction can increase through cultural diversity, and also can increase the risks of conflicts if there is a deep level diversity within the workforce. Such conflict can additionally, limit the social integration of the workers within the team, limit the efficacy of the communication, reduce workplace satisfaction and lower team productivity. According to Hoogendoorn and Van Praag (2015), an important aspect of heterogeneity is the cultural backgrounds of the employees or team members. According to their studies, a moderate level of cultural diversity in the workplace does not have any significant effect on team performance, while more diversity in the workforce can improve team performance. The improvement in the team performance has been attributed to the diversity in the knowledge possessed by the heterogeneous team that supports mutual learning (from each other). However such an argument has been challenged by the studies by Mach and Baruch (2015) that shows that heterogeneous team configuration and strong fault lines (or divisions within the team) can reduce interpersonal trust and team performance, while improved performance can be supported through a collective orientation and team consensus.
Literature Review
Vangen and Winchester (2014) suggested that managing a culturally diverse workgroup can be a challenge for the management. The authors used the context of nonprofit organizations that spans professional, organizational and national boundaries and employs culturally diverse workers to understand the tensions related to the management of the erogenous workforce. The three main inter-related tensions identified by the authors were Accommodation tension (that arises from the simultaneous protection and integration of the diversities of each member into the team), Agency tension (that arises from the development of collaboration between the team members of heterogeneous backgrounds and provide respect to such diversity) and Quantity tension (that arises from the challenges in the allocation of resources and time to address the heterogeneous needs of the team). This shows that the managers often has to struggle in order to maintain equality and respect within a heterogeneous workforce, since the cultural diversity can give rise to differences in the needs and expectations of employees coming from culturally diverse and different backgrounds. The risks of conflict that can occur due to the diversity within the workplace is also another challenge faced by the managers while working with a heterogeneous workforce within an organization (Stahl et al. 2010).
Hatipoglu and Inelmen (2018) studied the influence of demographic diversity within the workplace on the voice and opinions of the workplace and the level of trust on the employer. According to the authors, a culturally diverse work environment can increase the opportunities of the employees to express their opinions to the management. Organizations that supports a culturally diverse workforce also encourages the employees to voice their opinions more freely and with more confidence, which helps to improve communication,, identify problems faced by the employees in their work. This also helps in the bias free implementation of the policies, which can improve the perceptions of organizational support by the workers. Such factors can additionally help to improve satisfaction towards the job, and increase the trust of the employees towards the organizational management. According to Hatipoglu and Inelmen (2018) employees working in a culturally diverse workplace have more trust on the employer through the perceptions of the good intentions of the employer and thereby making the organizations trustworthy. Both trust and job satisfaction can additionally improve the level of dedication and performance at both individual and team levels, thus ensuring better team effort and productivity (Wood and Wilberger 2015; Bücker et al. 2014).
Cultural Diversity in teams
Conclusion:
From the above project report it can be concluded that cultural diversity is an important consideration for team performance, since it can have both positive and negative impact on the team performance. A culturally diverse team is one that includes members from various cultural, ethnic, linguistic or even national backgrounds but sharing a common objective or goal. A qualitative analysis of secondary data was done from academic literature to develop an understanding on how cultural diversity can impact the performance of the team. Several key themes could be identified from the review of literature that was used as the basis of the research questions. From the study it could be identified that diversity in the workforce can help to improve communication, creativity, and innovation and employee satisfaction. Improvement in team performance can be supported by the integrated knowledge and skills that is brought by the heterogeneous workforce and thus helps to increase creative and innovative thinking. Workforce diversity also helps the employees to feel supported by the organization and increase their sense of job satisfaction, thereby improving performance. It has also been pointed out that a diverse workplace allows the employees to adopt effective communication skills and develop cultural respect which can further enhance team performance. However, diversity can also have adverse effects on team performance as diversity in culture and background can develop strong fault lines leading to fractionalized and polarized workforce that has restricted communication and understanding, leading to conflicts between people. Managing a diverse workforce can also be challenge for the managers to ensure equality and respect to everyone. Hence it can be seen that even though diversity can be helpful to the organizations, it can also be potentially disruptive and challenging for the management.
References:
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