Critical Review of Literature on Cultural Diversity in the Work Place and Organizational Performance: A Research Agenda

Abstract

Cultural diversity is what binds all groups of employees at all levels in a company. Cultural diversity calls for a type of organizational culture where all members can pursue their aspirations without being inhibited by gender, race, nationality or other qualities that are irrelevant to performance. The importance of the need to have the concept of managing diversity embraced by top managers has also been emphasized. A statement concerning diversity should always refer to certain facets such as age, gender, culture and disability. Scholars have not concentrated more on cultural diversity in the workplace and how it affects organizational performance, hence creating a gap. This study provides background knowledge on cultural diversity among employees at the workplace and provides measures of organizational performance. The study further brings out the study theories under theoretical review, which comprises the resource-based theory, behavioural theories and competency theory. This study reviewed various literatures on cultural diversity in the workplace and organizational performance and found that cultural diversity in the workplace is a formidable competitive weapon in an organization. The study recommends that organizations should have proper cultural diversity management since it enables an organization to achieve a competitive advantage, which in turn influences organizational performance. In addition, the paper recommends that organizations should effectively manage their cultural diversity. This is because it has been established that cultural diversity influences organizational performance.