DIVERSITY MANAGEMENT IN MULTINATIONAL CORPORATIONS

Abstract

The growing trend of Multinational corporations (MNCs)becoming more transnational than before has made it essential for them to recognize and effectively manage the similarities and differences in each market they enter.The impact of cultural diversity can have both negative and positive influences on teams’ productivity within an organization. Team members can face some difficulties to see, understand, and act on situations in similar ways, and cultural diversity makes reaching agreement more complex. Diversity is one of the aspects which extend the benefits of diversity’s exposure toorganizations; but also, diversity is in the shape of challenges managers haveto face in controlling and directing the team members. The concept of diversity has multiple dimensions. Executives and other organizationalpersonnel are now beginning to realize the importance and benefits of calculating theimpact of perceived intangible human assets in today’s marketplace.The executives should promote diversity to further enhance innovativeness, in order to overcome the challenge of creation of the right environment to encourage innovation and ideas A diverse workforce should be maintained at all levels, to have a broader range of knowledge, heuristics and perspectives which strengthens the toolbox that a group can work with and solve problems.A successful manager can build a culture of tolerance in the organization through education, training and conflict management strategies.