Diversity in Multi-Cultural Teams Creates Potential...

MMM028 COMPARATIVE AND INTER-CULTURAL MANAGEMENT Diversity in multi-cultural teams creates potential advantages. Discuss. In the recent years, the movement of the modern business are very much according to the globalisation of the worlds economy, which resulted in the increasing amount of international businesses, global economic competition, and the difference/divergence within the organisations. Globalisation creates international business environment that requires businesses to be more competitive. And in order to be more active and competitive, companies have to be able to adapt themselves to the constant change, which can be driven by cultural diversity (Salas, Goodwin and Burke, 2009). In the future, the skill to†¦show more content†¦However, it would be erroneous to say that cultural divergence in teams generates only advantages to businesses. In reality, there are pros and cons of the differences between people or employees working together. Most businesses seem to focus on the benefits of multicultural teams and fail to realise that there are costs of multiculturalism as well: uncertainty and misunderstandings in teams. Many studies claim that it cannot be assured that divergence in a multicultural team would enhance firms performance. Richard (2000) affirmed that there is no evidence supports the assumption that multiculturalism in teams definitely linked to performance of firms. Similarly, another study found by Gà ³mez-Mejia and Palich (1997) demonstrates that the supposition that cultural diversity between workforces would potentially offer better performance of business cannot be supported. Therefore, the hypothesis that differentiation of employees within an organisation increases its performance does not seem to be 100% true. 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