Influence of Cultural Diversity On Employees Performance in Transnational Corporations in Algeria - Thesis Example

The paper “Influence of Cultural Diversity On Employee’s Performance in Transnational Corporations in Algeria” a brilliant example of human resources thesis. The notion of managing diversity had been a concern of organizational leaders even during the 1990s. Changes in demographics, due to changes in fertility rates among racial and ethnic groups, affected the employable workforce in any region. As early as in the 1990s, researchers could identify that the growth in the labor force would occur in nations with a non-Caucasian population (Cox & Blake 1991, 45).

However, business leaders and consultants were prepared to respond to these challenges with a “valuing diversity” approach. This is because they believed that a well-managed diverse workforce could be turned into a source of competitive advantage for organizations (Triana et. al. 2010, 817). Globalization has also brought in challenges in the development and retention of employees and in achieving the desired standards of performance. Technology is standardized across the globe and firms have access to easy capital.

In this situation, the labor component in the production process determines national and international competitiveness. The successful management of a diverse workforce heavily affects competitive success. Ignoring cultural diversity is no longer an option, contends Richardson (2005). Diversity management has two constituents – internal and external development. Internally, it fosters a harmonious work environment where every worker feels valued and their contribution recognized (Richardson 2005, 25).

Externally, the organization develops the flexibility and alertness enough to respond to changes and challenges in the wider community, the ability to respond to challenges of globalization, including the ability to deal with multicultural customer and supplier base (Triana et. al. 2010, 817). Cultural diversity in developed countries might lead to enhanced performance, higher growth, productivity, and therefore higher income levels (Longhi 2011, p3). This occurs because people with different cultural backgrounds bring with them a wide array of skills and problem-solving abilities.