Social Obligations and Competitive Advantage Essay

1052 Words 5 Pages
Globalization is forcing the world to interact as countries, regions, businesses and even individuals and this has made it possible for organizations to hire employees from different parts of the world who have their unique differences in both national cultures and individual backgrounds.

Globalization in businesses have also made it necessary for managers to encounter issues of cultural adaptation and conflicts in communication arising from multicultural teams (McLean & Lewis, 2010, p. 30) It is therefore very crucial for managers to develop the skills set and ability to manage employees within a culturally diverse teams.

They must also ensure that the diversity of each employee is respected and used in the
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McLean & Lewis (2010, p. 30) stated that effective exploration and exploitation of the opportunities inherent in a culturally diverse team or organisation could yield immense benefits and a source of competitive advantage. Organisations and managers should therefore not see cultural diversity as a threat but a valuable tool to enhance the effectiveness of teams and organisations.

Apart from fulfilling its social obligations, an organization is exposed to competitive advantages when it employs and manages team members from diverse cultural backgrounds, such advantages include:
1. Attracting the best employees with different levels of input for the organization which makes it possible for resources to be allocated effectively
2. Cost advantage
3. Different perspectives in decision making
4. Innovation and creativity
5. Closer relationship amongst governments of different countries
6. Learning opportunities for employees
7. Flexibility in reaction to environmental changes

Realization and Challenges
The effort involved in hiring from different countries might seem too much for an organization especially in the area of finance because bringing expatriates together can be very expensive. The challenges of managing cultural diversity can also be over bearing if the management does not analyze critically, the needs of the business.

In line with the points made above, organizations are able to realize

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