Building a multicultural organisation: A conceptual model for organisational change in the 21st century

Abstract

Over the next 50 years, several factors are expected to change the composition and size of the US labour market, most notably: (1) the growing number of baby boomers retiring from the workforce, (2) the stabilisation of women’s participation in the workforce, and (3) increasing racial and ethnic diversity. With higher population growth, fertility and workforce participation rates, the US multicultural population is projected to account for a much larger proportion of the US workforce in the decades to come. The degree to which corporate America is able to maximise productivity and manage cultural diversity effectively will not only impact workforce participation, but also economic output. This paper proposes a conceptual framework for cultural diversity to help corporations manage their increasingly diverse workforce and help transform their companies into multicultural organisations to better serve their diverse employees — and their consumers. The paper outlines a robust toolkit, arguing that companies must take a comprehensive approach to address the lack of diversity in corporate America rather than launch ‘diversity and inclusion’ initiatives, as many have recently done. Future research and discussions on this topic are warranted.