Components of a Diverse Organization
A multicultural or diverse organization not only contains many different cultural groups, but it values this diversity. It encourages healthy conflict as a source of avoiding groupthink. Groupthink can occur when group members try to minimize conflict and reach a consensus decision without critical evaluation of alternative ideas or viewpoints.
In this globalized economy, a multicultural workforce should reflect a diversity of thought. The perspectives shared from individual standpoints will benefit organizations that are savvy enough to capitalize on them. The theory is that a company with a diverse workforce is better able to understand the demographics of the marketplace it serves. It is thus also better equipped to thrive in that marketplace than a company that has a more limited range of employee demographics.
Productivity and costs can be analyzed to assist in building the business case for diversity. According to the deficit model, organizations that do not have a strong diversity inclusion culture will invite lower productivity, higher absenteeism, and higher turnover, all of which will result in higher costs to the company.
According to the investment model, or value-added model to diversity inclusion strategies, a company choosing to foster an inclusive environment will experience many benefits. These benefits include increased productivity, better problem solving capabilities, and increased market share. Either model, however, requires an intentional implementation from top leadership for the organizational culture to truly be one of inclusion and acceptance.
Three Types of Organizations
In a journal article entitled "The Multicultural Organization", Taylor Cox, Jr. talks about three organization types that focus on the development of cultural diversity. These three types are the monolithic organization, the plural organization, and the multicultural organization. In the monolithic organization, the amount of structural integration (the presence of persons from different cultural groups in a single organization) is minimal and white male privilege is very tangible. This type of organization may have women and marginalized members within the workforce, but not in positions of leadership and power.
The plural organization has a more heterogeneous membership than the monolithic organization and takes steps to be more inclusive of persons from cultural backgrounds that differ from the dominant group. This type of organization seeks to empower those from a marginalized standpoint to encourage opportunities for promotion and positions of leadership. The multicultural organization contains many different cultural groups and it highly values this diversity and encourages healthy conflict to avoid groupthink.