Racial-ethnic diversity in Canada: competitive edge or corporate encumbrance? Part One

Abstract

Purpose – The purpose of this two-part paper is to explore the relationship between multiculturalism and performance, and attempt to reconcile some of the varying points of views, in order to suggest practical implications for managers in the workplace. Design/methodology/approach – A review of the literature regarding both diversity and performance was performed. Next, the focus was on the relationship specifically between racial-ethnic diversity and performance. To show the relevance of the paper, materials dedicated to Canadian population and immigration was included. Findings – It is still somewhat inconclusive whether diversity can have a definite positive or negative impact on organizational performance. The literature reviewed shows that authors have differing opinions. One element appears to be clear: diversity of itself does not necessarily bring benefit. For a diverse group to perform well, it must be well managed. Diversity remains an underused tool that managers have yet to learn to utilize. Research limitations/implications – At the time of writing, there was not a significant amount of published material on the direct relationship between multiculturalism and performance. This paper attempts to gather and make sense of the various views formalized thus far and puts forth a new question of how to turn multiculturalism in the workplace into an asset for organizations. Practical implications – Managers still do not agree on how to take full advantage of diversity. As the Canadian workforce becomes more and more diverse, so increases the importance of addressing and answering this question in practical terms. Especially facing the increased globalization of corporations, taking advantage of the untapped potential that resides in a culturally diverse work team should be at the top of every international company’s goals. Social implications – The importance of studying the relationship between multiculturalism and performance is crucial because in developed countries like Canada organizations are becoming increasingly culturally diverse. Much has been written about the effect of group diversity on conflict and creativity, on the performance of heterogeneous groups vs homogeneous groups, on organizational commitment among ethnic minorities, and on self-fulfilling performance expectations. Originality/value – This paper is a useful source for managers interested in understanding the real value of diversity in the workplace, as well as for researchers studying the relationship between corporate diversity and corporate performance.