ABSTRACT

Most executives state that the effective utilization of the talents of all employees is the organization's greatest asset. This has been viewed as more challenging for multinational enterprises (MNEs) with an increasing multicultural workforce. MNEs could increase diversity by including, in its decision-making, managers tasked with global, regional, local, product, and functional roles. Greater diversity produces diverse perspectives and access to different kinds of information for decision-making. Current research supports the view that heterogeneous work teams achieve better results and greater productivity than homogeneous teams. All in all, diversity is related to the vast range of differences that requires attention to facilitate living and working together effectively. Human diversity has been popularly understood to refer to differences of color, ethnic origin, gender, sexual or religious preferences, age, and disabilities. Cultural diversity, as well as diversity in its other forms, is one of the most vital assets any MNE possesses in its efforts to solve problems.