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Journal of Diversity Management – Spring 2012 Volume 7, Number 1
© 2012 The Clute Institute 57
Workforce Diversity And Organizational
Communication: Analysis Of Human
Capital Performance And Productivity
Ephraim A. Okoro, Howard University, USA
Melvin C. Washington, Howard University, USA
ABSTRACT
The twenty-first century organizations are increasingly becoming multicultural workplaces for
communication. This paper explores recent literature on the increasing global influence of
workforce diversity and its affect on workplace communication. It provides a model for the
discussion of the opportunities and challenges of diversity in the workplace. The paper then
provides an analytical framework that guides readers with practical ideas that can assist them in
their endeavors to effectively communicate in a globally diverse work environment. The paper
stresses that effective communication in a diverse workforce ensures a high level of performance
and productivity for human and intellectual capital and provides business organizations a
competitive advantage in their expanded markets and in the global economy.
Keywords: Workforce Diversity; Organizational Communication; Global Economy; Cultural Differences;
Intellectual Capital
INTRODUCTION
s the workforce becomes increasingly global and progressively more culturally diverse, people in
organizations are challenged to communicate more effectively interpersonally, interculturally, and in
groups. Authors (Lauring, 2011, & Devoe, 1999) noted that as a result of the rise of internationalized
business environment and global competitiveness, the managing of human diversity has become a challenging daily
routine task for a major part of business communities. In discussing strategies for business communication, Bovee
and Thill (2008) emphasized that effective interpersonal and group communication is essential for success in today’s
corporations and organizations because of the growing trend of workforce diversity and intercultural business
relationships. Some studies (Ferraro, 2001; Gupta, 2008; Jandit, 2003) have emphasized the impact of
communication in a diverse workplace and how it affects productivity and overall performance of a business.
Broadly speaking, Mulkeen (2008) describes workplace diversity as all the differences in age, gender, sexual
orientation, education, cultural background, religion, and life experience. The author noted that today’s workforce
does not exist in a vacuum or is isolated from the marketplace, but that it is part of an emerging international
business environment where effective organizational communication is vital for sustainable growth. In fact, Ober
(2006) explained that effective communication, both internally and externally, is essential for any organization
wishing to excel in today's internationally competitive corporate environment and global business and competitive
advantage would not be achievable without effective business communication.
Diversity In Business Organizations
Recent studies have attributed workforce diversity to the increased globalization of the twenty-first century,
which has increased the mobility of people across nations as well as the interdependence of organizations. With
globalization comes the challenge of communication among people with different cultural and racial backgrounds.
For example, Martin and Nakayama (2007) note that for many people, communication encounters with diverse
people from different ethnic, race, and national backgrounds occur most frequently in the workplace. Similarly,
A
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58 © 2012 The Clute Institute
Clive (2007) and Hunt (2011) argued that workplaces are the only sites at which individuals from diverse cultures
convene and collaborate, and thus refreshes and broadens the relevancy of an organization. In addition, Sadri and
Tran (2002) found that improvements in supervisor-subordinate communication would prompt workplaces to
manage diversity and cultural differences by encouraging integration and equality in the workplace. These authors
recommend two strategies for accomplishing better supervisor-subordinate communication - managing personal
growth and mentoring new employees. Grimes and Richards (2003) and Gupta (2008) pointed out that with the U.S.
population becoming increasingly diverse over the past two decades, effective intercultural communication has
become the top priority facing diverse work environments; hence, cultural diversity can be advantageous or
detrimental for organizations depending on the nature and structure of organizations’ members’ communication.
Significantly, Hannay & Fretwell (2011) and Deveale & Manea (2007) urge that by expanding avenues for
communication and providing ongoing feedback, workplaces can establish a culture that honors, values, and
appreciates those who work in their environments. Other scholars have determined that the performance and
productivity of human capital in the global marketplace depends, to a large extent, on the effectiveness of business
communication, which includes employees’ ability to encode, decode, and analyze messages contextually (Ferraro,
2001, & Nagourney, 2008). Similarly, in a study, Beaner (2007) identified and described the importance of
interpersonal communication, intercultural sensitivity, business practice differences, and nonverbal communication
competence as essential for effective organizational communication. The author stressed that effective human
performance in group or team-oriented environments depends largely on the understanding of messages, the sharing
of meanings, interpersonal adjustments, and adaptations. Clearly, the productivity of a diverse workforce would be
almost impossible to increase without effective communication and other forms of human interactions.
Given the widespread impact of globalization and internationalization, workplace diversity in all forms of
organizations, including higher education, is now a fact of life and a trend that will continue for a long time. In an
earlier study, Cox & Blake (1991) pointed out that workforce demographics in the United States and many other
countries indicate that workforce management would be on the agendas of many forward-looking corporate leaders.
It was further noted that the ability to manage a diverse workforce provides an opportunity for competitive
advantage through improved decision-making and cross-cultural negotiation.
Researchers have noted that ignoring the implications of workforce diversity can affect productivity and
performance as well as undermine the overall goal business performance. For example, Kanu (2008) reported that
Goldman Sachs has more than 30,000 employees representing about 160 nationalities. Consistent with other
business organizations in the United States and abroad, Goldman Sachs’ discussions around diversity have extended
from domestic to international issues. Indeed, as the world economy continues to expand and attract more
competitors, business scholars and practitioners have embarked on extensive study of intercultural and
organizational communication and its implications across academic disciplines (Jandt, 2003; Tuleja, 2008; Hannay
& Fretwell, 2011). Consistent with the preceding statement, Bovee & Thill (2008) buttresses that the United States
has been a nation of immigrants from the beginning and that the trend has continued with the result that increased
emphasis has been placed on human and intercultural communications. Recent immigrants comprise over half of all
U.S. workforce. According to the U.S. Census Bureau, by the middle of the twenty-first century, the United States
will cease to have a majority race. Non-Hispanic whites will comprise about one-half of the total population, while
Hispanics will account for about one-quarter of the country’s population. African Americans will grow to about 13
percent, while Asian Americans are projected to become about 8 percent of the nation’s citizenship. Out of more
than 278 million people living in the U.S., over 33 million speak Spanish, while more than 10 million speak another
European language and more than eight million speak an Asian language. Additionally, several scholars see a
multicultural workforce as a natural outgrowth of business globalization, which complicates the way people from
different backgrounds in organizational and learning contexts communicate in writing, verbally, and nonverbally
(Ferraro, 2001; Friedman, 2005; Giroux, 2004). Hence, organizations are now escalating their diversity initiatives
as they measure the benefits of multi-cultural and diverse organizations.
Current trends in domestic and global workplaces indicate the need for intercultural competence, and
research evidence strongly suggests the need for organizations to prepare their human capital for the globalized
economy in which business success is largely determined by the ability to communicate effectively across cultures.
Bowes (2008) exposes the presence of globalization and its impact on the current generation of employees,
indicating that it has become a means for creating a workplace that genuinely welcomes employees from diverse
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countries into organizational settings. Diversity is then viewed as a key means to strengthen the human and
intellectual capital of businesses through effective communication and negotiation. In a comparative analysis, Bovee
and Thill (2008) reconciled the advantages and disadvantages offered by a diverse workforce and argue that
diversity has continued to attract the attention of business practitioners and entrepreneurs. It is noted that diversity is
fast becoming a key factor for recruitment, retention, productivity, and sustained competitiveness of organizations.
Friedman (2005) and Gupta (2008) concur that a diverse workforce can yield a unique advantage by employing new
ideas and communication skills and also providing a diversity of thoughts that result in better business solutions
and decision-making.
Linking Workplace Diversity to Organizational Performance Improvement
Cadrain (2008) discusses why companies are embracing diversity and argues that encouraging diversity is a
positive motivational tool that can attract and retain the best employees as well as increase the level of
organizational competitiveness. Hansen (2003) estimated that corporations in the United States spend $8 billion
annually on diversity initiatives and related issues. Many of these business organizations have identified the
significance of maintaining a workforce that truly reflects the diverse nature of the contemporary society of the
twenty-first century.
Both practitioners and researchers point to education and communication as the key for corporations to
transform the behavior of their employees toward embracing and accepting diversity. In addition, a diverse
workforce that effectively communicates can take advantage of the strengths, talents, and differences in the
workplace by eliminating communication barriers and developing their employees to their fullest potential (DeVeale
& Manea, 2007), increasing productivity, facilitating innovation, and enabling the resolution of problems (Davis,
2000), allowing better service to diverse customers (Thomas & Ely, 1996), and taking advantage of the opportunity
to enhance their future growth and development for a competitive advantage (Roberson & Park, 2007).
Diversity in the Workplace: A Strategic Imperative
We live in an age of globalization and knowledge economy. Business organizations and academic
institutions will be successful only to the extent that they are able to embrace and encourage workforce diversity.
By ensuring that their workplace is significantly diverse and that minority groups are respected, appreciated, and
valued, the learning environments (universities and colleges) will be able to harness the collective knowledge of
their faculty and staff. As Friedman and Amoo (2002) noted, the collective knowledge of organizations, including
academic institutions, can be enhanced by including people with different experiences, trainings, and racial/cultural
backgrounds. Marketers and marketing consultants agree that critical ideas for new products have been suggested
by subcultures. Foods, such as tacos, tortillas, pita, kasha, etc., did not originate in mainstream America, but were
first popular with sub-cultural groups. The same is true of much of the educational milestones that have become
widely known and respected. The higher education environments and business establishments (profit and not-for-
profit organizations) need new ideas to thrive and the best way to ensure a steady flow of innovation and the
realization of these objectives will stem from hiring and retaining employees and faculty from diverse backgrounds,
race, and nationalities. As Schwartz (2001) explained, a homogenous workforce is not likely to come up with
creative solutions to facing domestic and global markets, but empathetic marketing is very effective. Firms that hire
employees similar to their customers will become more successful because these employees will be able to identify
the special problems faced by their customers and will be able to come up with ideas for new products that best
satisfy women, minorities, and the disabled. The U.S. Census Bureau (2001) estimated that Hispanics alone will
spend about $1 trillion a year by 2010.
Costs and Benefits of Workforce Diversity: Benefits
Over the years, research by scholars (Abbasi, Hollman, 1991; Anderson, 1993) point out that the collective
diversity among business organizations and academic institutions is one of the great strengths of America’s
workforce and has helped increase the country’s competitive advantage. Preserving and sustaining diversity of
workplace is critically important if the United States, and indeed the global society, expects to serve the urgent
development needs of democratic societies.
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For example, both domestic and global academic institutions share a common philosophy, born of
experience, that diversity in their student bodies, faculty, and staff is important in order to fulfill their fundamental
educational mission and live up to their objectives of providing equal and quality education. A number of studies
(Garvin, 1993; U.S. Census Bureau, 2002; Florida & Gates, 2001) emphasize that diversity in higher education
enriches the teaching and learning experience of students and faculty and creates an academic environment that is
conducive to building supportive and life-long relationships. Furthermore, education within a diverse setting
prepares students to become good citizens in an increasingly complex, pluralistic global society and fosters mutual
respect and teamwork.
With the increasing mobility of the workforce in the twenty-first century, higher education is facing a
diverse work environment, both for faculty and student population. Striving to recruit, effectively manage, and
maintain a diverse workforce is an important goal in order to ensure that the right combination of skills and
competencies are available at university campuses. As Campbell (2008) noted, the second half of the twentieth
century witnessed quite a dramatic shift in the nature of white-collar employment from lifetime tenure, often in a
very hierarchical work structure to a new model defined by flatter organizations, job insecurity, shorter tenures,
declining attachment between employer and employee, and contingent workers. Other studies (Abbasi, 1991; Amott
& Mathane, 1991) indicated that in recent years managing employment relations has become an issue of huge
strategic importance as higher education and businesses struggle to respond to the pace of change in management
and administrative system and working practices.
Furthermore, domestic and global organizations are designed to create products (goods, services, or ideas)
that cater for diverse consumers and to ensure that there are benefits for their various multicultural stakeholders.
Therefore, the development and management of human activities, whether in higher education or in industries
associated with the transformation of resources into finished goods and services, or of transferring knowledge from
faculty to students, is of critical importance for the sustainable growth and profitability of business enterprises
around the world. As Ferrell, Hirt, and Ferrell (2008) pointed out, organizations as diverse as Dell Computer,
Campbell Soup, UPS, and public hospitals share a number of similarities relating to how they transform resources
into goods and services for consumers, but it is important that individuals who are involved in the production and
distribution of services are managed effectively and that communication among them is open and interactive.
Negative Effects/Costs of Workforce Diversity
Even though in this ever-changing multi-cultural environment, good communication is increasingly
important, intercultural communication creates a daunting challenge in the workplace. Managing diversity is more
than simply acknowledging differences in people. Flatley, Rentz and Lentz (2012) noted that it is crucial that the
business communicator is able to adapt to quickly changing responsibilities and work relationships. Increased
globalization of business, immigration, the aging of the ―Baby Boomers,‖ the escalation of women in the workforce,
and the changing educational environment are all fueling these trends. According to Bovee and Thill (2008),
―today’s increasingly diverse workforce encompasses a wide range of communication challenges, including skills,
traditions, backgrounds, experiences, outlooks, and attitudes toward work, all of which can affect communication in
the workplace (p. 64). Organizations face the challenge of coexisting with business partners and the community.
Managers and supervisors face the challenge of motivating and creating harmony among their workers. In addition,
(Devoe (1999) and Esty, et.al (1995) found that managers may be faced with losses due to personnel and work
productivity, as well as negative attitudes and behaviors that serve as barriers to effective organizational diversity.
In 2007, the Equal Employment Opportunity Commission filed more than 80,000 lawsuits related to diversity issues
as organizations that ignore diversity are more likely to face lawsuits, negative feelings, and lowered morale (Lieber,
2009). Therefore, to be effective in interacting across cultural boundaries, organizations need to be sensitized to the
values of understanding, appreciating, and respecting human and cultural differences.
CONCLUSION
The workplace of the twenty-first century, including higher education, is changing rapidly. Faculty and
administrators who occupy senior and high-powered academic positions are diverse in age, gender, and race. Staff
and faculty responsibilities, skills, training, and the tasks they perform in their various units/departments and
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universities are changing as a result of demographic differences. Additionally, domestic and global organizations
are now designed to create products (goods, services, or ideas) for their diverse consumers and to ensure that there
are benefits for their diverse stakeholders. In evaluating the role of operations management in acquiring the
resources necessary to create goods and services, it is critically important to understand the importance of workforce
diversity and effective communication in achieving the objectives of organizations and academic institutions.
Studies of recent years (Weaver, 2001; Crosette, 2001; Lewis, 2002) indicate that there is a correlation
between diversity in the workplace and organizations’ results and sustainability.
An evaluation of the costs and benefits of studies on workforce diversity in organizations indicated
conflicting results, but there is consistency among researchers that effective communication - especially
interculturally - is critically significant to sustain a healthy work environment that encourages outstanding
performance and workforce retention. Strategic and well-focused diversity initiatives and intercultural
communication workshops are recommended as an essential part of organizational orientations and retreats.
AUTHOR INFORMATION
Ephraim A. Okoro, PhD is an assistant professor of business communication and marketing at Howard University.
His research interests probe the interface between intercultural communication and workforce diversity in the
context of globalization. He teaches business communication, management/ marketing communications, and
principles of marketing. Address correspondence to Dr. Ephraim Okoro, Department of Marketing, School of
Business, Howard University, 2600 – Sixth Street, NW, Washington, D.C. 20059; Corresponding author. E-mail:
eaokoro@howard.edu.
Melvin C. Washington, PhD is an assistant professor of business and management communication at Howard
University. He is the core course coordinator for the business communication program in the School of Business,
Department of Marketing. His research focuses on intercultural communication, organizational communication, and
critical pedagogy. Address correspondence to Melvin C. Washington, Howard University School of Business, 2600
6
th
Street N.W., Washington, D.C. 20059; E-mail: m_c_washington@howard.edu.
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