Globalisation and the Challenges of Managing Cultural Diversity: From Multiculturalism to Interculturalism

Abstract

Objective The aim of the article is to analyse the impact of globalisation on managing cultural diversity in organisations, considering two approaches: multiculturalism and interculturalism. The article seeks to identify the key challenges faced by organisations in a globalised world and assess which approach – multiculturalism or interculturalism – is more effective in promoting social cohesion, innovation, and competitiveness in the global market. Methodology The article uses a literature review and case study analysis from international corporations. It evaluates the different approaches based on available empirical research and reports. Findings Interculturalism is found to be more effective than multiculturalism in promoting integration and innovation. However, implementing this strategy requires appropriate resources and leadership commitment. Value Added The added value of the article lies in providing a comprehensive analysis of two approaches to managing cultural diversity in the context of globalisation, which is relevant for both theorists and management practitioners. The article offers new insights into the effectiveness of interculturalism as a strategy supporting organisational development in a globalised world, while also proposing practical recommendations for implementing these strategies. Recommendations It is recommended to develop intercultural competencies and implement policies that promote dialogue and cooperation. Organisations should prioritise diversity management as a strategy.