Multicultural Organization

AAA

DEFINITION of 'Multicultural Organization'

An organization whose work force not only includes people from diverse racial, religious and gender backgrounds, but is one in which minorities are well integrated across all levels of the company, including management and executive positions. A multicultural organization also displays an absence of discrimination and prejudice, with skills and talent being the primary criteria for climbing the corporate ladder.

INVESTOPEDIA EXPLAINS 'Multicultural Organization'

The benefits of a multicultural organization are many; they include a higher level of innovation, greater success in marketing to minorities and export markets, and better distribution of opportunity. These benefits generally outweigh the negative factors such as a higher degree of cultural conflict and the potential for resentment among some employees, which could lead to higher employee turnover rates.

RELATED TERMS
  1. Reverse Culture Shock

    The shock suffered by some people when they return home after ...
  2. Corporate Hierarchy

    The arrangement of individuals within a corporation according ...
  3. Corporate Culture

    The beliefs and behaviors that determine how a company's employees ...
  4. Organizational Structure

    Explicit and implicit institutional rules and policies designed ...
  5. C-Suite

    A widely-used slang term used to collectively refer to a corporation's ...
  6. Registered Holder

    Shareholders who hold their shares directly with a company.
Related Articles
  1. Tips For Fitting In At Your Brokerage ...
    Professionals

    Tips For Fitting In At Your Brokerage ...

  2. Why would a multinational corporation ...
    Investing

    Why would a multinational corporation ...

  3. How Mergers and Acquisitions Can Affect ...
    Investing Basics

    How Mergers and Acquisitions Can Affect ...

  4. Examples Of Using SWOT Analysis To Get ...
    Investing Basics

    Examples Of Using SWOT Analysis To Get ...

comments powered by Disqus
Hot Definitions
  1. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  2. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  3. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  4. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  5. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
  6. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
Trading Center