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. LLC Operating Agreement

    An LLC Operating Agreement is a document that customizes the ...
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. Want To Sell Life Insurance? Read This ...
    Entrepreneurship

    Want To Sell Life Insurance? Read This ...

  4. Evaluating The Board Of Directors
    Insurance

    Evaluating The Board Of Directors

comments powered by Disqus
Hot Definitions
  1. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  2. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  3. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  4. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  5. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  6. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
Trading Center