Global corporate strategy and employee diversity in the UK plant of a German MNC

Purpose – The purpose of this paper is to highlight employee diversity at the workplace level in a MNC, and consider its impact upon management attempts to promote a global corporate culture. Design/methodology/approach – The investigation took the form of an ethnographic participant-observation study, which involved interviews and archival research plus a three-month period when the lead researcher worked on the plant’s final assembly line. This provided insights into the personal and psychological issues of individuals within the workforce, and an experiential dimension to the study which is difficult to replicate in other ways. Findings – The management approach to cultural and diversity issues worked both for and against the development of cohesion and improved employee relations. Managers sometimes ignored the real impact of local ethnic diversity, focusing instead on inter-management conflicts, which contributed to employee morale and communication problems. But where diversity was recognised, more success followed, in particular where the distinct history and identity of the plant was emphasised. The study also tentatively suggests that “crossvergence” may be a fruitful way of interpreting the complex determinants of employee attitudes. Originality/value – The paper highlights how global strategies are always mediated by local circumstances, thus strengthening the arguments for recognising the interaction between management elites and local workforces, acknowledging cultural diversity and its impact on global business, and looking beyond simplistic notions of “national culture” towards diversity within national boundaries. The key implication for managers is that the successful implementation of global corporate strategies works best not just with due acknowledgement of local workforce identities, but with positive engagement with local historical and cultural traditions.