A homogeneous culture is a society comprised of people of the same race. This form of culture is characterized by people of the same cultural aspects. In general, they speak the same language and abide by the same societal norms and traditions. Homogeneous cultures are often considered very prosperous and stable because of their uniformity, with the Japanese being a prime example.
People from the same cultural background take pride in collectivism. According to Richard D. White, PhD, Asians, Hispanics, Israelis and blacks trace their roots in culture with collectivist traditions. In collectivism, people think in terms of groups and the well-being of the group. Businesses can take advantage of a collectivist workforce by availing more opportunities for working together. This team mentality leads to increased productivity. The employees are guided by the principle of fairness to the group, and they are unlikely to pursue a competitive advantage over their colleagues. However, it can be very difficult for an employer to instill discipline in individuals as they can become collectively disruptive.
A multicultural or heterogeneous culture consists of people with diverse backgrounds. Countries like Canada and the United States are considered heterogeneous societies with a high diversity of cultures, racial groups and religions. A multicultural workforce, for instance, consists of employees with a broad range of backgrounds, such as age, race, national origin, gender and other factors that distinguish them culturally.