The talent pool of the organizations is undergoing a dramatic change and advent effect of this Is faced by the Managers who have to deal with a diverse working force. Such an event raises the importance of diversity management which includes recruiting and retaining the diverse talent and managing them effectively mining maximum productivity. It is to be understood that the definitive objective of implementing an effective diversity management strategy is to Increase customer satisfaction, improve communication between teams and eventually enhance organizational performance.
Any multinational company at a point of expanding and scaling Its operators can use the Ideas and concepts discussed In this report. To keep up with the competition in global market a solution addressing diversity at its work place is of great significance. As a report from a consultant, this document alms at throwing light on several key concepts and theories that has to be addressed when developing a diversity management strategy for a Multinational Company (NC)_ The report further will try to generalize the principles and challenges that would be faced by a multinational company in Introducing a diversity management scheme.
This document will also inform the policy makers regarding the hurdles in implementing such a change
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Implementing Diversity Management: A Systematic approach 64. Diversity priorities 7 5. Benefits of introducing diversity 9 5. Competitive advantage: Measurable benefits 9 5. 2 Competitive advantage: Immeasurable benefits 10 6. Challenges In diversity management 11 7. Conclusions and Recommendations 12 Bibliography 13 1. Introduction Setting Introducing diversity in an organization is regarded as a long term investment that unsurprisingly involves complexity and constructive conflict (Holding et al. 2004). However diversity drives organizational behavior and will lead to customer satisfaction. One Immediate effect of diversity Is It drives creativity, when people from 1 OFFS ideas. The targeted audience for this report is supervisors and managers who are he key drivers of change. It is important that they realize the importance of this factor to equip themselves and other people in the organization on the fact that every employee/customer would expect to be treated with respect and dignity.
Katharine Est., in her book Workplace diversity, defines diversity as “Diversity is generally defined as thoughtful, acknowledging, valuing, celebrating and accepting differences, among people with respect to sexual orientation, race, physical disability, status, masculinity, femininity, traditions, family situation, hierarchy, class, and religion. ” (Est. et al. , 1995). . Introducing Diversity Introducing diversity involves a great deal of effort for implementation and requires care.
The first step is including diversity in the company vision and making sure that it aligns with company strategy and values, this will in turn give an assurance to employees and customers that the organization has made a long term pledge to diversity rather than limiting it to a pilot project across the organization (Egan et al. , 2003). It is important to pull the matchless offerings of people from diverse backgrounds and experience to help the company serve an equally diverse customer ease for this we need to come up with an action plan.
The approach towards diversity management is modeled in two ways, a multi-domestic approach which concentrates on individual demographical areas and tailor diversity strategies taking into consideration the social, political, legal and cultural differences across countries and the second model of global approach which concentrates on extent of globalization in its operations (Egan et al. , 2003) . But it is agreed and argued that a stand between multi-domestic approach and global approach is ideal for company planning to enhance the competitiveness in the global economy (Nisei et al. 007). The brave feat of maintaining the diversity management schemes relies with the corporation’s Human resource management team (HARM). The relevance of setting up a corporate business culture is significant to be able to work efficiently in the global scene. A corporate culture involves convening multiple cultures represented by a number of employees from different backgrounds converging to work in a multinational enterprise (Maidenhead et al. , 2003). 3. Implementing Diversity Management: A Systematic approach Diversity Management is a disciplined approach across the company.
In an organizational culture that promotes fairness and inclusiveness; diverse perspectives are merged in the core business practices. According to Michele (Moor Bark, 2005), the diversity management has 3 characteristics. Firstly, Diversity management is and is not coerced over any one. Secondly, the policy makers use a very broad definition for diversity management the main objective of this is to make the diversity programs inclusive and acceptable to the larger section of the community.
Thirdly, it aims at providing strategies to tap maximum potential out of the employees and averaging outputs helping the organization gain competitive advantage. The systematic approach aims at viewing the company as an ‘inclusive workplace’, which refers to companies that realize that they constitute of not only the employees and the customers by also the communities in which they live and interact with collectively (Moor Bark, 2005). The organizations that implement strategies are to be bound by four levels of the inclusive workplace (Moor Bark, 2005).
Level: – The Company has to take initiative in conducting training and assessments and interventions that would mould organizational culture. This is important as the company has to value the individual and inter-group differences within the organization. Respect individualism and open doors in recruitment. It was identified that there was a discriminatory attitude at the managerial level which affected the lower employee behavior at ‘Dyne’s restaurant’ chain (Lebanon, 1994). But as a result of organizational initiatives to improve culture among employees the group emerged out of allegations (Anon. 2002). Levels: – The Company has to take initiative in contributing to the community in which it resides, more like community building. The multinational Shell Co. Trained children aged 14-18 on understanding the work environment, being in the office on time etc leaving a positive impact on the community (Moor Bark, 2005). Level 3:- The Company at this level is matured well and aims at helping and reaching out to the wider section of the area company resides in and helps the unfortunate individuals who are on welfare.
Level 4:- Organizations at this level will restrain itself from exploiting local workforce or depleting resources of the community without check. They work with the local community to foster a culture hat benefits the community services, encouraging the downward groups of the society to contribute hence the organization abides with their corporate social responsibility. The case of ‘Body shop’ where the company supports ‘community fair trade’ by sourcing cocoa and shear butter from Ghana and helping the local artisans lead a stable life (typhoons, 2012).
This can be utilized as a marketing strategy attracting global attention and hence giving a competitive edge and advantage to the company. 4. Setting diversity priorities One key dimensions that need to be addressed as a part of diversity management initiative of the company is age. In current scenario the importance of employing mature age employees is high. Increase in life expectancy results in community working longer. For the organization to become successful it needs to utilize the experience and responsibility the mature aged workers bring with them.
For instance the roll out of ‘Reconciliation Action Plan’ by Woolworth in June 2011 has seen widespread acceptance from the community. The plan realties the efficiency of diverse work force and implements measures to employ mature aged workers providing them adequate training. Strengthening your business through diversity – A guide for employers’ highlights that mature aged workers are loyal, more productive and they bring life experiences into business (Reconciliation Australia, 2012).
The emphasis on the fact that disabled employees who are referred to as differently abele employees bring with them reliability, better than average attendance and productivity (Graff et al. , 2002). The Journal also highlights that retention rates of disabled workers are also very high. Opening doors for long term unemployed, this is an untapped resource as they would have multiple transferable skills. This category of work force is vulnerable to discrimination due to their employment status, once they are on board their skills can be used across any number of positions in the organization (Reconciliation Australia, 2012).
Gender equality is another area which organization has to account, currently over 53. 1% of employees in Woolworth are women and the number is increasing in managerial roles (Anon. , 2014). Hence it is important for organizations to include the women employee count and motivate them. Higher career involvement, or employing women in executive positions is at rise across all organizations. Including employees of different sexual orientations has always been a highly sensitive area for organizations. Recent developments of mainstream companies like Apple Inc.
Openly supporting LIGHT communities have helped ease the tension (Crook, 2014). A very high percentage of Top level executives declaring their LIGHT statuses has strengthened the community and has drawn way for many to follow (diversifying. Com, 2014). Rewarding diversity role models improves the diversity management efforts in an organization; resources that are making a positive impact on the workforce should be recognized. For example physically sizable employees can serve as a motivation for other employees and these small changes can drive organizational culture betterment (Hubbard, 2004).
Employment of people from different race, ethnicity, and nationality in an organization has to be an integral part of diversity strategy. Not biasing with any perspective employee based on their religion is a trait that has to be exhibited by organizations willing to adopt diversity strategies for getting into global economy. Diversity management is still in an ambitious state when considering implementing policies against racism as a diversity priority. Since it’s an underlying issue collective long term efforts are required to reduce racism and prejudice in any form.
This is particularly an area of concern as currently a very good percentage of employees in a company are from diverse back ground and if proper action plan to safeguard their respect and honor is not in place the organization might end up losing employees to competitors. 5. Benefits of introducing diversity As an NC scaling up its operations worldwide it is important to clearly understand successful diversity management strategy Figure 1 – Direct benefits of diversity management strategies (Inert, 2011) . Competitive advantage: Measurable benefits A well managed diversity management will nurture the bottom line of a company and give the company a competitive advantage. The company can gain competitive advantage in the following ways. Increase in productivity: In a working community that feels respected, cared, valued, involved and included the individual productivity will start increasing. Increasing marketing capabilities: Diversity in the talent pool will attract customers from different backgrounds and geographies. It helps them identify their values and goals with the company values.
Attracting new clients can be the seceding factor between surviving and going out of business completely. It definitely gives a chance to the organization to thoughtfully highlight its diversity values. Reduction in the number of Lawsuits: The grocery chain ‘lucky Stores’ faced legal action due to gender bias. It later lost the case and was fined $107 million (Est. et al. , 1995). When in a work culture the employees are respected for what they are, there will be fewer lawsuits. Keeping the business: Several organizations these days employ attention in demographics of organizations or teams with which they conduct business with.
A number of cases has been raised by clients where they are not convinced about the diversity policy of the organization. A Midwestern company refused to do business with a tech company whose entire team was white (Est. et al. , 1995). Employer of choice: This gives a spear edge to the company as the word of mouth would spread about the company that is good for women, the company that provides paid leave for pregnancy. Or a company that openly recognizes the LIGHT community, or even for example is being a company that employs disability.
On the other side the word also spreads on which company is tough for blacks or for working arenas. Most importantly introducing diversity in the Company creates a large pool of resources Hiring top quality employees has become easier with the access to diverse talent pool. 5. 2 Competitive advantage: Immeasurable benefits The competitive advantage generated by the companies by employing diversity strategies are not limited to measurable benefits, these are the benefits that are hard to quantify Self-esteem is boosted and morale is lifted when the workplace you indulge is diverse, people tend to be more active and involved.
Creativity improves in an environment where there are people from different backgrounds. They differ from one another in several other aspects, and are often successful in coming up with innovative solutions and ideas to problems. Improved decision making Decisions are improved when decision makers are from varied back grounds as they think and pursue different things differently in their own viewpoint (Est. et al. , 1995). 6. Challenges in diversity management Every workplace will have some agents resisting change; it is a challenge to manage the individuals who do not take diversity strategies seriously.
These few can affect the employee morale adversely (Holt, 2010). The need to open up the labor pools of the organization is inevitable but a diverse workforce also means the resources has to managed more carefully that otherwise would lead to organizational tension, the company’s commitment towards equal opportunities, there can be cases in an organization where fair treatment is missed (Maxwell et al. , 2001). The main challenge in diversity management is finding a balance between the global initiative and domestic diversity initiatives.
Managers may be challenged with legal action against the company or loss of productivity due to discrimination or prejudice (Devote, 1999). They are the drivers of change; the difficulty of finding a manager who can work with diverse teams is also a challenge in diversity management. Negative behaviors in the company like racism, discrimination, racial bias and stereotyping should never be used by senior management for retention, recruiting or for termination as these can lead to legal action by the employee and might prove costly for the company (Green et al. 2002). Since diversity management is voluntary, it might not survive in the event of an economic crisis as the benefits of diversity management takes time to materialize (Moor Bark, 2005). . Conclusions and Recommendations The globalization of economy and the fact that most Mac’s are making diversity management a standard part of their strategy is driving more and more companies to adopt robust diversity management strategies (Holding et al. , 2004). Making diversity an unambiguous target in the recruitment strategies seems to be an effective solution.
Any amount of measures to promote diversity will be effective only when proper education or information is provided to the employees. It is essential that diversity management is based not only on the physical benefits but also on a throng moral and ethical commitment towards diversity (Moor Bark, 2005). The emphasis on the business advantages of diversity management and the success stories of companies gaining competitive advantage through adoption of diversity management strategies is a good motivator for companies to include it in their vision (Moor Bark, 2005).
Being said that the primary responsibilities of the company and other ethical missions should not be overlooked. Another observation is that the implementation of diversity in organization and successful management of it would lead to the system becoming less determinant, less standardized and hence more laid. This improves flexibility within the organization and among its teams to react to any changes; henceforth the reaction would be faster and saves money (Cox & Blake, 1991).
In today’s context organizations should recite the diversity slogan over and over again as the young generation which is a fresh talent pool is no longer homogeneous, it’s heterogeneous and therefore diversity management is very significant to position your company as the preferred employer. One primary recommendation for a company is to create a ‘Diversity team’. The team would include employees ranging from CEO to the administrative assistant.
Each team member from different backgrounds, their role as a team would be as change agents identifying areas of action. The team would be responsible for formulating measures and methods and reporting it to top management. Reporting the progress and impact of diversity management is very significant to remodel the strategies after evaluating if it’s effective or not. Benchmarking the company with a company sharing similar interests will ensure that the new policies and processes were inclusive.