As opined by Ramos et al. (2016), the notion of diversity has gained a substantial amount of prominence within the cannon of the contemporary world and its effects are even witnessed within the spectrum of the business world as well. Roberson, Ryan and Ragins (2017) are of the viewpoint that this trend noticed within the business world can be explained on the basis of the increasing amount of multiculturalism which is being witnessed within the contemporary societies. More importantly, the effective utilization of this construct within the workplaces offers a plethora of benefits to the organizations like the improvement of organizational culture, employee performance, development of cultural competency within the employees and others (Barak 2016). However, at the same time, it is seen that ineffective utilization of this construct can give rise to different kinds of disputes as well as conflicts among the employees (Riccucci 2018). Thus, there are various factors like HR policies, management approach towards the management of these diverse people and others that determines to a great extent whether the diverse employees would be managed in an effective manner or not. This report analyzes the diversity policies of the Shell Company and its various related aspects.
Shell Companies are the ones which are created with the primary intention of helping different registered organizations to validate their illegal business transactions in England and other nations (Stack 2015). Allred et al. (2017) are of the viewpoint that it is seen that these companies in England and elsewhere are even registered with the national government as per the Companies Act, 2013 and have existence on paper but no manual addresses or physical business centers. The net result of this is the fact that these shell organizations in England often do not follow the standard corporate governance norms or policies that the organizations are required to follow. More importantly, these organizations have no clear cut HRM policies or similar kinds of management policies which are needed for the effective management of the human capital that they have at their disposal (Jancsics 2017). In addition to this, it is seen that the workforce of these organizations are a very diverse one which comprises not only of the native people of England but also people from other ethnicities and cultures as well. However, the majority of the employees are the migrants and refugees from other nations who in the absence of any substantial job options work in these organizations.
As stated by Allred et al. (2017), one of the primary factors which had enabled the various Shell companies in England to gain unprecedented success in the recent times is their extensive focus on profitability and also the net revenue earned by them. The net result of this is the fact that these companies often take the help of human capital management which are not only illegal but at the same time unethical as well. More importantly, it is seen that these companies in England do not offer fixed salaries to the employees rather commissions are being offered to the employees on the basis of the amount of profit or revenue that they are being able to bring within the fold of the organization (Stack 2015). The companies in England, thus, often resort to the use of strategies like total quality management and others for the maximization of the performance of the employees. However, at the same time, it needs to be said that there is very little amount of initiative on the part of these companies to effective manage the human capital or for that diversity within their workplace.
It is pertinent to note that individuals from different ethic as well as cultural backgrounds work at these companies in England because of the impressive compensations that they offer to the employees. However, the inadequate policies used by them like gender pay-gap, ineffective disability policies, inadequate minimum wage and others not causes dissatisfaction among the employees but at the same time enhance the attrition of the employees as well (Greene and Kirton 2015). On the contrary, Allred et al. (2017)argue that the aggressive focus of these organizations in England is on profitability has helped these companies to attain financial success in the recent years.
A close analysis of the policies followed by the different Shell companies in England reveal the fact that not the same kind of opportunities are available to all the employees who are related to these companies. For example, one of the major problems that the employees related to these companies in England face is the inequality of opportunity. In this regard, it needs to be said that the employees within the framework of these companies are given preference on the basis of the amount of revenue that they are being to bring within the fold of the organization rather than the contribution that they had made towards the growth of the concerned organization (Janssens and Zanoni 2014). In addition to this, because of the ineffective diversity management policies that these organizations have, the employees had to face various kinds of problems not only related to the work that they do but at the same time related to the relation that they share with their colleagues (Ning, Xiao and Lee 2017). Thus, it can be said that there is a need for these organizations to formulate effective diversity management policies and similar ones so as to manage the human capital that they have at their disposal in an effective manner.
Schwabenland and Tomlinson (2015) are of the viewpoint that the contemporary organizations can reap various kinds of benefits through the effective utilization of diversity which exists within the framework of their organization. As opined by Choi and Rainey (2014) through the effective utilization of the diversity which exists within the framework of different organization can improve their organizational culture in a substantial manner. For example, the performance of the employees depends to a great extent on the kind of organizational culture which is being followed within the framework of an organization (Roberson, Ryan and Ragins 2017). In this regard, it needs to be mentioned if an organizational has an effective or congenial organizational culture then this can affect the performance of the employees in a positive manner and vice versa (Riccucci 2018). This becomes especially important from the perspective of the various Shell companies in England wherein it is seen that there are large number of individuals belonging to different ethic or cultural backgrounds. Another important aspect of the effective diversity management is the fact that they help in reducing the number of disputes or conflicts which arises within the framework of these organizations (Barak 2016). Furthermore, the employees also get to learn new skills from their colleagues, which can help them to perform in a much effective manner. These in short are some of the opportunities that the effective management of diversity can offer to the different organizations.
As stated by Trischler, Kristensson and Scott (2018), the organizations in order to effectively reap the benefits offered by the process of diversity management can take the help of different kinds of policies to promote equality among the different employees of the organization. For example, first of all the organizations need to make it very clear that all the individuals related to the organization are equal and thereby should be treated in an equal manner by all the members of the organization (Ning, Xiao and Lee 2017). In addition to this, the organization at the same time needs to ensure the fact that no discrimination is being made among the employees at the time of the allocation or delegation of tasks, appraisals, conflict resolution and others on the basis of their cultural or ethnic backgrounds (Roberson, Ryan and Ragins 2017). Furthermore, the organizations can at the same time try to enhance the engagement level among the different employees of the organization through various kinds of social events, recreational events and others. Moreover, the organizations should try to integrate various kinds of legislations like Equality Act 2010, Anti-Discrimination Act 1991 and others within the framework of corporate governance policy followed by them (Janssens and Zanoni 2014). The Equality Act requires the organizations to treat all the employees of their organization in an equal and offer equal kind of opportunities to them along with wage and other aspects (Roberson, Ryan and Ragins 2017). The Anti-Discrimination Act, on the other hand, prohibits discrimination on the basis on skin color, race, ethnicity and others within the framework of organizations (Riccucci 2018). These are not only likely to promote equal among the different employees of the organization but would at the same time provide equal kind of opportunities to all the employees of the organization as well.
The organization currently is trying to follow various kinds of policies like equal gender pay, additional pay to disabled people, cultural integration program and others within the framework of their organization so as to manage the diverse people who form a part of the organization. The primary purpose of these policies is to resolve the various issues that the organization is facing currently because of the ineffective management of diversity within their workplace (Greene and Kirton 2015). The gender pay within UK is more than 9.8% and this limits the kind of opportunities that are available to women in comparison (Ning, Xiao and Lee 2017). Thus, it becomes all the more for the shell companies in England to reduce the gender pay gap which exists within the framework of their organization. The strengths and weaknesses of the equal gender pay policy and disability policy followed by the organization are given below-
This policy of the organizations intends to reduce the discrepancy which exists between the wages of the men employees of the organization and the female ones. The primary strength point of policy under discussion is to reduce the inequality with the workplace of the organization. The organization unlike the earlier times intends to offer equal kind of opportunities to both men and women and this is the major reason why the organization is opting for the use of this policy. The effective use of this policy is likely to improve the job productivity as well as satisfaction of the employees in an effective manner and thereby reduce the attrition rate. The weakness of the policy under discussion here is the fact that organization does not have an effective corporate governance policy for the effective implementation of this policy. In addition to this, there is lack of effective monitoring as well as controlling mechanisms for the policy under discussion here within the framework of the organization. Finally, the current culture of the organization also does not support this policy.
This policy of the organizations intends to reduce the discrimination which exists between the different normal employees of the organization and the physically challenged ones. For example, it is seen that the physically challenged people not only get a lower wage but at the same time had to endure much discrimination as well. The major strength point of this policy is the fact that an effective use of this policy is likely to improve the brand or the market image of the organization in significant manner. More importantly, this policy is likely to offer equal kind of opportunities to the disabled people within the organization on par with the other employees of the organization. This in turn will enhance the job satisfaction level of the employees and thereby help in the enhancement of the job productivity of the employees. More importantly, this will reduce the attrition rate of the employees of the organization as well. The major weakness of this policy is the fact that the organization does not have an effective corporate governance policy to support the policy. In addition to this, the organization does not have effective controlling or monitoring measures for the regulation of the policy. More importantly, the organizational culture of the company also does not support this policy.
As already mentioned the primary focus of the various Shell companies is on the amount of profit that they make and not on the effective management of the human capital who are associated with the organization. Thus, it is likely that the organizations are likely to face various kinds of problems during the implementation of the legislations and policies that are likely to help them to manage the diversity of workforce within the framework of their organization. For example, the primary problem that the organizations are likely to face is the fact that in order to implement these legislations in an effective manner they would first of all have to formulate effective corporate governance policies which the majority of these organizations do not have (Jancsics 2017). Secondly, the employees who have already settled with the existing policies followed by the organization are likely to protest since this would require them to change their normal style of work and conduct within the premises of the organization (Stack 2015). Third, the HR professionals would also have to regularly monitor as well impose penalties on the individuals who are not following these regulations offered by the organization in a sacrosanct manner. This again is likely to entail a substantial amount of criticism from the existing employees of the organization.
It is pertinent to these policies that the organization under discussion here has formulated are not in synchronicity with the other strategies followed by it because of its extreme focus on profitability. For example, it is seen that because of the absence of effective HR policies and also lack of clarity of business strategies used by the organization these policies formulated by the organization does not fit into the framework of the organization (Allred et al. 2017). However, at the same time, it needs the effective utilization of these policies is likely to improve the business prospects of the organization in a substantial manner since it is seen that the contemporary customers have become very conscious regarding the brand image of the organizations whose products they are opting for. More importantly, this will at the same time not only help the organization to earn a higher amount of profitability but competitive advantage over its competitors as well.
The recommendations that the organization under discussion here can use for the effective management of diversity are-
Conclusion
To conclude, unlike earlier times diversity has become a part of the contemporary workplaces and the business prospects of an organization depends to a great extent on the effectiveness with which it is being able to manage it. Furthermore, it is seen that the organizations can reap various kinds of benefits through the effective use of the process of diversity management like the improvement of employee performance, improvement of organizational culture and others. However, at the same time it needs to be said that for the effective utilization of the concept of diversity the organizations need to take the help of different kinds of policies and legislations to offer equal opportunities to all the employees of the organization.
References
Allred, B.B., Findley, M.G., Nielson, D. and Sharman, J.C., 2017. Anonymous shell companies: A global audit study and field experiment in 176 countries. Journal of International Business Studies, 48(5), pp.596-6190.
Barak, M.E.M., 2016. Managing diversity: Toward a globally inclusive workplace. Sage Publications.
Choi, S. and Rainey, H.G., 2014. Organizational fairness and diversity management in public organizations: Does fairness matter in managing diversity?. Review of Public Personnel Administration, 34(4), pp.307-331.
Greene, A.M. and Kirton, G., 2015. The dynamics of managing diversity: A critical approach. Routledge.
Jancsics, D., 2017. Offshoring at home? Domestic use of Shell companies for corruption. Public integrity, 19(1), pp.4-21.
Janssens, M. and Zanoni, P., 2014. Alternative diversity management: Organizational practices fostering ethnic equality at work. Scandinavian Journal of Management, 30(3), pp.317-331.
Ning, Y., Xiao, Z. and Lee, J., 2017. Shareholders and managers: Who care more about corporate diversity and employee benefits?. Journal of Management & Governance, 21(1), pp.93-118.
Ramos, M.R., Hewstone, M., Barreto, M. and Branscombe, N.R., 2016. The opportunities and challenges of diversity: Explaining its impact on individuals and groups. European Journal of Social Psychology, 46(7), pp.793-806.
Riccucci, N., 2018. Managing Diversity In Public Sector Workforces: Essentials Of Public Policy And Administration Series. Routledge.
Roberson, Q., Ryan, A.M. and Ragins, B.R., 2017. The evolution and future of diversity at work. Journal of Applied Psychology, 102(3), p.483.
Ruddick, G. 2018. Lenny Henry urges Ofcom to impose BBC diversity targets. [online] the Guardian. Available at: https://www.theguardian.com/media/2017/aug/01/lenny-henry-urges-ofcom-to-impose-bbc-diversity-targets [Accessed 28 Nov. 2018].
Schwabenland, C. and Tomlinson, F., 2015. Shadows and light: Diversity management as phantasmagoria. human relations, 68(12), pp.1913-1936.
Stack, G., 2015. Shell companies, Latvian-type correspondent banking, money laundering and illicit financial flows from Russia and the former Soviet Union. Journal of Money Laundering Control, 18(4), pp.496-512.
Trischler, J., Kristensson, P. and Scott, D., 2018. Team diversity and its management in a co-design team. Journal of Service Management, 29(1), pp.120-145.
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