Discuss about the Report on Grow In Todays Dynamic Business Environment?
In today’s dynamic business environment which is characterised by competition, complexity and globalisation, managing diversity is the biggest challenge faced by managers and leaders (Barak, 2013). The changing demographics of labour markets and the globalisation of business across the globe have driven much interest of practitioners and management scholars towards the areas of diversity and diversity management. Workforce diversity acknowledges the fact that every individual is different and these individual differences based on age, gender, nationality, race, caste, culture, religion, ethnicity, personality and mental or physical disability must be respected and accepted within organisations to achieve desired goals (Henry & Evans, 2007). A diverse workforce within an organisation comprises a multitude of beliefs, values, understandings, unique information and ways of viewing the world. A cross-cultural and multicultural workforce is a common feature of all organisations across the globe today.
Effective diversity management not only help developing a positive organisational culture but also help the organisation in gaining a competitive advantage and increase its overall effectiveness and efficiency (Cairns & Preziosi, 2014). Effective diversity management enhances the knowledge economy of an organisation as diversity adds different perspectives, ideas and knowledge into the creative and decision-making processes, thus, increasing overall organisational competence and performance. However, like other management practices, a failure to effectively manage workforce diversity leads to several negative effects such as reduced cohesiveness and increased conflicts (Cox & Blake, 1991). This report helps developing a critical understanding that diversity is not an issue to be managed with, rather it is an opportunity which when used in a positive direction helps enhancing personal and organisational effectiveness.
The composition of modern workforce is far more varied when compared to composition of workforce in the past owing to economic factors such as globalisation and competition, and demographic factors such as immigration (Worman, 2014). The concept of diversity and diversity management gained increased attention with more organisations aiming to increase their global reach and attract customers across the globe. The literature related to workforce diversity and diversity management is much deeper that what is seen on the surface level (Simons & Rowland, 2011). The literature on workforce diversity and diversity management was reviewed to determine the definition of diversity management, related key terms and its significance in improving organisational performance.
Diversity is defined by The Chancellor’s Committee on Diversity as “the variety of perspective and experiences which arises from differences in culture, race, age, gender, religion, sexual orientation, mental or physical abilities and other characteristics (Burgin, 2010). Diversity management in a broad sense is defined as the planned and systematic commitment by the organisations to select, recruit, rewards, retain and promote a heterogeneous mix of employees. Diversity helps improving organisational effectiveness and organisations that are recognised for their effective diversity management strategies are likely to attract most competent employees (Cairns & Preziosi, 2014). Workforce diversity is also defined as the coexistence of employees from different socio-cultural and demographic backgrounds. Effective diversity management requires development of an organisational culture where employees get ample opportunities to realise their full potential and career aspirations without any discrimination based on difference in age, gender, sexual orientation, caste, culture, race, nationality and disability or any other factors that have no impact on individual performance (Patrick & Kumar, 2012). It enables a diverse workforce to perform in an equitable work environment where no one group is treated with favouritism.
Workplace diversity is a phenomenon that is controversial, political and complex in nature (Beinrauch, 2013). Workplace diversity can be classified in five different clusters namely; demographic characteristics such as age, gender, ethnicity, sexual orientation, religion, physical status and education; task-related skills, knowledge and capabilities; attitude, views and values; attitudinal, personal and cognitive styles; status in the workplace such as, professional domain, hierarchical position, seniority and departmental affiliation (Burgin, 2010). Theoretically, the effects of workforce diversity can be examined with the help of three theoretical frameworks namely; social categorisation which categorise people based on some salient attributes such as age, gender, or ethnicity leading to stereotyping based on these differences, the similarity/attraction theory which states that similarity on non-salient or salient attributes like values or race results in increased interpersonal attachment and attraction, and the information and decision-making theory which studies the influence of expertise and distribution of information on work-teams (Bolen & Kleiner, 1996). However, different theories lead to contradictory hypotheses regarding the effects of workforce diversity on group performance and process. Similarity/attraction theory and social categorisation predicts that workforce diversity has negative effects such as, reduced commitment and satisfaction, decreased communication within the groups and increased employee turnover (Crowther & Davila-Gomez, 2012). Information and decision-making theory predicts a positive effect of workforce diversity wherein diverse team members bring together different perspectives and views in the process of information processing and decision-making leading to innovation and growth.
Effective diversity management not only help organisations attract more competent professionals and achieve high performance effectiveness but also enable them gain and retain a competitive advantage against their rivals (Kreitz, 2007). Other potential benefits realised but organisations that encourage workforce diversity include increased creativity and innovation, improved decision making, better distribution of economic opportunities and successful marketing to domestic and international communities. Effective diversity management help organisations reduce work discrimination and in turn develop an ethical culture (Mattiske, 2012). Organisations that are able to manage workforce diversity are successful in creating a positive perception in the minds of consumers thus, winning consumer loyalty. Organisations with a diverse workforce are recognised for their effective customer-service as they are able to better identify and understand the needs of diverse customers as compared to organisations that do not encourage diversity. Hiring women employees, people from different culture, minorities and disabled will help the organisation capture diversified market segments and niche markets (Beinrauch, 2013). Diversity is about accepting and respecting individual differences in a way that its leads to improved individual and organisational effectiveness (Bolen & Kleiner, 1996). Effective diversity management help organisations in performing their corporate social responsibilities by encouraging and supporting the growth and development of almost all segments of the society.
Applying Hofstede’s framework to determine the impact of national culture on organisation performance
Hofstede framework places national cultures into five dimensions as defined below:
Power Distance: The extent to which individual’s within a community or society accepts the unequal distribution of power among the members (Blundel & Ippolito, 2008). Every citizen differs in terms of their intellectual and physical capabilities and as per some nations these differences are the reason for the inequalities in their well-being.
Individualism versus Collectivism: Individualism is that attribute of a national culture which indicates a loose-knit social framework where individuals are concerned only for themselves and their immediate family (Graetz, et al., 2012). Contrary to this collectivism is that attribute of national culture which indicates a thigh-knit social framework where people are concerned for the well being of every member of their group.
Quantity versus quality of life: Quantity of life attribute is one in which social values are represented by materialism and assertiveness (Hellriegel & John W. Slocum, 2011). Quality of life attribute is one which fosters concern for others and relationships.
Uncertainty avoidance: The degree to which a society avoids ambiguous and uncertain situations (Kitchin, 2010).
Long-term versus short-term orientation: Nations that are long-term oriented emphasize the thrift, future and persistence (Mullins, 2011). Contrary to this nations that are short-term oriented emphasize the respect for tradition, past and present, and fulfilling social obligation.
Organisations that encourage diversity employ individuals who belong to different nations thus are able to create a balanced equilibrium of all the five dimensions (Cairns & Preziosi, 2014). An organisation that comprises of employees who think similar faced issued of reduced organisational performance and growth as compared to organisations that respect and accept individual differences
Cardinal IG plant at Fargo, under David Pinder’s leadership has very effectively managed workforce diversity to achieve its desired mission and vision (Zoominfo, 2016). Cardinal IG plant at Fargo, has always outperformed compared to its other plants in terms of financial performance and production efficiency. Compared to any other Cardinal IG’s plant, Fargo IG has the highest workforce diversity. Fargo IG employs 183 people of which 55 percent of them are New Americans who come from 15 different countries across the globe (Window and Door Manufacturers Association, 2016). The company has very effectively managed workforce diversity which in turn had helped the company in becoming the flagship company of Cardinal IG in very short time. David Pinder with his ethical leadership has developed a culture of respect, dignity, discipline and love, which support his aim of developing a workplace where employees enjoy coming very day because they are respected and the work is challenging, fun and meaningful (Ferrell, et al., 2012). David Pinder treats all his employees as leaders and treats them with due respect and dignity. As a leader he expects his subordinates to treat their subordinates in the same way as they are treated.
Effective diversity management at Cardinal IG plant in Fargo helped the company in gaining customer trust and loyalty in very short time (Fisher & Lovell, 2006). It has helped the company in achieving its vision and mission. The company lives by its values and principles ensuring that every employee is aware of expected standards of behaviour. Pinder shows zero tolerance against work discrimination of any form. Work discrimination straight away leads to dismissal of employee irrespective of their position in the organisation (Ferrell, et al., 2012). Thus, managing a heterogeneous workforce has helped the company to develop a team of motivated and committed employees who contribute towards the success of the organisation. It also helps the company in attracting and retaining hardworking and competent employees, adding high value to its talent and knowledge economy. Effective diversity management at Cardinal IG plant in Fargo has helped the company in gaining customer trust and loyalty in very short time (Ferrell, et al., 2012). The company has access to a much larger pool of ideas and suggestions owing to the different perspectives and views of the diverse workforce. They could provide a broader service range to their customers because of the diverse collection of skills and experiences possess by a diverse workforce.
Conclusion and Recommendations
In order to survive and Grow In Today’s Dynamic Business Environment businesses need to encourage workforce diversity and manage individual differences effectively. Organisations that are able to manage a heterogeneous group of employees with socio-cultural and demographic differences are able to better understand consumer needs and capture rapidly growing base of minority consumers. Businesses can encourage and manage workforce diversity by implementing ethical code of conducts that show zero tolerance for work discrimination. To manage diversity businesses much develop a culture of respect, dignity, discipline and love as done by Cardinal IG plant in Fargo. A culture of discipline and love encourage employees to practice responsible and accountable leadership. When employee know they are loved they show commitment in return. To manage diversity at workplace, it is essential that employees are treated as most precious resource of the organisation and made a part of decision making. A culture of equality and trust will help managing heterogeneous employees as they work together as teams to achieve organisational goals.
Barak, M. E. M., (2013) Managing Diversity: Toward a Globally Inclusive Workplace. London: Sage Publications.
Beinrauch, R., (2013) Diversity Management: A Source of Competitive Advantage?. Norderstedt: GRIN Verlag.
Blundel, R. & Ippolito, K., (2008) Effective Organisational Communication: Perspectives, Principles and Practices. London: FT Prentice Hall.
Bolen, L. & Kleiner, B. H., (1996) Managing Diversity in the Workplace. Cross Cultural Management: An International Journal, 3(4), pp. 3-8.
Burgin, M., (2010) Theory of Information: Fundamentality, Diversity and Unification. Singapore: World Scientific.
Cairns, T. D. & Preziosi, R. C., (2014) Why HR Leaders Should Encourage Diversity of Thought. Employment Relations Today, 2(1-9), p. 41.
Cox, T. H. & Blake, S., (1991) Managing Cultural Diversity: Implications for Organizational Competitiveness. The Executive, 5(3), pp. 45-56.
Crowther, D. & Davila-Gomez, A. M., (2012) Human Dignity and Managerial Responsibility: Diversity, Rights, and Sustainabilit. Hants: Gower publishing.
Ferrell, O. C., Fraedrich, J. & Ferrell, (2012) Business Ethics: Ethical Decision Making & Cases. New York: Cengage Learning.
Fisher, C. & Lovell, A., (2006) Business Ethics and Values. Essex: Pearson Eductaion Limited.
Graetz, F., Rimmer, M., Smith, A. & Lawrence, A., (2012) Managing Organisational Change. New Jersey: John Wiley & Sons.
Hellriegel, D. & John W. Slocum, J., (2011) Organisational Behaviour. New York: Cengage Learning.
Henry, O. & Evans, A. J., (2007) Critical review of literature on workforce diversity. African Journal of Business Management, 1(1), pp. 72-76.
Kitchin, D., (2010) An Introduction to Organisational Behaviour for Managers and Engineers. New Jersey: Routledge.
Kreitz, P. A., (2007) Best Practices for Managing Organizational Diversity. [Online]
Available at: https://www.slac.stanford.edu/cgi-wrap/getdoc/slac-pub-12499.pdf
[Accessed 2016].
Mattiske, C., (2012) Understanding and Managing Diversity. Seattle: AudioInk.
Mullins, L. J., (2011) Essentials of Organisational Behaviour. London: Financial Times Prentice Hall.
Patrick, H. A. & Kumar, V. R., (2012) Managing Workplace Diversity Issues and Challenges. [Online]
Available at: https://sgo.sagepub.com/content/2/2/2158244012444615
[Accessed 2016].
Simons, S. M. & Rowland, K. N., (2011) Diversity and its Impact on Organizational Performance: The Influence of Diversity Constructions on Expectations and Outcomes. Journal of Technology Management and Innovation, 6(3), pp. 172-183.
Window and Door Manufacturers Association, (2016) Board of Directors. [Online]
Available at: https://www.wdma.com/?page=BoardofDirectors
[Accessed 2016].
Worman, D., (2014) Managing Diversity Measuring Success. [Online]
Available at: https://www.academia.edu/344101/Managing_Diversity_Measuring_Success
[Accessed 2016].
Zoominfo, (2016) Zoominfo. [Online]
Available at: https://www.zoominfo.com/p/David-Pinder/286140100
[Accessed 2016].
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download