The paper "Managing Diversity in International Business Machines Australia" is a good example of a management case study. The increasing globalization in the world necessitates more interaction amongst individuals from different cultures, backgrounds and beliefs than before (Aghazadeh, 2004, p. 527). Individuals no longer work and live in a narrow market; they are currently part of the global economy with the competition increasing from almost all continents. Therefore, organizations require diversity to be creative. Maximizing and taking advantage of organizational diversity has turned out to be a significant issue for top management today (Kulik & Roberson, 2008, p. 271).
Today, IBM is one of the largest manufactures and seller of computers employing several employees across the world. Waddell, Cummings & Worley (2011) claim that in 2010, Diversity Inc. ranked International Business Machines as the second-largest US company in terms of employees with up to 435,000 globally. Since it operates worldwide and has several staffs, it is simple to understand the existence of workforce diversity in the firm and the complication of the managing diversity in the company. This report, therefore, analyses the importance of managing diversity in organizations. Why managing diversity is important for organizations With globalization increasing in the world of business today, organizations have found themselves in an awkward situation that they have to scramble for foreign markets to maximize their profits (Fowler, 2006, p. 401).
Even though every company hopes to market it right in the foreign target market, not every company becomes successful. Waddell, Cummings & Worley (2011) argue that for the fear of failure in the market, IBM Australia has formed two groups which help the firm to manage its workforce diversity.
The two committees include the diversity council and Diversity Contact Officers (Waddell, Cummings & Worley, 2011). Just like any other organization, IBM manages its workforce diversity so that it can get the opportunity of successfully competing in the global markets (Waddell, Cummings & Worley, 2011). In this perspective, the company created the two councils to help it compete in the Australian market. According to Waddell, Cummings & Worley (2011) managing diversity also help companies including IBM in attracting bilingual and multicultural skilled workers. When employees from different culture live and work together, they also learn unique and creative ways of doing things.
Managing diversity is also important because it ensures employees work in harmony and create a feeling that they are part of the organization (Reynolds, Rahman & Bradetich, 2014, p. 427). For IBM, its diversity program management is founded on three basic principles including creating advancement of the women, to create work balance and to integrate people with disability Consequences of organizations not managing diversity issues In the current globalization, employees with different cultural background and orientation gather towards the organization common objectives (Barak, 2005).
In return, the company pays or remunerate them for the services. Barak (2005) asserts that it is not easy to drop a unique personality and personal interest to pursue the organization’ s common goal. The company managers must have cultural intelligence or must have a plan to deal with cultural diversity. If this is not done, cultural prejudices and stereotypes will manifest themselves. Misunderstanding the employee’ s cultural background actually leads to feeling fewer inclusions in organizations (Fowler, 2006, p. 407). In such a case, some people will feel unfair treatment.
Employees feeling unfairly treated are likely to be less motivated and later resign. In a nutshell, companies which do not manage diversity issues experience less motivation and a high number of employees’ turnover. Also, companies without proper diversity management find it hard to get into global markets (Aghazadeh, 2004, p. 529). This is because every market has its challenges and risks. An organization in which cultural diversity is not managed struggles to adapt to change.