Workplace Diversity and Human Resource Management - Pepsico and Coca-Cola - Case Study Example

Workplace diversity and human resource management Institution: Name: Date: Workplace diversity and human resource management Workplace diversity is an emerging issue in the human resource management and the two concepts are interrelated. Boxall & Purcell (2011, p. 7) defines human resource management as the governance of the employees of an organization. Human resource management at times is simply referred to as HRM or HR. Human resource management can also be defined as the part of the management that is concerned with strategies, operations, activities, decisions and methods that are related to the employees in any given type of organization. The human resource management has the role of suggesting to the team how to manage people as the resource of the business. This entails not only managing but also recruiting employees, coordinating the benefits of the employees as well as suggesting the employee training and development strategies. This makes HR professionals to be regarded as consultants and not workers. The managers has the role of advising the managers on various issues that are related to the employees in addition to how the assist the organizations to realize their goals. An HRM team helps a business develop a competitive advantage, which involves building the capacity of the company so it can offer a unique set of goods or services to its customers (Konrad, 2006, p. 19). To build effective human resources, private companies compete with each other in a "war for talent." It's not just about hiring talent; this game is about keeping people and helping them grow and stay committed over the long term. Additionally, HRM can assist the business to develop competitive advantage, which entails building the capacity of the organization to provide unique services or goods to its customers (Bratton & Gold, 2007, p. 89). Studies have proven that the element of diversity as given people equal opportunity to enter the business. Most successful organizations across the globe have been effective in hiring minorities and women with an aim of increasing diverse markets. Human resource managers can also manage workplace diversity effectively through training whereby it teaches the staff on how to benefit from the diverse backgrounds. The HR should create an environment that the employees are hired based on their experience and not gender or race. Furthermore, the management can have in place strong example of diversity within the workplace by adapting policies (Tanke, 2001, p. 89). As the global leaders in the beverage industry, Pepsi and Coca-Cola companies perceive diversity as a valued added activity. The products of the companies reach a wide range of cultures and markets across the globe in addition to recognizing the numerous benefits of diversity to the organization in the long term. Devoe (1999, p. 67) points out that PepsiCo and Coca-Cola use diversity in order to fulfill organizational objectives as well as add value to the organization. Because of globalization, both companies recognize the importance of diversity on global marketing strategies and on the human talent. According to the two companies, diversity is important to long term sustainability in addition to the ability to serve the customers effectively. The Coca-Cola Company offers a diverse education programs, which not only minimizes conflict but also amplifies the value, respect and leverage the organizations differences with an aim of realizing results. The three pillars of the company’s diversity in education include diversity training, diversity library and diversity speaker. The training helps in driving employees’ engagement as well as creating a work environment that put in place a work environment that accelerates diversity. It is important for the HR to provide diversity training that assist to ensure that the associates clearly understand how to the company is procurement power by ensuring that there is a pool of suppliers that entail minority women as well as women owned business enterprises. Boxall & Purcell (2011, p. 78). diversity is the variation of cultural and social identities among people in defined marketing or employment setting. Pepsico and Coca-Cola have had some issues in the past and this made them embrace diversity. Presently, they support strategic diversity initiatives programs that offer benefits for suppliers, employees, shareholders and consumers. From the above analysis, it is evident that diversity in the two organizations is embedded. Cox (2001, p. 56), points out that for an organization to survive in the present global market, it is important for the management to view diversity on a broader perspective. The two companies are demonstrating competence in the aforementioned area and are paving a new era for diversity in the workplace. There are various management styles that promote diversity within the workplace. One of them is reinforcing the employee competencies and this can be realized through learning and development (Daly, 1998, p. 45). Therefore, it is important for organizations to include also their vision for diverse to management with an aim of assisting the new employees to understand the behavior and values expected of them. This can be understood by introducing the new employees to the existing ones so that they can be oriented to the company’s operations. Furthermore, through the performance management the HR can ensure that there is career planning and performance management system within the organization with an aim of ensuring harmonious and inclusive workplaces Mullins (2010, p.16). However, one of the effective ways is to facilitate inclusiveness in the workplace so that there is positive interaction between the management and other employees. Horwitz (1999, p. 180) in order to survive into the global competitive market, it is important for managers to move from corporate design of management to focus on the creativity, skills and knowledge of the people. The HR places emphasis on a clear HR strategic plan that entails a formal structural design as well as effective management processes. Furthermore, their focus is on developing the employees’ capabilities in addition to broadening their perspective with an aim of realizing the company’s objectives and Coca-Cola and Pepsi Company has not been an exception. There have been emerging technologies that have made the HR to change their management styles and adapt styles such as performance management style. The performance management style had a number of benefits for a diverse workforce. First performance management is perceived as a HR strategic tool that is holistic in nature (David & Robin, 1996, p. 78). This is because it assists the management with effectively managing a diverse workforce. It creates a culture whereby individuals as well as team focus on excelling in terms of business skills and processes. This kind of management also improves the quality of the relationship between the management and among the employees thus creating an environment of openness and mutuality. The modern HR has ensured that the employees competencies have been enhanced to ensure they perform outstandingly and have competitive advantage in the market (Jackson & Society for Industrial and Organizational Psychology 1992, p. 89). In order to successfully manage diversity, it is important for organizations to partner with other in order to succeed. For example in U.S, Pepsi company entered into partnership with Lean Inc. which is a non-profit organization with an goal of providing women with both support and encourage to attain their professional and personal goals. The company can also access various resources and tools for example online discussion forums where they can easily receive insights from leaders across academia, government and business in addition to accessing free development modules. Additionally, in the early 1940s, the company was the first one not only to grant franchise to various races but also took part in multicultural marketing. It is one of the international companies that have women in its board of directors. As global companies, both companies operate in nations with broad laws and regulations. However, regardless where they two operate, Coca-Cola and PepsiCo they respect the talents, diversity as well as everyone’s ability. For example, at PepsiCo, the HR defines diversity as the unique features that make its workforce and this include ethnicity, thought processes, personality, lifestyle, gender, sexual orientation, age, nationality, marital status, and work experience among other differences. It is also important for HR to consider supplier diversity in the competitive market place. For example, PepsiCo and Coca-Cola Company perceive supplier diversity as key in developing economic advantage. They also assist in developing innovation with an aim of spurring sustainable growth as well as establishing sustainable supplier that mirrors the company’s customer and employee base. The companies’ suppliers are also encouraged to embrace diversity (Daly, 1998, p. 67). Informal and formal groups are key components in handling work diversity. The groups make organization to attain and improve employees’ satisfaction in the work environment. Kossek (2000, p. 45) points out that an employees is likely to be committed to the organization and less likely to leave if there is strong ties with his/her colleagues. While at times it is perceived as being negative that HR roles entail party planning to encourage informal groups, savvy firms and managers that informal groups and teamwork are part job embedding and can assist establish a community that fosters strong links among employees as they feel motivated. Additionally formal and informal groups can be significant components of marketing (West 2012, p. 67). For example, PepsiCo HR hires from diverse communities as one of the prerequisite of expanding successfully to other markets. On the other hand, a negative interaction between the customer and the employee can be an embarrassment to the firm. Horwitz (1999, p. 178), it is important for the management to integrate as well as build upon the beliefs and values of every team member as well as develop group strategy with an aim of producing better solutions and results that are more innovative contributions. The Coca-Cola is the not only the largest manufacturer and marketer of non-alcohol beverages globally. The company markets its products in more than 200 nations. This makes the company to invest easily in emerging markets. These two companies have widely spread workforce across the globe and are drawn from diverse communities. On the other hand, PepsiCo HR is committed in realizing diversity by increasing the number of women leaders through recruitment and development programs globally. The women associates within the PepsiCo can make use of the number of programs to advance their career objectives. Esty, Griffin & Hirsch (1995, p. 45) the importance of the hawthorn in changing the behavior of the individuals within a group with an aim of ensuring personal and organizational growth. The theory emphasis the importance factors such as group dynamics, communication, motivation and leadership styles within the organization. Bratton & Gold (2007, p. 56), points out that mobility programs in various companies function as an engine that facilitates movement of talent not only in a cost effective but also in a seamless manner. Moreover, it is expensive to satisfy the wants and needs of the employees. However, mobility policies have become more flexible in order to the varying needs of the stakeholders and competing demands. This has forced the HR to come up with various strategies of addressing the same. The company adapts systems that enhance a healthy work-life balance in order to survive in a competitive business environment. Mullins (2010, p. 18) diversity management is designed so that employees are in a position to realize their full potentials in addition to enhancing organizational capability as well as creating synergies that will expand the business and boost the company’s productivity. Therefore, it is important to build a work environment that ensures work style flexibility and human resource diversity. In the era characterized by increasing competition for talent, HR is offering the workforce an environment to demand the demands between personal lives and careers. Some of the programs that HR of global companies such as PepsiCo and Coca-Cola has adapted include part-time schedules, job sharing, and flexible work arrangement, shift-swapping and floating leave among others. Thiederman (2008, p. 56) in his study points out that the concept of employee training and development is important to the modern business. Therefore, the process should be continues because knowledge is obsolescence and hence require dynamic changes and changes. It is important to note that HR is a representation of intellectual resources that is the crucial and emerging source of resources for organizations and the impact is elevated via training and development. Training and development can only occur if the HR appreciates the need to find challenges as a result of organizational change and globalization. Therefore, organizations are aiming at creating effective learning environment and this has made to collaborate with other learning institutions and academies with an aim of promoting innovation and diversity within the workplace. For example, Coca-Cola and PepsiCo have collaborated with other learning institutions. This has enabled them to attract talent in addition to involving the employees in the organizational procedures and motivate them to generate knowledge that will assist in improving their professional skills and enhancing organizational productivity. Horwitz (1999, p. 180) points out that learning level of an organization determines the competitive advantage in the market. In conclusion, diversity is significant to every organization. This is because it contributes to harnessing a pool of workforce with unique qualities an aspect that contributes to realization of company’s expansion and growth in the competitive market. Furthermore, a diverse workforce will enable the management to have different perspectives and hence cause alternative approaches and solutions in solving work issues. Furthermore, the amalgamation of diverse workforce contributes to establishment of a stage for creativity. This is because diverse ideas can be evaluated and tested and new ones born. Therefore, the employees can experience personal growth as they are exposed to different ideas, opinions and culture (Mabey, Salaman & Storey (1998, p. 50). A diverse workforce can optimize the ability of the organization in meeting the needs of every market. This is because representatives of particular demographics can be paired with customers of the same backgrounds and hence assisting the customers to be more comfortability and develop a sense of affinity with the employees and the organization as a whole. Moreover, diversity makes the company attractive. This is because it is open to exploring new styles and ideas that is appealing to open minded employees. Despite the significance of workplace diversity, there are challenges facing its promotion within the organization. One of the challenges is the changing demographics. For example because of education and globalization, the number of women entering the workforce has increased considerably. There is also the aspect of ethnocentrism that managers need to tackle in order to manage diverse workforce successfully. Ethnocentrism is the aspect/belief that one’s country, customs, group or culture is superior compared to the others (Esty Griffin & Hirsch, 1995, p. 90). There is also the aspect of discrimination, which makes it challenging for the organizations to promote diverse workforce. Other factors are linked to globalization and technological emergences. There are several ways of improving human resource policies and workplace diversity. First through the recruitment and selection program, the organization should ensure that there is equal opportunity for everyone to join its workforce. Another way of improving diversity management is through training and development as well as through performance appraisal. Cox (2001, p. 90) however points out that there is differences among HR managers on the principles of organizational diversity practices. Even though most companies are aware of the equal opportunity and notable via the legislative prerequisites, a few organization have effective programs to implement the same. References Boxall, P. F., & Purcell, J. (2011). Strategy and human resource management. Houndmills, Basingstoke, Hampshire: Palgrave Macmillan. Bratton, J. & Gold, J. (2007). Human Resource Management: Theory and practice. London: Palgrave MacMillan. Cox, T. (2001).Creating the multicultural organization. San Fransisco: Jossey – Bass Publishers. Daly, A. (1998). Workplace diversity: issues and perspectives. Washington, DC, NASW Press. David, A. T. & Robin J. E. (1996). Making Differences Matter: A New Paradigm for Managing Diversity, Harvard Business Review, September-October 1996, pp. 79-90. Devoe, D.. (1999). Managing a diverse workforce. San Mateo, CA: InfoWorld Media Group. Esty, K. C., Griffin, R., & Hirsch, M. S. (1995). Workplace diversity. Holbrook, Mass, Adams Publ. Horwitz, F.M. 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