Workforce Diversity - Assignment Example

Workforce Diversity Name: Course: Institution: Tutor: MANAGING WORKFORCE DIVERSITY Executive Summary The following paper presents a report about diversity management practices in modern organizations. The report is based on a case study of McDonalds although it can fit to other organizations. The report is divided into two major sections. The first part is a critical analysis of existing literatures on the topic of workforce diversity. This section reviews among other things the definition of workforce diversity, benefits of workforce diversity and various ways of implementing diversity for superior business performance. The next section is a case study of McDonalds’ diversity management program. This section has discussed the important contributions of workforce diversity to the organization. The section has also discussed the negative impact of diversity to the organizations. The report finds that diversity management is a valuable source of competitive advantages. Organizations value workforce diversity because it brings a wide range of talents, skills and specialized knowledge into production. The report concludes by recommending that organizations should implement human resource practices that foster diversity so as to remain competitive. Table of Contents Workforce Diversity 1 Workforce Diversity 1 Name: 1 Course: 1 Institution: 1 Tutor: 1 Executive Summary 2 Table of Contents 3 1 INTRODUCTION 4 1.1 A Review of Literature on Workforce Diversity 4 1.2 Effects of Workforce Diversity Human Resource Management and Employee Motivation 7 2. MANAGING WORKFORCE DIVERSITY: CASE STUDY OF CDONALDS 8 2.1 Types of Diversity Management Strategies Used by McDonalds 10 3. Recommendations 14 4. Conclusion 14 References 16 Alfrieda, D 2001, Workplace diversity: issues and perspectives, New York, NASW Press 16 Diane, A 2004, Fundamentals of Human Resources Management. AMACOM Div American Mgmt Assn. 16 Katharine, C 2000, Workplace diversity, Boston: Adams Media 16 Mathis, R. L andJackson, J 2010, Human Resource Management, New York, Cengage Learning. 16 1 INTRODUCTION 1.1 A Review of Literature on Workforce Diversity Diversity management is a business concept which encompasses the various ways in which organizations integrate different identities such as gender, sexual orientation, age, racial background and ethnicity for the purpose of enhancing effectiveness. Katharine (2002) has defined effective management of workplace diversity as the ability of an organization to accept, respect, value and collect the asset of ideas and knowledge that is special to each person. In the today’s competition based world of business, diversity management overrides other aspects of organizational culture as it bring many benefits to an organizations such as creativity and innovativeness, which are in turn used to enhance organizational performance and ability to compete in the market (Dickmann, Brewster & Sparrow, 2008). Advances in transportation, information and communication technologies and the integration of global economy have brought the people of the world more together than before. For this reason, businesses are investigating into ways of capitalizing on this phenomenon to better serve their constituents and achieve strategic objectives. One such objective is being able to attract the most qualified and committed workers. Research studies (Dickmann, Brewster & Sparrow, 2008; O’Leary & Weathington, 2006) have indicated that companies that are able to develop and employ the necessary policies and procedures for managing diverse workforces will maintain competitive advantages over their competitors and increase their efficiency and effectiveness. Hence, companies must strive to recruit and retain the best talent if they hope to achieve bottom line results and statutory missions. Pless and Maak (2004) have explained that in order for businesses to successfully compete for the future, they should be able to draw on the most important resource – the skills of diverse workforces. A number of factors have contributed to the increasing diversity in the workplace. These include rising numbers of immigrants, joint ventures and mergers with companies in other countries, international competition which prompts hiring employees from foreign countries and the increasing globalization of businesses (Pless & Maak, 2004). Because of the increasing rise in diversity, human resource managers are scrambling to create the most competitive and interesting workplaces so as to compete for the most qualified workers. A compelling argument for diversity management is that employees who get assimilated to other cultures lose the ability to express their cultural values. This may make them to repress certain aspects of their lives skills and talents, which can be beneficial to an organization. Moreover, since assimilate employees commit a lot of time and energy coping with the new environment, they have little time concentrating to business matters. This means that their productivity decreases (Katharine, 2002). Nevertheless, organizations can create workplace diversity by creating increased individual sensitivity and awareness to the potential benefits of differences in sexuality, gender, social class, physical abilities and ethnic background. In his book, Jayne and Dipboye (2004) have explained that workplace diversity is an issue which concerns all people in an organization. This is because it influences the characters and expectations which people bring to an organization such as education, career, physical location and origin. In managing diversity, it is important for organizations to implement non-discriminatory human resource policies. This can only be achieved by creating work environments and organizational cultures which foster compatibility of cultural differences. Despite the potential to positively transform organizations, diversity management can be impeded by certain challenges inherent in modern organizations. According to O’Leary and Weathington (2006) diversity management entails recognition of differences among employees. In essence, culturally-diverse workforces can be difficult to motivate or manage. This is because of differences in perceptions and attitudes, which create prejudices. Another challenge to effective workforce diversity management is communication. The medium, language and channels used in communication are important aspects of diversity management. Ollapally and Bhatnagar (2009) have noted that meanings of messages may at times not be completely shared because people do not interpret events in exactly the same way. It is, therefore, important for communicators to pay special attention to employees who are less familiar with the primary language used in an organization and its cultural symbols. 1.2 Effects of Workforce Diversity Human Resource Management and Employee Motivation Workplace diversity is rapidly becoming a symbol of improved group efficiency. Workforces that are heterogeneous in terms of ethnicity, race, gender, age and other demographic characteristics are characterised by superior performance and increased morale (Jayne & Dipboye, 2004). One of the most important challenge facing human resource managers in the 21st century relates to coordination of work activities for diverse organizational members so as to accomplish organizational goals and objectives. Basically, workforce diversity impacts on group performance by increasing skills available to a group. This enables groups to show more positive results than groups which consist of individuals from the same set of mind. In addition, workplace diversity increases the capacity of individual members in a group to work with people of different habits and nature. This in turn helps increase motivation besides fostering positive attitudes (Jones, Pringle & Shepherd, 2000). Workforce diversity can improve teamwork productivity through knowledge sharing and coordination if diversity is allowed to exist in knowledge sets or skill dimensions. According to Ollapally and Bhatnagar (2009) organizations can gain immense benefits from diversity management through enhanced decision making and improved problem solving skills as well as conflict resolution. Additionally, diversity management helps foster creativity and innovation, which in turn result in improved business operations and product development and marketing. By recognizing the need for workforce diversity, organizations can help link different concepts in the work place to achievement of strategic objectives (Mathis & Jackson, 2010). Moreover, the act of embracing and promoting workforce diversity makes those employees possessing specific talents to feel appreciated. This in turn creates positive feelings of job satisfaction and improved morale, which are catalysts for improved productivity and organizational performance. Alfrieda (2001) has explained that organizational diversity is an important human resource management tool that provides businesses with the ability to compete effectively in global markets. This is especially the case with transnational organizations and aspiring transnational organizations. So long as those organizations retain effective communications channels, they will always be effective in maintaining their market shares. 2. MANAGING WORKFORCE DIVERSITY: CASE STUDY OF CDONALDS McDonalds, the world’s largest food retailer is committed to fostering workforce diversity in its three legs: employees; suppliers and franchises. According to Jayne and Dipboye (2004) the American multinational company has over the years earned recognition for diversity success from groups representing Latinos, Asians, Blacks, women and people with disabilities. The main goal of diversity efforts at the McDonalds is to help the company capitalize on the cultural differences of its people to offer efficient and customer friendly services. The company’s workforce diversity mission and vision focus on cultivating and nurturing relationship accountability, respect for all people and equal opportunities to excel. Basically, there are three important factors that have helped McDonalds to succeed in its global diversity efforts. These are: i. Market leadership and accountability: McDonalds is the world’s largest company in the food retail industry. The company has employed some of the most effective leadership and human resource management practices. This has made it possible for the company to attract highly skilled and experienced workforces from different backgrounds. Although McDonalds is an American company, it draws is staff locally from the countries where it operates. In addition, the company has a diversity and inclusion team that works hand in hand with other business managers to accomplish the company’s strategic human resource goals. Diversity has become part and parcel of the company’s global business agenda to the extent that each department has its own diversity objectives (Diane, 2004). ii. Diversity education and training: all departments in McDonalds’s business chain provide coaching, education and mentoring. The company leadership acknowledges that its global success can be connected directly to the lessons learned through the company’s Black and Latino human resource development program. In addition, the company has an external diversity team program through which the company ensures that its community outreach efforts align with business and diversity goals. iii. Employee business network: McDonalds actively supports more than 150 employee network around the globe. These networks consist of working mothers, lesbian and gay employees, ethnic groups and young professionals. The company’s decision to support these groups is in line with the mission objective of diversifying the workforce. The diversity of these groups has afforded McDonalds the opportunity to develop one of the most productive workforces in the world (Diane, 2004). In 2009, McDonalds launched the Global Women’s Initiative to help women excel around the world. The initiative is supported by plans created at subsidiary levels and has seen several women managing directors rise in countries like Turkey, India and Malaysia, which are traditionally conservative. McDonald’s business reflects diversity various levels which include supply chain management, franchises, human resource management practices, customer relationship management and external partnerships. In a show of how much McDonalds values diversity, 40% of the company operators in the United States are members of minority groups and women. These independent business operators own more than 4,000 restaurants throughout the country. In addition, the company buys a range of food products from minority and women suppliers. This is in line with the company’s policy to improve the economic and social welfare of minority groups. Another indicator of the company’s commitment to promoting workforce diversity is that 52% of its employees in the United States are minorities. Moreover, 35% of the company’s corporate officers are minorities mostly Blacks and Hispanics (Diane, 2004). 2.1 Types of Diversity Management Strategies Used by McDonalds McDonalds employs a variety of programs and strategies to mange workforce diversity. These include: i. Training new employees: this diversity management strategy consists of measures directed at newly employed workers to assist in their integration into the company’s diverse workforce. The company offers formal training to newly arrived employees to improve their education and skills and to help them learn the culture, custom and mission of the company. ii. Making cultural allowances: McDonalds offers special allowances for specific cultural and religious needs of its employees, especially minority groups in the workforce. These measures encompass recognition of religious restrictions in company canteens and allowing workers to celebrate religious holidays such as Christmas and Ramadan. The company also allows workers to wear certain items of clothing that have religious significance such as headscarves. iii. Challenging racist and ethnic attitudes: McDonalds’s antiracist policies are based on the assumption that the main barriers to effective human resource management stem from attitudes and prejudices of people. Accordingly, the company has initiated various publicity and information campaigns to change people’s attitudes towards about race and ethnicity. These campaigns have been used successfully in countries like South Africa, Germany and Switzerland to counter attitudes of xenophobia and intolerance. McDonalds has instituted policies at all management levels that focus on changing people’s behavior for effective workforce development. The anti-discrimination policies aim at promoting fair recruitment and selection procedures and training human resource managers on how to engage practices that comply with anti-discriminatory behaviours in recruitment and selection, training, compensation and promotion of employees. iv. Equal opportunity policies with positive action: McDonalds uses a combination of approaches to offer general equal opportunity packages. Although the company has an equal opportunity statement for the employees, there is need to continually reinforce the principles with the long-term aim of reflecting diversity mix in the workforce. v. Fostering and allowing development of diverse teams: in the past McDonalds’ workforce leaders used to be time oriented and valued development of teams with similar members. With time, the company realized that groups with similar members were less effective in executing certain tasks than diverse teams. For a time now, McDonalds has favored the development and management of diverse teams. vi. Education: McDonalds has long realized that the staff, including management and employees must be educated about the benefits of diversity and the appropriate approaches necessary to achieve it. The company consistently coaches its employees and mentors the skills that they need. Essentially, talent acquisition is all about attracting the best talent from a pool of individuals of diverse backgrounds. Once the talent has been attracted, it must be enabled to become part of an established organizational culture. In its diversity management, McDonalds has a strong focus to task cohesion instead of social cohesion. In the past, it was believed that social cohesion was required for diverse group to operate well Juran, 2004). As a result, most organizations emphasized team development exercises that build interpersonal closeness and liking of one another. However, the modern view of diversity is that positive results can only be achieved through developing perspectives for group performance. 2.2 Benefits of Diversity Management to McDonalds and Problems Encountered Diversity management has benefitted McDonalds in many ways. The different diversity management strategies have helped the company carry out its mission objectives by creating competitive advantages, which have in turn enabled the company to succeed in global market. The company’s diverse organizational members have provided valuable knowledge resources for furthering the organization’s strategic business objectives. In addition, effective management of diversity has helped MacDonald’s develop proactive, flexible and energized workforces. The workforces are able to understand the company’s diverse organizations. Researches (Juran, 2004) have shown that customers are more comfortable dealing with employees who are like them. Majority of customers develop a sense of belonging with organization members like them and this makes them more willing to interact with organizations. Alfrieda (2001) has noted that diversity management at the McDonalds has made it possible for employees to increase productivity on complex tasks. It is the case that certain complex tasks require complex cognitive skills and input, which in turn require knowledge resources and perspectives that can only be provided by diversity members. Diversity management has also helped increase problem-solving through knowledge sharing. The company’s diverse workforce members provide help provide more information, richer perspectives and novel approaches to problem solving in different contexts. Additionally, diversity helps support innovative strategies in different business applications. The most significant challenge related to McDonald’s diversity management is that strong diversity commitment cause attaches to the background groups only. Most members of diversity workforces feel loyal to their respective background groups rather than the workforce teams to which they belong (Mathis and Jackson, 2010). The other problem is that miscommunications among diverse members occasionally occur. Diversity members may occasionally fail to understand each other especially when they use languages that exclude certain groups. 3. Recommendations It is important that organizations promote practices that can encourage employees to be constantly aware of other people’s cultural preferences and to value the diversity of these preferences for effective workforce development. It is important for human resource managers to be culturally focused by understanding the various aspects of social motivations within diverse workforces. They should strive to recruit diverse workforces with benefits designed to sustain qualified employees. It is also important that organizations be innovative in implementing business objectives and mission. Instead of relying on old rules, they should develop human resource practices that are in line with changing employee needs. They should create more opportunities for minorities, women, aged workers and youths to engage in productive business practices. This requires departing from the homogeneous workforces of the past to more heterogeneous workforces. 4. Conclusion Workforce diversity is an important human resource management tool that organizations use to create innovative and highly creative workforces. The concept of diversity management entails appreciating differences in employee skills, talents and cultural orientations. Recognizing these differences is important in understanding employee needs. When employee needs have been understood it becomes easy for an organization to create an enabling work environment in which employees are motivated to improve productivity. Generally, diversity management is beneficial to all aspects of an organization’s business operations and management, although it can be impeded by challenges such as poor communication. References Alfrieda, D 2001, Workplace diversity: issues and perspectives, New York, NASW Press Diane, A 2004, Fundamentals of Human Resources Management. AMACOM Div American Mgmt Assn. Dickmann, M., Brewster, C. & Sparrow, P.R. 2008, International human resource management: A European perspective. London, England: Routledge. Jayne, E. A. & Dipboye, R. L 2004, ‘Leveraging Diversity To Improve Business Performance: Research Findings & Recommendations For Organisations’, Human Resource Management, Winter, vol 43, no. 4, pp 409-424. Jones, D., Pringle, J. and Shepherd, D. 2000, “’Managing diversity’ meets Aotearoa/New Zealand” Personnel Review Vol.29 No.3. Juran, J 2004, Architect of quality, New York, NY: McGraw-Hill. Katharine, C 2000, Workplace diversity, Boston: Adams Media Mathis, R. L andJackson, J 2010, Human Resource Management, New York, Cengage Learning. O’Leary, B. J. & Weathington, B 2006, ‘Beyond the Business Case for Diversity in Organisations’, Employee Responsibilities and Rights Journal, December, vol 18, issue 4, pp 1-10. Ollapally, A. & Bhatnagar J. 2009, ‘The Holistic Approach to Diversity Management: HR Implications, The Indian Journal of Industrial Relations, January, vol 44, no. 3, pp 454- 472. Pless, N.M. & Maak, T 2004, ‘Building an Inclusive Diversity Culture: Principles, Process, and Practice’, Part 1, vol 54, issue 2, Journal of Business Ethics, October, pp 129-147. Read More