Values Supporting High Performance Work System - Research Paper Example

? DIVERSITY AND EQUALITY MANAGEMENT SYSTEM AS A SUPPORT FOR HIGH PERFORMANCE WORK SYSTEM [Supervisor’s Introduction It is largely believed that the efficiency of a business organization depends on its human resource management practices. It is the HRM of a company that decides the performance of an organization. The paper investigates the human resource practice of Diversity and Equality Management System. While investigating the DEM, the way it supports the High Performance Work System is also studied, in order to understand its importance in business environments. 2. Diversity and Equality Management Systems (DEMS) For the last many years, business organizations are inclining their human resource management systems to promote diversity and Equality management systems to effectively compete in global markets. Whether an organization is multinational or aims to exist as multinational organization, commitment to equality and workforce diversity should be the major concerns of the HRM. While hiring the people, HRM of an organization is responsible for collecting the people with a variety of skills along with giving them equal opportunities of promotion and payment according to their aptitude (Marler 2012). An ideal Diversity and Equality Management System of a firm must involve diversity training and also monitor the recruitment procedure of the company. The minority or other disadvantaged groups are also dealt with special concern, where their pay and promotion are revised. Recently, many of the European business organizations are emphasizing to adopt the DEMS as one of the practices of Strategic Human Resource Management (George and Jones 2011). The term equality in DEM is wider in its meaning as there is a legislative initiative taken in Europe. Therefore, the Equality Act of 2010 can be seen covering the age, disability, pregnancy and maternity, religion or belief, race, sex, marriage and civil partnership, gender reassignment and sexual orientation. Moreover, in 2005 European Commission studied the extent of diversity and anti-discrimination policies in European companies. The results were satisfactory as 48% of the firms had applied the DEM system and 83% out of those firms had found DEM as a significant strategy for business growth. Thus, diversity and equality can be understood as giving value to variety and individual differences. So, while applying the practice of diversity, requirements of equality are fulfilled, as differences between the individuals, organizations and societies are valued. Though, this strategy is being emphasized to be made as part of HRM practices (Kumra, Manfredi and Vickers 2012). DEM and Recruitment The recruitment process under the practice of DEM is held very fairly because people are not rejected on any discriminatory reasons, such as race, gender or religion. Therefore, advertisements are taken place on web sources and through job centers, which will reach larger number of people can have access the advertisement from different backgrounds of expertise and skills. The job description is supposed to be clear and understandable so that applicants are evaluated on the basis of decided criteria. On the other hand, during the interview for a position, views of one person should not be taken into account but more than one person should decide the appropriate person for the position. Thus, it can be said that in order to establish an ideal DEMS within an organization, recruitment process is the initial step to set a system of equality. 3. DEM Supports High Performance Work System The Diversity and Equality Management System is widely supported by business organizations because the kind of systems supports the implementation of High Performance Work System. DEM is advantageous for both the employees and for the business. Some of the benefits of DEM are discussed below that contribute the business to elevate. i. Balanced Workforce Any organization that desires to be prospered in its particular segment needs to have a balanced diversity within its workforce environment. Diversity and Equality Management System helps in setting up a balanced workforce that is supposed to be equipped with innovation and creative approaches. Thus, appropriate approach towards staffing is required if human diversity is desired. Therefore, normal hiring methods and retention process cannot be applied if diversified workforce is needed. Focused approach of hiring is required in DEM system, and its best implementation can be observed in large multination organizations of UK and USA (Festing 2012). For instance, IBM is the company that makes a good example of diversity in terms of its employees as 51% of its employees are located outside of USA that shows its diversified approach for workforce, though it consequently served the organization with ultimate success (Cornelius 2002). While considering the region Europe, Unilever can be observed making a significant example of balanced and diverse workforce because a prominent number of its employees do belong to the regions, out of United Kingdom. Though, the examples of large organizations give a complete sense that it is the approach of diversity and equality that may lead a small firm into a large organization, in which all the people are treated according to their aptitude and skillfulness (Daniels and Macdonald 2005). ii. Good Understanding of Market Segments and Consumer Behaviors Diversity and Equality Management System also serves in understanding the different market segments along with consumer behaviors, consequently high performance and elevated work efficiency are acquired. Moreover, market segmentation and consumer behavior are always the tactical tasks of the firms, as revenue of the organizations largely rely on the good understanding of different market segments and consumer behaviors. DEM systems are the system that is equipped enough in overcoming the issues of market segmentation strategy. Through, DEM companies can acquire different people with a variety of skills that support the firms in understanding the behavior of consumers from different geographical and cultural backgrounds (Lantos 2010). Additionally, it is seen that the marketers hold an aim of leading the consumer to set their particular behavior, in order to make them purchase the products. Therefore, marketers also hold a responsibility of predicting the behaviors of consumers, and for that they need to have a keen understanding about the particular consumer market. In this situation, DEM practice helps the large firms in maintaining their High Performance Work System effectively (Donald 2004). When it comes to market segmentation, there are usually five ways to segment a market, geographic, demographic, volume, psychological, and benefit. In order to avail from such segmentation, a diverse workforce is needed and for that equality should be taken in account when hiring process is held by the organization. Thus, it can be said that Human Resource practice of DEM supports the firms in having a good understanding of market segmentation and consumer behavior, which is obviously one of the key ingredient of High Performance Work System (Lantos 2010). iii. Increased Morale of Employees When employees see a culture of equality within an organization and when they feel that are their work is valued regardless of any discrimination, their morale increases naturally so the overall performance of the company. Organizations need to implement effective Diversity and Equality Management practices of Strategic Human Resource Management that ensure the elevated progress of the company. When people working in a company are satisfied with their jobs, they surely serve the company with extra efforts and consequently company grows high. The role of Diversity and Equality Management System is of course essential in keeping the morale of the employees high as DEM also opens the ways of promotion for the employees (Festing 2012). As high performance work systems serve the companies with abundant of competitive advantages, where employees are provided with particular skills, motivation and information. Moreover, it is usually suggested if innovation and effective productivity is needed by the firms, employees satisfaction and their morale level matter a great deal, though organizations are advised to adopt the HR practice of DEM, which results in elevated firm-level performance. Therefore, it appears evident that DEM serves the businesses in acquiring a highly motivated workforce, which results in effective business growth (Donald 2004). iv. Promotion By promoting the practice of Diversity and Equality Management, promotional chances for the employees can also be increased as promotion is that motivational force that leads the people to work with more and more efficiency. As DEM removes the discriminating elements from business firms and accelerates the businesses towards a moderate and sensible ways of doing business; therefore, employees show their honesty while working and aspect the same level of honesty from their employers. Thus, promotion is the way of appreciating the performance of the employees that later serves the firm with long term business advantages. When the employees observe the culture of diversity and equality within a firm and see that everyone is dealt with equality and promotions are done on the basis of individual performance and skills, they put more efforts in making their effective position for the firm. Consequently, high performance work system is positively influenced and though the organizational growth (Healy, Noon and Kirton 2010). 4. Conclusion The paper has journeyed through the effectiveness of HR management practice of Diversity and Equality Management and has revealed many facts related to the organizational success. It has been seen that DEM is essential specifically for the large organizations that want to spread their business out of many borders. This is due to the fact that DEM has always aimed to eliminate the discriminating elements from the firm’s environment so consequently it gives advantages in the form of high performance work system. BIBLIOGRAPHY 1. Cornelius, Nelarine. Building Workplace Equality: Ethics, Diversity and Inclusion. Bristol: Cengage Learning EMEA, 2002. 2. Daniels, Kathy, and Lynda A. C. Macdonald. Equality, Diversity and Discrimination: A Student Text. London: CIPD Publishing, 2005. 3. Donald, Lynda A. C. Mac. Equality, Diversity and Discrimination: How to Comply with the Law, Promote Best Practice and Achieve a Diverse Workforce. London: CIPD Publishing, 2004. 4. Festing, Marion. "Strategic Human Resource Management in Germany: Evidence of Convergence to the U.S. Model, the European Model, or a Distinctive National Model?" Academy of Management Perspectives 26, no. 2 (2012): 37-54. 5. George, Jennifer M., and Gareth R. Jones. Understanding and Managing Organizational Behavior. Texas: Prentice Hall, 2011. 6. Healy, Geraldine, Mike Noon, and Gill Kirton. Equality, Inequalities and Diversity: Contemporary Challenges and Strategies. New York: Palgrave MacMillan, 2010. 7. Kumra, Savita, Simonetta Manfredi, and Lucy Vickers. Managing Equality and Diversity: Theory and Practice. New York: Oxford University Press, 2012. 8. Lantos, Geoffrey Paul. Consumer Behavior in Action: Real-Life Applications for Marketing Managers. New York: M.E. Sharpe, 2010. 9. Marler, Janet H. "Strategic Human Resource Management in Context: A Historical and Global Perspective." Academy of Management Perspectives 26, no. 2 (2012): 6-11. Read More