The Relationship Between Firm Performance and Corporate Diversification - Term Paper Example

?Introduction: The current point of contention that exists within the business world is with regards to what level of diversity should ultimately be represented. Although there are few individuals who are in disagreement that diversity is in and of itself a net positive and able to benefit the firm/organization in question by helping it to be more representative of the natural environment in which operates, it is difficult to calm to a definitive definition with regards to what level of diversity should be represented within a given organization/firm. Accordingly, the following brief section will help to engage the reader with an understanding of some of the approaches that firms have taken as a means of maximizing diversity. As a function of seeking to understand and define this complex topic, the following analysis will also draw a level of inference with regards to how diversity should be defined and what level should ultimately be represented within a standard business operation. It is the hope of this author that such an identification and understanding be helpful in further defining diversity and exposing the way in which further productivity can be had; thereby leading an organization to experience a benefit. Overview of Issues and Definitions: Although there are currently many definitions of what diversity ultimately means, for purposes of this brief analysis, it will be defined as the extent and level to which the organization/entity in question is able to effectively represent the realities of the environment within which it operates. Ultimately, such a definition implies that diversity in an of itself should be a means by which the organization seeks to reflect the racial, ethnic, and religious realities of both the market that it seeks to compete within and the population that it draws from stop in such a way, such a broad definition allows for this level of diversity not only impact upon the way in which healthcare provision is conducted within a particular region but also have far-reaching applications with regards to how individuals interact with and represent those populations with which they seek to provide healthcare solutions for. Diversity cannot and should not be understood as merely trying to fill slots within a corporate structure. Instead, qualified individuals that can both represent the needs of the firm/entity as well as promote further diversity are the ones that should be hired. Under no circumstances should a business entity, or any other entity for that matter, ever engage in seeking to hire specific race, gender, or ethnicity. Ultimately, such process, although oftentimes engaged in the desire to promote diversity is the polar opposite of what equality should mean for all applicants. Ultimately, a final “no go” that should be referenced is the fact that the firm should be perennially aware of the fact that its diversity is very much a part of its culture. In such a way, the extent and level of importance or lack of importance that diversity espouses is ultimately reflected within the culture of the firm at each and every level. Literature Review: In seeking to trace an understanding of diversity, the first article that will be mentioned within this brief literature review is entitled “Shifting the Diversity Climate” (Ringold & Feinstein, 2011). As such, Ringold and Feinsten point to the ways in which firms have recently made a marked shift towards seeking to promote greater degrees of diversity in the hopes that it could boost their success. Realizing that it is not possible for a firm to be profitable and exist and thrive in a market that is itself increasingly diverse, As such, the authors argue that firms have come to realize the means of capturing such a market was at least tangentially dependent upon the level of diversity they could represent (Hewlitt et al., 2013). A similar approach is made with respect to Anand and Winters’ (2008) analysis that sought to integrate a further level of appreciation for the way in firms led the shift towards appreciating diversity and the impacts that it could bring as early as 1964. In allowing the reader to gain a level of oversight with regards to the historical development that the culture took, the article is useful in helping to formulate a historical approach to how and why the diversity came to be evidenced in the way it did within the modern era (Miller & Tucker, 2013). Thomas and Creary’s 2011 piece entitled “Shifting the Diversity Climate”, hinges upon the degree and extent to which firms have come to not be satisfied with the current levels of diversity that they experienced and sought to integrate with new initiatives as a means of boosting them. This focus upon the measurable metrics of what defined diversity and the means through which it would come to be redefined and practiced within the firm is a fundamentally important starting point in helping the reader to come to a more informed conclusion concerning how diversity was redefined and understood by the decision makers of the company. Although a great deal of analysis can be placed with regards to how firms define diversity, Mills (2010) realizes that it is important to understand the way in which the remainder of the business world has defined diversity over the course of the past several decades as a means of developing a baseline of understanding with regards to how businesses and organizations have sought to differentiate themselves from the remainder of the marketplace. This understanding is of course needful for the researcher as it provides the benchmark through which these entities may be measured; as well as the benchmarks that they measure themselves with in order to determine what needed to be done in order to create a more ethical and equitable firm (Singh et al., 2013). Timmons (2009) furthers an understanding of diversity planning and how it was carried out; pointing to how firms and organizations realize their shortcomings and seek to rectify them. In this way, the article entitled, “Leveraging Diversity of Thought to Create Business Solutions” can be understood as a means of discussing the thought process that company’s engage as a means of formulating a strategy and increasing the levels of diversity evidenced within their firm. Smith (2013) points to the fact that even though many companies are currently representative of some best practices, there remains a great deal of work to be done with regards to the way in which diversity is understood within the current business model. Ultimately, the author points to the fact that diversity is not a static concept and should never be understood as such. However, rather than chiding the firm for not achieving greater levels of success, Smith discusses the way in which the firm has achieved a level of diversity that is virtually unheard of elsewhere throughout the business world and represents a best practice that other firms should continually strive towards (Simmons, 2011). A further piece of literature that is fundamentally useful in helping to understand diversity within the current era has to do with a piece written concerning Boeing’s integration of a more diverse form. For years, Boeing had rested upon its laurels as one of the most esteemed and profitable aerospace companies in the entire world. However, due to the very nature of the business cycle and the means whereby a firm seeks to grow and develop, Boeing soon came to realize that it could not rely upon the domestic market and/or the military industrial complex as a means of providing it with all of the needed business that it hoped to engage. Rather, it was, like so many other firms, forced to integrate with the outside world and become a globalized supplier of aerospace needs to a multinational group of clients around the globe. Yet, the transformation that Boeing made from a domestic supplier to a globalized supplier was one that did not take place overnight. Moreover, systemic changes to the way in which the Boeing culture existed and the way in which it currently exists were also required. As a means of tracking these changes and making key observations concerning them, the following analysis will engage the reader with a level of understanding concerning the way in which diversity was motivated and the ways in which it was implemented within Boeing. Further, a brief summary and reflective statement will be provided at the end of this assignment as a means of classifying and categorizing the utility that working as a part of the group dynamic was able to have with regards to better understanding the case study and the many factors associated with it. From the preceding literature review, it can definitively be noted that a great deal of information concerning diversity practices has been presented. Moreover, a host of different approaches towards diversity, seeking to maximize it, while at the same time promoting an increased level of efficiency, utility, and/or profitability for the firm is a fundamental concern that almost all businesses and organizations share. Moreover, diversity, and the shift that many major firms have witnessed in attempting to make themselves more diverse over the past several years, is not something that can be categorized broadly. Instead, it is specific to the individual entity and is engaged first and foremost not as a means of generated a further level of political correctness; rather, it is generated with regards to reaching out to a more complex, dynamic, and global audience. Conclusion: Looking all the way into the present era, it can be noted that many firms continue to exhibit a very high degree of diversity within in the hopes of leveraging further profitability, utility, and efficiency. This is represented not only with regards to customer service but also almost each and every business approach. Whereas outsourcing has oftentimes viewed as a negative component of globalization, firms have been able to integrate outsourcing with their own culture as a means of promoting diversity and benefitting the firm in the long run. As such, this particular approach was useful in helping the respective components of business entities in order to come to an appreciation for the fact that diversity could be exhibited in a multiplicity of different manners. Nevertheless, the approach and theoretical implementation of diversity that have recently been practiced have integrated something of a gradual and helped to engage stakeholders throughout the firms that very well might otherwise be unreceptive to a more radical and immediate shift. Ultimately, the cases that have been discussed underline the means through which these firms sought to integrate diversity within their culture; further underscoring them as a prime example of how a firm can effectively seek to promote diversity without undermining the core best practices that they have long exhibited. As such, stakeholders within other companies that wish to integrate further levels of diversity in an effective yet considered manner would do well to consider the way in which Boeing engaged this process with the desired results prominently evidenced. A major take away that must be had with regards to the increased performance as compared to the increased level of diversity that has thus far been discussed has to do with the fact that there is a direct correlation between the way in which the current market exists and the level to which diversity is able to interact with such a market. Ultimately, as was referenced extensively throughout the literature review, the ability and desire of a firm to integrate with further diversity can ultimately be attributed to the desire of the firm to integrate with further levels of profitability. Due to the globalized nature of the modern world, the need and demand for firms to maximize their diversity as a means of promoting further profitability is no longer merely a desire that such firms share but a demand. The process of working together with my group in helping to understand the cases that have been presented has been and is applicable to the modern business environment and issues relating to diversity on a global level. One of the single most important aspects of the group integration was the fact that even though this process is oftentimes understood within the collective terms of business development and the broader benefits of diversity; it is directly impactful on an individual basis. By engaged with and understanding situations from a nuanced perspective as well as seeking to engage other vantage points, tangential benefits can be had for all stakeholders within the process. References Anand, R., & Winters, M. (2008). A retrospective view of corporate diversity training from 1964 to the present. Academy of Management Learning & Education, 7(3), 356-372. Hewlett, S., Marshall, M., & Sherbin, L. (2013). How Diversity Can Drive Innovation. Harvard Business Review, 91(12), 30. Miller, S. K., & Tucker III, J. J. (2013). Diversity Trends, Practices, and Challenges in the Financial Services Industry. Journal Of Financial Service Professionals, 67(6), 46-57. Mills, H. (2010). Diversity at work: Public relations makes a difference for global giants. Public Relations Tactics, 17(10), 10-11. Ringold, L., & Feinstein, J. (2011) Diversity business & leadership summit. Profiles in Diversity Journal, 11(4), 35. 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 & Innovation, 6(3), 171-182. Singh, B., & Selvarajan, T. T. (2013). Is it Spillover or Compensation? Effects of Community and Organizational Diversity Climates on Race Differentiated Employee Intent to Stay. Journal Of Business Ethics, 115(2), 259-269. doi:10.1007/s10551-012-1392-5 Smith, B. (2013). Age of wisdom. Benefits Canada, 37(5), 26-28. Thomas, D. A., & Creary, S. J. (2011). Shifting the diversity climate. Harvard Business School Cases, 1. Timmons, S. (2009). Leveraging diversity of thought to create business solutions. Profiles in Diversity Journal, 11(4), 35. Read More