The Business for Diversity - Case Study Example

Diversity and Management Diversity and diversity management are controversial at best. They can be seen differently according to how you look them. Many years of discrimination; make us wonder about some of the issues. In this paper, we will discuss The Business Case For Diversity. We will include in this discussion, examples of three companies, two of which have been successful for both employees and company and one that has only been successful for the company alone. “Diversity is about empowering people and promoting the human spirit” (Clark, 2007). Diversity is about understanding, valuing, and making the most of the individual differences found in each and every person (Clark, 2007). To allow an organization to be the best, they must use the differences found in individuals. Those differences may come from color of skin or the language they speak. It may include how fast they learn, how they learn, whether they are introverted or extroverted, controlling, or submissive, or conservative (Clark, 2007). An organization will need dreamers, doers, strategizers, organizers and team builders just to mention a few. Organizations need diversity in ideas and therefore they need leaders who can encourage and manage under diverse situations (Kirton, 2007) but often times it is not the employee that wins but the company. The quality of any work or any team is improved by the diverse personalities on it. Leaders that understand the needs of the diverse company are able to leverage those diverse groups in a way that will improve the companies product line (Carter, 2007). This is the theory, some are successful and some are not. One example of a company that is doing this very thing and providing excellent tutelage for their leadership is Merck. Merck believes that diversity encourages the creativity and innovation for their company and they use this to remain competitive (Merck, 2007). They have believed that the use of diversity in their business will keep them ahead of the curve. They also believe that they are able to have better leadership teams if they remember the diverse needs of their employees when they hire. Merck believes that first they must train their leadership team in diversity and what it means as well as how to manage it. They have perpetual training going on with these leadership teams. The Merck leadership model focuses on developing employee competence from the edge of their diversity allowing the company to capitalize on their difference. They have four leadership principles which are, treating all employees at every level with dignity and respect, integrating ideas and collaborating with others, exhibiting behaviors that reflect a high degree of integrity and ethics, and building effective working relationships (Merck, 2007). Steve Forbes (1999) said, “The real source of wealth and capital in this new era is not material things…it is the human mind, the human spirit, the human imagination, and our faith in the future.” In a similar manner, Cox (2001) is saying precisely the same thing as Merck, Carter, and Kirton. Cox (2002) tells us that there is empirical evidence that supports his opinion. Ultimately, according to him, teams of varied perspectives produce different and original insights. Kirton (2007) says this is true but the reasons for setting up and using a diversity program have to be for the right reasons. Innovation within an organization can provide many benefits. Those benefits can include improving competitiveness as well as being set to challenge emergent situations that may arise. A well planned and implemented diversity program can provide the leverage that a company needs to create and enhance innovation. One method that can be implemented to help with leveraging innovation in a company is hiring new employees and the development of those employees. (Miller & Katz, 2006). Leadership provides employees with an inclusive environment but also with an environment of respect for differences and diversity of thought. This includes recruiting, system structures, employee development, performance management, employee retention, leadership succession, and coaching/mentoring (Miller & Katz, 2006). Harley Davidson is the manufacturer of a high end motorcycle company. They were in bankruptcy not to long ago. Harley Davidson instituted a diversity management program and tools to help make the job easier. Their goal was to improve market share by increasing the innovation in their team. This meant that their management, including their senior management had to be trained in diversity and how to leverage that for the company’s improvement. Harley Davidson has seen steady increases in market share since instituting this change (Harley Davidson, 2007). The company’s employees have voted it as one of the best companies to work for so in this case diversity is a win-win situation. Then, as relayed to us in Managing Multi-culturally in Organizations in a Diverse Society, (2007) the Wal-Mart story is a different kind of story. According to Kirton (2007), Wal-Mart has won many awards for their diversity management. They proclaim that they have hired many minority people and that their management staff includes many minorities. It is clear that Wal-Mart has profited from these claims. However, there have been many complaints from Wal-Mart employees. Women employed by Wal-Mart say that they are promoted less than men and the company has been accused of taking advantage of undocumented aliens. This is an example of a company that has leveraged diversity for the good of the company alone. Cox (2001), accurately describes the reasons so many organizations are struggling with a rapidly changing environment. It is clear that the advent of diversity management has forced business leaders to radically change their way of doing business. Organizational leaders recognize the importance of leveraging diversity on the bottom line but often they struggle with how to make this happen strategically. In a computerized, web-driven world companies have had to become a part of globalization essentially overnight. According to Global Lead (1998), diversity is a key business strategy and the expectation is that it contributes to an organization both in business growth and successful results. Global lead is a management company that has developed a strategic initiative that incorporates the use of what is called the five key drivers of business (Global Lead, 1998). The business drivers according to Global Lead (1998) are focus on the market, talent, innovation, values, and goodwill. In conclusion, diversity is a good thing that sometimes goes bad. The company that understands the true nature of having a diverse workforce does well in many ways for both the bottom line and the employees that work there. Many companies have tried to leverage diversity and have failed. Some of them have done quite well. What we do know is that in today’s global economy, we must learn to use our diverse work force in such a manner that we will retain employees, increase our margins and increase our customer satisfaction. Those of us who are not able or willing to do that will fail. References Clark, D. (2007). The Challenge, Why Must We Embrace Diversity? Retrieved Oct. 10 http://www.nwlink.com/-donclark/leader/diverse.html Cox, T. (2001). Creating the multicultural organization. San Francisco: Jossey-Bass. Harley Davidson. (2007). Harley-Davidson Student Center. Available online at: www.harley-davidson.com. Kirton, Gill (2007) Managing Multi-Culturally in Organizations in a Diverse Society. Work, employment and society Vol 2, 4, Dec. Miller, F.A., Katz, J. (2006). Redefining the imperative for leveraging diversity and Inclusion: A fresh look. Link and Learn. April. Noon, M (2007). The fatal flaws of diversity and the business case for ethnic minorities. Work, employment and society Vol. 2, 4, Dec. Northouse, P. (2007). Leadership Theory and Practice. 4th ed. Thousand Oaks: Sage Umiker, W. (1998). Management Skills for the New Health Care Supervisor. Maryland Aspen Publication. Read More