Managing Diversity and Conflict - Essay Example

MANAGEMENT OF DIVERSITY AND CONFLICT by: Presented to: Course/ Class: University: City and state: Due date: Introduction This paper begins by describing diversity while giving case examples of some leading organizations that have succeed in upholding diversity in their business segments. To demonstrate the concept of diversity, this essay will discuss various diversity issues practised in Fannie Mae. This is succeeded by a discussion covering on trends that have made diversity important. Along with case examples, diversity for corporate success will be addressed. Other pertinent sections of this paper are conflict and its relationship with diversity, policy to address diversity, and how to merge policy and practice. Diversity Arnold et al (2010) described diversity as a way in which members of an organization or work environment vary from each other. While considering many factors, visible and non-visible, it is apparent that people are not the same. Dissimilarity in personal characteristics is observable when looking at factors such as culture, personality, language, race, physique, and others. A number of these factors are protected by law to allow people to operate without feeling exploited or demeaned. Aspects like race have received insurmountable attention in the recent past as countries concentrate on building the art of coexistence and tolerance. Diversity therefore calls for integration of all groups and accepting that no particular one is superior to the other. The case of Fannie Mae A case example to illustrate diversity is Fannie Mae. This financial company was formerly headed by Frank Raines, African-American individual. Besides, Human resources policy of the company is focused on enhancing diversity and this is affirmed by the creation of diversity office to manage activities related with diversity. FannieMae (2012) reiterated its commitment to diversity in both workplace and market by practising equal opportunity in employment and contracting. This has played a critical role in safe operation of the business, inclusion of the minority in company affairs, employing the disabled and women in various levels of operation, and exercising diversity in contracting. Fannie Mae does not allow any form of discrimination, a fact that is protected by federal, state, and local laws. To exemplify the aspect of diversity in employment, Fannie Mae accommodates all categories of people when carrying out recruitment and selection exercise or any other event related to employment i.e. transfer, promotion, termination and compensation. In the market arena, Fannie Mae values equal contracting opportunities. In an attempt to express its dedication to inclusion and diversity in all contracts, Fannie Mae has reached out to diverse groups with an intention of providing them with avenues to compete for the company’s contracts. The company further takes into account the concept of diversity when reviewing and evaluating contract proposals. Diversity is also evidenced by a requirement that contractors should practise the principles of equal employment opportunity and non-discrimination in all contracts involving goods worth over $10,000 annual value (FannieMae, 2012, para 8). Trends that have made diversity important After looking at the case of Fannie Mae, it is necessary to address three particular trends that have made diversity a popular subject. These trends include globalisation, changing demography, and people valuing their differences. In the first instance, globalisation has brought together nations such that countries across the globe conduct business as a single entity. A successful business must therefore produce a product that meets the need of various cultures in the globalised world. While marketing a product in the global village, it is imperative for a marketer to take into account existence of other cultures. An American company for example ought to recognise presence of Chinese, Indians, Arabs, and others in the global market therefore should design its marketing strategies such that diversity is upheld. This activity brings together people from varied backgrounds for purposes of planning and negotiation. To exhibit the need for diversity in globalisation, Chevrolet attempted to sell Chevy Nova in Spanish speaking nations. This product registered low sales in these nations simply because diversity was not considered during marketing. “No va” in Spanish means, “it does not go” hence, there was no way the product could register high sales (Erichsen, n.d). The other example to demonstrate the need for diversity in the globalising world is Pepsi, which advertised its product in China using a slogan “Pepsi brings you back to life.” This slogan was faulty as it translated in Chinese as "Pepsi Brings Your Ancestors Back from the Grave" (Zahorsky, n.d). To add on this, countries are now investing in fast growing economies of China, Hong Kong, Malaysia, Singapore, and other Asian countries. This brings to surface why diversity is indispensible in the current world of globalization. The second trend is changing demography where countries are experiencing mixed colour accompanying immigration and birth rates. In California, about 57% of the population comprises whites while the rest are other racing groups including Asians, African-American, and Hispanic (Judy, 1997). Judy goes further to note that the percentage of white population is decreasing over time while other groups increase in percentage. In the end, half of the U.S. population will be whites while the rest is taken up by other racial groups; African Americans, Hispanics, Asians, and American Indians. Changing concept of Assimilation is the third vital trend that has led to emphasis on diversity. Previously, immigrants were required to leave their old lifestyles and adapt the new way of life in the new world. America is a good case where in the past, foreign cultures were melted in a pot to form a single culture, language, and lifestyle. This approach viewed foreign cultures as deficient and was supposed to be absorbed into the native superior culture. This has however changed with time in that people in a foreign land are in a position to keep their own cultural patterns consequently forming a mosaic society. This newly formed mixed society upholds differences therefore instead of feeling ashamed of own culture, people are now proud of their cultural heritage and uniqueness. Diversity for corporate success The strive for the best employees is forcing organizations to look beyond cultural, religious, gender, nationality, and ethnic background when sourcing manpower (Kirton, 2005). In the mid-1990s, there was shortage of labor, which led companies to fight for specialist and top executives. The recent economic crisis also intensified the fight to high-level executives. This has however changed as an increased number of people enrol for various courses. In such a scenario, a company whose human resource team is more oriented towards sourcing human capital from beyond ethic boundaries will register success (Kirton, 2005, pp. 24). Even though some highly qualified, people come from minority groups, the practice of diversity imply that these people will be employed and eventually lift the company to the next level with their skills. The business world today is very competitive and individual organizations are necessitated to be exercise innovation in order to survive in such an environment. Siemens positioned innovation at the centre of corporate strategy. To succeed in bringing innovative products and services both in the present and future, Siemens has a technical heterogeneous team to assist in this intention (Doyle, 2000). This mixed team is in response to the view that diversity in culture and individuals nurtures productive environment. An example to illustrate potential benefits that can accrue from the practice of diversity in organization is the success of Ferrari Formula One Team (Musseleck, n.d). Ferrari president, team boss, technical director, and racing driver are people with different cultural experiences and personalities. Besides, Musseleck (para 14) stated clearly that diversity is not a short-term strategy but a forward-looking initiative. Diversity is also indispensible in a globalized and segmented market where companies encounter diverse needs and wishes of customers. To satisfy this varied customer needs, organizational management team is obliged to practice diversity in all its business activities. Entry and subsequent utilization of a market is made possible by the practice of diversity in marketing. This therefore necessitates inclusion of a member of a market into company’s marketing strategy simply because such individual understands the dynamics in that market. Diversity in marketing not only positions the firm closer to the market but also makes it more customer-oriented. The fourth aspect of diversity that breeds success is its capability to boost organizational image. In relation to this, some organizations set aside management positions for minority groups. Similarly, women are continually being recognized through promotion into management positions for purposes of gender balance and identifying the weaker gender (Ledworth, 2002). Conflict From the discussion above, it is apparent that diversity brings together people from varied background to work in a team. This is likely to result in relationship conflicts, process conflicts, and task conflict. Relationship conflicts arise out of disagreements and inconsistencies present among team members thus fall under personality issues surrounding a group. Relationship conflict emanates from different communication styles or political views. Relationship conflict is detrimental to a group and entire organization owing to that fact it hampers performance and kills morale. The second form, i.e. task conflict, results from divergent views with respect to activities performed in an organization hence it is about ideas and opinions (Thompson, 2005). Such activities my include strategies employed in hiring graduate trainee and contents of a budget. Lastly, process conflict surrounds delegation and logistical issues i.e. progress of a task and the head of that task. In this case, team members do not agree on whom to appoint as the head of a specific project area. Link between diversity and conflict While diversity in education and background influences task conflicts, dimensions such as sex and ethnic diversity affect relationship conflict. Diversity in information is a consequence of different knowledge and skills that individuals contribute to a group. This diverse skills and expertise varies with educational background, training received, and previous work experience. There is no doubt that the difference in education, training, and expertise has a direct impact on discussions within groups in an organizational setting. Educational level attained and experience gained in a specific field has a bearing on how a person handles and executes tasks. To exemplify this, an accountant working in a group with human resource personnel has a different outlook or viewpoint simply because of education and training background. This divergence in information culminates to task related conflicts. Social diversity, i.e. difference in demographic factors including age, race, gender, and ethnicity influence how groups interact by way of social identity effects. Social identity theory clearly affirms that members of a social group tend to show affiliation and positive social identity to its own members (Stets, 2000). This leads to discrimination and segregation consequently disrupting effectiveness of a group by nurturing relationship conflicts. Concisely, people find it easy to work and communicate with members of their own social description. Policy to accompany diversity In the face of diversity, there are two specific policies that can be employed by organizations; reactive and proactive policies. While reactive policy is narrow and concentrates on business interests, proactive policy is broad, long-term, and examines an organization in terms of social and ethical position for long-term success. In consideration of the fact that reactive policy is concerned with using workforce diversity to pursue short-term and measurable business interests, employees under this policy feel exploited. Conversely, proactive policy values consultation with all stakeholders whose feedback acts as the basis for future policy action. Apart from complementing provisions of equal opportunity program, proactive policy considers diversity as an asset as opposed to a problem that needs to be addressed. Other characteristics of proactive policy include: it attract investors, promotes managerial accountability, relies on publicity, and often depend on monitoring and auditing. Linking policy and practice The discussion above has clarified that proactive policy can lead to effective management of diversity. However, there needs to be a link between policy and practice. One of the channels that link policy to practice is engaging employees in planning processes. Planning is crucial in the present business environment where national economy is continuously changing, demographics is aging, and global competition for labour is facing stiff competition. To cope in such an environment, strategic planning must be emphasized. Often, managers present innovative strategic plans just to be rejected by employees who do not want to execute the plans. This gap between top management and employees has the effect of lowering productivity and turnover following less engaged workforce. To bridge this gap, managers must first understand elements that motivate employees. This is all about auditing and monitoring as identified by Noon (2001). Secondly, managers must seek to understand deficiencies in employee work environment to draw a plan of action for improvement. Apart from taking stock of employee skills and expertise, a manager should go further to identify employees who want to take part in the planning process. While doing so, a manager must have a distinctive communication strategy, which allows employees to provide their own input into the entire planning process. A clear knowledge concerning current employees in addition to well-communicated strategic plan presents an opportunity for employers to employ and retain employees that are fit for the organization. The second avenue to exploit in managing diversity and related conflict is to support cultural diversity in the face of globalizing workforce. Diversity in knowledge and skills cultivates innovative solutions given that varied perspectives are organizational assets. The benefits of diverse workforce can be tapped after developing an effective support system. This entails provision of orientation that exceeds employee handbook and building a mentorship program to support new employees. Employees moving into a foreign country often face a smooth transition due to mentorship. By training both employees and managers on culture, they will be able to gain knowledge on cultural diversity consequently helping them appreciate difference. Moreover, cultural diversity is supported by practicing clear communication i.e. letting employees know what is expected of them in the organization. In summary, a manager is obliged to open up communication channels, appreciate uniqueness, and enable employees to learn from each other. The third aspect that contributes to management of diversity and conflict is to find opportunity in conflict as opposed to viewing conflict as an obstacle. From a positive angle, conflicts have the ability to bring positive change, strengthen relationships, and contribute to productivity, accountability, and achievement of goals. At the same time, training should be provided with an intention of implanting in employees the required skills and attitude for responding and solving conflicts. Communication, discussions, collaboration, and addressing conflicts in advance often resolve issues that accompany diversity and conflicts. Reviving play while at work develops communities where workers are connected and celebrated. To boost play, the best practices model must reflect an attitude of promoting play and fun. The effect of this move is that organizational learning and meetings are heightened and made more appealing to staff. Besides, in a bid to manage diversity and conflicts, a manager is obliged to build healthy work environment, maintain valued employees, allow employees to communicate and participate, and recognize and reward them. Conclusion In conclusion, diversity is part of the current business world. An organization must therefore be elevated to a level where diversity is viewed as an asset. To achieve this proactive policy measures are essential. In practice, training and development of staff in addition to establishing a system of auditing and monitoring takes an organization to a higher notch in the exercise of diversification. Bibliography Arnold, J, Randall, R, Patterson, F, Silvester, J, Robertson, I, Cooper, C & Burnes, B 2010, Work psychology: Understanding human behaviour in the workplace, 5th Edition, Pearson, Harlow. Doyle, P 2000, Value-Based Marketing. Marketing Strategies for Corporate Growth and Shareholder Value, John Wiley & Sons, New York. 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Awareness and Change, Thompsons, London. Musseleck, J n.d, Ferrari and true Diversity, Viewed 11 April, 2012, http://businessgametime.com/2010/03/15/ferrari-and- true-diversity/. Zahorsky, D Famous Ad Slogans That Stick. Viewed 11 April, 2012, http://sbinformation.about.com/od/marketingsales/a/famousad slogans.htm. Read More