Effectively Managing a Diverse Organization and Effective Decision Making Models - Research Paper Example

? Management Issues The essay aims to present a six- page paper on two of the topics Effectively Managing a Diverse Organization and (2) Effective Decision Making Models for Managers. The paper will provide an overview of relevant information regarding the topic, examples of current applications, and an analysis of the benefits and challenges managers face in organizations when addressing these issues. How will these be used as a manager? How are they being implemented where one is currently employed? Management Issues Effectively Managing a Diverse Organization A. Brief Overview The concepts of managing and incorporating diversity have significantly influenced organizational performance. Various professionals have delved into the major elements that paved the way for diverse organizations to excel among the rest. According to Greenberg (2006), diversity is defined as “the variety of differences between people in an organization…Diversity encompasses race, gender, ethnic group, age, personality, cognitive style, tenure, organizational function, education, background and more” (par. 1). In a related literature, Esty, Griffin & Schorr-Hirsh (1995) cited Green, Lopez, Wysocki & Kepner (2009) as providing an appropriate definition of the term by indicating that diversity is “acknowledging, understanding, accepting, valuing, and celebrating differences among people with respect to age, class, ethnicity, gender, physical and mental ability, race, sexual orientation, spiritual practice, and public assistance status” (Esty, et al., 1995, par. 4). The definitions emphasize the encouragement and acceptance of people from an array of backgrounds deemed to provide instrumental benefits for the intricate needs of organizations. As averred by DiTomaso (1999), several factors contribute to diversity in the workplace, to wit: “(a) the changing demographic structure of the U.S., (b) the increased importance of globalization to profits and long-term survival in many companies, and (c) changes in the structure of how work gets done” (DiTomaso, 1999, p. 1). Due to the variety of influencing elements that interplay, organizational leaders recognize the need to manage diversity to ensure that it works towards the achievement of organizational goals. Managing a diverse workforce should encompass effectively integrating managerial functions in terms of planning, organizing, directing and controlling diversity in the organizational setting. B. Examples of Current Applications Contemporary successful organizations have attested the incorporation of diversity in their organizational policies. From among the most prominent and active in its implementation and application of diversity is Walmart. The official website of Walmart boasts of methods that “implement initiatives to attract and retain a diverse workforce, including recruiting from colleges and universities with large multicultural populations. We also provide associates with on-the-job training, leadership seminars, and direct access to job opportunities through our Career Preference System” (Walmart: Diversity, par. 2). The personnel profile of Walmart reveals that “more than 850,000 of our associates are female and make up 59 percent of our U.S. workforce. 35 percent of our associates are minority: 249,000 African Americans, 171,000 Hispanics, 42,000 Asian Americans, 6,000 Pacific Islander Americans, 15,000 American Indian and Alaska Natives, and 430,000 associates 50 and over” (Walmart: Diversity Report, 2009). Another corporation that actively applies diversity in their organization is HSBC that “invites, embraces and manages difference in the changing workforce to gain the best from its people and to provide the best service to its customers. It encourages the breaking down of barriers of the past to look at things in a new way, to find effective business and customer solutions. In such organizations diversity is regarded as a competitive differentiator, in both employment and customer markets” (HSBC: Diversity, 2011, par. 10). The value of diversity has been realized in terms of encouraging open-communication, innovativeness, active participation from diverse cultural background when the ultimate outcome was reflected in increased productivity and financial profits. HSBC’s diversity mission was to “promote the development and growth of our diversity by strengthening our existing relationships and building new collaborative relationships between our workforce and the diverse communities we serve” (HSBC: Workplace diversity, 2010, par. 4). C. Benefits and Challenges in Managing a Diverse Organization Greenberg (2006) has explicit noted the benefits of managing and supporting a diverse workforce as: increased adaptability, broader service range, variety of viewpoints, and more effective execution, among others. Through diversity, an organization’s workforce is accorded the privilege to learn from various experiences of diverse cultural orientations. They are able to solicit creative sources and approaches in problem solving. Kirby and Harter (2003) revealed that “the dominant metaphor of managing diversity, with its emphasis on competitive advantage and a quick-fix orientation, has the potential to emphasize the concerns, values, and perspective of management while marginalizing the perspectives and uniqueness of diverse employees” (p. 1). In this regard, diversity has direct link to increased productivity and profitability as validated. Despite its benefits, diversity is likewise met by challenges, to wit: (1) resistance to change; (2) communication issues, (3) implementation of policies incorporating diversity, and (4) managing diversity in the workplace (Greenberg, 2006). Organizations that have maintained a conservative and traditional stance of employing the same composition of workforce could find it difficult to embrace encouraging diversity, especially as it espoused the need to learn new cultures and languages. The difficulty of communicating when human resources of diverse cultural orientations are employed should be addressed accordingly. Further, corporate policies that incorporate diversity must, aside from explicitly indicating the organization’s thrust and diversity mission, should act and implement strategies that support this endeavor. At HSBC, it was revealed that “diversity is not just a policy—it is a key driver to our success. We honor diversity within our organization by building an inclusive work environment and by embracing proactive diversity supplier policies. As the world's local bank, we recognize and appreciate the unique contributions that each employee, supplier, and customer brings to our business success (HSBC: Workplace Diversity, 2010, par. 1). Effective Decision Making Models for Managers A. Brief Overview Managers in different organizations are challenged by the task of decision making. There have been several decision making models that have been revealed to be effective. Edmund (n.d.) contented that the most effective decision making model is the “the scientific method of decision making can be applied and is indeed a powerful managerial decision making technique or method” (par. 2). Others attest that for purposes of making intuitive choices, the six-step process in decision making is utilized, in conjunction with the cause and effect approach in problem solving. The six steps of this natural, intuitive decision-making process, according to Ethics Resource Center (2009, 1) are: “Step 1: Define the problem; Step 2: Identify available alternative solutions to the problem; Step 3: Evaluate the identified alternatives; Step 4: Make the decision; Step 5: Implement the Decision; and Step 6: Evaluate the decision”. Still, another decision making approach is the Harvard Case Approach (HCA) that follows four steps, instead of six: Step 1: Define the problem; Step 2: Alternative Courses of Action; Step 3: Analysis; Step 4: Recommendation (Martin, 2007, p. 1). Whatever the model is for decision making, managers are aided with the abovementioned tools depending on the given situation, on the experience as manager in decision-making responsibilities, and on the nature and diversity of alternatives open for consideration. Further, other analytical tools assist in the decision making process, such as the SWOT analysis, PERT or PESTLE analysis, Porter’s Five Forces, among others – that incorporate external forces with the need to evaluate internal resources and match them as needed. B. Examples of Current Applications At Exxon Mobile, a shift sergeant for the security department uses to the six step model in determining the most viable solution to a dilemma involving filling in a temporary vacant position due to emergency situation. Likewise, the same approach was utilized by a manager of a county clinic faced with a budget cut. The model enabled the manager to identify the specific effects of the budget cut in each department that give respective clinical services to the Medicaid population. Based on previous years’ experience, each department was able to assess and evaluate the effect of the budget cut to its operations. Each respective department head suggested ways and means to address the budget cut by minimizing costs and maximizing revenues. Where one is employed, the four step case approach is also used with the aid of other analytical tools such as cost-benefit analysis and SWOT analysis, if deemed necessary. C. Benefits and Challenges Managers Face in Using Decision Making Models When managers use the effective method for decision making, based on experience and on the tools enumerated above, the root problem is correctly identified, as well as all the alternative courses of action. Concurrently, in each alternative, the need to state pros and cons based on other analytical tools would objectively present the viability of each option. Cost –benefit analysis would assist in determining the net effect of a particular option, as either being financially feasible to increase productivity or would be detrimental to the organization, either in the short term or in the long run. One of the crucial challenges of the decision making models, as identified, is the time allotted to present options and to choose the most appropriate solution. When the dilemma required immediate solution, a long process could delay the need to come up with a concrete recommendation. In this regard, the experience and acumen of the manager must come into place to enable him to make the necessary decision, as required. Conclusion The concept of including diversity as part of an organization’s policy has been proven to be beneficial and consistent with encouraging equality of rights in the work setting. On the other hand, the use of models for decision making are crucial in objectively identifying the root causes of the problem and in presenting alternatives, consequences before finally choosing the most appropriate recommendation. Managers in contemporary organizations have been trained to support diversity in the work place and to conform and adhere to any of the abovementioned decision making models. The application of both would ensure that success is attained through the effective achievement of organizational goals. References DiTomaso, N., 1999. Managing Diversity in Organizations. Retrieved 25 May 2011. Edmund, N. W. (n.d.). Managerial Decision Making. Retrieved 24 May 2011. < http://www.decisionmaking.org/booklet/managerial-decision-making.html> Esty, K., Griffin, R. & Schorr-Hirsh, M., 1995. Workplace diversity. A managers guide to solving problems and turning diversity into a competitive advantage. Avon, MA: Adams Media Corporation. Ethics Resource Center. (2009). PLUS: The Decision Making Process. Retrieved 13 October 2009, Green, K.A., Lopez, M., Wysocki, A., & Kepner, K. (2009). Diversity in the Workplace: Benefits, Challenges, and the Required Managerial Tools. Retrieved 25 May 2011. Greenberg, J., 2006. Workplace Diversity: Benefits, Challenges and Solutions. Retrieved 25 May 2011. HSBC Bank, 2010. Workplace Diversity. Retrieved 24 May 2011. Kirby, E.L. & Harter, L.M., 2003. Speaking the language of the bottom-line: the metaphor of "managing diversity”. Retrieved 24 May 2011. Martin, R. (2007). “How Successful Leaders Think.” Harvard Business Review. Pp. 1 – 9. Walmart Corporate. (2011). Diversity. Retrieved 25 May 2011. < http://walmartstores.com/Diversity/> ------------------------. (2009). Walmart Workforce Divesity. Retrieved 25 May 2011. < http://walmartstores.com/Diversity/> Read More