Significance of the Concept of Diversity in Business - Assignment Example

? The concept of diversity is topical in the field of human resources management (HRM). There are various issues that are taken into account in as far as the concept of managing diversity in business is concerned. As such, this paper seeks to discuss the significance of the concept of diversity in business. The main discussion of the paper will be drawn from a study by Bendick, Egan, and Lanier (2011) entitled ‘The business case for diversity and the perverse practice of matching employees to customers.’ The paper will also discuss how has Tesco engaged with diverse groups, and how the company has used its inclusion and diversity practices as a key means of providing better customer service. The last part of the paper will try to compare and contrast Tesco’s approach to inclusion and diversity with the key conclusions drawn by Bendick, Egan, & Lanier (2011) in their study. In the above mentioned study, Bendick, Egan, and Lanier (2011) mainly focus on investigating the claim that that employee diversity equips businesses to deal with diverse customers. Basically, Title VII of the federal Civil Rights Act of 1964 granted broad, enforceable rights to equal employment opportunity regardless of race, colour, religion, sex or national origin in a bid to end workplace discrimination. This move heralded the new dispensation in the practice of human resources management called diversity. Whilst all workplace inequities have not been completely removed, major strides have been made in this particular section to address issues related to employment discrimination on the basis of race, colour, creed and belief. Thus, the authors of the above mentioned research argue that employers should provide equal employment opportunity in a bid to create a “business case for diversity.” The authors argue that workforce diversity can advance business objectives that are mainly related to issues of productivity and profitability in the organization. Which are basic tenets of any business. This brings us to the claim by the authors that employee diversity equips businesses to deal with diverse customers. According to the study, a diverse workforce offers access to a broader pool of potential employees, enables the organization to relate to diverse customers and it helps in creating a more productive work force. The authors make some of the key conclusions in their study and some of them are discussed below. They suggest that inclusion is the basic tenet that can lead to success of workplace diversity. This entails that the needs and interests of the employees are taken into account in as far as the operations of the organization is concerned. This helps to create share and mutual understanding among all the stakeholders involved in the operations of a particular organization. This can also significantly help to appeal to the interests of many customers who may be attracted to buy the products offered by the organization. The other key conclusion made by the authors of the above mentioned study posits to the effect that many companies often hire employees from different backgrounds due to the fact that they represent the tastes, sensibilities and interests of a wide range of people from diverse backgrounds. This is very important since it helps to attract sales from the operations of the organization which in turn translates into profitability. However, contrary to the key findings of a study by Syed & Kramar (2010) entitled ‘What is the Australian model for managing cultural diversity?’ it can be observed that the “legal framework in Australia places only limited obligations on organisations to manage cultural diversity.” As such, many organizations often lag behind in as far as diversity and inclusivity in the operations of the organization are concerned. According to this study, it can be observed that unless cultural diversity is tackled at multiple levels, managing diversity in the workplace may prove unrealistic unless concerted efforts are put by the government and organizations that specialise in different activities. On the other hand, a closer analysis of Tesco’s case study entitled ‘Using diversity and inclusion to provide better service,’ (2012) shows that the aspects of diversity and inclusion are given prominence in the operations of the company. Being the largest retail shop in UK, Tesco employs a diverse workforce of about 300 000 employees. According to the study, the guiding principle in the operations of Tesco is that it “puts people first, ensuring its customers and colleagues are at the heart of everything it does.” The company strives to create value for the customers in a bid to create loyalty among them. This is very important in as far as long term viability and sustainability of the company is concerned. Basically, it can be observed that UK is a diverse society that is comprised of multicultural races and it can be seen that at Tesco, the policy is that everyone is welcome. This enables the company to tape talent and diversity which can enhance its operations. Tesco realises that every person has rare talent and this talent is very important in as far as workforce diversity and inclusion are involved. Tesco also engages with various diverse groups in its operations in a bid to try to satisfy their needs and interests. These networks have been specifically created in order to promote diversity which can positively contribute towards the performance of the organization. Overall, Tesco’s strategies are anchored in the key aspect that ‘everyone is welcome.’ It tries to encompass a variety of talents as well as to reflect the values of the communities it serve in its operations. A critical analysis of Tesco’s case study shows that there are many benefits that can be derived from its diversity strategy. Employee morale is high since these people are treated as valuable assets and it can be seen that this is a basic tenet for success in the operations of any business. This strategy is good for the employees and it is also good for the targeted customers. In short, the strategy is designed to help the organization to obtain its strategic goals and objectives. Tesco has a lot of strengths with regards to its inclusion and policy which is centred on the theme that ‘everyone is welcome.’ Both employees and customers have a pivotal role to play in the operations of the company. Through including diverse employees in its workforce, Tesco is guaranteed of employing and retaining the best talent. Its policy is also designed to fulfil the interests of many customers since the organization serves a wide range of people from diverse cultural backgrounds. Just like what Bendick, Egan & Lanier (2011) concluded in their study, the concept of inclusion is the basic tenet that can lead to success of workplace diversity. Tesco ensures that with the adoption of this strategy, the needs and interests of the employees are taken into account while at the same the needs of the customers are given priority in the operations of the organization. As such, the company is better positioned to fulfil the needs and interests of the major stakeholders which include the employees and the targeted customers. Thus, to a larger extent, Tesco has more strengths with respect to inclusion and diversity policy it adopted in its operations. Over and above, it can be concluded that the concepts of diversity and inclusion play a pivotal role in the operations of an organization. As illustrated in the two cases mentioned above, it can be observed that these two strategies go a long way in improving the operations of the organization in the long run. Through inclusivity and diversity, both the employees in the organization and the customers are likely to develop a positive sense of belonging to it by virtue of the fact that their interests are taken into consideration by the respective organization. References Bendick, M., Egan, M.L. and Lanier, L. (2011) ‘The business case for diversity and the perverse practice of matching employees to customers.’ Personnel Review, 39(4), 468-486. Viewed from: . Syed, T. & Kramar, R. (2010). ‘What is the Australian model for managing cultural diversity?’ Personnel Review, 39(1), 96-115. Retrieved May 30, 2013, from the TUI Library. Tesco (2012). ‘Using diversity and inclusion to provide better service.’ Viewed from: . Read More