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It is possible to define diversity as a mixture of properties that is possessed by different entities. In human resource management, diversity refers to a range of characteristics possessed by a workforce. In…
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Download file to see previous pages Other aspects of diversity include education levels, religion, sexual orientation and personality types (Rice, 2005).
Effective management of diversity within an organization can be a source of competitive advantage in business. A competitive advantage refers to a marketing action that a company employs that sets it apart from its competitors. To understand how diversity can affect a firms competitive advantage or competition, in general, it is essential to explore some of the benefits of diversity to an organization.
Firstly, diversity brings a great variety of opinions and viewpoints to an organization. In a case where the management wishes to make a decision, the difference in opinion, as presented by different members, gives a broad perspective of the subject. This will lead to the selection of the best possible set of actions that can yield best results. Restricted or few opinions can be misleading resulting in poor business decisions that might not compete fairly in a business environment.
Secondly, diversity can result in a wide range of talents in an organization. A variety of talent is a major contributor to the efficiency of a firm. Matching the different talents to the different tasks in an organization will lead to better execution of tasks. Efficiency in tasks is a major competitive advantage. This is because efficiency in production can lower the costs of production, and the saved resources can be channeled elsewhere within the firm for improvement of services.
Finally, the diversity of a firm is a basis for the provision of a wider range of services. In marketing, for instance, cultural diversity of a firm can play a major role in reaching a broader market. An organization with a workforce of diverse cultural background is better placed to reach a multicultural market. It is possible to achieve this by understanding the different requirements of the cultures and the language to ...Download file to see next pagesRead More
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