Climate of Diversity - Key Factor in Operations and Global Competitiveness - Case Study Example

Climate of Diversity: A key factor in Operations and Global Competitiveness Texas A&M - Commerce In partial fulfillment of the requirements for MGT 590 Professor Lloyd M. Basham March 30, 2012 Table of Contents Abstract 3 Review of Related Literature 4 Discussion 6 Making the decision: The selection of the new senior manager 7 The justification and consequence of the decision 8 The potential impact on the organization 10 The global implications 11 Conclusion 12 Appendices 16 Abstract It is a truism to state that society in general and organizations, in particular, are currently experiencing profound and wide-reaching change. Maximizing and capitalizing on workplace diversity has become an important issue for management today (Green et. al., 2008). This paper presents the contributions and implications of creating diversity during corporate decisions mainly focused on the operations and marketing aspect. The main contents are structured to answer questions based on a situational dilemma on Business Corporation’s selection of senior manager for marketing. Arguably, operations are considered as the heart of organizations (Meredith & Shafer, 2010) because of its ability to create value for products and ultimately satisfy the ever-changing tastes and needs of end-users. Part of operations is the selection of the labor force, which can play a significant part in an organization’s success or downfall. In lieu with this, the implications of the decision made will be extended on its impact on the company and ultimately on the global scenario. Keywords: Operations and Sales, Global Competitiveness, Diversity, Organizations Review of Related Literature This section presents some of the related literatures involving diversity and global competitiveness. In any operations strategy and planning of an organization, inputs are one of the critical factors that need to be considered. In a book on Operations Management for MBAs by Meredith and Shafer (2010), they stated that basic inputs involve facilities, labor, capital equipment, raw materials and supplies. However, another essential input added is the knowledge on transforming inputs to outputs. It is equally important to consider the selection of labor force especially when he/she will play a very critical role in an organization. Meredith and Shafer (2010) further mentioned that people must operate productively, with value added inputs and quality outputs. Diversity in workforce poses an extra ordinary and maybe considered as one of the most significant challenge that many organizations currently facing. Initiatives are mostly implemented and developed by multinational corporations to satisfy the evolving needs and wants of customers reaching up to the international level. In addition, it forces an organization to develop and maintain a workforce that is flexible enough to reflect the needs of its changing market (Wentling, 2000). The Booz Allan Hamilton Inc. (2011) stated that a diverse workforce can be a powerful asset for organizations. The model in Appendix A presents a very good potential of diversity and workforce inclusion. Diversity can be essential for strategic planning, restructuring, performance measurement, communication and engagements, competencies as well as leadership and capacity building. This can result in a stronger, higher performing workforce that can help an organization innovate and solve complex problems to meet organizational objectives. Lew Platt (1998), a former CEO of Hewlett Packard, devised an effective way to introduce and manage diversity in business (please refer to Figure 1). He added that diversity is not only a business necessity because of the nature of labor and product markets today, but also because a more diverse work force-relative to a homogeneous one-produce better business results (as cited by Kochan et. al., 2003). However, problems do really exist on diversity. Peachey (n.d.), director of Global Professional Development, stated that resistances on diversity usually occur on the management, members of dominant and members of non-dominant cultures. Discrimination can be a serious issue within an organization. In fact, Langevoort (2004) said that, “discrimination can be found at any level of business organization”. He added that in an economics perspective, discrimination can be efficient or inefficient in terms of productivity or profitability. Prospectively, inefficiency can enhance competition that can force discrimination to decline. Figure 1. Lew Platt, former CEO of Hewlett Packard, comments to the Diversity Research Network, Stanford Business School, March 18, 1998. (Kochan et al., 2004). Another important consideration in operations is on global competitiveness. Competitiveness can be defined as the “set of institutions, policies, and factors that determine the level of productivity” by a country or organization (Schwab, 2011). There are many determinants driving growth and competitiveness. The twelve determinants (referred to as Pillars) are shown in Appendix B. The model in Appendix B presents the effects of these pillars to efficiency and innovation economies in the global setting. Discussion As the one who directs the marketing of products and services of a huge global company, I am mostly the one who knows the production lines, past, existing and potential markets, budgeting issues, and other operations and sales issues. Under an operational group, the stress and constraints of the nature of my work must be ideally shared by all members. The marketing aspect of a group can be the focal unit that must embrace the challenges of operations and sales. All aspects must be considered within the operations up to the customer value and towards strategy and competitiveness (Meredith & Shafer, 2010). The sales and marketing organization always play a key role mostly for revenue generation and business expansion opportunities. During the recession times of a company, most of the top executives look to the sales and marketing to improve margin and prevent share erosion, at the very least (Viswanathan, 2010). With this, marketing and sales can obviously create the rise or downfall of any organization at hand. Thus any recruitment and maintenance of any members within the group is essential for marketing. Making the decision: The selection of the new senior manager The operational group which I currently belong has annual revenue of $200M which is roughly 0.67%, really not significant, compared to the global company (revenue of $30Billion) based on income. It is a privilege to report directly to the General Manager (also the Senior Vice President) of the said company. In addition, I am also reporting to the Senior Vice President for marketing of the headquarters, operational group. The senior manager position vacancy in my department is responsible for generation of major customer revenue growth and customer satisfaction for the global market which is only limited to mostly Asian regions (Vietnam, Singapore, India, Japan and Korea) and Old Russia. This job offers a great salary and benefits; however, it requires you to spend almost half of your service traveling amongst the mentioned countries. This job can best suit those bachelor or single individuals that don’t have any responsibilities especially at home/family. However, certain guidelines/criteria were set during the selection of candidate for the position. There is a dilemma posed by the differing preferences of my two superiors – General Manager (GM) of the global company and Senior Vice President (SVP) of the Headquarters. The General Manager declared qualifications which include at least 10 years of experience in the industry, external hire (fresh blood, new ideas and new innovative and creative solutions for our customers), must be female, have a professional demeanor and mature. However, the SVP of headquarter already expressed his intent to vouch for a certain middle age, male employee with a significantly good track record on performance and productivity in your organization group. All of the three candidates passed the qualifications set by the GM (except for the gender requirement, which obviously, the male is not eligible) which means the accomplishments and level of talents/skills should not vary significantly from each other. It is notable that the bet by the SVP didn’t undergo the same tests as with the three candidates. As the one tasked to analyze the qualifications of the candidates, I would recommend the female candidate who is recently divorced and has no children. The justification and consequence of the decision I based the weight of my decision on the preference of the Global Company who is our client. Our operational group’s revenue can be mainly based on our service for marketing in the global company. The qualifications set by the GM are justifiable enough to produce a suitable fit to run the marketing department. Since the company is our customer in this perspective, I decided to satisfy their declared standards. The male candidate, I assumed that he is single, middle-aged, and quite accomplished. This type of candidate can be a potential fit for the company. Organizations are traditionally dominated by male with their leadership cliché that is defined by society. It can be seen that most companies are run by men; however, women are already climbing up the corporate ladder at the same time. As early as 2007, women hold 14.85 of Fortune 500 seats in corporate boards (as cited by Dobbin & Jung, 2011). Gender diversity was seen to have positive effects on an organization. Dobbin and Jung (2011) indicated that women pay greater attention to monitoring firms and better attendance records than men. According to July 2011 report by the Catalyst, nearly 52% of managerial or professional positions are held by women. Llopis (2011) of Forbes website also enumerated some advantages of women over men in a corporate environment. Women are generally opportunity experts, networking professionals, relationship specialists, and natural givers. These are just some of the facts why I chosen a female for the position. The first candidate, a married female with young kids and a husband who explore the possibility to be hired on the same company may not be the perfect fit for the position. Married women have the tendency to be more affected to the “work-family balance” concept. Gonzalez (2006) pointed out the conflicting relationship that currently exist women’s participation in the labor force against family responsibilities. These conflicts may arise due to the tendency of women to pursue their career concurrent with family formation process. Furthermore, there’s a possibility that if she and her husband will be employed in the company, risks of marital/family concerns/issues might be carried over into the workplace. There must be an extra responsibility for her to draw the line between professionalism and home which can affect her performance and productivity. However, to minimize the risks, it is better for them not to be together. The chosen candidate can better avoid some the issues that a married candidate might face. The divorced female candidate might have some issues regarding her past relationships, however, this might give her the boost to focus on her career and redefine herself for a new start which can be very beneficial for the company. In fact, According to the “The Economist” (2011) website, single women with no children between the ages of 20 and 35 make 17% more income than men of the same age. This can be an indicator of a possible efficiency in performance compared to other candidates. The reason why I did not choose the choice of the SVP is mainly because, like the GM, I would like to promote diversity in the workplace. Aside from the fact that I need to satisfy the standards of my client (Global Company), external hire must be done. The married male candidate can be a potential fit given his experience and good track record within the company. However, a manager that requires new/fresh blood in terms of ideas and solutions to create value products for customers, while promoting revenue growth, corporate harmony, and customer satisfaction is a must. In order to achieve these, our group must take the risk to accept outside members to stir and update the current homogenous atmosphere. Honestly, I do not like the idea that the SVP hinted me about the married male candidate as my potential replacement in the organizational group. It seems politics can be behind this move, since why do I need to know my replacement before I get my promotion if my credentials are really worth it? The chosen candidate might have some adaptation/lag phase during the learning process of the operational system of the organizational group. However, I strongly believe with her qualifications and potential dedication, this should be easy on her. The potential impact on the organization I believe diversity can strengthen our organizational group. New ideas must be made to cope up with the tastes and preference of present consumers. The concept of quality can greatly vary and reality dictates that this word mainly is defined by the consumers, not the producers. Quality will never be absolute and is based on customer’s perception (Meredith & Shafer, 2010). It can be a challenge especially for the Director of Marketing to manage and overcome resistance to diversity within the group. Normally, homogeneity in employees can easily build trust and thus being productive in a sense (Kochan et. al., 2003). In diversity, several negative traits and behaviors can be observed within the group. These may include prejudices, stereotyping and discrimination which could lead to damage of relationships, morale and work productivity Esty et al. (as cited by Green et. al., 2008). However, I believe that trust built within a heterogeneous group is stronger. The definition of diversity must not be focused on the differences between the members of the group. Instead, diversity must be centered on the ability to acknowledge, understand, accept, value and celebrate the differences among people regardless of their demographic profile, cultural background or status in life (Green et. al., 2008). The task of the managing executives is to expose the bright side of differences by providing value to it, enhance and acknowledge participation by all members, provide a safe place for communication and combat discrimination. However, before performing these tasks, a manager must first well recognize his/her own biases and prejudices. Importantly, managers must also understand that fairness is not necessarily equality. There are always exceptions to the rule (Green et. al., 2008). The diversity in workforce can be a start in our organization. Eventually demographic changes can be implemented including organization restructuring and equal opportunity legislations. This will require our organization to develop innovative and creative methods to manage people and improve our management practices. Upon proper implementation, Green et. al. (2008) stated that these changes can increase work performance and customer service. Diversity can be an opportunity for the group to improve, not only in an organization level but especially on the individual level. This could lead to a change in the organization, improvement of teamwork and dynamics if necessary for future success. The global implications To be able to enhance global competitiveness, diversification can be part of the strategy. Diversity must also address the improvement of customer value in terms of innovativeness, functionality, quality, customization as well as responsiveness (Meredith & Shafer, 2010). Being a global company, continuous innovation and monitoring of products and services must be made, part of which is the diversified hiring of a new marketing manager. Since most of the life cycle of products is significantly shorten not to mention the influence of fashion and media trends - the flexibility and resilience of the organization must be enhanced as a challenge for the new manager. The diversity on workforce and structure of the organization is expected to stimulate productivity and efficiency which can be translated into customer satisfaction and improvement of operation framework. Ultimately, the consortium of all this efforts can boost the revenue growth and quality standards of the products and services of the global company. Conclusion Diversity definitely plays a major role on the outcome of an organization. In fact, Green et. al. (2008) said that diversity is critical for an organizations success, especially in an era when flexibility and creativity are keys to competitiveness. Despite of its pros and cons in the operations and structure, the risk that an organization will take will be worthwhile upon careful planning and framework strategy. Diversity will always be an ingredient in the decisions of an organization and ultimately contribute to the competitiveness towards the global setting. References Booz Allen Hamilton. (2011). Workplace diversity. Retrieved from http://www.boozallen.com/about/doingbusiness/contract-vehicles/gmacs/opm-tma/opmtma-human-capital-team/opmtma-hct-capabilities/opmtma-hct-workplace-diversity Catalyst. (2011). Women in management in the United States, 1960 - present. Retrieved from http://www.catalyst.org/file/491/qt_women_in_us_mgmt_1960-present_07-29-11.pdf. Dobbin, F. & Jung, J. (2011). Corporate board gender diversity and stock performance: The competence gap or institutional investor bias? Dept. of Sociology, Harvard University. Retrieved from http://scholar.harvard.edu/dobbin/files/2011_nclr_dobbin_jung.pdf. Gonzalez, M.J. (2006). Balancing employment and family responsibilities in Southern Europe: Trends and challenges for social policy reform. Universitat Pompeu Fabra. Retrieved from http://dcpis.upf.edu/~mjose-gonzalez/PDF/gonzalezrfas12006A.pdf. Green, K.A., Lopez, M., Wysocki, A., & Kepner, K. (2008). Diversity in the workplace: Benefits, challenges, and the required managerial tools. Inst. of Food and Agricultural Series, Univ. of Florida: HR022. Retrieved from http://www.forbes.com/sites/glennllopis/2011/08/22/4-skills-that-give-women-a- sustainable-advantage-over-men/. Kochan, T., Bezrukova, K., Ely, R., Jackson, S., Joshi, A., Jehn, K., Leonard, J., Levine, D., & Thomas, D. (2003). The effects of diversity on business performance: Report of the diversity research network. Human Resource Management. Vol. 42, pp. 3-21. DOI: 10.1002/hrm.10061. Langevoort, D.C. (2004). Overcoming resistance to diversity in the executive suite: Grease, grit, and the corporate promotion tournament. Georgetown University Law Center. Retrieved from http://scholarship.law.georgetown.edu/facpub/131/ Llopis, G. (2011). 4 skills that give women a sustainable advantage over men. Forbes. Retrieved from http://www.forbes.com/sites/glennllopis/2011/08/22/4-skills-that-give-women-a- sustainable-advantage-over-men/ Meredith, J.R., & Shafer, S.M. (2010). Operations management for MBAs: Chapter 1 – operations strategy and global competitiveness. 4th ed. John Wiley & Sons. Peachey, H. (n.d.). Approaches to overcoming workplace resistance to diversity initiatives. A presentation made to the MDAA/NEDA. Global Professional Development. Retrieved from www.mdaa.org.au/archive/06/peachey.ppt. Schwab, K. (2011). The Global Competitiveness Report 2011-2012. World Economic Forum. SRO-Kundig, Switzerland. The Economist. (2011). IBM’s new boss: The other transition. New York. Retrieved from http://www.economist.com/node/21534572. Viswanathan, N. (2010). Sales and operations planning: Strategies for managing complexity within global supply chain. Aberdeen Group. Wentling, R.M. (2000). Evaluation of diversity initiative in multinational corporations. Human Resource Development International. Taylor and Francis Ltd. Retrieved from http://www.javvo.com/courses/Lerche_Charles/CCM/course/lessons/05managing_cultural_diversity/Wentling2.pdf Appendices APPENDIX A The target areas of diversity in an organization APPENDIX B The twelve pillars of competitiveness Source: The Global Competitiveness Report 2011-2012 by Schwab, K. (2011) Read More