Managing Diversity in the Hospitality Industry: a Prospectus on Increasing Efficiency - Term Paper Example

 Managing Diversity in the Hospitality Industry: A Prospectus on Increasing Efficiency, Stakeholder Satisfaction, and Profitability Introduction: Firstly, it must be understood that some of the biggest benefits/strengths that diversity can provide our with respect to the way in which it allows the firm/business entity to be reflexive of the actual society in which the aforementioned firm/business entity seeks to operate/do business. Moreover, by representing a level of diversity, a firm or business entity is able to prove to the society and employees that it values equity and fairness among one of its most highly prized assets. Another noted impact that diversity can have upon a firm is with regards to the fact that a diverse organization has the ability to approach a given issue from a litany of different standpoints. This is oftentimes useful with respect to understanding a complex issue or otherwise delineating differences and effecting the most reasonable and profitable path forward. Ultimately, such a definition implies that diversity in and of itself should be a means by which the organization seeks to reflect the racial, ethnic, and religious realities of both the market that it seeks to compete within and the population that it draws from stop in such a way, such a broad definition allows for this level of diversity not only impact upon the way in which business is conducted within a particular region but also have far-reaching applications with regards to how multinational businesses interact with and represent those populations with which they seek to do business (Jackson & Fahrig, 2014). Research Questions: As a means of understanding this focus and the way that it has impacted upon a firm within the hospitality industry, the following analysis will seek to engage the reader with a salient level of discussion, inquiry, and response, with regards to the following key questions: 1. What defines a culture of diversity? 2. What role does the president/CEO have in regards to fostering and demanding diversity? 3. What role does the individual/non manager have with regards to fostering diversity? 4. What are some of the hiring practices that a firm should use to ensure diversity in its staff? 5. What defines diversity– region, nation, politics, culture? 6. Has diversity evolved for the since its inception within the industry? 7. Has this commitment cost company’s profitability or has it actually benefitted them? 8. How does communication affect the way in which the culture is formed and an appreciation of diversity is furthered? 9. What are some of the metrics and data connected to retention and development policies within other organizations that have adopted greater degrees of diversity? By delineating a response to each of these questions, and by providing a thorough literature review, it is the hope of this author that the true measurement of what helps to separate firms within the hospitality industry that have engaged with diversity as compared to those that have not will be delineated. Moreover, it is the further hope of this student that through such an understanding, the appreciation and description of best practices with regards to promoting diversity can be engaged. Literature Review: In seeking to trace why diversity has become such a primal component for determining success within the hospitality industry, the first article that will be mentioned within this brief literature review is entitled “Shifting the Diversity Climate” (Ringold & Feinstein, 2011). As such, Ringold and Feinsten point to the ways in which firms have made a marked shift towards seeking to promote greater degrees of diversity in the hopes that it could boost their overall success. Realizing that it is not possible for a firm to be profitable and exist and thrive in a market that is itself increasingly diverse, stakeholders came to realize the means of capturing such a market was at least tangentially dependent upon the level of diversity they could represent. A similar approach is made with respect to Anand and Winters’ (2008) analysis that sought to integrate a further level of appreciation for the way in which “prime movers” led the shift towards appreciating diversity and the impacts that it could bring as early as 1960s. In allowing the reader to gain a level of oversight with regards to the historical development that the culture took, the article is useful in helping to formulate a historical approach to how and why the diversity came to be evidenced in the way it did within the modern era (Jarchow & Liebman, 2012). Thomas and Creary’s 2011 piece entitled “Shifting the Diversity Climate: A Modern Solution”, hinges upon the degree and extent to which firms within the hospitality industry have found themselves increasingly unsatisfied with the current levels of diversity that they have experienced and have actively sought to integrate with new initiatives as a means of boosting them (Dowling, 2011). This focus upon the measurable metrics of what defined diversity and the means through which it would come to be redefined and practiced within the firm is a fundamentally important starting point in helping the reader to come to a more informed conclusion concerning how diversity was redefined and understood by the decision makers of the company. Although a great deal of analysis can be placed with regards to how firms within the hospitality industry define diversity, Mills (2010) realizes that it is important to understand the way in which the remainder of the business world has defined diversity over the course of the past several decades as a means of developing a baseline of understanding with regards to how the hospitality industry sought to differentiate itself from the remainder of the marketplace. This understanding is of course needful for the researcher as it provides the benchmark through which the hospitality industry may be measured; as well as the benchmark that individual units within this industry utilized to measure themselves and see what needed to be done in order to create a more ethical and equitable firm (Lyberg et al., 2012). Timmons (2009) furthers an understanding of diversity planning and how it was carried out; pointing to how many firms within the hospitality industry realized their shortcomings and sought to rectify them. In this way, the article entitled, “Leveraging Diversity of Thought to Create Business Solutions” was utilized as a means of discussing the thought process that these firms engaged as a means of formulating a strategy and increasing the levels of diversity evidenced within their firm. Smith (2013) points to the fact that even though many firms within the hospitality industry are representative of some best practices, there remains a great deal of work to be done with regards to the way in which diversity is understood within the current business model. Ultimately, the author points to the fact that diversity is not a static concept and should never be understood as such (Anand & Winters, 2008). However, rather than chiding firms for not achieving greater levels of success, Smith discusses the way in which the firm has achieved a level of diversity that is virtually unheard of elsewhere throughout the business world and represents a best practice that other firms should continually strive towards. Analysis: 1. What defines a culture of diversity? With regards to the first question that was posed, it must be understood that a culture of diversity cannot clearly be defined based on a simple and succinct answer; rather, a culture of diversity is nuanced and exhibited at almost each and every stage of operations and guiding strategy. The mission statement, goals, and vision for the firm clearly define the fact that diversity is a prized aspect with regards to how the organization is defined and how it is expected to operate. This multidimensional approach to the way in which diversity is championed and promoted is likely one of the greatest strengths with respect to the continual high ranking of firms within the hospitality industry that employ a high level of diversity (Chrobot-Mason, 2012). 2. What role does the president/CEO have in regards to fostering and demanding diversity? Interestingly, from the analysis that was performed, it was noted that the president/CEO of firms that seek to engage high levels of diversity within the hospitality industry actually have little to do with the overall levels of diversity which were promoted in championed by these firms. This is not to say that the president/CEO is either unaware or unconcerned with increasing the overall level of diversity (Hunt, 2007). Rather, the culture that has been fostered and created within such firms helps to further this diversity in and of itself; thereby not necessitating a strong leader to implement rigid protocols and expectations for other stakeholders to follow (Gröschl, 2011). This particular fact is both intriguing and insightful with regards the way in which other similar firms might seek to improve the levels of diversity that are represented within their own workforce. Rather than creating a rigid expectation among middle management and stakeholders that diversity must be represented in each and every work area, the creation of a culture of diversity is by far the more appropriate and efficient response to the issues that are facing the workforce of the current era. 3. What role does the individual/non manager have with regards to fostering diversity? From the information that was engaged, it came to be quite obvious that since the CEO was not responsible for impressing upon the stakeholders a demand and continual knowledge of the importance of promoting diversity, the cultural influence that had been promoted within these firms was instead responsible for motivating the individual/non-manager to foster further levels of diversity. This of course ties in directly with the second question represented above. As such, by encouraging and devoting appropriate resources to managing and delineating this expectation/cultural norm, the firm has been able to continue to grow and represent further levels of diversity that would not have been likely and/or possible had a single leader, or group of leaders, been responsible for implementing and enforcing the policy of diversity within the workforce (Hamilton, 2013) Naturally, this is something of a self fulfilling prophecy and much easier to perpetuate once it has been begun. In all fairness, a firm such that have engaged in this process long ago will find it much easier to promote a level of diversity into the future as compared to one that is still struggling to implement an industry standard or a culture that appreciates the impact that diversity can have with regards to the final product/profitability (Forbes Insights, 2014). 4. What are some of the hiring practices that can be used to ensure diversity? Although finding actionable and salient information with respect to the hiring process within a litany of different firms is difficult to say the least, a more efficient measurement of the hiring process and practice itself was delineated with respect to some of the secondary literature which was engaged in several how ultimate decisions were made. From the information that was analyzed, it became patently obvious that rather than merely pulling a randomized sample from the perspective applicants, the firms that exhibited best practices regularly engaged in what is known as a “diversity audit” (Friday & Friday, 2003). Within such a process, a delineation of the way in which the firm could benefit from the representation of the more gifted and talented employees within a particular field was noted. Similarly, this information was passed off to the hiring authorities within the respective divisions and human resources oversight committees so that the correct delineation could be made with respect to finding the applicant that was most suited to the needs of the firm and could maximized the weaknesses/needs that the diversity audit highlighted (Dinold et al., 2013). 6. What defines diversity: gender, age, religion, nationality, politics, culture or ethnicity? As one might expect, the answer to the question posed above is that each of these factors is considered with regards to defining diversity. Any approach that did not utilize these multi-level measurements would fall short of representing true diversity and merely would engage in some form of pseudo-diversity based upon the subjective factors that the firm would be able to delineate on their own. 7. Has diversity evolved for the firm since its inception? Naturally, the process of increasing diversity is not one that is engaged overnight; rather it has undergone a great deal of revision and reanalysis through the subsequent years. However, the leadership within the firms that are committed to it have come to the understanding that diversity is expected to grow and expand within the near future and that these determinants, even though applicable and appropriate to the current time, are likely to change with them. Furthermore, it is expected to continue to grow in the future and the means through which a discussion and understanding/appreciation for diversity is represented should not be delineated as a static concept (Brown et al., 2005). 8. Has this commitment cost firms profitability or has it actually benefitted them? From even a cursory unit of analysis, it is patently obvious that the emphasis and approach to diversity within the hospitality industry has been on the whole beneficial. Whereas many other firms have sought to integrate diversity to a greater degree within their respective branches and divisions/departments, firms within the hospitality industry have effectively performed this function and continue to redefine and hone the way in which it is understood (Sharp et al., 2012). 9. How does communication affect the way in which the culture is formed and an appreciation of diversity is furthered? Not surprisingly, a delineation of culture alone is not sufficient towards understanding and appreciating the way in which firms exhibit best practices with regards to diversity. Rather, an appreciation and understanding with regards to the communication that the firm engenders and the way through which this is carried out within the respective branches/divisions/departments of the firm, is perhaps the more important measurement. As such, a review and analysis with regards to this communication delineates the fact that the human resources department, in conjunction with the senior leadership of the firm, continue to define and redefine the approach and levels of integration/appreciation that diversity engenders within the firm (Cukier & Smarz, 2012). This is of course due to the fact that the communication with respect to diversity continues to morph and evolve as changes within the extent environment, as well as an appreciation for further levels of diversity, come to be known. 10. What are some of the metrics and data connected to retention and development policies within the company? One of the most obvious and frequently noted metrics that the firm uses is with regards to the comparison and contrast between the outside world/demographic communities and the workforce that is exhibited within the firm itself. Obviously, as firm continues to gain level of diversity and represent the way in which the world around the changes, this process cannot simply be engaged once or twice (Peck et al., 2011). Rather, as has been defined so many times within this analysis, the research points to the fact that a continual process of growth and reanalysis is required is a means of continuing to represent a relevant level of diversity within the firm. Whereas it may not seem as if demographic changes occur at a rapid rate, the fact of the matter is that the outside community, through the process of social shift, immigration, family dynamics, gender representation, and lifestyle decisions continues to change (Liukkunen, 2012). In such a way, seeking to integrate with these metrics and data connected to the retention and development policies within the company has been a core complement of the way in which the human resources department, in tandem with the leadership, has been able to continue to promote diversity (Carroll, 2004). Conclusion: From the information that has been represented, it is clear and apparent that the role that diversity has on the overall profitability and success of industries within the hospitality industry is profound. Speaking categorically, the growth of this industry coupled with the increase in globalization and travel has caused a situation in which individuals are traveling more and interacting with different cultures and individuals from different backgrounds at a higher rate than at any time previously in history. Moreover, as greater levels of diversity have been proven to impact positively upon the profits and survival of firms within the hospitality industry, it is expected that the rates of diversity will continue to increase as more and more players within the market began to accommodate and adapt the approaches that have been specified and analyzed within the preceding analysis. Thankfully, increasing levels of diversity within the workplace not only impact upon reflecting high ethical standards, they also provide for tangential economic benefits; thereby encouraging more and more firms within the market to begin engaging these practices. Bibliography Anand, R., & Winters, M. 2008, ‘A retrospective view of corporate diversity training from 1964 to the present’. Academy of Management Learning & Education, 7(3), 356-372. 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J. 2011, ‘Shifting the diversity climate’. Harvard Business School Cases, 1. Timmons, S. 2009, ‘Leveraging diversity of thought to create business solutions’. Profiles in Diversity Journal, 11(4), 35. Read More