Personal and Managerial Effectiveness - Report Example

Personal and Managerial Effectiveness Introduction The pace of globalisation has increased in the 21st century and this calls for improved interaction among individuals from various cultures, backgrounds and beliefs. People no longer work in a shielded workplace. The truth is that entities operate in a market that is typified by increased competition from various parts of the world (Leopold and Harris, 2009: 290). Owing to this reason, businesses are advised to be more receptive to change and accept the idea of diversity within the workplace. Effective diversity management refers to initiatives that have been laid down to improve relationships between diverse individuals and transform diversity into a source of better effectiveness, complementarily and creativity. The programs touch on various areas such as disability, sexuality, age, gender and race. From this definition, effective diversity management is widely seen as a practice that could profit employees, business owners and other relevant stakeholders including customers (Skalsky and McCarthy, 2009:3). This report looks into the benefits of effective workforce diversity. With the increased pace of globalisation, a growing number of women in the society, ethnic minorities and changing demographic profile society has begun concentrating more on diversity issues (Leopold and Harris, 2009:290). As a consequence of these changes, equal opportunities within the job sector came into play. Studies conducted in the recent times have shown that there are significant benefits associated with effective diversity management in the current times. Literature Review This section focuses on some of the studies that have been conducted in the recent times that emphasise on diversity issues in the contemporary work place. In a study conducted by Skalsky and McCarthy (2009) it is clear that diversity relates to issues that may have an impact of employee engagement. These include age, religion, ethnicity gender and sexual orientation. The study gives results in a survey that was conducted to establish how Australian manage diversity. It stated that effective diversity management could only be realised from the management. In a study done in 27 countries and on 50, 000 in 2010 it was found that effective diversity management increased employee satisfaction by 15 percent and reduced absenteeism and turnover at 16 percent and 15 percent respectively. Groeneveld and Verbeek (2011) conducted a study comparing the diversity policies between the Dutch private and public sectors. Date that was analysed in the study was from between 2001 and 2002 and was obtained from 8, 283 annual reports. It was found that the public sector was more likely to embrace diversity policies than the private sector. Finally, the policies that were designed to facilitate management within a diverse work environment impacted on the representation of the minorities in a short time. Jehn and Bezrukova (2004) found that increased diversity among work groups resulted into better performance. Additionally, this study theorised the moderating influences of the three classes of workgroup variables. These include strategies, human resource practices and cultures. The study found that the work group approach had a key regulating impact on compensation. Gonzalez and Denisi (2009) did a study of a sample chain of twenty eight and found a positive correlation between effective diversity management. This study was aimed at finding out the positive impact on diversity on organisational effectiveness. Finally, Ostergaard, Timmermans and Kristinsson (2011) found a positive relationship between diversity and innovation in companies in the modern world. Evaluation and Analysis From the above discussion it is clear that the diversity management increases innovation and creativity in the workforce. This is because having a group of individuals with various insights, opinions, skills and approaches could result to the identification of new ways and opportunities that improve efficiency in organisations and profitability. Businesses that value diversity respect their workers and encourage their creative capacity (Leopold and Harris, 2009:291). Furthermore, innovation is an important aspect in maintaining a competitive advantage in contemporary markets and therefore diversity has been observed to be an important resource as well as improves relationships between workers. The second strategic advantage that is associated with effective diversity management within businesses in the current times is that it provides improved information and ways of getting more varied customers. For example, a business that is dominated by men may be unknowingly detracting female customers from their goods and products (Kirton and Greene, 2010:74). Through the introduction of female workers this could help them address this problem and make better sales. Previous studies have shown that when there is increased diversity within an entity, their ability to attract new customers is improved. This places them in a better marketing position as well owing to the fact that they have a greater understanding of their customer base. Thirdly, it has been observed that effective diversity management attracts and retains a qualified work force. This helps businesses to strategically position themselves in the market. A company that practices effective diversity management establishes a positive reputation and this helps it to attract new employees and retain the existing ones (Skalsky and McCarthy, 2009:4). Employee recruitment is an expensive and tedious process and companies can avoid this by maintaining a satisfied work force through efficient diversity management. It is a widely accepted fact that employees are an important facet in maintaining a competitive advantage for businesses in the modern world. By facilitating diversity companies attract highly qualified employees and this places them at the top of the competition. In relation to this point, effective diversity management facilitates the establishment of a globally competent workforce (Skalsky and McCarthy, 2009:5). Establishing a company that reflects the actual composition of people across the globe equips the management with the necessary skills to compete efficiently and with a wide range of resources. It is important to note that a diverse work force offers professional capabilities in the work place, brings employees from various cultures and who communicate in various languages together resulting to a better understanding of the needs of the global customers. Effective diversity management results to a decline in conflicts in the work place that leads to better performance by the employees and retention of the work force. A volatile work environment is the major cause of attrition in companies. Employees need to be assured of their security and belongingness (Leopold and Harris, 2009:293). They are more likely to be productive in environments where they feel that their beliefs and ideas are supported and are likely to be more industrious. All employees demand to be treated with respect and fairness and if they are not accorded this treatment, they are likely to search for jobs elsewhere. Employee turnover is an unproductive and expensive affair and the stakeholders are calling on companies to establish a healthy working environment and practice policies that retain and attract new employees. Effective diversity management is one of the policies that is highly recommended to achieve this. Case Studies on Effective Diversity Management There are a number of real life examples that show that diversity management can lead to better sales, profitability, market share and productivity. In this section, three examples will be discussed to give a better understanding of the benefits of effective diversity management. The first case study focuses on Petro-Canada that is based in the UK. The company acknowledged that diversity management is an important element for companies in the current times. The entity started making its sign posts in Mandarin and English within the Vancouver community (Kirton and Greene, 2010:67). Over and above this, the sales team were encouraged to speak to prospective customers in their mother tongue and these changes were made in the recruitment and training processes accordingly. As a result, there were increased sales in Terminal and Main stations within a period of years. The second case study is about McGraw Hill Companies that is a famous publishing company. The entity understands the true value of diversity management in the work force as a way of exploiting the available skills and talent in the work force. One of the strategies that have been adopted by the company is the Associate Development Program that is abbreviated as ADP. Since the advent of the initiative in 1993 it has brought together individuals from world-class business schools from diverse ethnicities, races, perspectives and experiences (Kirton and Greene, 2010:45). This program and other related programs have enabled the entity compete at a global platform. One of the best examples of how the company has used a diverse workforce to venture into the global market is through the employing the local talent that has helped the company strengthen its brand reputation and market in the Latin American region. This has been facilitated by their understanding of local markets, team work and cultural know-how. The third case looks into Reebok that has been profiting from effective diversity management. For example, in the 80s women complained that they could not get aerobic shoes that were specifically designed for them (Kirton and Greene, 2010:97). In a move to respond to this complaint, the company started marketing these shoes this market segment. As a result, the company enjoyed increased profitability and this made the company realise the value of diversity. The CEO, Paul Fireman stated that for a company to compete internationally and become diverse, they must have experiences to share at every level of employment and should provide employees with the best opportunities for optimal performance. The fourth case studies that shows the importance of effective diversity management is Levi Strauss & Co. Diversity has been embraced throughout the entity as shown in their corporate belief that states that diversity is suitable for communities, businesses as well as families. It can further be seen that the entity’s policy in diversity is based on a strategy that is made up of four elements (Kirton and Greene, 2010:132). The first focuses on getting diverse talent, community involvement, innovation and creativity and empathetic marketing. The final case study that clearly shows the benefits of effective diversity management is that of IBM. It is clearly that issues of diversity management embedded in the entity’s philosophy and belief. Such belief in diversity is important towards the company’s success in the current market place. In the current times, diversity management is involved in various aspects of the company including management style and technical activities. This can be demonstrated through statistics as 57 percent of the company’s board are women, non- U.S. born and multicultural (Kirton and Greene, 2010:167). These individuals have also been given a considerable responsibility in terms of revenue control. The above case studies give a clear account of how companies have benefited from effective diversity management. Recommendations to Management Based on the findings on the various sources reviewed in the report and the case studies analysed there are several recommendations that can be made to the management. To start with, the entity is required to come up with a solid diversity management plan that will improve its competitive advantage over other SMEs dealing in the same trade (Leopold and Harris, 2009:17). The plan should be all-inclusive of the issues relating to diversity and not simply focus on age, disability or the ethnic minority measure. Secondly, the management should come up with a system that allows for feedback from employees and this does away with feelings of discrimination or suspicion in the work force. Thirdly, as part of the monitoring process, the legislative policies that have been put in place should meet or go beyond the applicable rules and regulations. Fourthly, the company should conduct awareness training on various issues relating to effective diversity management. Fifthly, the entity should adopt an extent of practicality where necessary. For example, disabled workers should be protected at all times (Leopold and Harris, 2009:19). Additionally, there should be an open door policy that deals with all cases of discrimination. Finally, there should be effective communication which is critical in achieving effective diversity management. The management should keep updating the employees on their diversity plans as this promotes effective diversity management resulting to increased profitability and customer service. Conclusion To sum up, the report looks into the benefits of effective diversity management among companies in the modern world. It gives a review of literature on some of the studies that have been done on the issues and gives an analysis by using real-life examples. Effective diversity management should be embraced as it results to increased profitability, better customer relations and work environment. References Gonzalez, J.A. & Denisi, A. S. (2009) ‘Cross‐level effects of demography and diversity climate on organisational attachment and firm effectiveness’ Journal of Organisational Behaviour, vol. 30, no. 1, pp. 21-40. Groeneveld, S. & Verbeek, S. (2011) ‘Diversity policies in public and private sector organisations: an empirical comparison of incidence and effectiveness’ Review of Public Personnel Administration, 0734371X11421497. Jehn, K.A. & Bezrukova, K. (2004) ‘A field study of group diversity, workgroup context, and performance’ Journal of Organisational Behaviour, vol. 25, no. 6, pp.703-729. Kirton, G. & Greene, A. (2010) The dynamics of managing diversity: a critical approach, 3rd Edition, Oxford, Butterworth-Heinemann. Leopold, J. & Harris, L. (2009) The strategic managing of human resources, Harlow, Pearson Education Ltd. Ostergaard, C.R., Timmermans, B., Kristinsson, K. (2011) ‘Does a different view create something new? The effect of employee diversity on innovation’ Research Policy, vol. 40, no. 3, pp. 500-509. Skalsky, P. & McCarthy, G. (2009) Diversity management in Australia and its impacts on employment engagement, World at work. Read More