The Implications of Cultural Diversity on Organizational Performance - Essay Example

The Implications of Cultural Diversity on Organizational Performance and the Role of Human Resource Management ID] [Lecturer][Submission Date] [University] Table of Contents Table of Contents 2 Introduction 3 Overview 4 Effects of Cultural Diversity on the Workplace 6 Positive Effectives 6 HRM’s Role in making the most of Diversity 10 Conclusion and Recommendations 13 References 14 Introduction In this assignment, I will explore the basis of cultural diversity within organizational performance regimes and also examine the ever-growing role of the human resource management (HRM) within these tenets. I would project the significance of diversity within any organization and also look to provide details regarding the managerial domains of these undertakings. I have made an earnest effort to link the diversity basis of an organization with the way it collaborates with the performance measurement – all of which pose as significant pointers within the working domains of an industrial basis on a broader level. (Sommer, 2005) The attempt has been proactive in nature since the relation between performance and the incorporation of competent individuals from diverse backgrounds is all the more necessary in the times much like today. Cultural diversity and organizational performance both have significant bearing on the overall working regimes of the organization and thus should be given the importance that these deserve in essence. No organization can meaningfully progress today without efficiently responding to demands and pressures generated by cultural diversity. Adoption human resources management (HRM) for such recommendations which has been provided in this assignment would contribute effectively to maximize the benefits of cultural diversity within an organization. Overview Critical Overview Workforce depends a great deal on the way in which workers perform their duties and remain committed to the growth potentials of the business. It does not really matter if the workers are full time employee or contingent and part time ones. What is needed and looked upon is the manner in which employees work towards attaining the goals and objectives of the business and provide benefits to the eventual position of the organization. This is the single most quintessential basis for the workforce to identify with and no other aspect is deemed in the same vein when it comes to the amount of significance that workforce could exhibit on any given day. If the organization has a major share of temporary workers within its fold, it is of paramount essence that the organization’s own culture is strong and there are no apprehensions in this basis whatsoever. (Buttner, 2006) This is because organization’s culture lays the foundation stone for their devotion and work place performance levels to a higher magnitude. Any set of values and beliefs make up a culture. On the same pretext, an organizational culture is a set of values, morals, beliefs, traditions and norms which come from the industry specific regimes as well as that from the society under which it exists in the first place. (Hayes, 2005) Workforce diversity can pose a number of problems for the group members but it is the duty of the leader of the group to make the group members hailing from different cultures to feel comfortable within the group and contribute to the best capacity they can, both as an individual and in a group. (Claire, 2007) Analysis Hard work and commitment thus form the key in the whole equation of getting the best out of even the ordinary of people in a group. Within the domains of the organization itself, cultural diversity within both the training and staffing regimes could be pinpointed in the area of managing these people well with the help of a manager who not only takes care of them but also acts as a person who is professional and knows how to get work done from his sub-ordinates. (Knight, 2007) The impact of workforce diversities in a group means that more efforts are needed to be put in place so that each of the group members knows what his duty is and whether this person is communicated about the roles that are asked of him or her, both in the short term as well as the long run. Moreover, diverse changes mean that the leader has to focus more on a particular set of people or at times, the ones who are not very easy going along with the whole group. Effects of Cultural Diversity on the Workplace Positive Effectives One needs to keep in mind that the staff for the organization’s subsidiaries in different regions of the world recruits people who are locally trained and culturally aligned with the local nuances. This manager thus not only plans their work that they have to carry out within a specific period of time but also organizes their routines, looks after them both from the organizational standpoint and the human perspectives and not to forget his integration skills which are deemed so very necessary for involving people and their commitment towards their assigned tasks and jobs over a period of time. This can happen fairly adequately even though the subsidiaries are located in different nook and corners of the world. Lastly, he also measures their performance that they have done over this time period. (Cappelli, 1999) This measurement tool goes against a number of managers in the work environment of present times as it is usually very difficult to get a hang of because employees feel that the managers were the one to guide them along and hence they should also be held accountable in cases of extreme failure where the burden only falls on the person who carried out a task or a job. This is pretty much true of the negative aspects related with managing people and treating them fairly. Locals from different offices located in distinctive regions of the world would report directly to these managers and this would have a proper linkage at hand, within the set domains of the organization that can only be considered as a plus. (Amason, 2007) Seeking to introduce something on the lines of the customer’s wants and needs is a difficult proposition for the organization since it has to change its values and cultural basis but then again is an interesting offering which more or less suggests the ‘changing’ regime of the organization and to the levels the organization can bend itself for the sake of the valued customer. The changing market structure might call for changing strategies and lines of action that would all target the people for whom the product is actually designed as well as the competitors with whom the clutter is being broken in the environs of the marketplace. (Hengelbrock, 2006) Negative Effectives Thus competition brings in more and more quality at the end of the company with regards to its products as well as more sales in the form of its varied and changed stance on focusing towards the customers rather than the product itself. (Belkin, 2006) Apart from that, emphasis on need must be the order of the day rather than bringing out more and more varied stock key units just for the sake of it. The different products should satisfy each and every user rather than satisfy the people sitting in the innovation labs and those who invent just to take the company one step further. This trap should thus be avoided under all circumstances. Thus profits could come out in the middle when a company is the sole and dominant player in the whole market structure. However by all accounts, organization’s cultural basis is something that should develop and generate interest on the part of the customers since these are the recipients. (Dipboye, 2005) Within different countries, cultural shock is a pertinent subject which has received a lot of flak and criticism from the liberal societies of the world. In nations like India and Pakistan, third world countries, men and women are known to work within their individual capacities and usually do not work along with each other which in essence kills the basic premise of getting work done and that too in the form of a group or a team. (Hallstein, 2007) This is essentially a significant tangent that needs proper understanding before delving into any further. Organizational culture in such countries offer embarrassing situations where men and women avoid working hand in hand and thus form their respective teams, either male-dominated or female one. (Unikel, 2005) Cultural shock in essence mars the basis of working as an organization right from the onset but then again it is a reality coming from the domains of the developed nations and must be taken in the same stead without criticizing for the sake of criticism. (Watson, 2006) The negative effectives within the cultural diversity tenets basically thwart the process of cultivation of a team which would address a problem in a sound manner and it is in the best interest of the organization to foster such environments. Reducing Negative Effectives Leadership effectiveness within an organization means that the effectiveness of the team becomes apparent when the going gets tough and when there are a lot of hurdles in the way of success. Effective leaders accomplish respect from all and sundry and have an edge over the normal leaders which are found just about in every other organization. (Southworth, 2005) A leader thus makes use of all his skills and abilities to convince the people around him that is a genuine one and can make decisions which would only benefit them and nothing else. (Keyton, 2007) The changing global environment demands that the organizations are ready to change whenever the need so happens. They have to be on their toes all the time as well as carry out activities; both tactically as well as from the long term perspective that satisfies all the stakeholders and not just the consumers who receive their products and/or services. (Seaman, 2006) The organizational changes in terms of their strategies need to be chalked out with the facilitation of both the top management as well as the knowledge organization as they are the ones who actually have the much needed solid knowledge and information as to how the relevant strategies can be incorporated into the system of the organizations in the first place. The strategies are always drawn up whilst keeping the future in perspective while tactics usually change every now and then and are of short term nature. (Thomas Jr., 2006) HRM’s Role in making the most of Diversity General Roles of HRM The HRM works to bring sanity within the organizational ranks and for that every effort is made by the top management to address the pertinent issues which the company faces at a particular time. The HRM unit knits the basis of an organization essentially and gives it the much needed boost and pomp which it requires. Training and HR practices have no such boundaries within which they can be confined and limited to, yet there are certain customs to which the particular company has to change its approach towards. This could be due to diverse cultures and sometimes due to different backgrounds widespread in the specific region or let alone a country having its own set of customs and traditions. (Stretch, 2006) But all in all, a company has to keep these unique features of a region within its mind and continue with the growth process within those very limits. Meanwhile, the investors and shareholders will demand return for it because they will feel left out on those fronts (countries observing particular customs) by which they will be losing some revenue and for that big companies do their maximum to satisfy all of them. If one shareholder, owner or whosoever feels ditched out, he/she may never join the business again and thus the company’s standing which is so very dear to its direct owners will have a spot which cant be cleaned to its core, for a number of years naturally. (Halpin, 2004) HRM Challenges Staffing, training and HR practices are also considered global due to the fact that it generates a big amount of revenue from all quarters of life, if not in all countries then surely in some regions of the world. It can also be a source of providing jobs and human resources to many a number of individuals within those regions and pulling out the business of those very regions is also a step in the wrong direction. It may also be possible that the company is not extracting any such profits from the very same region yet it has to keep up with the business there because pulling out would mean taking away livelihood from people and that would create an undue disturbance, not wanted for the company’s sake. (Foss, 2005) The other reason for saying that training and HR practices are global is that the business is tied up in many different quarters like construction, cleaning services, food and beverages, interior design services, marketing, advertising and waste removal to name a few. The company will do its best to get out of the mess and carry on with its services in and across the region. (Pitts, 2005) Of course, not sticking to it will mean the abandonment of the business in the region and thus the company’s profits would take a damaging U-turn. No company can afford to let go off its customers this easily and that too at its own status and reputation. (Kurucz, 2007) Lately, there has been noticed a number of problems for women working in the workplaces which have really distracted the potential array of the females in the job openings and ultimately their process of recruitment. (Ward, 2004) Companies must encourage mixed communities to interact and collaborate with each other as well as bolster the selection of deserving (on merit-basis) women. so that all of them in their own particular areas of output give their best and eventually produce the required results and pre-determined targets for the company or the business in unison. (Bertucci, 2006) Conclusion and Recommendations In the end, it would be deemed as proper to suggest that diversity creates opportunity for the people to cultivate their values and work ethics in a collective manner. The fact that organizations need to evolve over a period of time is testimony enough for them to grow within themselves and thus adopt and hold on to a new path altogether, one that will be their torchbearer as well as reap rich dividends for them not only in the present times but also in the future. (Edens, 2001) However this is easier said than done because steps need to be taken in the physical sense more than anything else. Organizations need to stand up and make their own selves count. There must be unison in their actions and undertakings which will eventually facilitate the running of the whole related industry. Thus a solid platform for supporting these initiatives must indeed be the order of the day when it comes to clear comprehension of diversity regimes all said and done. All these aspects are quintessential in the wake of a changing global business fraternity – one that aims to explore a number of different avenues, activities and break new grounds at the same time. I would recommend that the business organizations step up on their efforts and aim to explore the grey areas so that the weaknesses could be easily be plugged. However all this requires a great deal of tact, planning and patience so that the end result is successful. References 1. Amason, Allen. (2007). Examining the Impact of Organizational Value Dissimilarity in Top Management Teams. Journal of Managerial Issues, Vol. 19 2. Belkin, Liuba. (2006). Organizational Attractiveness Is in the Eye of the Beholder: The Interaction of Demographic Characteristics with Foreignness. Journal of International Business Studies, Vol. 37 3. Bertucci, Guido. (2006). Unlocking the Human Potential for Public Sector Performance. Public Personnel Management, Vol. 35 4. Buttner, E. Holly. (2006). The Influence of Organizational Diversity Orientation and Leader Attitude on Diversity Activities. Journal of Managerial Issues, Vol. 18 5. Cappelli, Peter. (1999). Employment Practices and Business Strategy. 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Leader Development for Transforming Organizations: Growing Leaders for Tomorrow. Lawrence Erlbaum Associates 13. Hengelbrock, Jurgen. (2006). Re-Ethnicizing the Minds? Cultural Revival in Contemporary Thought. Rodopi 14. Keyton, Joann. (2007). Unobtrusive Control in a Leadership Organization: Integrating Control and Resistance. Western Journal of Communication, Vol. 71 15. Knight, Chris. (2007). The Evolution of Cultural Diversity: A Phylogenetic Approach. Journal of the Royal Anthropological Institute, Vol. 13 16. Kurucz, Elizabeth. (2007). Three Conceptions of Triple Bottom Line Business Sustainability and the Role for HRM. Human Resource Planning, Vol. 30 17. Pitts, David W. (2005). Diversity, Representation, and Performance: Evidence about Race and Ethnicity in Public Organizations. Journal of Public Administration Research and Theory, Vol. 15 18. Seaman, Samuel. (2006). The Impact of Human Resource Practices and Compensation Design on Performance: An Analysis of Family-Owned SMEs. Journal of Small Business Management, Vol. 44 19. Sommer, Steven. (2005). The Impact of High Performance Work on Industry-Level Outcomes. Journal of Managerial Issues, Vol. 17 20. Southworth, Geoff. (2005). Developing Leadership: Creating the Schools of Tomorrow. Open University Press 21. Stretch, John. (2006). Managing Diversity: Toward a Globally Inclusive Workplace. Social Work, Vol. 51 22. Thomas Jr., R. Roosevelt. (2006). Building on the Promise of Diversity: How We Can Move to the Next Level in Our Workplaces, Our Communities, and Our Society. AMACOM 23. Unikel, Emily. (2005). Effects of Gender Diversity on Performance and Interpersonal Behavior in Small Work Groups. Sex Roles: A Journal of Research, Vol. 52 24. Ward, Dan. (2004). Strategic Staffing: A Practical Toolkit for Workforce Planning. Human Resource Planning, Vol. 27 25. Watson, Joe. (2006). Wanted: African American Professional for Hire: Diversity May Be a Hot Business Topic, but Many Companies Are Still Struggling to Find, Hire, and Retain Black Employees. The New Book without Excuses: Unleash the Power of Diversity to Build Your Business Explains to Hiring Managers Why Theres No Basis for the Excuse "We Cant Find Any." Black Enterprise, Vol. 37, November Word Count: 2,523 Read More