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Case Study Example

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After settling its $54 million class-action lawsuit, Advantica’s CEO Jim Adamson immediately acknowledged that the company did indeed have a diversity problem. Accepting that the company not only had a problem and elevating it into a crisis as Kotter (97) states, provides…
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Download file to see previous pages The second lesson coming from this case is the need for top management to openly and clearly indicate their desire to pursue the radically new approach. At Denny’s the CEO made his intentions clear by making diversity an area of strategic focus. This is manifested through the holistic approach that the CEO put in place through the four-part strategy he devised to set cultural diversity in motion. These four parts were: making mandatory intensive diversity training for all members of staff; re-engineering the people systems / organizational structure; making diversity a core competence for appraising management performance, and consistently preaching the gospel of diversity (Brathwaite 1; Rice Para 9).
The third point raised by Denny’s turnaround with regard to diversity is that tackling this particular challenge within organizations requires a multi-faceted approach that goes beyond the often promoted mandatory diversity training in many organizations. For starters the Denny’s case highlights that training in itself needs to be implemented through a tiered approach, where training needs are based on position, power and roles and responsibilities of the individual within the company. The second reason why a multifaceted approach is needed is because tackling diversity issues necessitates both cultural and structural changes to the organization. On the one hand, Denny’s recruitment, firing, promotion, development and promotion policies reflected its organizational culture that needed to be changed. On the other hand, Denny’s long hierarchical structure shielded the CEO from the misdeeds committed by the lower management levels.
The final point obtained from the success of Denny’s turnaround is the need for consistency from top management with regards to effecting and sustaining a diversity policy within the organization. This has to be done through verbal communication – the fourth part of CEO Adamson’s strategy – and also through ...Download file to see next pagesRead More
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