How Strong Is The Business Case For Variety Management Business Essay

Assignment Question: How strong is the business circumstance for 'variety management'? Using research evidence and organizational examples, discuss the magnitude to which diversity-management is and should be applied.

Table of Details 1

Introduction 2

Defining Variety 2

Defining Variety Management 2

Advantages and Disadvantages of Diversity Management 3

Advantages of Diversity Management Program 3

Disadvantages of Variety Management Program 4

Case Analysis of Diversity Management 5

Do and do not in Diversity Management 6

Conclusion 7

References and Bibliography 8


The world's increasing globalization trend demands more connection between people from a massive diverse of civilizations, values, and backgrounds than days gone by. Today, people no longer live and work within an insulated marketplace. The truth is: they are now part of a worldwide (or commonly brought up as flatten) current economic climate with competition via nearly every viewpoint of the world. Because of this, businesses have to be available to change and agree to the idea of diversity to be more creative (Kulik, 1998).

The article in this section will be assemble as follow. First of all, the concept of diversity will be described. Then, the article further investigates and defines the concept of diversity management. Then, the identified and often talked about benefits and drawbacks of diversity management program will be talked about. After that, some true to life business circumstances on companies efficiently managing diversity and subsequently reaped the advantages of growth, success and improved performance from an effective variety management program will be presented. After the overview of academics and research journals regarding the subject matter, the article check out suggest some do and do not for practical variety management program. The article concludes with some view and general course for managers to follow in implementation of diversity management program.

Defining Diversity

In daily dialogue, the term of "diversity" has the meaning of dissimilarities or variety. However, in the business world and in the business textbook, diversity often identifies the many differences present among customers in work environment as well as market place that were not aware of by most people before.

However, in-depth analysis discovered that different analysts may have different perceptions or definition on the idea of diversity. For instance, Mondy (2010) argues that variety identifies any perceived difference among people, be it from the sizes of age, competition, religion, functional area of expertise, profession, erotic orientation, geographical origins, lifestyle, tenure with the organization, position within an corporation, or any other recognized dissimilarities. McShane and Von Glinow (2010), however, divided the idea of diversity into two parts, particularly the surface-level diversity and the deep-level diversity. The surface-level variety is referred to the observable demographic or mental health dissimilarities in people, such as their contest, ethnicity, gender, years, and physical disabilities. On the other hand, the deep-level diversity is described those distinctions in the internal characteristics of employees, including personalities, values, values, and behaviour. Whatever the definition employed, all these definitions share a theme; where in fact the terms of variety encompasses any variety differences between several folks from various sizes of factors that make a difference workplace romantic relationships and success.

Defining Diversity Management

According to Mondy (2010), diversity management is often described your time and effort of ensuring that factors are in destination to encourage the continuous development of a diverse labor force by melding actual and perceived distinctions among workers to achieve maximum output. Esty et. al. (1995), however, define diversity management as acknowledging, understanding, receiving, valuing, and celebrating differences among people with respect to age group, course, ethnicity, gender, physical and mental capacity, race, intimate orientation, religious practice, and open public assistance status for better workplace performance. The explanations of diversity management employed by researchers are vast and may change in the facts. However, generally, it is safe to expect that the word diversity management indicates the execution of strategies or policies to knit a network of assorted individuals collectively into a powerful work force.

Advantages and Drawbacks of Diversity Management

In recent years, diversity is progressively more regarded as an important concern in the context of business management. That is because of the increasing differences in the U. S. inhabitants, globalization process, increasing of international business and mix borders business dealing activities. Many research workers discover such a craze and highlighted that variety is an very helpful competitive advantage that organizational decision designers cannot find the money for to disregard (Robinson, 2002). In the business community, companies have also tend to pay more give attention to diversity and look for ways to reap the opportunities made available from variety as they acknowledge that diversity gets the probable of yielding increased efficiency and competitive advantages (Cooke et. al. , 2010). Apparently, controlling and valuing diversity is an essential component of effective people management, which not only can improve office efficiency, but also add significantly to the tactical objectives of real human source management.

Advantages of Variety Management Program

Many research workers and businessmen have been arguing about the importance and jobs and efforts of managing variety nowadays. Generally, they often times present the theory that diversity can be a sort of strategy which allows organization to get competitive advantage on the market competitive landscape. For example, according to researcher, namely, Bledsoe et. al. (2010) claim that: managing ethnical variety is one of the key factors differentiating a particular company at factors such as (1) useful work procedures or techniques, (2) know-how or change, (3) product or services related technology and finally, (4) customer or consumers related services. However, there are definitely more contributions of taking care of variety to the proper objectives of the company. The following paragraph will summarize these efforts or advantages of diversity in workplace to an organization in details.

Improved and increased competencies in conditions of customer services. As a matter of fact, diverse workforce will often means diverse know-how, ability, experience and capabilities in the employees. If the manager is aware of the intricacies and complexity of how to manage diversity effective, he will have the ability to put the right person into the right position, by reducing his weaknesses while enhancing the particular employee's strength. From this perspective, a diverse workforce enables a administrator to find the correct candidate for a particular position in the organization. For example, someone with cheering personality and has the ability to build rapport fast with customers can be send to the customer services department. All these means that diversity management will make the company to take pleasure from higher competencies in providing higher satisfaction to a customer (McMahon, 2010).

Able to compile and improve the strength of customer brains. As we make use of diverse workforce, we can indirectly tap into the data and experience of these workforce. Inside the time of information, we understand that marketing cleverness or customer cleverness has becoming more and more important. Diversity in workforce in this picture can help a company to compile and accumulate more relevant and effective data on the market place.

Ability to use effectively as well as proficiently in a global context. As a favorite fact, the whole world is a bright colored depiction of diversity. Thus, to move global, a diverse workforce is some sort a basis necessity. We simply need the local experts to assist us in taking care of business units at international countries or simply to develop market show in the other countries. Thus, it is not hard for us to understand that a diverse labor force will enable a company to operate more effectively and effectively (Bledsoe et. al. , 2010).

Able to produce more satisfied workforce, and thus leading to more productive workforce. If a company can deal with diversity in a proper way, then your individual employee won't need to clone or purposely evolved himself to adaption of the corporate culture. This can often brings about a more satisfied workforce. A far more satisfied labor force, will subsequently, causes more productive labor force (McMahon, 2010).

Effective managing of variety enables reduction in industrial disputes. Needless to say, proper management of variety can also ensure less professional dispute or court case comes from employees' issues (Cooke et. al. , 2010).

Diverse workforce can result in increased creativeness and innovation. Variety can produce synergy and creativeness and innovative as well. A group of different people is better than a results produced by a single person. The combined work are always much spectacular. Not just that, additionally it is often described by textbook that: Diverse labor force can produce more diverse perspectives, which is highly beneficial in seeking or employing solutions to problems (McMahon, 2010).

Having better chance to catch the attention of top quality employees from a larger pool of employees (Tatti et. al. , 2009). Like a company prepare or has already adopted the state of mind of having diversity is beneficial, then the company automatically access to a diverse pool of real human talents, which means that the company can pick the employees from a larger pool of workforce. As now the options are enlarged, then we can get access to better talents round the world, or quite simply, we can usage of the top notch talents around the globe (Pitts et. al. , 2010).

Avoidance of group-think or cloning. (McMahon, 2010)mentioned that office heterogeneity can assist in avoiding 'groupthink' or cloning, which this will lead to increased efficiency and reduces costs. To make clear further, cost decrease is possible whenever we can have a decrease in conflict, lower turnover and absenteeism and better cohesion. Furthermore, Tatti et. al. (2009) sees that there surely is ample data to suggest that 'diverse organizations with the skills and support systems to combine effectively will tend to be a lot more effective than no diverse or homogeneous categories in the same activities'.

Disadvantages of Diversity Management Program

However, the partnership between managing diversity and a particular company's performance from various empirical researches is not always straightforward. A good example by Stephensen and Lewin (1996) signify that poorly included heterogeneous groups can be as damaging to the organization as overly integrated homogeneous groups. Seemingly, managing diversity is an art, while even though contribution to a business proper management picture is smart, the execution is nothing at all easy. Besides, however, there are also evidences that variety can bring drawbacks to companies as well. For example, it is found that clubs with diverse employees usually take longer to execute effectively. Besides, diversity also brings numerous communication problems as well as "faultiness" in informal group dynamics. At some serious instances, diversity may also be a source of issue, that can cause issues such as unwilling to share information among labor force, staff morale deterioration problems, and higher turnover as a consequence to degradation of job satisfaction (McShane & Von Glinow, 2010). Not just that, additionally it is mentioned that there may be various drawbacks anticipated to execution of variety management program in the short term. For example, if completed insensitively, a variety management program may invade worker privacy. Also, implementation of the diversity management program may be expensive in the short term. After that, during the execution process, deep seated prejudices within employees may be brought into the open up, causing short-term stress. Specifically for a poorly treated program, conflicts and ill-feeling may be the end results for managers to take care of (Tatti et. al. , 2009).

Case Research of Variety Management

There are various instances or real-life testimonies showing that diversity management can donate to improved production, sales, market talk about, or profitability. You can find three examples shown in the following section.

Case I: Petro-Canada. The first case is approximately Petro-Canada. Recognizing that diversity management is vital; a Petro-Canada site in Vancouver's Chinese community, began to post signals in both English and Mandarin. The business is interested increase the company's occurrence within the city. After that, after having a team of sales associates found out that they had to be able to speak their customers' local vocabulary as well, recruitment changes were made accordingly. Soon, the business was able to reap the benefit for diversity with a diverse labor force. The results and outcomes are remarkable, kiosk sales increased by 15 percent, and fuel sales increased from 2. 7 million liters to 3. 1 million liters at the primary and Terminal stations, in just a mere four year period, between 1991 and 1994 (Pitts et. al. , 2010).

Case II: The McGraw Hill Companies. The second example is about a well-known reserve posting company. The McGraw-Hill Companies stresses diverse labor force management. The reason is to utilize different abilities available and critical to improve the company existence worldwide. One program of the business ability management strategy is named the Associate Development Program (ADP). Because the program started out in 1993, it includes attracted talented individuals from top MBA business universities who are diverse in contest, ethnicity, experience and point of view. All these variety management programs experienced allow the McGraw-Hill Companies to leverages skill in global marketplaces, on a worldwide basis. One attractive exemplory case of using diverse labor force to take on a foreign market is as follow: recruitment of local talent has allowed The McGraw-Hill Companies to solidify its brand reputation and market talk about in Latin America because of the expertise, cultural know-how, teamwork, experience and knowledge of the needs of the neighborhood market (Tatti et. al. , 2009).

Case III: Reebok. The well-known sport company has also been profiting from a diversity management program. In the entire year of 1980s, a group of women at Reebok complained the fact that they cannot find a good aerobics sneaker. Hearing that issue, Reebok started marketing aerobics shoes. The outcome is outstanding - within just a period of two years, the company went from a $12 million-a-year shoe company to a $3 billion powerhouse. Because the incident, the company began to be aware of the importance of diversity. According to the CEO, Paul Fireman said that in order to become diverse and compete internationally, a company must find people with different stories to inform at every level of work, and then provide chances and chance for them to speak and perform (Pitts et. al. , 2010).

Case IV: IBM. IBM has a century-long variety heritage predicated on the company's idea and school of thought that diversity is the "bridge between your workplace and industry". Such a perception and the work of valuing variety are central to the company's ability to gain in the global market place. Today, variety management permeates every area of IBM's management and complex procedures and management style. Statistically speaking a convincing simple fact showing that the company is embracing variety management whole-heartedly is this: 57% of IBM's Plank of Directors is women, multicultural, and/or non-U. S. given birth to (i. e. , they are the minority group). After that, it is also discovered that 40% of IBM's top 54-member Worldwide Professional Council is women, multicultural, or non-U. S. born. On closer scrutiny, it is not surprising to found that these women and multicultural professionals have significant revenue responsibility. Not just that, further inspection also discover that 30 members of IBM's Worldwide Professional Council get excited about guiding specific corporate-wide diversity initiatives. These are held in charge of recruitment, retention and improvement of all expertise and, most significant, linking IBM's variety initiatives to the global current market, which is in turn the primary reason that IBM has been able to stay together with the business landscape for many years (Cooke et. al. , 2010).

Case V: Levi Strauss & Co. At Levi Strauss & Co. , diversity is a center company value being embraced by the company's management and labor force. The variety management principle permeates throughout the organization - the data is in the organization belief that diversity is right for business, areas, and for families. The company mature managers got also argued that variety creates higher tolerance. To sum up the implementation and viewpoint of diversity management program in the business, we can observe the following statement from the business's officers. Specifically, the company officers described that the business's diversity idea system translates into a four-component variety strategy that is instrumental in building their business. The four-components are as follow: (1) Sourcing diverse expertise, (2) Empathetic marketing: "If you're who you provide, [then] you will be a better marketing consultancy. " (3) Imagination and advancement, and last but not least (4) Community participation. Such a notion system is crucial and powerful factors which ensure Levi Strauss & Co. sustainable growth and success in the global industry (Cooke et. al. , 2010).

Do and Don't in Variety Management

As we've discussed above, there are perceived benefits and drawbacks of embracing variety in workplace. It seems that there are evidences and cases indicating that variety are possible source of competitive benefit and superior performance for businesses, however the execution and the management of variety is not a fairly easy one. Apparently, the mismanagement of variety or lack of ability of the leader or manager to format and do and effective variety management program may cause troubles to the business with diverse labor force. Actually, for inexperience mangers, diversity indeed looks more like a curse when compared to a blessing.

Anyway, this writing gets the opinion which it the occurrence of diversity is well-managed, it can create synergy and improve organizational performances. It is presumed that variety is a powerful strategy as managers can leverage on the advantages of some individuals in the team while making the weaknesses of some others irrelevant. The advantages in an individual can make up for the weaknesses of others, while his weaknesses are covered by others' strengths, and this is essential for a higher performing team. Consistent with such a view, this section will format some do and do not for practitioners to follow. It may serve as an over-all guideline for managers to make reference to in applying the concept of variety management to daily management tasks (Cooke et. al. , 2010).

The first thing the administrator should perform in taking care of diversity is the fact that to ensure effectiveness of the diversity management program, the professionals should communicate constantly to employees, professionals, customers, shareholders, and other stakeholders by any means stages of this program (Bledsoe et. al. , 2010). It really is essential to keep people enlightened as their support is essential for the successful execution of a diversity management program. The execution should require everyone; consequently an application is no problem for only the workers division or a responsibility of older managers. Besides, it is also critically important to apply an alteration management processes to implement this program. The leader generating the changes must be aware that a permanent perspective is necessary in implementation of an diversity management program (i. e. , changes involves attitudes and don't happen instantaneously, and market leaders have to expect that this program will last for a long time rather than couple of weeks or calendar months). Finally, the leaders must have the correct prospects that resources are required for the program. Market leaders must anticipate to spend money, time and resources to achieve successful diversity management program.

On the other palm, there are two standard don't rules to be aware of by managers. First of all, managers shouldn't confuse similar opportunities with diversity management. The equal opportunity methodology can participate any diversity initiative, but an effective diversity management program should go much beyond traditional similar opportunity issues. Subsequently, managers shouldn't design the variety goals and regulations for "them" (i. e. , discussing the minorities), but they should instead think of "us" (i. e. , everyone involved in the company) (Bledsoe et. al. , 2010).


This writing takes a critical take on the business circumstance of variety management. The results from analysts have been put together. A couple of both advantages and disadvantages to a diversity management program. Successful circumstances of variety management to boost company and workforce performance are also accessible. Apparently, from a review of the numerous journals related to diversity management, it can be summarized that this program can bring onward many benefits to a firm, but the implementation of this program can be challenging and resources consuming.

Perhaps what's relevant for all of us to consider is how to cope with the increasing style of workforce diversity in the globalization age. Organizations should identify the changing labor force and other public stresses that are constantly requiring businesses to handle diversity. Achieving diversity is not merely to become politically right; it is more about cultivation of any culture that values individuals and their large arrays of needs characteristics, aspect and contributions. The good news is that appropriately promoting and performing a diversity management program can improve company performance and to enhance the corporate and business reputation among market place, even although implementation of this program is challenging.

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