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Table of Contents
Executive Summary....................................................................................................................................... 3 Introduction .................................................................................................................................................. 4 Types of Diversity .......................................................................................................................................... 4 Current Global Situation ............................................................................................................................... 5 Future trends ................................................................................................................................................ 5 Benefits of a Diverse Workplace ................................................................................................................... 6 Internal Benefits........................................................................................................................................ 6 External Benefits ....................................................................................................................................... 7 Challenges of Diversity in the Workplace ..................................................................................................... 7 Overcoming these Challenges....................................................................................................................... 8 Successful Diversity Initiatives ...................................................................................................................... 9 IBM ............................................................................................................................................................ 9 AT&T........................................................................................................................................................ 10 Kraft Foods .............................................................................................................................................. 10 Conclusion ................................................................................................................................................... 11 References .................................................................................................................................................. 12 Appendix A .................................................................................................................................................. 15 (Source: http://www.mdanderson.org/careers/working-at-md-anderson/diversity-inclusion.html)....... 15 Appendix B .................................................................................................................................................. 16 Appendix C .................................................................................................................................................. 17 Appendix D .................................................................................................................................................. 18 Appendix E .................................................................................................................................................. 19 Appendix F .................................................................................................................................................. 20 Appendix G .................................................................................................................................................. 21 Appendix H .................................................................................................................................................. 22 Appendix I ................................................................................................................................................... 23 Appendix J ................................................................................................................................................... 24 Appendix K .................................................................................................................................................. 25 Appendix L................................................................................................................................................... 26 Appendix M ................................................................................................................................................. 27

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Executive Summary
This report focuses on the value of employee diversity in the workplace, and analyses its role in the betterment of workplace practices. The discussion includes the groups opinion on how beneficial employee diversity actually is to an organization. The report provides an overview of the current atmosphere regarding diversity, and goes on to analyze the various challenges faced by companies implementing employee diversity initiatives and provides general recommendations on how to negotiate those challenges in order to build a stronger, more diverse workforce to successfully meet the requirements of the modern day consumer.

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Introduction
Diversity management arose as a major concern from the 1980s. As a result of globalization, companies were exposed to international competition. People no longer lived in an insular market place, but became a part of a broader international market. Most companies realized the importance of having a diversified workforce to deal with the growing and expanding market; they understood how a diversified workforce enables them to gain a competitive advantage A diverse workforce comes along with many challenges, overcoming these will not just benefit the individual employees, but the organization as a whole and lead to better workplace practices.

Types of Diversity
Workplace diversity takes six main forms, 1) Age 2) Race 3) Gender 4) Physical abilities 5) Ethnicity In addition, the following types of diversity are also present: Work background Income Education Geography Religion Parental status (Appendix A)

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Current Global Situation


Demographic Changes As illustrated in appendix B, Demographic changes are a major influence on diversity initiatives in the workplace. The numbers of women, immigrants, and minority workers in workplaces today are booming and the impact of diversity is difficult to ignore. Dual income families and single mothers are also higher than ever before. Global Marketplace Globalization of companies has created the need for multicultural perspectives. Economics A large percentage of the American customer base is filled with a diverse population who are earning more money and are willing to spend more. The same trend is taking place all around the world. People more comfortable being different They are no longer willing to assimilate into the workforce, and take pride in their uniqueness in terms of religion, culture, experiences, physical abilities etc. Diverse customer base Customers are more diverse when it comes to their preferences, needs and wants and therefore businesses need a diverse workforce to respond to the customer requirements and communicate effectively. Equal Employment Opportunity and Affirmative Action Programs Due to these policies there is an increasing trend among employers to promote diversity in the workplace (Appendix C). Generational gaps Longer lifespans and late retirements have resulted in four generations working side by side with their own attitudes on technology, mind-sets, work habits, and customs (Appendix D).

Future trends
Diverse societies Increasing global footprint of corporations Diversity becoming a business issue (Appendix E) Diverse work teams Increased involvement of senior management in diversity issues Diversity training integrated

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Benefits of a Diverse Workplace


A company which embraces and encourages its workforce diversity will gain benefits in both internal and external contexts (Appendix F). The main benefits are as following,

Internal Benefits
Innovation In a diverse work force, new attitudes are brought in by people from different cultures. These different types of attitudes and viewpoints enable the company to create suitable innovative products depending on the market. Creativity Compared to a company with limited or no diversity, a company which has such a work force will bring in different approaches to attain company goals, which in return creates creativity in the workplace. Increase of efficiency and productivity Building a diversified work force is similar to building a microcosm of the world inside a company. Therefore such a company will be able to understand the market and provide products and services more efficiently, increasing the productivity within. Learning Each employee will gain new experiences by working with people from different walks of life, and it will help them to be better at what they do. Employee retention A healthy work environment which allows, encourages, and rewards employee diversity will make sure that the company retains its employees. It is important for employees to feel a sense of belongingness and security as it also encourages them to be more productive and trust the employer. Business process improvement In a world where change is constant, the adaptability of the company plays a major part in its survival. A work force that can work in collaboration and bring in individual experiences, skills, and ideas can help a company adapt to any situation quickly and more efficiently.

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External Benefits
Greater customer focus Including men and women from a variety of cultures in the workplace will also allow the company to understand its customers better. Cultural opinions, language skills and unique attitudes are effective tools to focus on the preferred customers of the company and build a healthy relationship with them. Stronger Image and Branding A company which encourages employee diversity by eliminating discrimination will always receive positive feedback from the society. The company image and name will be associated in a more positive frame, and this also helps a company attract the best work force the society can offer. Opens up new markets As mentioned above tools such as cultural opinions, language skills and attitudes can be used as an advantage for a company looking to expand to broader markets. A diversified work force enables a company to make the necessary adjustments to enter a new market and also sustain and grow in it.

Challenges of Diversity in the Workplace

Three key challenges persist when implementing employee diversity initiatives in the workplace. These are: 1. Communication Without communicating properly, the barriers that are present between groups due to actual or perceived differences and preconceived notions cannot be broken through and instead will result in confusion, lack of team work, and low morale. 2. Resistance to change there will always be employees who will refuse to accept the present situation regarding diversity in the workplace and will not be keen on changing what they have been doing all this time. This will hinder the generation of new ideas, and obstruct progress.

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3. Implementation of diversity in workplace policies A company that invests their resources into training its employees in diversity and developing intricate policies is not guaranteed that they will have a dynamic and diverse workplace. There has to be commitment from all employees for policies to be regarded as a success.

Overcoming these Challenges

Overall, it has been evident, considering the progress made by many multinational corporations, that those costs that might be incurred in promoting diversity in the workplace are outweighed by its positives (Appendix G). Some of the steps taken by world class companies are: Assessment of diversity in the workplace Assessing and evaluating diversity progress is an integral part of the management system. It helps your management team determine which challenges and obstacles are present in the workplace. Development of diversity in the workplace plan A comprehensive, attainable, and measureable plan that will help determine the structure of your diversity and provide a timetable for changes to be made. Implementation of diversity in the workplace plan This is a key area, where leaders and managers in the organization must incorporate diversity policies into every aspect of the organization. There needs to be commitment, participation, and corporation from all employees, including those who are in executive and management positions in order to successfully implement and manage these policies.

In addition, other measures can be taken to manage diversity issues in the workplace (Appendix H). These include,

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Warding off change with inclusion Involve every employee in formulating and implementing diversity initiatives in the workplace. Fostering an attitude of openness in your organization Encourage employees to express their ideas and opinions. Launching a customizable employee satisfaction survey- Use the results to build and implement successful workplace diversity policies. Utilizing diversity training In order to shape diversity policy. Promoting diversity in leadership positions Provides visibility and realizes the benefits of diversity in the workplace.

Successful Diversity Initiatives

IBM
In 1995, CEO Gerstner launched a diversity task force initiative that became a corner stone of IMBs HR strategy (Cunningham, p.53). As a result, the companys profitability and efficiency increased. In 2001 the organizations activity accounted for more than $300 million in revenue compared with $10 million in 1998 (Thomas, D. 2004, p.2). Each task force focused on a different group such as Asians, homosexuals, and women (Appendix I). 52% of IMBs worldwide management council (WMC) the top 52 executives who determined cooperate strategy is composed of women, ethnic minorities born in the Unites States and non-citizens. Another practical example of how IBM works with diversity is in recruitment and selection of employees and managers. Fifty percent of IBM Swedens trainees should be female and fifty percent should be male. And when a manager is recruited there should always be a male and a female candidate for the job. The successes of these initiatives are highlighted by the many accolades IBM has received since then (Appendix J)

Effective management of workforce diversity policy is an important strategic objective and every IBM manager is expected to abide by this policy. At IBM diversity is its competitive advantage and it drives innovation (Appendix K).

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AT&T
AT&T was included among DiversityInc's 2010 Top 10 Companies for Diversity (Appendix L), for its longstanding commitment to diversity and inclusion across its global operations. In 2007 and 2009, AT&T ranked No. 1 among DiversityInc's Top 10 Companies for African-Americans based on the company's strong diversity record and programs geared toward African-American employees.

AT&T connects with diverse customers and markets through its multicultural outreach initiatives. Its visionary leadership in the areas of diversity and inclusion has contributed to national recognition as an employer of choice and a preferred business partner. "A diverse workforce and inclusive culture are essential to AT&T. They allow us to attract and retain the best and the brightest to develop the most innovative products and solutions to meet our customers' needs" (Appendix M). AT&T was ranked No. 10 on the Fortune 500 and claims a long record of involvement with a diversity strategy.

Kraft Foods
Kraft foods, an $11billion brand consisting of over 70 brands and generating revenues of $48 billion, consider diversity, among its 140,000 strong global workforce, to be a competitive advantage. The company has devised a comprehensive Diversity Vision as one of its business cornerstones. This encompasses five important aspects: 1. Making effective business priority 2. Respecting the value of employees with different life experiences, styles, and backgrounds 3. Being responsive to different employees needs for work solutions 4. Providing contributions 5. Creating a workforce reflective of the companys diverse consumers opportunities for employees to continually develop skills and diversity management a core leadership competency and

Kraft has equal opportunity for women, over half of the 11 management team members are women or minorities, and the top 30 leaders represent 10 nationalities. Kraft Foods

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workforce is also diverseof its North American employees, 20.8 percent are people of color and 35.1 percent are women.

Conclusion

In conclusion, the importance of introducing measures to show the added value of managing diversity is very clear. But its also important to consider the positive and negative impacts that can arise. Its the ability to manage diversity that makes the difference not just diversity itself. Our research indicated areas in which diversity has an impact, but companies need to customize initiatives and interventions to manage diversity in ways that contribute to the organizations objectives.

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References
The Benefits of a Diverse Workforce, Innovation Zen. Retrieved March 4, 2012, from <http://innovationzen.com/blog/2007/05/07/the-benefits-of-a-diverse-workforce/>

Business Advantages of Diversity in the Workplace: Integrating Workers from Culturally Diverse Backgrounds, Multicultural Marketing, Multicultural Sales, Multicultural Training, Multicultural Consulting, Speaker, Trainer, Consultant, Michael Soon Lee. Retrieved March 4, 2012, from <http://www.ethnoconnect.com/html/articles_09.html>

Carr-Ruffino, N. (1999). Diversity success strategies, Boston: Butterworth-Heinemann

Challenges of Diversity In The Workplace, Diversity News: Raising Awareness to Equal Opportunity Issues in Society. Retrieved March 4, 2012, from <http://www.insightintodiversity.com/diversity-issues/599-challenges-of-diversity-in-theworkplace-.html>

Chapter 12: Managing Diversity in the Workplace, UCSF Human Resources. Retrieved March 4, 2012, from <http://ucsfhr.ucsf.edu/index.php/pubs/hrguidearticle/chapter-12managing-diversity-in-the-workplace/> Cunningham, D., Green, D. (2007), Diversity as a Competitive Strategy in the Workplace, Journal of Practical Consulting, vol. 1, Issue. 2, pp. 51-55.

Dodget,R.,Luthans, F. & Doh, J. (2008), International Management: Culture, Strategy and Behavior, 6th edn, McGraw-Hill, New Delhi.

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Ezelle, S., Wise, R. & Moody, A. (2010), For Kraft Foods, Equal Parts Diversity and Inclusion Make a Recipe for Success, In-House Defense Quarterly, pp.4-7

Greenberg, J., Diversity in the Workplace: Benefits, Challenges and Solutions. The Multicultural Advantage: Career Management and Job Info for Professionals from Diverse Backgrounds. Retrieved March 4, 2012, from <http://www.multiculturaladvantage.com/recruit/diversity/Diversity-in-the-WorkplaceBenefits-Challenges-Solutions.asp>

Humphreys, J. M. (2004, August). The multicultural economy 2004: America's minority buying power. Georgia Business and Economic Conditions, 63, 3, 1-12.

HR022/HR022: Diversity in the Workplace: Benefits, Challenges, and the Required Managerial Tools . (n.d.). EDIS - Electronic Data Information Source - UF/IFAS Extension. Retrieved March 4, 2012, from <http://edis.ifas.ufl.edu/hr022>

Jayne, M. E. A., & Dipboye, R. L. (2004, Winter). Leveraging diversity to improve business performance: Research findings and recommendations for organizations. Human Resource Management, 43, 4, 409-424.

Pros & Cons of Diversity Management in the Workplace | Small Business - Chron.com. Small Business - Chron.com. Retrieved March 4, 2012, from <http://smallbusiness.chron.com/pros-cons-diversity-management-workplace-3028.html> Thomas, D. (2004), Diversity as Strategy, Harvard Business Review, pp.1-9 Wentling, R. M., Diversity. National Center for Research in Vocational Education. Retrieved

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March 4, 2012, from <http://ncrve.berkeley.edu/CW82/Diversity.html>

Wentling, R.M., Palma-Rivas, N. Current Status and Future Trends of Diversity Initiatives in the Workplace: Diversity Experts' Perspective National Center for Research in Vocational Education Retrieved March 4, 2012, from <http://vocserve.berkeley.edu/allInOne/MDS-1082.html#Heading14>

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Appendix A

(Source: http://www.mdanderson.org/careers/working-at-md-anderson/diversityinclusion.html)

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Appendix B

Demographic Trends in the United States

(Source: Hewitt Associates, The workforce is changing: Is your organization?)

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Appendix C

Minority Representation

(Source: U.S. Equal Employment Opportunity Commission, 2007)

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Appendix D

Differences between the Four Generations of Employees

(Source: http://www.fdu.edu/newspubs/magazine/05ws/generations.htm)

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Appendix E

Workplace Diversity Practices Survey (Impact of diversity)

(Source: SHRM 2006 Workplace Diversity Practices Survey Report)

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Appendix F

(Source: CSES Survey of Companies)

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Appendix G

(Source: CSES Survey of Companies)

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Appendix H

How Diversity Can Be Managed Effectively

(Source: Cunningham & Green, 2007, p.54)

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Appendix I

(Source: Thomas, D. 2004, p.5)

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Appendix J

Accolades Received by IBM for its Diversity Initiatives

Diversity
Year Award 2010 DiversityInc names IBM the No. 1 company for global diversity 2010 IBM ranks #4 on Barron's World's Most Respected Companies list 2009 IBM makes list Black Enterprise Magazine's list of top companies for diversity 2009 DiversityInc Top 50 list:

10th in the Top 50 list 1st for People with Disabilities 2nd for Supplier Diversity 4th for LGBT and Asians

Sustained rank of 2nd for Global Diversity Companies 2010 IBM wins 2010 Out & Equal Workplace Excellence Award 2011 Working Mother Magazine: IBM is in 2011 Working Mother 100 Best Companies 2010 IBM named in Top 100, Top 10 and Best Companies for Multicultural Women in Working Mother 100 Best Companies 2010

(Source: http://www.ibm.com/us/en/)

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Appendix K

IBM Financial Success due to Diversity Initiatives

(Source: IBM Annual Report 2010)

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Appendix L

(Source: http://diversityinc.com/)

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Appendix M

Diversity and Inclusion at AT&T

(Source: http://www.att.com)