Table of Contents
2.0 Diversity in the workplace.
3.0 Trend of diversity in workforces.
4.0 Impact of a diverse workforce on the role of HRM.
4.1 Positive impact
4.1.1 An increasingly diverse workforce can attract bigger customers’ market share.
4.1.2 Diverse workforce leads to a company with more qualified employees.
4.1.3 Diverse workforce can improve employee retention rate and reduce turnover cost
4.1.4 Diversity can lead to a creative and innovative workforce.
4.1.5 Diverse workforces in the boardroom can leverage organizations full potential
4.2 Negative Impact
4.2.1 Diverse workforce may be threatened by the company.
4.2.2 HRM may face reverse discrimination from diverse workforces.
4.2.3 The Absence of effective diversity management may affect overall company performance.
4.2.4 Higher turnover and absenteeism may be created by diverse workforces.
4.2.5 Conflicts may be created between homogeneous and heterogeneous work teams.
4.2.6 Diversity workforce can produce negative dynamics.
4.2.7 Diverse staff may hinder sharing the formation of organizational cultures.
According to the CIPD (2006) notes, Workforces in the UK is going to be more diverse mainly in terms of gender, age, sexual orientation, race and ethnicity, and religious and political beliefs. The key reasons are, as Torrington et al. (2010) descriptions, the mass media, internet, mass transportation, and telecommunications are all contributing to the shrinking of global and diverse markets. On the other hand, according to Bratton and Gold (2011), today’s human resource management is not only limited to the administration of traditional activities of employment, compensation, and benefits, and labor relations, it is much more integrated with an organization’s management as well as strategic planning process because of becoming more diverse and complex.
In addition, business organizations are looking for new approaches every moment to grow the number of consumers determining their needs. As a result, diversity has been an integral part of an organization in the way of its operation and growth. However, when organizations are going to be more diverse, it is going to be more significant to understand and manage it. There are a number of perspectives for managers and leaders of organizations to manage diverse workforces and to attain diverse workforces.
This report assesses how an increasingly diverse workforce impacts the role of human resource management within the context of a competitive business organization. The report is based on a particular organization, namely Greggs Plc, UK, where Greggs Plc is the leading bakery retailer in the UK running with more than 20,000 diverse workforces in over 2,000 shops.
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2.0 Diversity in the workplace
According to Sacco et al (2005), the meaning of diversity is differences, where differences are regarding age, race, sex, cultures, and religion, etc. A diverse workforce means people with different demographic differences who work in business organizations. It is very important for organizations to understand and manage these differences. Diversity is also a significant issue when in the workforce environment any discrimination and misunderstanding are created because of diverse features (Sacco et al, 2005).
3.0 Trend of diversity in workforces
A report published by Quttz and James (2004) discloses that diversity is increasing day by day. The report says, in 1 in four is foreign-born or comes from a minority group. Women are currently making up about 45% workforce which is expected to reach 65% by the end of the decade. The report also reveals that people of color, women as well as immigrants will hold around three-quarters of all workforces in the UK very soon. As a result, business success will importantly depend on the ability to work in a cultural marketplace with diverse workforces, consequently, the business organizations have to have a diverse workforce and the diverse workforces have to follow diversity principles realizing the growth, longevity and increased profits (Quttz and James, 2004)……………