Unit 1: Business Culture and Responsibilities
Learning Outcome: 02
Task 2.1 Explain what is meant by ‘diversity in the business context
Scientific diversification in an organization especially in a business environment can increase more rapidly the development of the business company. Diversity in an organization obviously plays an important role in arranging the employees, making working schedules for the employees, opening a new department, calling meetings with stakeholders, etc. A typical managerial response to this diversity has been the implementation of a formal diversity management program (Daniel, 2010). Although limited empirical research has considered links between diversity management activity and organizational performance, very little research has examined the factors that influence the implementation of diversity management practices. This article begins with the premise that organizations develop diversity management programs as a means of responding to opportunities and challenges in the internal and external environments.
There are two versions of the story describing how the work with diversity started at the company. The first is that there was a shortage of engineers and the personnel manager at the time noticed that applicants with foreign names were being excluded during the recruiting process. He was convinced that it was a waste of resources and on his recommendation, the recruiters had to include applicants with foreign names when they selected persons for interviews when they made appointments. The other explanation is linked to the so-called Laserman episode in the Stockholm area (“Laserman” was a person who during a period in the early nineties shot immigrants with a rifle equipped with a laser sight. Ten persons were injured; one of them was killed and two of the victims were badly wounded). During that period people felt quite unsafe and scared and looked for safety among each other.
One consequence of these events was that a new network took form within the company, which among other things, led to increased communications among the staff people with an immigrant background. They discovered that they had lower wages, fewer opportunities for career development, and less in-service training than their native Swedish colleagues. Moreover, they shared the feeling of not being granted access to the spirit of the working community. With these experiences in common, they decided to form an association and called it “World club” (Världsföreningen). The purpose of the association was to support immigrants within the company by offering them the same opportunities in the workplace as other employees. The idea, somewhat similar to a labor union, offered employees of foreign extraction (from another country of origin than Sweden) an organization to contact when they felt they had experienced discrimination (Angela, 2006).
According to Nilsson, (2006), at the same time diversity is stressed as valuable, equality, and one and all’s right to the same opportunities, rights, and duties are emphasized as important guiding principles in the company’s staff policy. This is also expressed through the company’s external communications and I will here illustrate how it is described for their customers and suppliers. At tendering for external suppliers, the company attaches a newsletter informing potential contractors about their view on cultural diversity. The newsletter provides information about the company’s active work with cultural diversity.
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Task 2.2 Recognise the benefits of having a diverse workforce
“Diversity Management can be defined as the process of planning, directing, organizing and applying all the comprehensive managerial attributes for developing an organizational environment, in which all diverse employees irrespective of their similarities and differences, can actively and effectively contribute to the competitive advantage of a company or an organization. According to Kreitner, (2001:37) diversity “Stands for the various differences in individuals as well as similarities that exist among them.”
High level of Productivity: Due to the fact that every organization has its own unique company structure and objectives, different strategies may be used to challenge or address the company in order to increase productivity. One of those strategies involves adopting workplace diversity and managing them effectively. When management takes the welfare of its workers at heart by means of offering them proper compensation, health care, and employee appraisal, It enables workers to feels they belong to the company irrespective of their cultural background by remaining loyal and hardworking which helps to increase the company’s productivity and profit………..