Organizations Workforce Diversity And Its Competitive Advantage Commerce Essay

Organizations Workforce renewing And Its combative service Commerce EssayThe purpose of this paper is to examine the effect of twisters style over the likenessship between governings workforce potpourri and its warlike advantage with mission and vision statements as intervening variable. Most organizations atomic number 18 adopting salmagundi into their policies and procedures to embrace its bene agrees and there is a growing recognition that it makes bloodline sense to take motley seriously. The demographics of working population has changed in break down two decades with more than mature workforce remaining in the workplace, instantaneously more female employees atomic number 18 seen in higher positions and there is excessively a variation in cultural backgrounds. Therefore, it seems beneficial for organizations to hire various(a) workforce to meet the demands of customer expectations. Organizations that are flexible and responsive to a demanding marketplace req uire the service of multi-skilled, adaptable workforce. adept clear warlike advantage for organizations having divers(a) workforce is that it provides an environs that values differences among employees and encourages them for different slipway of thinking and behaving during work to fully contri only whene to organizational aims and objectives. Employers providing such an environment get the support of their employees and develop a positive public image. It moldiness be understood that to each one member of different workforce holds his differences and similarities hence, valuing and managing miscellanea is rough recognizing the unique contribution each employee raise make to the organization. It is about creating an environment in which everyone feels valued, welcomed, and able to make an great contribution toward the attainment of bodily objectives. Additionally, companies facing challenges in competing global marketplace for market lot can hire multifariousness a s rivalrous advantage in a multicultural environment with a versatile pool of quick and experienced psyches who can bring innovation and creativity to the organization.Literature analyzeDiversity is not only associated to limited attributes that can be observe but besides to those invisible characteristics such as differences in educational background, creativity, understanding, learning style, and problem-solving ability (Nafukho et al., 2011). So, organizational consummations and processes can be specifyd by an individual or a convocation representing different categories of innovation within a workplace. (van Knippenberg and Schippers, 2007). Diversity is defined as any dimension that can be used to differentiate groups and people from one another (Giovannini, 2004, p. 22). Hence, salmagundi affects the organizations potential and performance in terms of competitive advantage. (Joshi and Roh, 2009 Klein et al., 2011). This presumes that performance has a relation with organizations ability to achieve goals with respect to its mission or vision (Devine and Philips, 2001). In other words, performance is deemed as an outcome which is a result of more or less purposeful activity to achieve competitive advantage as mentioned in mission or vision statements of an organization. (Swanson and Holton, 2009). As the organization strives to achieve its goals or objectives, conflict whitethorn arise within the diverse groups to cope up the challenges of differences among them which keep them from achieving organizational performance. (stergaard et al., 2011). Since, Human Resource Department (HRD) deals primarily with performance of individuals, groups and organization at large to achieve competitive advantage, so diverse workforce demands the attention of HRD scholars and practitioners on the issues that arise in organization. It can be observed in modern trends for companies to use diverse workforce for finish special tasks which help achieve competitive advantage (Garrison et al., 2010) and there is ceaselessly potential for the occurrence of conflict among such diverse groups which can alternate the organization from achieving effectiveness. Hence, it becomes the responsibility of HRD to address such conflicts in advance and use the knowledge of how to build the high performing and productive teams of diverse workforce who can to the overall competitive advantage of organization (Klein et al., 2011).Evidently, some companies begin diversity as a way to plus disdain competency, to meliorate net income, to gain competitive advantage, to build the effectiveness to compete in global markets, to improve business performance, to achieve higher employee satisfaction, to enhance corporate governance, to attract diverse talents and skills and to retain the workforce that maintains the customer base (McCuiston et al., 2004). Moreover, culturally diverse workforce brings benefits to business economy (Ferley et al., 2003) and leads to damp performance of the business (Richard, 2000). According to Adler (1997), a company with a diverse workforce has great chances for building an innovative working environment. This statement is beautifully expressed in the words of White (1999), who states that creativity thrives on diversity. These benefits can be derived from the seemly put throughation of diversity-promoting policies (Jamrog, 2002). Many firms today seem to be change magnitudely comprehend racial, ethnic and sexuality workforce balance, not for legal or respectable obligations, but as a matter of taking a liberal perspective on economic self-interest (Coil and Rice, 1993).It has been recognized recently that increase diverse workforce has presented both opportunities and challenges for organizations which are striving for efficiency, innovativeness and global competitive advantage (Barak, 1999). As the global markets are getting more complex, physical exertion of organizations knowledge, skills and ab ilities is getting take down more crucial in this rapidly increasing competition where organizations want to be more creative and innovative (Ng and Tung, 1998). In order to manage the growing diversity of the work force, organizations need to implement such systems and practices so that the potential advantages of diversity are maximized and the potential disadvantages are minimized (Cox, 1994). In the past two decades several academic researches stupefy been conducted on various issues relating diversity. Richard (2000) examined the impact of diversity on organization and its productivity slice Jackson (1993) found the positive relationship between diversity and creativity. Diversity research has also addressed the factors reckond in larn new employees into an organizations culture (Berry and Sam, 1997). However, some argue that by its fundamental nature, assimilative new employees to obtain greater fit between the person and organization is achieved at the expense of divers ity (Powell, 1998). In other research, Tsui et al. (1992) showed that race and gender has negative relationship with diversity as compared to age. Other studies grant also consistently found that observable attributes have negative effects on outcomes such as identification with the group and job satisfaction at both the individual and group take aim of analysis (Milliken and Martins, 1996). Further, Milliken and Martins (1996) supported the seam of Tsui et al. (1992) that racial and gender diversity can have negative influence on individual and team outcomes in some cases regardless of age. As an example, they referred to those groups members who differ from the larger group tend to show less commitment, more turnover and absenteeism while at the same time this results in additional costs, such as, group coordination cost, communication cost and education and development cost. So, accord to them, diversity results in increase in coordination and control costs.Dadfar and Gusta vsson (1992) found that the bulk of site managers believed that managers/supervisors are less effective when managing a work group composed of several nationalities. This is because language was regarded as a major barrier to effective communication among workers of different nationalities. However, Watson et al. (1993) argue that these negative effects may diminish with time and may be offset by better quality and more creative decisions.Having said that, it is important to understand that even for those who decide to embrace diversity as a concept, the road to diversity is not without challenges. Many businesses fail to the see the full picture of diversity or understand all of its impacts on their operations (Farrer, 2004), as tip a diverse workforce requires considerable time, energy and skill. A diverse workforce represents many challenges to management in areas such as workplace authority, trust and commitment, different work ethics, firm structure and work-life balance (McC uiston et al., 2004).Diversity challenges also include reproduction costs, discrimination and conflicts. The increase in training cost results from the needed diversity-promoting programs which need to be administered to all employees (White, 1999). The problem of perceived discrimination arises when a certain group feels that they have been unfairly discriminated against, which leads to a sense of rejection towards the group that was perceived as having unjustifiable benefits, which could lead to an increase in conflicts. According to Jehn (1995), the increase in conflicts possibly leading to tautness and animosity occurs when employees do not have similar views on a particular issue and in turn such conflicts could have injurious effects on performance. These effects include directing the attention of employees to each other instead of the job, increasing stress and anxiety, and it can result in hostile interaction among members (Chuang et al., 2004).LeadershipLeadership rema ined the single most important issue in annual surveys for identifying clear management issues during all times (HRI, 2002a). To manage a diverse workforce, organizations need visionary leaders but availability of them is scarce. According to the study by Diversity Inc. (2002), it is forecasted that many top management of many leading companies will recede one in five top managers due to retirement. Let alone, US companies will lose 40 percent or more of their top executives till 2015 (Wellins and Byham, 2001). One solution offered to this scarcity is to develop leaders at every level and in every function in an organization (Hesselbein, 2002). For this solution, Kappa Omicron Nu Honor nine (2002) advised the most effective leaders components to manage diversity, which are aesthesia and awareness about diverse workforce.Resources to strengthen and improve the quality of diverse individualsInter-communication skills to solve mutual differencesStrategies to maximize the effectiven ess of diverse workforce.The goal should be to develop cross-cultural leaders and generate a new proceeds of multicultural professionals (Yukl, 2002). These leaders are provided with the required resources and authorities to manage workforce. The focal point should be to enhance their listening, learning, networking, communication, and experimenting skills to manage a diverse workforce (Melymuka, 2001). in conclusion an effective strategy essential be developed to include diversity at all levels of management, and there must be commitment to diversity at senior levels where it is strategically more important (Conklin, 2001). This strategy must be evident in organizations mission and vision statement and should involve a systemic, results-oriented, business-based approach (Fitzpatrick, 1997). Yet companies do not seek diversity unless this business competency results in increased profit and metrics that tolerate the necessity to expand the emphasis on diversity (Diversity Inc., 2002). Irrefutable measurable benefits can be derived from properly implemented policies to promote diversity (Jamrog, 2002). The most evident measurable benefits are improved bottom line, competitive advantage, select business performance, employee satisfaction and loyalty, strengthened relationship with multicultural communities, and attracting the best and the brightest candidates. Competitive advantage defined in diversity as, Recruiting and retaining people of diverse backgrounds who can share a common set of values. . .and approach to business is a priority for todays competitive organization (McCormack, 2002, p. 1).Jamrog (2002) suggested three-point approach to enhance effectiveness of leadership to manage diverse workforce premise, drivelines and actions. There are three set forth that leaders need to value diversity (1) One size doesnt fit all leaders need to use different approaches for solving problems and ontogenesis workers as all situations and individuals are n ot the same, (2) Not everyone can be a leader organizational should focus only on individuals who have the ingredients of becoming a good leader, and (3) Leaders can be at any level or function anyone who can inspire, influence and guide others in the organization is a leader regardless of position. The five guidelines that leaders need to value diversity are (1) Communicate, communicate, and communicate share freely your ideas, suggestions, opinions listen to ideas of others with interest, (2) Build contact into your daily actions and duties Plan your actions, meetings, and duties so as to maximize contact with multiple people in the organization. (3) Manage and lead by walking around Be outside the office oftentimes and interact informally with others of different levels, functions, backgrounds and experience, (4) Champion diversity Bring in the contribution of everyone to increase commitment, innovation and creativity, and (5) Sponsor diversity Defend the decisions, actio ns and interactions while supporting everyone in the organization. Lastly, the five actions that leaders need to value diversity are (1) Assessment of leadership potential within the organizations, (2) Provision of training and tools, (3) Inclusion of diversity at all levels, (4) measuring and rewarding efforts, and (5) back up the organization to be patient.Conceptual FrameworkResearch Methodology