Discuss about the Managing diversity and its Competitive Advantage.
The term managing diversity indicates the meaning of bringing all the people together from the different backgrounds, age groups, religions and cultures in the workplace into the productive and cohesive unit (Harvey and Allard 2015). On the other hand, in the words of Barak (2016), the multiculturalism or the cross-cultural communication is a useful concept for the growth of the organizations because of its concerns over the diversification at the work force. The diversification in the work force helps to develop the better relations with the other organizations in the international market. Now, the advanced communication technology namely use of internet, phones and social sites make changes in the rational concept of business into the more global one. According to Kirton and Greene (2015), to survive in the competitive market successfully, the organization needs to utilize and manage the diversity culture in the workplace efficiently. By managing the diversity or multiculturalism in the workplace, it can be able to get the competitive advantage which helps to sustain in the global market effectively.
In this perspective, the managing diversity or the multiculturalism in the workplace of US specifically the well known organization Procter and Gamble (P&G) has been critically discussed. The mission statement of P&G is to give the value everyone, include all the people and they perform their responsibilities and duties at their highest ability to do (Us.pg.com 2017). The P&G is that type of organization in which the diversity in culture, tradition, different points of view and personal experiences are equally treated and regarded as the important factors for the growth of the company. With the help of effective business strategy of inclusion and diversity of P&G, they can be able to connect their business with the other organizations in the global market. Moreover, the multiculturalism nature of the business helps to get the competitive advantage in the international market which ensures the foster growth of the organization (De Anca and Vega 2016).
This research study is enriched with the brief study of managing diversity in the workplace and its competitive advantage of the organization. In this perspective, the well known organization P&G in US has been accounted. The multiculturalism nature of this organization has been critically discussed with the help of literature review. Moreover, the analysis and evaluation have been made on this topic.
Managing diversity and its competitive advantage:
As per the view of Modood (2013), diversity is of many types such as physical, cultural and socio-economic. Therefore, the age, gender, personality, ability, lifestyle, religion, language, national origin, social class, education, job function, profession and many more factors enriches the characteristics of human being which helps to achieve success in the organization. The implementation of multiculturalism or diversity in the workplace helps to make the shapes of nature, values, behaviors and attitudes of the employees Entzinger (2014). Moreover, the diversity in the work force directly reflects the nature and mission of the company through which different types of customers feel comfortable for doing the business.
As opined by Lücke, Kostova and Roth (2014), the demographic changes in the workforce, globalization effect and the client composition helps to changes the traditional nature of workplace which ensure to sustain in the international market successfully. Moreover, by accumulating different culture, education, language, abilities, personalities, cognitive style and job function, the organization gains its competitive advantage in the global market (Rhoads and Valadez 2016). To maintain the competitive advantage in the global business market, the organization need the above-stated quality and people for serving and performing the best quality to their clients. Thus, with the help of diverse culture and different people in the workplace, the foster growth of the organization can be achieved.
The importance of diversity in the workplace:
The implementation of diversity or multiculturalism in the workplace is one of the main factors for sustaining in the competitive market and achieving the long-term growth as the global business concept and the demographic patterns have changed drastically.
Due to the advancement in the health care system, the growth of the population is highly significant in both the developing and industrialized countries (Henson 2015). From the current study, it can be stated that the working age group of population is increased continuously in the developing countries. The life expectancy is also increased in the developing nations such as Asia whereas, the fertility rate is lower in the developed countries namely North America. The changing behavior of the demographic factor increased the importance of diversity in the workplace. Without implementing the diversity in the work force, the potential growth of the organization cannot be achieved (Dheer and Lenartowicz 2016).
Following the global demographic changes in the workplace, the traditional concept of gender discrimination in the organization has been turned into a new era. The increasing number of participation of female employees in the workforce has broadened the idea of gender diversity (Ali, Ng and Kulik 2014). The advancement of technologies and automation system has enabled the female employee to perform various types of jobs which are previously physically demanding and unwelcome to the female employee. The male dominant workforce and the gender pay discrimination have been favored to the women employee. They can take part any work which is equally done by the male counterparts. Therefore, the implementation of gender diversity in the workplace is essential aspect for acquiring the prospective growth of the organization (Richard, Kirby and Chadwick 2013). Moreover, the creativity, innovative ideas, leadership ability and educational knowledge of the female employees help to reach the desired goal of the organization.
According to Chapple and Humphrey (2014), accommodation is an important factor which allows the people to contribute the talents along with their disabilities to the workforce. The shift of the traditional concept of working hours into the modern era, the flexible working hours, family leave and tele-commuting attract both the male and female employees in the workplace. With the help of proper accommodation system, the employees can execute their skills and ability efficiently (Cumming, Leung and Rui 2015). The benefit of the employer motivates them to work more and more passionately which indirectly enhances the business growth of the organization. On the other hand, the accessible, effective and comfortable workers are available by providing the appropriate accommodation to them.
Benefits of the diversity management as a competitive advantage:
By following the importance of diversity management in the workplace, it can be stated that there is several aspect of benefits in it which is considered as the competitive advantage of the organization. As per the view of Barak (2016), the managing diversity in the workplace makes the positive environment and motivates the people to increase the productivity level, retention rate and satisfaction level. In the broader aspect, the diversity in the workplace facilitates the team work, innovative work, creativity and provides the best quality work to the customers and clients along with the increased value (Reynolds, Rahman and Bradetich 2014). The competitive advantages and the benefits of the diversity management in the workplace have been discussed in the following manner.
- With the implementation of diversity management in the workplace, customer services and marketing process can be improved through the procedure of better understanding and the accommodation system of the concerned customer groups and their demands.
- The multiculturalism nature within the organization helps to improve the morale, productivity level, creativity and performance of the employees. Moreover, Lücke, Kostova and Roth (2014) argued that during managing diversity in the workplace, the selection, development and treatment of people along with equitable workplace can be done which mainly concentrates the fairness and merits of the people.
- In the words of Ali, Ng and Kulik (2014), to sustain in the competitive market successfully, the cost of production and the price of the products need to be reducing. Now, the diversity in the workplace helps to improve the retention rate and reduce the cost of productions along with the price of the products through the process of turnover and lower absenteeism.
- As there is no gender discrimination and talent gets the first priority, both the female and male employees are welcomed in the workplace. They provide their best which ensures to create and reach to the desired position in the international market successfully.
- As per the view of Richard, Kirby and Chadwick (2013), due to nondiscriminatory and more just environment, the associated risk factors can be lowered in the organization. As a result, the undesirable cost and risk can be avoided and the profit and revenue amount can be increased. Moreover, the gained money can be reinvested in the production procedure instead of expensing any discretionary expenditure (Cumming, Leung and Rui 2015).
- In this perspective, as multicultural people are welcomed in the workplace, the minority religions can also participate in the productive work. Therefore, the gender-balanced business contracts by the government are eligible and get preference in the workplace within the organization.
- On the other hand, as opined by Reynolds, Rahman and Bradetich (2014), the diversity management in the workplace helps to improve the corporate image in the international market which also generates the goodwill to all the public specifically to the customers.
- Lastly, with the implementation of diversity management in the workplace, the creative conflict, effective decision making, problem solving and creativity of the entire employee can be improved. As a result, the best quality work is performed by the employees who ensure to earn maximum profit and revenue from the global market (De Anca and Vega 2016). Thus, the above-stated benefits of the diversity management in the workplace are regarded as the competitive advantage for the organization. This competitive advantage separates the organization from the competitors and helps to acquire the prospective growth.
The diversity management in P&G:
As per the above discussion, it can be stated that the diversity management is fully effective in the well known organization of US, P&G. In respect of the practice of managing diversity within the organization, P&G hires, retains and engages the best and unique talent from the world and the selection procedure is based on the “employer of choice” system. On the other hand, based on the program of “in touch” by P&G, they produce and create the products and brands which improve the lifestyle of all the customers throughout the world in present and future periods. In this perspective, P&G respect the passions, skills, ability, creativity, innovative ideas and leadership roles of the individual employee irrespective of their caste, religion and gender (Us.pg.com 2017).
The non-discrimination policy in P&G:
P&G employs the non-discrimination policy within the organization. It provides the equal opportunity and remuneration to both the male and female employees. It follows the gender equity pay in the workplace and avoids the unlawful discrimination. Moreover, P&G implement the multicultural nature in the workplace by employing different types of employer in the organization irrespective of religion, color, age, race, national origin, citizenship and many more. In short, they mainly concentrate on the talents of the people instead of their cultures or origins. Apart from this, during the time of promotion, salary, increment, training, recruiting and hiring the employee, P&G strictly follows the employment decisions and laws (Us.pg.com 2017).
The boomerang impact of diversity management and its competitive advantage in P&G:
With the implementation of diversity management and multiculturalism within the organization, P&G facilitates the competitive advantage in the international market successfully. P&G employ near about 100 employees in a year, spread its business over the multiple countries and help to set the fortune of approximately 500 companies as the loyal customers. Furthermore, it highlights their business over the Women and Minority Business Enterprises (WMBEs) to mitigate the gender diversity and transform the traditional values of the business into the modern era. In this perspective, it can be notified that approximately $2.6 billion amount of money spent with the WMBEs. On the other hand, there are 1500 suppliers of WMBEs who are directly connected with the Supplier Diversity Program by P&G (Cdn.pg.com 2017).
The supplier diversity program by P&G helps to grow the business in the near future with effective plans and the increased investment policy. After implementation of the WMBEs program in P&G, the American and African business customize their orders for the customers. They support the diverse supplier’s services by various facilities and modern technology. As a result, the cost of production and the price of the products are in affordable situation to all the customers (Dheer and Lenartowicz 2016).
Employee groups emerges the inclusive culture:
Though there are different types of and multicultural people in the organization, the flexibility work culture and well developed diversity management help to feel comfortable in the workplace. In this perspective, P&G strictly follows the policy of setting up the start-up mindset at the very first moment within the small group. After that, discussion and consideration enriches and support the entire team to reach their desired goal. In the mean time, this organization always concentrates on the fact that each and every people come from the different background and they have the different needs. Furthermore, during the decision making process or giving the leadership roles to any employee, P&G focuses on the ability, creativity, passions and their innovative ideas instead of their backgrounds or cultures. As a result, they facilitate the quality work which ensures the prospective growth of the organization. Now, this brand has developed by 60% and it can be able to sustain its growth momentum in next 3 to 5 years (Cdn.pg.com 2017).
From the above figure, it can be stated that the diversity management and implementation of multiculturalism nature in the workplace help to improve the business of this organization. The sales, net profit along with the customer demand have been increasing day-by-day. Moreover, P&G achieve some awards for managing the diversity in the workplace efficiently such as Human Rights Campaign, Fortune (Most Powerful Women Global list), and Ranked 8 for Global Diversity among the top 10 organizations and many more (Cdn.pg.com 2017). Thus, it signifies the competitive advantage of P&G which ensures to sustain in the international market successfully.
Based on the above research analysis, it can be inferred that managing diversity in the workplace helps to achieve the best quality of work which ensures the foster growth of the organization. The multiculturalism nature within the organization helps to feel comfortable of all the employees who motivate them to do the work creatively, passionately and emerge new ideas. In this perspective, the cost and price of the products gets reduced along with the improved quality. Therefore, the concerned organization facilitates the competitive advantage in the international market by providing the lower price and improved quality products. P&G employs the multiculturalism nature and diversity management within the organization effectively. As a result, it facilitates the competitive advantage and the benefits of diversity management. It also helps to increase its profit and revenue and it can set its position in the global market successfully. Therefore, it can be concluded that the implementation of diversity management in the workplace is fruitful for the prospective growth of the organization.
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