...Diversity’s Importance To The Competitive Advantage David Calderone Management 300 Dec. 06, 2011 Table of Contents Cover Page – Pg. 1 Table of Contents – Pg. 2 Analysis of Topic – Pg. 3-9 References – Pg. 10 Appendix – Pg. 11-12 Diversity is important for workplaces to retain a competitive advantage in today’s global economy. “Diversity enriches the workplace by broadening employee perspectives, strengthening their teams, and offering greater resources for problem resolution” (Cox). Diversity is becoming a more common aspect of the business world, but the importance of diversity is often undervalued. “Up to 79% of organizations indicated that they use some form of diversity training” (Madera). Diversity training helps to inform employees about the benefits of diversity, and how you can achieve diversity. According to Barb Peluso “diversity training is becoming a bigger part of the workplace as economies and marketplaces become globally intertwined”. Diversity is a necessary entity in order for a company to achieve a competitive advantage in the economy. Diversity can often have many different definitions. For this paper I will be using the University of Tennessee’s definition. “Diversity is a commitment to recognizing and appreciating the variety of characteristics that make individuals unique in an atmosphere that promotes and celebrates individual and collective achievement” (University of Tennessee). Diversity can be experienced in numerous different ways...
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...MANAGING DIVERSITY The Managerial Implication of an Increasing Diversity in Workforce Author/Student Note:Bong joseph laila ,MBA Student; Frederick Taylor University Moraga CA USA. This Research paper was conducted independently without any funding support nor groupwork;all correspondences should be addressed to josephlaila86@gmail.com. Managing Diversity Abstract Diversity means different things to different organizations.True diversity management articulates and raises performance standards by requiring organizations to learn to recruit, train and support people. Finding ways of working with diverse people involves valueing and utilizing differences as well as finding a common ground for intergrating a mix of people into organizations.This paper shows that organizations more often prefer a more diversified workforce basically because it makes business sense.By maximizing talent,fostering innovation;and tapping into the creativity of a diversified workforce;the altimate result will be increased profits,increase competivity and organizational effectiveness as a whole. Managing Diversity Introduction Between the 1960s and the 1970s management approach layed emphasis on eliminating unfair discrimination through legal compliance for women and ethnic minorities.This was the affirmative action approach which “focuses on achieving equality of opportunity in an organization and...
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...Can companies gain competetive advantage from multicultural differences in their workforce ? As the business world gets ever more connected, it is more critical than ever for global organizations to recruit, develop, and retain multicultural leaders who can navigate the myriad opportunities and challenges their companies face. Multicultural workforce can offer cultural competence or cultural intelligence; this can allow them to work effectively in cross-cultural situations. For example, they may have more than one ethnicity or spent time working abroad, where they likely would have experienced adjusting to a different culture. This can make them more culturally sensitive than a manager who hasn't worked with people from other cultures or regions. Managing diversity is about recognizing the unique contribution each employee can make to the organization. It is about creating an environment in which everyone feels valued, welcomed, and able to make an important contribution toward the attainment of corporate objectives. Additionally, companies facing challenges in competing global marketplace for market share can use diversity as "competitive advantage" in a multicultural environment with a diverse pool of talented and experienced individuals who can bring innovation and creativity to the organization. Diversity is not only associated to limited attributes that can be observed but also to those invisible characteristics such as differences in educational background, creativity...
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...succeed by executing the goal setting definitions. The employees were given tools and resources to become better. They have quarterly leadership measurements as well as the survey to get feedback from employees. Allstate focus on diversity, they see diversity as a strategy for leveraging differences in order to create a competitive advantage thus create four steps process to reach their effective goals. The first step which is the succession programming explains how Allstate identified and developed candidates for each key position. Allstate’s management information system enables it to track and measure key drivers of career development and career opportunities for all of its employees, ensuring that the company’s future workforce will be diverse at all levels. The goal of which came to manifestation; women were empowered, minorities grew above national averages, Hispanics, and people with diverse cultures now have positions in the company. The second step is development. Through the company’s employee development process, all employees receive an assessment of their current job skills and a road map for developing the critical skills necessary for advancement. The third step which is measurement allows the company to take a survey called the Diversity Index twice a year. An...
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...that is open to diversity is rare, so when you find a company such as Allstate insurance that has change their way of thinking for the purpose of improving the overall quality of customer service. As well as keeping their employees well trained, highly skilled, motivated, and trying to keep a balance between their employee’s person life as well as their work life is rare. It is not often that you find a company where they motivate their employee as well as maintaining diversity among its staff. In today’s society most companies are just beginning to scratch the surface on how to make their company work well in such a diverse society as we have today. Using the model for goal setting, evaluate Allstate’s goal setting process to determine whether or not Allstate has an effective goal-setting program. Before you take a closer look at Allstate goal setting process, one must compare this company to another company that may have or have not been as successful in achieving the same type of goals. Although some of these companies may not be in the same industry as Allstate, it is whether their mission is as successful. According to (Porter, 1985) Southwest's success is also dependent on its organizational capabilities that enable it to convert some of the value created for employees to customer and shareholder value. As a result of these capabilities, employees deliver both low cost and superior service which form the basis of Southwest's competitive advantage (Porter, 1985), enabling...
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...as one of the America’s Most Admired Companies as told by Fortune Magazine in 2007 and 2009. Allstate has also been a leader in the fields of Work/Life Initiatives, Diversity Education, Accountability Measurements, Mentoring Programs, as well as Career Advancement and Development Leadership. While being a leader in these areas, Allstate has been able to retain some of the best managers and leaders at their company and excel in an industry that is very competitive and demanding on each and every person that they employ. One key aspect of Goal Setting, not only for Allstate, but for almost every sustainable business is giving employees the knowledge and ability to attain their goals and also to give those employees the tools that are necessary to carry that goal out. Through the company’s employee development process, all employees receive an assessment of their current job skills and a road map for developing the critical skill necessary for development. This gives all employee a way to set goals that are aligned with the expectations of Allstate and gives them the training that is needed to move up in the company and achieve their goals that are attainable that not impossible to obtain. One of the ways that Allstate provides its employees with the knowledge and tools to carry out their jobs is with the Diversity Index and QLMS (Quarterly Leadership Measurement System). Allstate realized that having...
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...attribute of a great leader is managing diversity in the workplace. However, diversity includes many different issues and needs to be managed and if done properly can lead to competitive advantages for the company. Thomas A. Kochan, professor at MIT, stated “Diversity can enhance business performance only if the proper training is provided and the organizational culture supports diversity (Dubrin, 2010). Managing Cultural Diversity: Managing cultural diversity is not an easy task, however, when incorporated into the organizations core values, is makes it easier to incorporate (Dubrin, 2010). Below is a diagram that provides a breakdown of areas or issues that may need to be looked at to evaluate the possibility of creating and leading a culturally diverse organization. These areas may help to identify areas where a competitive advantage may be available in the organization. In such a culturally diverse world and as the organization makes decisions that will impact them globally, these discussions are vital for the success of the company. Whether not decisions are made to implement or not to implement decisions based on diversity within the organization, these ideas, may identify some of the organizations strengths and weaknesses. (Cox & Blake, 1991) Through this evaluation, the organization may identify the competitive advantages that are available through cultural diversity in the workplace. Competitive Advantages through Diversity: Good leadership and management...
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...attribute of a great leader is managing diversity in the workplace. However, diversity includes many different issues and needs to be managed and if done properly can lead to competitive advantages for the company. Thomas A. Kochan, professor at MIT, stated “Diversity can enhance business performance only if the proper training is provided and the organizational culture supports diversity (Dubrin, 2010). Managing Cultural Diversity: Managing cultural diversity is not an easy task, however, when incorporated into the organizations core values, is makes it easier to incorporate (Dubrin, 2010). Below is a diagram that provides a breakdown of areas or issues that may need to be looked at to evaluate the possibility of creating and leading a culturally diverse organization. These areas may help to identify areas where a competitive advantage may be available in the organization. In such a culturally diverse world and as the organization makes decisions that will impact them globally, these discussions are vital for the success of the company. Whether not decisions are made to implement or not to implement decisions based on diversity within the organization, these ideas, may identify some of the organizations strengths and weaknesses. (Cox & Blake, 1991) Through this evaluation, the organization may identify the competitive advantages that are available through cultural diversity in the workplace. Competitive Advantages through Diversity: Good leadership and management...
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...before. This scenario is known as diversity in workplace. Organization needs diversity to become more creative and open to change. Maximizing and capitalizing on workplace diversity has become an important issue for management today. Besides that, diversity has the potential of yielding greater productivity and competitive advantages as long as organizations need to focus on diversity and look for ways to become totally inclusive organizations. Managing diversity means more than simply observing legal and policy requirements. Diversity is not something that will go away or diminish over time. Rather, the increasing diversity within our workforce population is emerging as a major resource upon which managers and organizations can seek solutions to various aspects of their businesses. 1.1 Definition of Diversity Frequently, diversity is viewed in a narrow perspective which includes differences in terms of race, ethnic or gender differences, and quite often linked to discriminate and enforcing laws to protect certain groups. Diversity includes all characteristics and experiences that define each of us as individuals. It can be further defined as primary dimensions of an individual, including race, ethnicity, gender, age, religion, disability, and sexual orientation. Secondary dimensions include communication style, work style, unique contribution of individual in organizational role/level, economic status, and geographic origin. Once diversity is defined, it must be acknowledging...
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...Allstate has taking four specific steps on how to accomplish different task. The first step is Succession Programming. A diverse slate of candidates is identified and developed for each key position. Allstate's management information system enables it to track and measure key drivers of career development and career opportunities for all of its employee's, ensuring that the company's future workforce will be diverse at all levels. Step two: Development. The company's development process, all employees receive an assessment of their current job skills and a road map for developing the critical skills necessary for advancement. Step three: Measurement. Twice a year the company takes a snapshot of all employees through a survey called the Diversity Index. Finally step four: Accountability and Reward. To help employees maintain a balance between work and person life, Allstate has a number of programs in place. For example,...
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...Allstate Insurance Company Goal of Diversity This case focuses on Allstate Insurance Company and its goal of diversity. Allstate Corporation has found that its diversity strategy has become one of the company’s most competitive weapons. The company’s vision states: “Diversity is Allstate’s strategy for leveraging differences in order to create a competitive advantage.” Allstate has divided its strategy to reach diversity into two main points: one internally focused and the other externally focused. James DeVries, senior vice presidents of human resources, states that the internal diversity focus is “unlocking the potential resources, and opportunities to succeed.” The external focus of diversity is making certain that the workplace matches the experiences, backgrounds, and sensitivities of the market it serves. The managers at Allstate look at these views of diversity not as a goal but as a process that is integrated into the daily life of the company. In 1969, Allstate launched its first affirmative action program. At this time the company focused more on affirmative action and diversity awareness through education and training. Allstate has taken four specific steps to impact business results, with a workforce of differences so they can bring them together in a powerful way. The first step is succession programming. In this step, a diverse slate of candidates is identified and developed for each position. The second step is development. In this step each employee...
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...to remain extremely competitive. Even within this contentious environment, however, one could say organizations have become increasingly open minded about diversity. Competition is coming from all over, and because of this, organizations have to become more resourceful and seek for competitive advantages. Diversity has now become essential for management in order to ensure success. Diversity brings forth more creativity and it can have a positive effect on the way individuals work. People bring their cultural principles with them to work so it is important to identify culture orientation. However, because diversity is still somewhat a challenge, managers need to teach their employees as well as themselves the skills and abilities needed to work in a multiethnic environment. (Green, Lopez, Wysocki, & Kepner) This paper will highlight ways to create and maintain a diverse workforce, as well as the benefits and challenges of diversity as well as equal employment opportunity programs. Background For a long time “diversity has been one of the most controversial and least understood topics”. (Rohini, 2008 ) A recent survey conducted among human resources (HR) and diversity practitioners examined how they defined diversity (Society for Human Resources Management, 2008). At least eight definitions emerged, and 71% of respondents indicated that their organization did not have an official definition. DIVERSITY DEFINED (subheader) (italicize this) “Diversity is generally defined...
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...Running head: ALLSTATE INSURANCE Allstate Insurance Company February 5, 2011 Strayer University 1. Using the model for goal setting, evaluate Allstate’s goal setting process to determine whether or not Allstate has an effective goal-setting program. Allstate established ways to improve performance throughout their corporation to achieve goals for their employees. In doing so, the internal diversity focus and the external diversity focus were closely analyzed. Employees were provided with resources and tools that would allow them to ascertain the goals needed to succeed. Experiences and sensitivities were examined to ensure the work force met the needs of the market it serves. The managers at Allstate viewed diversity not as a goal but as a process that is integrated into the daily life of the company, according to Hellriegel and Slocum (2011), authors of Organizational Behavior, (para. 1). The company determined that awareness by way of education and training would be the best way to assist their employees; however this was not their business strategy. A challenge was created to observe the individual’s ability and goal commitment. Feedback was expected from the workforce and the difficulty of the task was significant. Equally important were the goals; the goals were to be clear and the individual’s own ability to perform a specific...
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...INTRODUCTION With globalisation, it is inevitable to have workforce diversity. Workforce diversity is the significance differences of each individual that distinguish them at their working environment. This report explores the study of workforce diversity and brings about an understanding of surface-level and deep-level diversity. Furthermore, the report highlights the importance of managing for diversity and explores the characteristics of both Singapore employees and expatriates. SURFACE-LEVEL DIVERSITY AND DEEP-LEVEL DIVERSITY Diversity is being characterised into surface-level and deep-level diversity. Surface-level diversity refers to the observable demographics and psychological differences that include language, culture, race, gender, ethnicity, age and physical capabilities. Deep-level diversity refers to the differences in psychological characteristics which includes personalities, beliefs, values, knowledge, experiences and attitudes. Both types of differences are evident in an individual’s decision, actions and expectations. (McShane, Olekalns & Travaglione 2010) Surface-level differences are easily noticeable and measurable as compared to deep-level differences. One of the example is the use of expatriates who are professional personnel employed outside of their home country to work or assist in another organisation. Standard Chartered is one of the organisations which embraced surface-level diversity. It operates overseas and send executive to run subsidiaries in...
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...INTRODUCTION “In today’s increasingly global economy, diversity is no longer a feel-good best practice for companies, it’s a business imperative” (Macfarlane, 2010). The changing terrain of the workplace, aging workforce, customer demands and the proliferation of minority groups in the global market have pushed companies to adopt “business practices that profit and benefit from being seen as diverse” (Creative Solutions Services, 2012). Many countries and companies worldwide have taken revolutionary steps to integrate diversity strategies within their core business philosophy having realised that it is not only the right and moral thing to do but is a key business strategy for gaining a competitive advantage (Daft, 2010). Ernst & Young is a...
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