Assignment Cover Sheet Student’s name: Abed Shikh AlShabab Student’s number: A4020445 Assignment title: How diversity affects the global business environment Words count: 1405 Due date: 17/03/2011 Date submitted: 17/03/2011 Time submitted: 08. 45 am Teacher’s signature: I hereby declare that: i) ii) iii) This work is entirely my own. All sources used in the preparation of this assignment are fully referenced. No part of this work has been submitted for assessment in any other course of study. Signature:
Date: 17/03/2011 How diversity affects the global business environment During the past few decades the haste and intensity of globalization has reached unprecedented levels and with the impact of global issues growing incessantly worldwide, they became a major concern of governments and business world, as well as a challenge to economic educators in business school around the world who are responsible of preparing the new generations to compete and succeed effectively in a new international economy.
Accessibility of movable investment funds and inexpensive communication systems has altered not only the way we live, but also how businesses operate. Consequently, multinational corporations are converting into accurately globalized companies with functions located in the most appropriate sites. Meanwhile, the political and legal structures impact the manner in which business is conducted. Also, the new corporation structure and various working environment represent new challenges and create massive opportunities to international companies.
As a result, this creates a major need for new level of business practices which are the utilities of the fields of the businesses that are planned and managed. Those in the areas of management, marketing, technology, accounting and finance are more complex in global environment. In this surrounding, the lack of uniformity in those aspects is affected the standards of business ethics, occupational health, safety, environmental protection, access to education and career opportunities.
From this point of view, diversity become a massive need which links all those characteristics together, nevertheless affects the values, attitudes, beliefs, social and business customs, behaviours, practices and eventually languages whether in written, oral or nonverbal which is a critical point for success in today’s global business environment (Mor Barak, 2011). What is Diversity? Diversity can be “considered under the sub-headings of Individual, Group, Organisation and Business Environment” (Johnson controls, 2008, 4).
First of all, individual diversity includes opinions, beliefs, preferences, values, obvious behaviours, expectations, needs, ambitions, toleration and reception of others, different perspectives and business theories without forgetting the respect for abilities, education levels and talents. As it was noticed before, person is motivated to take action from intensely held values and attitudes, which it might not intentionally be aware of individual behaviour, it may also be affected by culture “organisational and national” (Johnson controls, 2008).
In addition to employee’s individuality, there were considerable concerns of customer’s diversity which contain variety of ages, positions, occupations and activities. Secondly, the diversity across groups which consists of varied idea and theories within general purpose. For example, diversity of abilities and skills will be combined within teamwork and “collaboration trumps competition” (Johnson controls, 2008).
Moreover, the strategic diversity of organisational should be incorporated with more adaptable surrounding environment to meet individual tendencies and predilections, back up organization systems and processes, “control mechanisms” (Johnson controls, 2008), diversity of equipments and technologies, various and spread work training, time either as a “shifts or global time zones” (Johnson controls, 2008), payment and finance coordination, variety of cultural laws, patterns of business and the workforce and office locations across the world (Johnson controls, 2008).
In addition, board of director’s culture and expectations should be highly participated into diversity. Finally, the economic and financial circumstances of business environment are affected employees directly in different ways, as results, they will be reflected on company diversity as all (Johnson controls, 2008). Diversity in my opinion is a challenge in any business environment, not only as a mannerism or characteristic, but in which ways diversity had been implemented. It is a mixture of society, custom and traditions.
Harris Sussman quotes in his book The Future of Diversity and the Work Ahead of Us, “Diversity is about our relatedness, our connectedness, our interactions, where the lines cross. Diversity is many things – a bridge between organizational life and the reality of people’s lives, building corporate capability, the framework for interrelationships between people, a learning exchange, and a strategic lens on the world”. As it has been known, setting up a long-term successful business demands a structure of talent and ability that will be able to attract new ideas, perspectives, and theories to the work.
The challenge of diversity not only to benefit from the company various groups, but to react effectively and innovatively to the new opportunities which emerge rapidly in growing international market. The major develop of technology has been forced domestic and international businesses to experience diverse melting pots adapting to the news challenges. As a result, diversity within multinational organizations has been become vital aspect that influence the 21st century’s global economics.
By understanding diversity special nature, business industry will be able to adapt to the culture’s requirements, and provides the suitable environment which allowed merging international products with domestic products in an ethical system (Nesbitt, 2009). As cultural diversity judges a complex part of management inside the business culture, it’s became essential for companies to develop the right method for it, basically, from high management to low management, in orders to adapt to local cultural special sensitivity (McDermott and O’Dell, 2001).
Consequently, foreign companies especially and multinational corporations in general will be able to meet up the challenges facing them in expanding their business activities globally. Another factor is cultural barriers; they can make a difference as corporations set up workplaces and production around the world, mainly, by increasing the speed of procedures and saving time in moving from settle up stage to launch the business (McDermott and O’Dell, 2001). In other words, it’s about how to share knowledge and capitalize management effort than changing culture.
It’s about the balance between the “visible and invisible dimensions of culture” (McDermott and O’Dell, 2001). Even so, some do believe it is an economic and often political situation of foreign commands and authorities. Differences in cultural and universal diversity in many multinational organizations are seen to be obstacles to defeat instead of consider it as an effective implement pushing businesses forward. For example, in the U. S. more than 75% of major American organizations consider diversity as a “strategic advantage” (Hollins, 2011) and “business leverage” (Hollins, 2011).
They used a strategies passed on domestic workforce in their international expanding plans, as a result, they are ended in a complicated position unable to adapt to the new markets (Hollins, 2011). However, workplace diversity will provide companies managers with the creative and effective tools to face the complex and sensitive issues in business environment. As a consequence, they will lead to succeed in a fastchanging world. By taking closer look, diversity can be beneficial for both employees and employers. Firstly, employee’s diversity in the workplace, productivity, marketing opportunities and creativity can be increased.
Employers, on the other hand, will be taking advantage of flexibility and creativity which are the keys to success in a competitive era without mention improving business image for those organizations. Diversity is critical for an organization’s success without overlooked saving time and money (Esty, Griffin & Hirsch, 1995). With today’s business environment moving towards a global platform, organizations with diverse workforce will be in a better position to recognize the demographics combination of the consumers.
Also, they will be more capable of success in business industry than companies which recruit a limited group of employee. Those who recruit employees from same background culture are more likely to limit the competitive ability in compared with the organizations that are encouraging diversity of workforce. They have more ability to achieve their goals, nevertheless, gaining employee’s satisfaction and consumer’s reception (Cuizon, 2009). This will help to build trusted workforce and developed workplace by working in a safe, diverse, socially responsible, consistent and ethical environment.
This will establish deep, long-term partnerships within the organization, and enable employees to focus on their missions with confidence. At last but not least, “inclusion” (Cuizon, 2009) should be considered. The “inclusion” (Cuizon, 2009) means “how a company uses its diversities” (Cuizon, 2009). In other words, the companies do not have a diverse workforce yet; will not be able to obtain the benefits of the broad range of knowledge and skills which offered by “background diversity” (Cuizon, 2009). Overall, diversity is a reflection of a fast-changing world where diverse work teams will add extra value to corporation.
Adapting the individual differences in the company can be considerably valuable to the business environment, especially by creating a competitive edge and increasing work productivity. Managing diversity in the right way will help organization to have the right tool to achieve competitive and successful workforce which plays major role in pushing it to succeed globally. References: 1 – Cuizon G, 2009. What is Diversity in the Workplace? Available from < http:// http://www. suite101. com/content/what-is-diversity-in-the-workplace-a92594 / > – Esty K, Griffin R & Hirsch M 1995, WORKPLACE DIVERSITY: A Manager’s Guide to Solving Problems and Turning Diversity into a Competitive Advantage. Published by DBM Publishing 3 – Hollins R, 2011. Global Expansion. Available from ; http://www. termpaperwarehouse. com/essay-on/Global-Expansion/27706 ; 4 – Johnson controls, 2008. Exploring How Diversity Impacts on Our Workplace. Available from 5 – Nesbitt J, 2009. Workplace Diversity: Developing an Innovated, Forward Thinking Workforce. WHRMA News. Available from ; www. whrma. org/… newsletter/2009. 03. 05. march2009newsletter. pdf ; 6 – McDermott R & O’Dell C, 2001. Overcoming cultural barriers to sharing knowledge. Journal of Knowledge Management. 7 – Mor Barak M, 2011. Managing Diversity: Toward a Globally Inclusive Workplace. Published by SAGE Publications. 8 – Sussman H, 1999. The Future of Diversity and the Work Ahead of Us-A New Map and Compass for the Journey. In J Lindenberger & M Stoltz-Loike 2003, Diversity in the Workplace. Available from ; http://ezinearticles. com/? Diversity-in-the-Workplace=14974;