Download Human Resource Management: Workforce Diversity

Human Resource Management
BUSI 3323 – Human Resource Management
Instructor: Kumarashvari SUBRAMANIAM
Assignment #1
Workforce Diversity
Summer 2012
Group members:
Bashaer Alghamdi
Hadeel Aldossari
Afnan
Human Resource Management
Executive Summary
The report provides the analysis of the phenomenon of workforce diversity in the
context of human resource management with references to the activity of the multinational
company Saudi Aramco. The report presents the critical discussion of the modern trends in
workforce diversity with depending on the example of Saudi Aramco and the evaluation of
the impact of workforce diversity on the organizational performance. The problem of the
effectiveness of workforce diversity as a practice which is used for increasing productivity of
the organization and its competitiveness within the market is also discussed in the report.
Human Resource Management
Table of Contents
1. Executive Summary
2. Introduction
3. Trends in Workforce Diversity
4. The Impact of Workforce Diversity on Organization
5. The Role of the High Degree of Workforce Diversity
6. Conclusion
.
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Introduction
The modern worldwide economy is often discussed as the process which is influenced
by the notion of globalization. Moreover, globalization is often associated with the aspects of
workforce diversity. Today there are almost no boundaries for businessmen in their intentions
to expand their activities globally. The job opportunities for employees are also broad.
Workforce diversity can be discussed as a characteristic of the company’s approach to human
resource management when the main accents are made on differences in culture, age, race,
ethnicity, class, and gender. From this point, workforce diversity can be analyzed in the
context of differences in class and gender, and in the context of multiculturalism. The
processes of globalization resulted in the development of the large multinational corporations
for which the phenomenon of workforce diversity became the significant component for
providing the effective organizational performance.
Trends in Workforce Diversity
To understand the processes associated with the phenomenon of workforce diversity,
it is important to concentrate on the peculiarities of the development of multinational
companies in which workforce diversity can be discussed as the characteristic feature of the
organization’s progress and as the part of the strategy developed for the effective
organizational performance. However, one of the first significant trends which should be
mentioned is the fact that workforce diversity is also typical for small companies and firms in
which diversity is based on changing the policies according to women at workplaces and the
average age of the workers. Thus, it is a successful trend to hire women for managerial
positions because of their high level of responsibility and developed time management skills
(Connerley & Pedersen, 2005). Moreover, there is a tendency to hire young people with little
experience for lower positions in order to provide the conditions for their further
Human Resource Management
development as specialists necessary for the company with the help of effective training
programs.
Workforce diversity in multinational companies is characterized by the diverse human
resources from the point of their ethnicity, race, culture, and religion. Managers in modern
organizations should pay much attention to hiring the multinational staff and contribute to
creating the positive atmosphere for the company’s effective development. Modern trends in
acknowledging and valuing workforce diversity depend on the perspectives for the
company’s progress. Researchers state that workforce diversity is important for increasing the
level of employee’s flexibility and creativity within the organization (Bell, 2011). The
principles of the development of the modern world economy are based on globalization
processes and associated companies’ needs in the diverse personnel in order to address the
tendencies. For instance, Saudi Aramco focuses on attracting the human resources from all
over the world in order to use their professional potential for contributing to the
organization’s intensive progress. It is stated on the company’s website that the company “is
pleased to provide support for candidates from North America interested in careers working
for Saudi Aramco in Saudi Arabia” and “employees benefit from the experiences, abilities
and perspectives of a multinational multidisciplinary workforce” (Saudi Arabian Oil Co.,
2012). Today Saudi Aramco uses a lot of opportunities to expand the possibilities to attract
the highly qualified professionals from different regions in order to promote the company’s
greater productivity with basing on diverse and creative ideas of the multinational team.
The Impact of Workforce Diversity on Organization
The expansion of the tendencies which are connected with workforce diversity signals
about the great impact of this phenomenon on the development of organizations and their
effective performance. It is possible to speak about positive and negative effects of the
process. In spite of the fact the negative effects are less obvious, and they can rarely be
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observed while analyzing the peculiarities of the organizational performance, it is possible to
determine them with references to unsuccessful work of the HR manager in the definite
company. Thus, workforce diversity is associated with the effective recruitment of the topclass professionals and efficient managing diverse human resources with paying attention to
creating the positive and productive atmosphere at workplaces. It is significant for the
manager to regulate the interpersonal relations within the company with references to the
employees’ differences in culture, ethnicity, and religion in order to avoid the inappropriate
dependence on the cultural stereotypes, development of prejudice and discrimination which
can lead to the further conflict situations (Mathis & Jackson, 2010).
The positive impact of workforce diversity on the organizational performance
depends on the developed corporate culture, fixed code of ethics with accentuating the
multinational character of the company and its multiculturalism. The main priorities of the
organization in relation to the diverse workforce should be determined with paying much
attention to gaining benefits for increasing the position within the market with the help of
using multinational personnel. Saudi Aramco worked out the corporate culture with
references to the Saudi culture. Nevertheless, the mangers of the company also develop
strategies according to which the principles of collectivism and team-working are also
effectively used in work of the representatives of different cultures and nations (Saudi
Arabian Oil Co., 2012). It is important to analyze the situation from the global perspective
and be flexible in organizing the work of the company’s employees including the process of
their hiring.
The Role of the High Degree of Workforce Diversity
It is important to note that the high degree of workforce diversity is a characteristic
feature of many successful multinational corporations, and this process can be discussed as a
good practice for the organization because of the range of benefits provided. Modern
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companies make accents on the effective competitiveness within the industry and market that
is why the leaders of the companies focus on attracting the diverse workforce which can be
guarantee the increase of the organization’s status, position, and flexibility with meeting all
the demands of the rapidly developed global business and economy (Mondy & Noe, 2006).
Thus, the workers are also inclined to determine the benefits of the workforce diversity. The
diagram presents the most obvious benefits of the process with references to the number of
people who provided their opinion:
Benefits of Workforce Diversity
(Workforce diversity, 2005).
Today the organizational performance depends on the successful development of the
rewarding projects which should be worked out by highly qualified professionals in all the
Human Resource Management
necessary spheres. This effect can be achieved with using the potential of the diverse
workforce. It is stated by many researchers that the diverse personnel increases the level of
the company’s productivity with basing on its flexibility and creativity with the next reaching
the competitive position within the market (Mondy & Noe, 2006; Terry, 2011). Modern
approaches to developing companies and their organizational performance depend on the fact
that it is necessary to use all the possibilities to improve the company’s results within the
industry, and the high degree of workforce diversity is one of the most influential factors for
improving the organizational performance with referring to the effective management. The
multicultural work environment is a good opportunity to meet the demands of the
globalization and the international standards in relation to the world economic development.
Conclusion
The peculiarities of the development of the world economy and business which are
based on the principles and ideas of globalization influenced the progress of the new
approach to workforce diversity. Today the diverse human resources are discussed as an
advantage because of a significant number of opportunities for the company’s successful
growth within the market. Many multinational companies make accents on the multicultural
work environment within which it is possible to complete the work assignments with the high
level of creativity and discuss them from the multidimensional perspective. As a result,
workforce diversity contributes to the increase of the organization’s productivity and
competitiveness. However, the workforce diversity can be discussed as the advantageous
factor for the company’s development when the leaders of the organization, the HR manger,
and managers of the other departments focus on creating the stimulating atmosphere of
cooperation with references to the code of ethics and the necessary regulations in order to
avoid the challenges connected with the possible prejudice and discrimination.
Human Resource Management
References
Bell, M. P. (2011). Diversity in organizations. USA: South-Western College Pub.
Connerley, M. L. & Pedersen, P. B. (2005). Leadership in a diverse and multicultural
environment: Developing awareness, knowledge, and skills. USA: Sage Publications,
Inc.
Mathis, R. L. & Jackson, J. H. (2010). Human resource management. USA: South-Western
Cengage Learning.
Mondy, R. & Noe, R. M. (2006). Human resource management. Delhi, India: Pearson
Education.
Saudi Arabian Oil Co. (2012). Retrieved from http://www.saudiaramco.com/en/
Terry, J. (2011). Motivating a multicultural workforce. USA: HRD Press, Inc.
Workforce diversity. (2005). Retrieved from http://www.culturewise.ie/equalcheck/article_01.php?height=400&width=700