Part 1: In this part, the reader would be able to understand important aspects of managing diversity based on the text “The business case for commitment to diversity”. Business Horizons 51: 201-209. By Slater, Stanley F., Weigand, Robert A., Zweilein, Thomas J.
As an element of organizational culture, some companies have values, beliefs and norms, totally committed to diversity; the reason is that diversity within an organization is a source of competitive advantage because the right human capital diversity is a resource that not many companies can imitate.
The diversity of competitive and intelligent human capital with valuable and different skills, increase the competitive advantage of a company because an organization in order to be successful need diverse people with different work styles, knowledge of the diverse market, leadership skills, perspectives, ideas, points of view, diversity in gender, race, age that contribute to make the best decisions with more creativity and innovation.
Project teams’ diversity exist in the same company or with members of different companies; for example, the relations between companies during negotiations, joint ventures, acquisitions and strategic alliances are based on the differences between each member and both companies can benefit each other with knowledge and skills
In order to use diversity as a competitive advantage, a company must have a culture of inclusion, demonstrate fairness and equity and listen to all opinions, because every perspective is important in order to attract talented employees, deal with diverse suppliers and pay attention and understand the increasing number of customers with race, age and gender diversity that represent market opportunities.
As an example, in the following video Microsoft demonstrate why it is consider as a diverse company: http://www.youtube.com/watch?v=udIgeiXPzkg
But sometimes it is difficult for diverse groups to achieve successful outcomes because it is easier for cultural similar members of a group to communicate with each other, since homogeneous groups have many things in common, people feels more comfortable and there exist less risk of conflict, ambiguity and complexity during the first stages of the creative process.
In conclusion, in a globalized world with companies in different countries and diverse people, the success of a company highly depends on its commitment to diversity.
Part 2: In this part, three questions will explain the importance and challenges a company as IBM faced managing diversity. The example is based on the text: “Diversity as Strategy”, Harvard Business Review, September 2004, 98-108. By: Thomas, David A., 2004.
1. ¿Is diversity management at IBM a source of competitive advantage? ¿why?
Managing diversity at IBM is a source of competitive advantage because the result of this company strategy based on workforce diversity, attracted the best and talented people, retaining, developing and also promoting them; helping IBM to achieve a great business opportunity, deeply understanding diverse and multicultural consumers and attracting them; because it exist a powerful link between employees diversity in the workplace and market diversity: when employees are different, they can understand and be closer to the needs and wants of dissimilar consumers.
IBM diversity strategy also affected suppliers, who between 1998 y 2003 a variety of suppliers highly increased businesses with the company.
2. ¿Do you think the IBM case reflects a strong organizational commitment to diversity? Why?
IBM case reflects a strong organizational commitment to diversity, because instead of minimizing differences the company amplified them, implementing a diversity strategy that consisted in creating eight task forces that included different groups inside the company: Asians, Blacks, People with Disabilities, White Men, Women, Gays/Lesbians/Bisexuals/Transgender Individuals, Hispanics, and Native Americans. The objective was to understand differences among groups in order to learn from it and make improvements.
The strategy was successful, because all the employees of company were involved with it and not just the executive and higher levels. All the employees had the right to participate in the process:
3. ¿What are the limitations or challenges that a corporate diversity program faces? Please provide recommendations to address them.
One of the limitations or challenge that the company faced during the process of managing diversity, was the skepticism, because at the beginning some employees didn’t like the idea and didn’t thought it will be successful. As a recommendation, in order to motivate employees it is important to explain them all the process, let them participate and realized the importance of the strategy and all the achievements.
Another limitation was that inside the groups, people had different perspectives and ideas and it was challenging try to present unified ideas to the rest of senior management. For example, some women said they had problems balancing work with family but others commented that women had to choose between having a career and having children, which cause differences in points of view. As a recommendation, in these cases it is important to understand that everybody have its own opinions an beliefs, all the members have to understand the different points of view and try to choose the best option or decision that accomplish the employees and company´s goals.
BIBLIOGRAPHY:
Learning toward justice, (June 16, 2006), “Celebrating diversity” [Online] Permanent URL: http://leaningtowardsjustice.wordpress.com/category/the-nature-of-people/page/4/. Last accessed: February 20, 2010.
Slater, Stanley F., Weigand, Robert A., Zweilein, Thomas J., 2008. “ The business case for commitment to diversity”. Business Horizons 51: 201-209.
Sylvie, Chevrier. 2003. "Cross-cultural management in multinational project groups " Journal of World Business 38:141-149.
Thomas, David A., 2004. “Diversity as Strategy”, Harvard Business Review, September 2004, 98-108.
Youtube, (January 15, 2009), mcmommie1´s channel, " MSD-005 Overview 052808 1040x585 (Microsoft Diversity Recruiting)”, [Online] Permanent URL: http://www.youtube.com/watch?v=udIgeiXPzkg. Last accessed: February 20, 2010.
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