This chapter presents the background of the research on “How can international human resources managers effectively manage diversity in multinational company?”- Case study Tesco. The company overview of Tesco in UK, background of the research, organisation background, rationale statement, research questions, and purpose of the research conducted the aim and objectives of the research identified by researcher. The structure of the dissertation is described at the end of the chapter.
Managing diversity means maximizing diversity’s potential benefits such as greater cultural awareness and broader language skills, while minimizing the potential barriers such as prejudices and bias that can undermine the company’s performance. Dessler (2008, p.61) referred to diversity as potentially a double-edged sword. Generally diversity refers to the variety or multiplicity of demographic features that characterize a company’s workforce, in terms of race, sex, culture, national origin, age and religion.
Many organisations have implemented various types of initiatives within the last few decades in an effort to deal with diversity. A possible missing link between how the human resource managers deal with diversity and its impact on the organisation is a diversity strategy that is executed using a planned approach to systemically manage diversity (Leopold & Harris 2009).
The increasing diversity and changing demographics of the UK workforce, the expansion of anti-discrimination legislation, legal rights for individuals with caring responsibilities and government policy commitment to the work-life balance have created new challenges for employers across employment sectors. This research explores some of the issues that arise for employers, managers and employees in the development and application of multinational organisational human resourcing policies which are intended to promote equality of treatment and recognize diversity in the workforce. The 2004 WERS survey (Kersley et al., 2006) found that 73 percent of workplaces had a final written equal opportunities policy or a policy on managing diversity compared to 64 percent in 1998. This figure increased to 98 percent in the public sector (97 percent in 1998) with the incidence of formal policy being higher in large workplaces which means that most employees work in establishments with a formal policy. This was evident in the 2007 CIPD annual recruitment and retention survey which revealed that only half of the 905 participating organisations had a formal diversity strategy although again the public sector is more proactive with 83 percent reporting a strategic approach to diversity (CIPD, 2007 a).
Today’s business and service organisations are meeting the challenge which demands systematic efforts, as many of them have come to realize. Whether the multi-cultural character of the organisation arises from its international workforce and its local operations in various countries, from the mixed backgrounds of a workforce in a single location, the organisation must address this diversity if it is to be successful.
Groups of people see the world through their own set of assumptions, values, beliefs, customs, traditions and attitudes that are shared by an organisation’s members. Learn about their culture and how it shaped them, and aim to understand how other culture work that can be an effective global manager.
In this research, selected company will be Tesco Metro (Whitton, Branch) London outlet where different cultural people working. Tesco is one of the UK’s major retail supermarkets. Tesco is an international retailer where there are working different countries and cross-cultural people. This research is a collection of how the Tesco Company has used diversity to support their business goals and valuable learning and what makes good diversity practice.
Tesco is the fastest and largest growing retail chain in UK as well as international arena. Tesco started its journey in 1919 in the East End of London. As a result, Tesco came as a national store across the country in 1970. To beat others and to reach top Tesco brings more innovative idea and implemented those from 1992 to 2004 like slogan “every little help”, Tesco value, Club card, 24 hours service, Online service and so on (A history of Tesco: The rise of Britain’s biggest supermarket).
Tesco is operating in the UK set its position as a market leader with over £2 billion of profit with total 3728 stores around the world, where in the UK 2,306 stores and employing over 286,394 staff. It provides online services through its subsidiary, Tesco.com. The UK is the company’s largest market where it operates under four banners of Extra, Superstore, Metro and Express. The company sells almost 40,000 food products, including clothing and other non-foods lines. The company’s own-label products (50 percent of sales) are at three levels; value, normal and finest. As well as convenience produce many stores have gas stations, becoming one of Britain’s largest independent petrol retailers (Tesco Annual Report & Review, 2009). According to market share Tesco’s positions in number one in UK and third position around the world. Tesco is the market leader with 30.40% (March, 09) of market share though it’s lost a bit of market share 0.5% in recent year due to credit crunch. Tesco market share is nearly two times higher than other retail shop like Asda (17.5%), Sainsbury (16.1%). (Retail Analysis)
Tesco has a very friendly and supporting approach in the routine ways that staffs at Tesco behave towards each other, and towards those outside the company that can make up the ways people do things, where at great place to work. The control systems and measurements are constantly under the management review to monitor the efficiency of the staff and managers’ decisions. On-going meetings and communication at every level of the company’s hierarchy represent a strong internal environment (Tesco’s Value and Strategy).
Cultural web theory application (The cultural web theory is also an effective analysis for management in order to represent the underlying assumptions linked to political, symbolic and structural aspect of the company) is a useful tool in considering the cultural context for Tesco’s business (Tesco’s Value and Strategy). Culture generally tends to consist of layers of values, beliefs and taken for-granted actions and ways of doing business within and outside the company. Therefore, the concept of cultural web is the representation of these actions taken for granted for understanding how they connect and influence the strategy (Veliyath and Fitzgerald, 2000; Johnson and Scholes, 2003). It is also useful to understand and characterise both the company’s culture and the subcultures in adaptation of future strategies.
Generally, a self assessment for international human resource managers is to evaluate and improve their global management skills. But it also creates a challenge for individual managers who must manage with working across geographic and cultural areas; understand how issues of managing diversity inform and influence human resource strategies and evaluate the respective responsibilities of international human resource managers for managing diversity policies and practices.
The key concept of managing diversity accepts that different cultural workforce consists of a diverse population of people. The diversity management can recognize a wide range of individual differences and benefits to the employment relationship to individual needs which can lead to the organisational competitive advantage. This research explores the key principle of diversity in one of UK’s leading super market named Tesco Metro (Whitton Branch) London. The researcher intends that how managers mange working with diversity people in workplace in Tesco, whereas equal opportunity focuses on different ethnic groups.
As human resource manager in a multinational company needs to consider the following major issues:
1. How people manage a group of different culture people?
2. What is the communication within work?
3. How do the managers manage diversity and equal opportunity within the service?
4. How can the manager influence team’s performance?
5. How can the manager help people learn and develop?
6. How can the manager help people to manage change?
7. How he is motivating people?
8. How can the manager handle equal opportunity?
9. What strategy managers should apply to get a good result from employees?
How a human resource manager can handle all those areas and successfully the organisation’s mission with different country’s people.
The aim of the dissertation is to analyse the competitive advantage of the organization that are managing people as assets which are fundamental. And to examine diversity, equality and discrimination issues in a multinational company, in the particular way of human resource managers to manage work with different culture people. Tesco has been used as a case study in this dissertation.
1) An international human resource managers needs to know the way of managing people in the organisation. An overview of what a manager needs to do in relations to managing people in a changing environment which will be include at diversity issues and international human resource management policies.
2) To observe a multicultural company from the perspectives of diverse social peoples.
3) For an organisation to succeed on a global scale, radical shifts in business procedures are required. To become a successful global manager is to develop a global outlook.
4) A global manager needs to know what point an organisation has reached in the globalization process, and where it wants to go. Understand the process and recognize the strategies that will give the organisation a global advantage.
5) Understanding people as individuals and recognizing their differences as well as drawing up some general principles for managing them like motivates them, job satisfaction, and job design.
6) Recruiting, and selecting the right people.
This research will disclose some essential factors which help organisations to maintain their diversity effectively within the organisation and make a fair working environment of employees within the organisation.
The dissertation report has been structured into the following chapters.
Chapter 1: This provides an introduction to the research, where justification of the research is presented and the purpose of the research is explained.
Chapter 2: The second chapter is the literature review of this dissertation concerned about, the works of various authors who have discussed relevant existing theories and policy of diversity and the different interpretations of diversity management which is based on secondary data. Those relevant theories and policy will help to find out the appropriate analyse of the following research.
Chapter 3: The third chapter will discuss the research methodology. Research method presents the research philosophy, approach and sampling, data collection procedures and shows the right direction to achieve an outcome. This chapter also explains the reasons behind the use of selected research method and the advantages by using the research approach.
Chapter 4: This chapter contains the analysis and findings. This part of dissertation informed the research findings quantitatively with the help of constructed research model and research hypotheses. It also shows the data gathered in the company through interview and questionnaire of Tesco’s managers and employees, and analysis the data to provide a productive meaning of the research finding.
Chapter 5: This chapter encloses the conclusion of the dissertation within the research questions and objectives, describe limitation of research and recommends opportunity for further research.
This chapter discusses the works of various authors and scholars who have highlighted theoretical exploration of the existing knowledge that is relevant to the diversity area. This chapter also focuses on similar and contrasting perspectives that researchers have used to approach this research areas.
Diversity means relating and working with people who hold different perspectives and views and bringing different qualities to the workplace. According to (Kandola & Fullerton 1994, p.19) diversity consists of visible and non-visible differences which will include age, background, race, sex, disability, personality and lifestyle.
The concept of diversity means respect and acceptance, means understanding each individual is unique and recognizing our individual’s differences. It can be the aspects of race, age, gender, ethnicity, sex, disability, religious beliefs, and political views and so on. It is also exploration of these differences in a safe positive and development organizational environment.
As the Wall Street Journal (2005) put about diversity, as companies do more and more business around the world, diversity is simple a matter of doing what is fair or good public relations which is a business imperative but diversity is supposed to enrich an organisation’s human capital, whereas equal opportunity focuses on various ethnic groups.
Brewster (2002) defined that managing diversity tries to build specific skills and to create policies that derive the best from each employee and it is based on the assumption that diverse groups will create new ways of working together and have understanding in that group, profit and productivity will increase in the organisation. Where he found, diversity management is fast becoming a management approach that is being applied effectively within the organizations.
Diversity needs to be seen as an integral part of the business plan, essential to successful products and increased sales. This is especially true in today’s global marketplace, as organizations interact with different cultures and people. Kandola & Fullerton (1998) identified the possible areas of diversity benefits, these are:
a) Creativity increases – when people with different ways of solving difficult problems work together towards a common solution and the more ideas can obtain from different people.
b) Productivity increases – when people are from all cultures pull together towards a single inspiring goal. Increased productivity is an obvious advantage of diversity in the workplace.
c) Provide strong leadership – they take strong stands on advocating the need for a diverse workforce and can handle effectively different cultural people.
d) New attitudes – are brought to the business by people from diverse cultures. In most other countries around the world time is for building relationships and an integral part of getting to know that are considering doing business with before starting a transaction.
e) Provide diversity training and education – are obviously needed in today’s increasingly global market and diverse employees often have this ability. Every company needs specific knowledge or language skills where the international job seekers have the advantage.
f) New processes – when people are with different ideas come together and collaborate. In today’s first moving world, employee must bring multiple skills to the working environment and adapt quickly to new situations. (Harris et al. 2003)
International human resource manager can make organisations more successful and productive by managing diversity in the work place. Diversity brings real benefits to business environment where employing a diverse workforce enables it to use a wider range of skills and lead to creativity and innovation.
HR policies provide guidelines on how key aspects of people management should be handled. The aim is to ensure that any HR issues are dealt with the values of the organisation with certain principles. Armstrong (2009) defined the philosophies and values of the organisation on how people should be treated and all organisations have HR policies. HR policies can be expressed formally as overall statements of the values of the organisation or in specific areas. Kandola & Fullerton (1994), these values are espoused by many organizations in one form or another. HR policy on managing diversity recognizes that there are differences among employees and properly managed where will enable work to be more effectively.
Legislation and the high profile of equal opportunities in the UK has had both positive
and negative effects on the way people view each other, (Barker, 2000). On the one hand, there is now widespread recognition that discrimination at work on the grounds of gender, race or ability alone is unjust, although the practice still continues. However, the grouping of minorities such as women or ethnic or disabled has produced responses. More recent thinking has moved towards ‘managing diversity’-recognizing and valuing differences in people and their unique contributions to the workforce.
Managing diversity involves creating an environment that allows all employees to contribute to organizational goals and experience personal growth. This requires the company to develop employees that they are comfortable working with others from a variety of ethnic, racial and religious backgrounds. Noe et al. (2003) found that managing diversity may require changing the company culture. It includes the company’s standards and how employees are treated, competitiveness, innovation and risk taking. Where management of diversity has been linked to innovation, improved productivity, lower employee turnover and other costs related to human resources, (Cox, 1993, p.24).
Price (1997, p.265) noted that the management of diversity goes beyond equal opportunity instead of allowing a greater range of people the opportunity to ‘fit in’ the concept of diversity embodies the belief that people should be valued for their differences and variety. Diversity perceived to enrich an organisation’s human capital. Whereas equal opportunity focuses on various disadvantaged groups, the management of diversity is about individuals and model of resourcing aimed at finding flexible employees. According to Harvard Business Review, managing diversity does not mean controlling or containing diversity, it means enabling every member of workforce to perform to their potential and getting from employees; everything right to expect and if it is well then thing they have to give, (Thomas, 2001).
The future success of any organisations relies on the ability to manage a diverse of capacity that can bring innovative ideas, perspectives and views to their work. The challenge and problems faced of workplace diversity can be turned into a strategic organisational asset if an organisation is able to make the most of diverse talents. Especially for multinational companies, who have operations on a global scale and employ people of different countries, ethical and cultural backgrounds.
Thus, a HR manager needs to be aware and may utilize a ‘Think Global, Act Local’ approach in most circumstances, (Jackson, 2002).
The goals of diversity training are eliminate values and managerial practices that restrain employee’s personal development and allow employees to contribute to organisational goals within the cultural background, (Jackson & Associates, 1992). It is because of equal opportunity employment laws that companies have focused on ensuring equal access to jobs.
With a population attempt towards high technology and knowledge-based economy; foreign ability are tempt to share their expertise in these areas. Thus human resource managers have to undergo cultural-based human resource management training to further their abilities to motivate a group of professional that are highly qualified but culturally diverse.
The diversity approaches argue that diverse workgroups generate wealthier ideas and solutions than homogenous groups where benefits of diversity management include a greater concern for socially responsible behavior in organisations and more flexibility in organizational policies, (Wentling & Palma-Rivas, 1998, p.237).
Ross & Schneider (1992, p.49) discussed the fundamental perspective from equality to diversity that employers will find competitive advantage in encouraging diversity at work. Equal opportunities should become internally driven not externally imposed and focused on individuals where the responsibility of all.
Fredman (2001) observes that traditionally equality laws have been informed by neutrality, individualism and promotion of autonomy principles. These principles aim to ensure that people are treated in the same way and appear to be the most consideration in the UK anti-discrimination framework which is an approach to workplace equality based on achieving fairness. Walsh (2007) in her analysis of the 2004 Workplace Employment Relations Survey findings points out that women’s representation in senior management in UK workplaces had only marginally improved by 2 percent between 1998 and 2004.
So diversity is a concept which recognises the benefits to be gained from differences and equal opportunity has traditionally been a concept, which sought to legislate against discrimination. These two concepts have the following characteristics:.
Those characteristics suggest that how organisations can move from where most are at present to a situation in which diversity enters the majority.
Changes in the social and economic landscape led to legislation covering equal pay, sex and racial discrimination in the 1970s, followed by disability laws in the 1990s, (Daniels & Macdonald, 2005). More recently discrimination of sexual orientation and religion has been added by the law. By 1990s, it was being recognised that they had limited success in achieving their goals. At around the same time, researchers were also finding that culturally diverse teams were more creative than homogenous teams and contributed more effectively to meeting organisational goals. Three separate commissions have promoted equality and particular aspects of the legislation: the Equal Opportunities Commission, the Commission for Racial Equality and the Disability Rights Commission. From October 2007, a new Equality and Human Rights Commission has been established to cover all equality issues as well as of human rights, from (CIPD, 2007).
From the recent survey, unemployment is twice as high among people from ethnic minorities, although in UK relatively more Asian and Black African graduates than white graduates where only 12 percent of white men are in professional occupations. Statistical survey found that 41 percent of white women in employment work part-time but only 7 percent of white men and as opposed to 38 percent of Bangladeshi men, (https://www.cipd.co.uk/surveys).
Changing workforce demographics and new organisational forms are increasing the diversity of work teams in general and decision-making teams in particular. The perspectives of diversity policy may lead to a variety of different consequences for decision-making teams in the organisation.
Equal opportunities are often seen as meaning treating everyone in exactly the same way. Kandola (2006) argued that the social justice and business issues for diversity are complementary because unless people are treated fairly at work they will therefore under-perform. But diversity takes equality forward and evidence indicates that organisations that are serious about diversity show better overall financial performance. Diversity policies also help organisations to create an environment in which people from all backgrounds can work together.
People are aspiring to work for employers with good employment practices and feel valued at work place. Dowling et al. (1999, p.262) states that to be competitive organisations need to derive the best contributions from everyone and need to create an inclusive workplace culture in which everyone feels valued. The HRM aspects are operating different countries as a way of illustrating the situation that may confront multinationals attempting to penetrate developing markets.
Many organisations use the term diversity to refer only to demographic differences among employees, with gender, ethnicity and age being the dimensions of greatest concern. Changing workforce demographics and new organisational forms are increasing the diversity of work teams in general and decision-making teams in particular. Diversity may lead to a variety of different consequences for decision-making teams.
Gender diversity in teams may indicate the extent to which team members form same gender relationships outside the team. Studies on social networks suggest that employees form relationships with each other based on their gender. In a study of male and female managers in an advertising firm, Ibarra (1995) found that men and women formed same gender networks that served both social and instrumental goals.
Social identity and organisational demography suggests that people are preferred to interact with members of their own identity group rather than with members of other groups. Where white males tend to perform in higher positions, (Chow & Crawford, 2004) females and ethnic minorities tend to occupy more junior positions. Experiences of racism shared by women and members of different ethnic groups affect their attitudes and behaviours in the workplace.
People within age groups share common experiences, attitudes and values (Lawrence, 1988), a person’s age can act as an indication that triggers social categorization processes and promotes communication among group members.
Descriptions of workforce demographics usually emphasize the fact that the average age of the work force is increasing but the distribution of ages represented in the workforce is also changing. Following figure showing age distribution where non-white groups are younger:
White groups have an older age structure where the mixed group had the youngest age structure 50 percent were under the aged of 16. The Bangladeshi, other Black and Pakistani groups also had young age structures of 38 percent were aged 16. This was almost double the proportion of the White British group, where 20 percent were under the age of 16.
Managing diversity focuses on maximizing the ability of all employees to contribute to organisational goals. Affirmative action focuses on specific groups because of historical discrimination, such as people of colour and women, (Kravitz & Klineberg, 2000). Affirmative action emphasizes legal necessity and social responsibility where managing diversity emphasizes business necessity. So it is much more inclusive and acknowledges that diversity must work for everyone.
Affirmative actions having the employer take actions in recruitment, hiring, promotions and compensation to eliminate the present effects of past discrimination. Affirmative action is still a significant workplace issue today. The incidence of major court-mandated affirmative action is down, but courts still use them. Furthermore, many employers must still engage in voluntary programs. For example, executive order 11246 (issued in 1965) requires federal contractors to take affirmative action to improve employment opportunities for groups such as women and racial minorities. EEO 11246 covers about 26 million workers about 22 percent of the US workforce, (Dessler 2008, p.63).
Managerial approaches to diversity will inevitably be informed by the specific organisational context. Attracting different types of people to an organisation will be determined by people’s perceptions of the industry in which the organisation operates. The image and reputation of the organisation as an employer will affect the types of people attracted to the organisation, (Markwick & Fill, 1997). The maternity and children specialist retailer who came 18th in the 2008 Sunday Times ’20 Best Big Companies to Work For’ list attribute their ranking to a number of factors to their employer brand. These include an emphasis on work-life balance, flexible working, better than average maternity pay and leave. These argue helps to attract and retain staff especially female employees, (Leopold & Harris, 2009).
If an organisation is able to employ a diverse workforce, the extent to which these individual differences are recognised in employment practices will be significantly affected by the size and structure of the organisation.
As more and more organisations become global and people of different cultures and ethnic backgrounds work together, the need for multicultural understanding becoming obvious to many organisation. Harris et al. (2003, p.25) referred that a multinational team would be much stronger in communication which is vital aspect in business. Most of the multinational company gives priority to work with diversity people as a result they are success in international market. Ansari & Jackson (1995, p.12) described, multicultural teams led to more people from different culture and ethnic intermarrying. Globalisation and advances in communication and technology have reduced trade barriers and increased interaction among people. Companies and leaders who recognise the cultural diversity and find the right cultural mixture among the team can achieve comparative advantages.
To understand how diversity is managed in multinational company, in that case need to understand the concept of corporate culture which describe the organisational diversity programs and how to minimize conflict between employees.
According to Mattock (1999) organisations have moved on from international to multinational to global. Multicultural teams have become very common in recent years. With cross border mobility becoming much easier the number of people moving from one country to another has grown significantly. As a manager need to successful interaction with others like sharing ideas, their needs and helping to improve performance, where need to consider cultural context.
A diverse multi cultural work place enables a company to handle diverse projects. Erlenkamp (2007, p.7) found, in the last decades many scientist tried to define intercultural difference to enhance the communication between different cultures. ‘The most important studies were conducted by Geert Hofstede, Edward Hall and Fons Trompenaars,’ that shows the importance of multicultural workforce and HRM of many organisations do study these theories to implement it in their employee training.
Language issues can develop into a source of conflict and inequality within culturally diverse organisations becomes more and more multicultural, (Ansari & Jackson 1995). In the international business environment of today and tomorrow communication is a business necessity. The communication process contains five elements, the communicator, the message, the medium, the receiver and feedback. Business people from different cultures effectively and efficiently communicate in different skills, thinking and opinions with each other every business day. Those successful communications exhibit the following attributes (Ivancevice & Matteson 2002):
a) They have made it a point to familiarize themselves with significant cultural differences that might affect the communication process.
b) They make a conscious and concerted effort to put down away more culturally sensitive.
The most important key theories of culture were conducted by Geert Hofstede, Edward Hall and Fons Trompenaars (Erlenkamp 2007), which show the importance of multicultural workforce.
Hofstede theory can be defined as “the collective programming of the mind, which distinguishes the members of one group or category of people from another” (Bowe & Martin 2007, p.80). His theory is based on the assumption that countries can be compared with each other.
Hofstede (1997) describes the basic points of all cultural dimensions and score for 10 countries as follows:
1) Power-Distance Cultures – It shows with high and low power-distance cultures. High power-distance cultures encourage managers to be show and use power, e.g. Russia and China to follow figure: 1.3. And low power cultures put pressure on bosses to listen to subordinates, like Germany.
2) High and Low Uncertainty-Avoidance Orientation – High uncertainty-avoidance cultures try to reduce risks of something challenging the existing views of self or
3) Individual vs. Collective Orientation – Individualist cultures put more value on people thinking for themselves and taking action, USA. Collectivist focus strong family groups demand loyalty to the clean, like Indonesia.
4) Masculinity or femininity – Masculine cultures highlight winning, ambition and success through challenging and beating the competition, like Japan. Feminine cultures favour a natural balance to life and care and fairness for all and less aggressive, like Netherlands.
5) Long-Term Orientation – Cultures involving preserving status-based relationships and thrift, where environment, family and work are not separated.
Hall defines culture as a set of behavioural rules gained during the socialisation process which determine the way in which individuals perceive their environment and use verbal and non verbal communication, (Bluedorn 2002, p.51). He divides cultures into two types, according to its context and they are as followed:
1. High-context culture – Here context rather than content is of significance. Fewer legal documents are used in these cultures.
2. Low-context culture – With clear and explicit messages in which written words transmit most of the information. Legal documents are considered essential. Europe and the USA are examples of these cultures, (Hollensen 2007, p.220).
Trompenaars (1994) is more concerned with the concept of culturally relative meaning at the individual level of analysis, afterwards defining seven dimensions of culture, which correspond well with national differences (Morrison, 2002). He identifies seven fundamental dimensions of culture, which are:
a) Universalism v particularism
b) Individualism v collectivism
c) Neutral v affective
d) Specific v diffuse
e) Achievement v ascription
f) Sequential v synchronous
g) Internal v external control
Mead (1998) believes relationships between people are focused in the first five dimensions, the sixth one is based on time orientation, and the final dimension is relation to nature.
The research of Hofstede and Trompenaars are focus on the diversity among national culture in the organisation, which is one best way of managing and organising people, (Schneider & Barsoux, 1997).
Table below shows the common themes among the theories of the three researchers, Hofstede, Hall and Trompenaars. Each of the scholars has his own dimension for culture. There could be many comparison and contrast done between the theories, but only few will be mentioned here in brief.
Culture, Organization and Strategy
Common themes across three Culture Models
Relationship with the environment
Source: Adapted from Steers & Nardon (2006, p.152).
This table shows that of the seven value dimensions of Trompenaars where two reflect closely to the Hofstede. Hall’s Theory could assist managers to understand how members of different cultures develop business relationships. The theories of all these three researchers are being implemented by the HRM of organisations to have a better motivated and strong communicative workforce. So, the HRM could study and implement for building a stronger multi-cultural workforce for competitive advantage.
Today organisations are increasingly focusing on creating a high-performance culture to compete effectively in the knowledge-based and globalise business environment. According to French & Bell (1999, p.25) organisation development is a long-term effort, led by top management to improve an organisation’s visioning, learning and problem-solving processes through organisation culture and change management. The effective management of change is a central and critical feature of organisation development.
Where organisational change is described as the intended rearrangement of the organisation’s resources in order to show different characteristics and relate differently to its environment. Organisational development inevitably requires organisational culture change and change management where the strategic role that HR plays in organisational development and in achieving strategic objectives, (Mullins, 2005).
According to Crainer (1998, p.145) many managers refuse to accept the necessity of change. He suggests that the seven skills involved in managing change are:
a) Managing conflict
b) Interpersonal skills
c) Project management skills
d) Leadership and flexibility
e) Managing processes
f) Managing strategy and
g) Managing their own development.
The successful management of change is essential for competitiveness and continue performance. The organisational change system will influence people’s attitudes, individuals and groups, and in that way the level of organisational performance.
A global human resources manager needs to identify the needs of individual employees, within the context of the culture in which he or she is working. Recognise the personal priorities of the diverse individuals in the team and apply the appropriate motivational tools. Kreitner et al. (1999) suggest that motivation is a necessary contributor for job performance and also a combination of level of skill, where performance is ability and motivation level.
The level of motivation focuses on the three basic needs that occur in any workforce. These are:
1. Autonomy cultures tend to be motivated by desire to achieve.
2. Consensus cultures are usually motivated by the wish to gain affiliation.
3. Status cultures are often motivated by the desire for power.
To understand fully what motivates an individual, you must take personal circumstances into account and allow for cultural changes, (Armstrong, 2006).
Managing diversity accepts that the workforce consists of a diverse population of people. Diversity training designed to change employee attitudes about diversity and develop skills needed to work with a diverse workforce. The effective organisational performance are demand an understanding of diversity and need to manage diversity in a manner that benefits of all members of staff. Diversity training will not be effective if recognised as a company initiative and part of the core value of the organisation (Mullins, 2007). To successfully manage a diverse workforce, companies need to ensure that:
a) Increasing the awareness and value of diversity.
b) Employees understand how their values influence toward others of different gender, ethnic and racial backgrounds.
c) The ability to communicate effectively with all members of staff.
d) Developing the skills of effective diversity management.
This can be accomplished through diversity training programs. Diversity training programs vary according to whether attitude or behaviour changes emphasized (Noe et al., 2003, p. 302).
The following chapter will provide the description and explanation about the research methodology applied in this dissertation, in order to meet the research objectives.
This chapter will discuss the methodology used by the researcher in carrying out the research and will closely look at the different procedures and techniques used for this research. Research method presents the research philosophy, approach, design and sampling, data collection procedures and shows the right direction to achieve an outcome. Where the research strategy and the method will use for the data collection and analyse. After that, sample selection will describe the case company and respondents.
According to Creswell & Miller (1997) research methodology is a credence system or inquest pattern that provides a philosophical base or frame of reference for approaching research that complements a content area of inquiry. It is the overall approach to studying about topic and includes issues need to think about the constraints, analysis the principles of method and ethical choices within the research.
Methodology refers to more than a simple set of methods where the rational and the philosophical assumptions are motivating a particular study relative to the logical method, (Cohen et al. 2007).
Saunders et al. (2007) develops a conceptual ‘Research Onion’ that provides the structure of research methodology. These research onions are as follows:
After realise the research onion, in this dissertation research methods will present the research philosophy, approach, design and sampling, a structured questionnaire is being used to data collection procedures and shows the right direction to achieve an outcome.
The research philosophy depends on the way a researcher thinks about the development of knowledge (Saunders et al. 2003) and there are different types of research philosophy different views the way in which knowledge is developed and being acceptable. This three are positivism, realism and interpretivism, have an important role in the process of management research.
The basic principle of positivism is that all realistic knowledge is based on the positive information gained from observable experience. Positivism involves producing general laws from the objective truth that can be used for prospective behaviour. Saunders et al. (2003) found that in positivism, researcher adopts philosophical attitude while working with observable social reality, where he developed a theory from observation. According to Bryman & Bell (2003, p.14) positivism is an epistemological position that advocates the application of the methods of the natural sciences to the study of social reality and beyond. So it is good to develop general idea but always need to be refined by proper critical analytical approach.
Realism shares two features with positivism that can principle of natural and social and should apply the same kinds of approach to the collection of data and to explanation, and a commitment to the view that there is an external reality attention Bryman & Bell (2003). Where Saunders et al. (2003) states that, realism depends which is free of human opinions and beliefs. Realism recognises the importance of the fact that understands overall social influences, the nature of people’s visions and behaviours.
Here the researcher tries to find out how the social reality things appear to people, where the reality is relative to situation, time, location, culture and value of a society, experience of an individual, (Fisher, 2004).
It is more subjective because the reality is socially constructed. In repeatedly changing situations and vastly competitive environment, the ways should always be there to experiment new things.
The comparison between these three philosophies is summarized given below in Table 2.
Objective truth analysis
Socially constructed environment analysis
Subjective truth analysis
Value free data collection
People’s accounts motives and intentions
Law link generalization
Social influences recognised
Complex and dynamic
Source: Adapted from Saunders et al. (2003).
In this study, the researcher followed the philosophical stance of interpretivism in the research because interpretivism is based on qualitative approach which is more subjective rather than quantitative approach. It focuses on analysing and reflecting on the intangible aspects of research subject such as values, attitudes, perception, emotion and feeling which is related with diversity.
Research approach is consists of two options that deductive and inductive. Saunders et al. (2007) In the research should use the deductive approach, in which way develop a theory or hypotheses and design a research strategy to test the hypothesis or the inductive approach, in which way collect data and develop theory as a result of data analysis.
This is the scientific way of research. It involves the development of a theory that is subjected to an accurate test. It is the dominant research approach in the natural sciences, where laws present the basis of explanation (Collis & Hussey, 2003). Deduction processes have several important characteristics. These processes are represents the commonest view of the nature of the relationship between theory and research, the deductive processes are as follows:
Hypotheses confirmed or rejected
The deductive processes are the search to explain causal relationships between variables. It may be establish the reasons for high employee absenteeism in a retail store. So, consequently develop a theory or hypotheses and to test this hypothesis need to utilise the data collection, (Bryman & Bell, 2003).
Research using an inductive approach is likely to be concerned with the context in which events were taking place. Therefore the study of a small sample of subjects might be more appropriate than a large number as with the deductive approach. In this approach researcher are more likely to work with qualitative data and to use a variety of methods to collect these data, (Easterby-Smith et al., 2002).
Inductive approach of research emphases on critical study of problem and tries to find out the alternative set of variables that relate to the problem. It is gaining an understanding of the meanings humans attach to events and more flexible structure to permit changes of research emphasis as the research progresses. Inductive research can be much more protracted. Data collection is based on a much longer period and analysis has to emerge gradually, (Saunders et al., 2007).
The research purpose is most often used in the research methods into mainly three types: exploratory, descriptive and explanatory research.
According to Robson (2002, p.59) an exploratory research is a valuable means of finding out; what is happening, to seek new insights, to ask questions and to assess phenomena in a new light. It is particularly useful if clarify the problem. Saunders et al., (2007) described that exploratory research can be linked to the activities of the explorer and great advantage is that it is flexible to change the direction as a result of new data. Typical techniques used in exploratory research include case studies, observation and historical analysis, which often does not provide any conclusive answers but gives guidance for future research.
According to Saunders et al. (2003) exploratory research is suitable for new studies and useful for clarifying understanding of the findings of the research question. Where the researcher are adapted this research and clarify the understanding about the diversity issue; and enable to compare and contrast the findings from the literature review.
Robson (2002) defined the main objective of descriptive research is to depict an exact profile of a situation, incident or a person. This may be an extension of a piece of exploratory research. It is necessary to have a clear image of the phenomena on which one desire to gather data before the collection of data. Sometimes this research is known as archival analysis, are intended for answering the questions e.g. who, where, how many and how much. Descriptive research design is beneficial when the research goal is to describe the incidence of a phenomenon. It tends to favor survey strategies or the use of archival records, (Yin, 2003).
Explanatory research that establish is causal relationships between variables. It deals with studying or investigating a situation or a problem in its entirety that connection between two or more variables involved. In this research can use the data to statistical tests such as correlation in order to get a clear view of the relationship and this often used when one is interested in having insights into a certain problem, (Saunders et al., 2007).
The various techniques are used in the research but it can be eminent between two main categories, which are: 1) Quantitative research and 2) Qualitative research.
Quantitative research is focuses on gathering numerical data and generalising it across groups of people. It is more objective and scientific than qualitative data. It involves the implication that what is being researched can be quantified and measured, (Lancaster, 2005). Where Ghosh & Chopra (2003) described that quantitative research is number-based or can be expressed numerically as well as classified by some numerical value. Where in this data collection method is use well structured questionnaire.
According to Lancaster (2005) qualitative research is common in social and behavioural sciences and who want to understand human behaviour and functions. It is more subjective and involves information that cannot be numerically analysed; for example- social sciences. That is to say, the reality is relative to time, situation, location, culture and value of a society. Where, the purpose of research is aimed to understand the human nature and behaviour.
The researcher is used qualitative technique in this research because this technique provides useful methods for exploring and examining organisational procedures such as diversity. Qualitative research to data collection and analysis can give the flexibility required for attaining an in-depth understanding of individual employee experiences of working with different culture people and relationship.
Data collection method is an important stage of the research and must be well planned. In order to plan and organise data collection thoroughly of the various types of data depending on different approaches, methods and techniques of data collection is considerably required. In this research data comes in various forms, which can be secondary data for literature review and primary data from questionnaire, in-depth interview and main sampling conducting the qualitative research.
Saunders et al., (2007, p.246) state that secondary data means the data that already exists because it has been collected previously by other researchers for some other purposes. It includes both raw data and published summaries. Most of the company collect internal and external records like payroll details, copies of latter, meetings, daily newspapers article, journals, internet, and official statistics and companies share prices. Secondary data will be collected from relevant books, library sources, journals, magazines, newspaper articles, company’s data and the internet which will be used in literature review. It has some advantages which are time and cost is saving. Secondary data include of both quantitative and qualitative data and can be used in both explanatory and descriptive research.
According to Aaker et al. (1997) primary data is collected for the first time for the research. Primary data gathering is required when the researcher is not able to find the statistics which related with in the secondary sources. So primary data means the data that is able to be collected by the researchers themselves through a variety of data collection methods and techniques (Lancaster, 2005), which is questionnaire, in-depth interview and main sampling.
Questionnaire is widely used and valuable means of data collection. It facilitates the collection of data. Questionnaire can be divided into self-administered and interview-administered. The questionnaire used in this research is the combination of closed ended and open ended questions. Closed ended questionnaire will be given to the particular focus group in order to collect data. These kinds of questions are easy to put into a table or chart and analysis, (Saunders et al., 2007).
In this research the questionnaire was deeply to do the research more effective and efficient, and copies of the questionnaires are included in the Appendix. The questionnaire survey was conducted among the employees and the branch manager of Tesco Metro (Whitton, Branch) London outlet.
Respondent will be taken interview for a protracted period in order to explore topics, issue and responses in some depth. The interview will be structured instead of semi-structured (Saunders et al., 2007). Semi-structured or focused interviews are often used in case study research; in that case the researcher schedules interviews with people who passes relevant information on the case issues and follows particular structures in order to collect information. The researcher observes or records the behaviour of the people in the social setting and may collect additional evidence through formal or informal interviews.
A sample is a small proportion of the population. Main sample of this study will be managerial level and employees from selected organisation Tesco Metro (Whitton, Branch) London outlet; where working with colleagues made it easier to access the data.
Sampling is a survey-based research where researcher needs to analysis the sample about population to answer the research questions and meet the research objectives, (Saunders et al., 2007). Probability sampling and non probability sampling will help the study to evaluate and improve the research works which reflects clarity and easily understandable to the respondent. Probability sampling refers to the probability of choosing respondents within the total population. Whereas non probability sampling denotes that there is no probability that the respondent will be selected within the total population. And non-probability sampling is more frequently used for case study research, (Bryman & Bell, 2003).
The ethical issues are arising in relations between researchers and research participants in the course of an investigation. This focus by no means exhausts the range of ethical issues and dilemmas that arise in relation to the funding of business research or how findings are used by non-researchers. Ethical standards also require that researchers not put participants in a situation where they might be at risk of harm as a result of their participation, (Bryman & Bell, 2003).
In this research, the participants will take part voluntarily and are informed of the research aim and objectives. All personal details of participants will be kept in privacy being be stored separately from the findings and will not be disclosed within the dissertation. The recording permission will be asked for in advance, supportive participants in focus groups that their identities remain safe. The research is not for commercial use.
According to Bryman & Bell (2003, p.14) reliability is concerned with the question of whether the results of a study are repeatable. The term is commonly used in relation to the question of whether the measures that are devised for concepts in business and management are consistent. Which data collection techniques will give consistent findings, related observations would be made by other researchers and how sense was made from the raw data. Saunders et al., (2007) validity is the extent to which data collection methods accurately measure what were intended to measure. Yin (2003, p.57) stated that there is three different strategies to increase construct validity. The first is the use of multiple sources of evidence during the data collection. The second is to establish a chain of evidence. And the third is to have draft experimental data reviewed by key information. So during the data collection, researcher has conducted an interview to use documents. In that case to create strong chains of evidence researcher has made citations to all the sources where evidence has been collected. At last, researcher’s supervisor has check and improved the drafts as well as the interview and survey questionnaires before conducted the interview. Researcher has followed a structured approach in which every chapter, from introduction to conclusion is easy to read and reliable to use in future research.
The following chapter will provide the research findings, the interpretation of the findings and the literature reviewed previously. The dissertation then ends with a conclusion in the last chapter.
This chapter contains the analysis and findings of the collected data. This part of dissertation informed the research findings quantitatively with the help of constructed research model and research hypotheses. This chapter to examine and related with the secondary and primary data was collected. The ideas and views are discussed in the findings which related with the literature review. And in primary data collection has been used interview and questionnaire to get the opinion of Tesco’s management and employees, and analysis the data to provide a productive meaning of the research findings.
The data has been analysed on the basis of research questionnaire and the data processed with the help of computer research software named SPSS (Statistical Package of Social Sciences) or a spreadsheet package. For the data collection has been used questionnaire to get the opinion in the company of Tesco Metro’s (Whitton) branch outlet the managers and the employees, (Questionnaires are in Appendix – 1). In order to describe the results, each question has been discussed and drawn separately through cross-tabulate. The questionnaire was a combination of open-ended and close-ended but most of them were close-ended questions. The sample size has been selected to 10 managers and 50 employees from Whitton branch.
The data presented in percentage above figure from the total number of management level. The questionnaire has been selected from total number as ten managers but one manager did not reply due to being on holidays. So the participant rate was 90% and the non participant was 10% from the management level.
The percentage of staff participant from the total number of staff in that branch. The questionnaire has been selected from 50 staff but ten staff did not reply because some were hesitant to fill the questionnaire and few of them were on yearly holidays. This provided an 80% participant rate.
The data presented in this figure show that 56% (five) were from white British, 22% (two) from European Union and 22% (two) from Asia. This percentage rate shows, from management 56% are White British where there are good to manage people and rules than other ethnic groups. The effective management of people takes place from White British in the context of the changing patterns of organisation and attitudes to work.
From the staff above figure shows that 18% (seven) from White British, 20% (eight) from European Union, 8% (three) from Africa, 49% (twenty) from Asia, 5% (two) from Mixed nationality, and the rest of Irish British and other ethnic groups was nil. This figure are referred the highest number of staff was Asian. The store branch was located in Whitton, London where are living most of the Asian people. Asian ethnic group work hard but find it a little bit difficult to control people.
From the above data it is found that from management male participants were 67% (six) and female participants were 33% (three). So in the management level number of male is more than female.
The presented data shows that 57% were male and 43% female from the total number of participant 40. In this figure, male and female percentage rate is near to close, where management level percentage rate was small different.
The data presented in above figure shows that, 67% (six) were between 35 to 44 years of age, 22% (two) was between 25 to 34 years of age and 11% (one) was between 45 to 54 years age. The majority of managers were between 35 to 44 years of age.
In this figure the data presented that, 49% (twenty) were between 18 to 24 years age group, 30% (twelve) between 25 to 34 years age group, 13% (five) between 35 to 44 years age group and 8% (three) between 45 to 54 years. Most of the staff was between 18 to 24 years, in that reason these age group people can work hard.
In this figure shows, the number of job title from the total number of management and staff participants. The management level was 90% (nine) out of total number 10 participant and the staff participant was 80% (forty) out of total number 50.
Question 5: Tesco give priority based on gender – Do you agree?
The data presented that 78% (seven) manager was disagree with the question and 22% (two) manager was strongly disagree. Most of the manager’s response that they do not give priority based on gender and two managers was strongly disagree with that question.
The data presented that from the staff side 10% (four) was strongly agree, 18% (seven) was agree, 47% (nineteen) was disagree and 25% (ten) was strongly disagree. There are big differences between staff level, where some agree and many do not.
Most of the managers disagree that to work with different culture people is not easy. Where 78% (seven) disagree, 11% (one) strongly disagree and 11% (one) are agree with the related question.
The data presented that 46% (eighteen) staff disagree, 21% (eight) strongly disagree, 28% (eleven) agree and 5% (two) strongly agree with that question. Here is big difference with management level because staffs are giving mixed response about this question. Some staff likes to work with different culture people and some do not.
This figure shows 89% of managers are strongly agreed with diversity and equal opportunity because they are maintaining this within the service. And 11% agree with this question. From management level opinion it is clear that they want to keep and happy with diversity and equal opportunity within the service.
This data presented that staff participant is nearly the same as management. Management and staff are both happy with diversity and equal opportunity within the service. Here 82% of staffs are strongly agreed and 18% are agreeing with this question.
This data show that 67% managers strongly agreed and 33% are agreeing to support equality more effectively. Here the majority managers are agreed to support equality because they know equality is important factor within the service organisation.
The data presented that 62% agree, 33% strongly agree and 5% are disagree with this question from member of staff. The difference is 5% staffs do not happy there are plans to support equality.
100% managers are agreed to follow the diversity policy effectively. Because diversity management is individual differences should be valued and recognised in order to achieve business related advantages.
74% of staff are strongly agreed, 20% agreed to follow diversity policy, and different response with 3% disagree and 3% strongly disagree with diversity policy.
78% participants have given their response with yes and 22% said no. In that case, they follow their own religion and they do not have any problem about others religion or believe.
85% staff participants have given their response with yes and 15% have given with no. Most of the participant believes in religion but they are not conventional about it. Every people have different beliefs, attitudes and norms which are related with culture.
72% of staff have given their response with no and 28% have given yes. Most of the staff also same with managers but some staff are not agree with them because they think, they have been found age differences treated with them.
89% of managers have replied no. This indicates most of the managers are quite happy with their co-workers.
72% of staff have given their reply with yes where is big difference with management and 28% staffs have given their response with no. These differences are created from attitudes, norms and positions by co-worker. Here majority staffs are felt ignored by co-worker and some staffs are happy with their working environment.
100% member of management have given their response in yes because they are taking seriously about diversity in the work place.
82% of staff has given their response with yes, which is similar to managers but 18% staffs have given no. Here is little different between manager and staffs because 18% staffs think they did not get any response from management level which can make better environment in the work place.
100% managers have given their opinion as no because they did not receive any diversity related complaints within the service.
79% staff have given no and 21% have given yes. Majority of staff are same with management response, they did not get any complaints about diversity but few of them are not agree with this because they have found diversity comments about service.
This question was asked in a subjective form and was not mandatory but participants have given different comments, this will be discussed in the following ways:
Most of the members of staff comments were related with diversity training and different cultural people in the organisation. Some of them think diversity as part of overall customer service is now an essential requirement within all organisations. And some of them talk about culture which is very important factor within the workplace. They think working with different culture people is good; different country people, different culture, different thinking and opinion and whole working as a team is easy to know about other culture. Different cultures represent a variety of values, work ethics and norms of correct behaviour which is important within the service. And there will be different ideas from different people; those ideas can share in management level to implement business.
According to the Human Resource Manager in Tesco Metro (Whitton, London), the company follows the diversity policy and their commitment to diversity essentially important for their business. They think that the organisational performance is possible, when they will be able to reflect the diversity at each level and across all groups and teams in Tesco. That’s why they are taking seriously about diversity and equal opportunity in the workplace. There is no problem to work with different culture people. Managing a culturally diverse team requires positive commitment. It demands that management apply policies and practices developed under equal opportunities which are approaching the issue of diversity. Different people bring different ideas which are competitive for business. In that case, the managing diversity approaches argue that diverse workgroups generate richer ideas and solutions than homogenous groups. And the benefits of diversity management include a grater concern for socially responsible and more flexibility in organisational policies that policies are less rigid and more innovative (Mavin & Girling, 2000; Cox, 1993). Sometimes they observe language problem working with different culture people. When staffs are working in the shop floor, they use own language which is a problem for other members and customers as well. But overall there is a benefit to maintain diversity for business.
Tesco follow the equal opportunity policy in their working place. Because of equal opportunity employment laws, company has been forced to ensure that men and women are effectively represented in their workforce. From observation and response of questionnaire, it is sure that they are following the equality in management and staff level with in the service. Where, Ross & Schneider (1992) and Fredman (2001) stated that employers will find out a competitive advantage in equality and diversity at work.
Management is taking strategic response to implement the diversity in the internal and external for organisation. Cultural diversity reflects the characteristics that may make one individual culturally different from another. Cultural diversity includes differences in race, ethnicity, national origin, language and religion, which will help the workforce to operate more effectively. However, as many people have relatively little experience of working with colleagues from different cultural backgrounds, a number of new situations may arise with managers which employees have not been trained or experience. In that case, Tesco are taking seriously as well diversity training program for their staff performance. The role of managers and the impact of their attitudes and behavior on staff could be particularly significant (Ansari & Jackson, 1995). The issues which can arise by the following ways:
a) Access to development opportunities
b) Utilising the skills of staff from diverse cultural backgrounds
c) Giving appropriate feedback to culturally diverse staff
d) Cross-cultural communication skills for all staff
e) Support networks for individual staff members from specific cultural or ethnic groups.
There is a need to be aware of differences and including different experiences in order to operate effectively in a culturally diverse team.
If management has found any uneasy relationships with cultural diverse team, they will decide to introduce a diversity policy. They are operating a shift system in the workplace, where can work each group with different shift patterns. In that situation they can manage their uneasy relationships within the work.
The best management is that which gives priority to relationship and communication between management and employees (Morrison, 2002). The communication between managers and staff is very important to make any organisation active. They can share all rules and procedures with the employee, which is closely related to diversity; about their job security and about their relationship with the management in the future.
Overall, the management of this store is taking diversity seriously in the workplace to stay competitive with other organisations. And they are happy with their working environment.
The questionnaire has been distributed among the majority of staff in Tesco Metro (Whitton, Branch) London outlet, to collect the data about managing diversity. Most of the employees are happy with their working environment but some of them do not agree with management response.
Some staffs have found discrimination within the organisation, which was related with the culture and age of the staff (see figures 4.23 and 4.25). There was different response from management. Organisations vary in their responses to cultural diversity in the workplace. A culturally diverse workforce can result in discrimination against staff from the minority culture and conflict among the workforce. Some staffs are not agreeing to work with different cultural people because they are not friendly and language is very difficult to understand for them. And the minority culture group people are speaking their own language in the shop floor which is not acceptable in other ethnic groups.
Some staffs have found age differences treated in the workplace which was big different response with the management. In this store a large proportion of Asian ethnic group are in lower-grade skilled jobs. And few of them have been found age differences treated with them, those felt mistreated and most of them were in the over 45 to 54 age group.
Majority of staffs have given the same response with the management but there were some differences. They are working as a team and pattern of shift, each team member is carrying out work which involves a high level of commitment to the task and requires all members to contribute their task effectively. There is one Asian ethnic person in the team and he is performing poorly because of low level skills. Over the task, the Asian ethnic member of the team began to notice that he is being given the most important and hard tasks. His complaint is that he is not being allocated this task appropriate to his experience but his co-worker tried to push him to do that. It will affect his performance in the job which is a form of indirect racial discrimination and felt ignored by co-worker.
Other things have found from the staff comments that the communication has been lacking between management and employees before taking any action. When ever management is recruiting any new staff they do not follow the appropriate way, in that situation they do not discuss about the empty positions with the staffs. They have not followed any meetings with the staffs; there is a communication gap with the employees. Some staffs have found that the management of this store did not use any particular diversity training for staffs, where organisations need to manage diversity in a manner that benefits of all members of staff and customers as well.
Most of the staff is strongly comments about diversity or cross-cultural training to increase the knowledge and skills of people with different culture backgrounds to work effectively and achieve a workable organisational environment. They can provide the training program in different levels, such as organisational, individual and assignment level to determine the cross-culture knowledge and skills, which will be more effective for the business.
But most of the staffs are agreeing to support diversity and equality within the service in this store. And they are happy to work with their management and difference cultural environment.
Several philosophical trends are determining the workforce of modern organisation. Many researchers suggest that organisations must design human resources systems that account for differences, where they want to retain a productive workforce and to turn diversity into a competitive advantage (Cummings & Worley, 2001). A diversity approach will be most effective when the strategic responses and implementation fit with management with internal and external pressures. Tesco are taking seriously about diversity approach to gain competitive advantage in the internal and external environment to fit their workplace. Managing relationships at work has always been a key skill, but some organisations are undergoing change on individuals at work. Kandola & Fullerton (1994) focused the concept of diversity means understanding each individual is unique and differences bring change at workplace. Being able to cope with and lead others through change is necessity for all managers, in spite of the size, type and nature of the organisation. Where, diversity management can be focused as the key principles:
a) Valuing and recognizing a wide range of individual differences
b) The business advantages that come from recognizing individual differences
c) The benefits to the employment relationship of responding to individual needs.
The increasing diversity and changing demographics of the UK workforce, these issues arise with Kersley et al. (2006) and CIPD (2007) where government policy commitment to the work-life balance in the organisational sector. Not only Tesco, in every organisation have diversity policy to change their working environment. Where have found, 73 percent of workplaces have written equal opportunity policy or managing diversity policy (Kersley et al., 2006).
Diversity management is fast becoming a management approach which is being applied effectively within the organisations. The diverse groups will create new ways of working together and have understanding at each group where diversity benefits related; profit and productivity will increase in the organisation (Brewster, 2002; Kandola & Fullerton 1998). In that relation, Tesco managers are taking diversity strategy effectively within the organisation. Different cultural people and equality in the work, they need to build specific skills to maintain them. Where diversity benefits can bring more ideas from different people and can solve difficult problems towards a common solution. Effective diversity depends on management, if managers can handle effectively different cultural people within the company then they will better achieve in the competitive position than others. In this way Tesco are getting benefits to follow the diversity approach where they are providing strong leadership, new attitudes and processes, diversity training, creativity and productivity increases; can make organisations more successful.
Fredman (2001) and Noe et al. (2003) distinguish about equal opportunity laws, where companies have been forced to ensure that men and women are sufficiently represented in their workforce and they have focused on ensuring equal access in the jobs. It requires that employees are comfortable working with others from a wide variety of ethnic, racial and religious backgrounds. Tesco survey findings point out that they are following equality in the work place. They have focused equal access in the staff level but in senior management level less access women employee. Where, Walsh (2007) found in her analysis that women in senior management in UK workplace had only improved by 2 percent between 1998 and 2004.
Changing workforce demographics and new organisational forms are increasing the diversity of work in decision-making teams. Diversity may lead to a variety of differences such as gender, ethnicity and age for decision-making teams. Analyses have found that white males tend to perform in higher positions, females and ethnic groups tend to perform more junior positions (Chow & Crawford, 2004). People within same age groups share common experiences, attitudes and values (Lawrence, 1988). Tesco survey has found that majority of staffs are from Asian ethnic group and most of the age group was young, where white groups have an older structure.
Most of the multinational companies are giving priority to work with diversity people as a result they are a success in international market where multicultural teams can led to more people from different culture and ethnic groups. Managers need to share ideas with others for successful interaction, their needs and helping to improve organizational performance where there is need to consider cultural context.
According to Hofstede, Hall and Trompenaars, shows the importance of multicultural workforce, where many human resource management related organisations do study these theories to implement it in their employee training program. A diverse multicultural work place enables a company such as Tesco to handle diverse projects. It enables a company to compete better in today’s multicultural market. The theories of all these three researchers are being implemented by the human resource management of organisations to have a better motivated and strong communicative workforce. Hofstede’s (1997) cultural dimensions model has often been the most practical for management problems and makes it possible to compare between national cultures. The human resource management of an organization could apply Hofstede’s Collectivism/Individualism for their management of a multicultural team, since the nature of an employee from collectivist society can provide both positive and negative impacts on training and development. For example, when it comes to attracting new customers it is more difficult to gain trust and enhance new relationships with customers from collectivist societies than those from individualist societies. If an individual is not a member of a team or does not know any of the team members it will take some time before members of the group trust and agree to engage with that person. However, once trust is formed it is likely to lead to a strong and long lasting relationship. In this way, Tesco can build-up their management as a strong multicultural team, where they are already working as a team. Hall’s theory could assist managers to understand how members of different cultures develop business relationships. And Trompenaars’ (1994) gives assurance of having some useful concept that the human resource management could study and implement for building a strong multicultural workforce for competitive advantage.
As more and more organisations become global, and people of different cultures and ethnic backgrounds are working together as colleagues and customers, the need for multicultural understanding becoming obvious to many organization. A multinational team would be much stronger in communication which is important aspect in business (Ansari & Jackson, 1995). Strong communication skill teams could be better interaction with consumers and such team could have the mixture of people who can understand communication. Where diverse multicultural people are working as a team in Tesco, they need to maintain communication process with different cultural people and they can make strong multicultural team. Globalisation and the advances in communication and transportation technology have reduced trade barriers and increased interaction among people. So companies and managers who recognize the culture diversity and find the different cultural people among the team members can achieve some substantial competitive advantages.
Tesco is a multicultural company; their aim is to meet the service needs of society, in ways that are economically, socially and environmentally viable, now and the future. Tesco implements programmed, which are aimed to develop the participants abilities to understand and leverage cultural similarities and the distinctions that make a difference. It was targeted particularly valuable for those who need to communicate effectively with people from different countries.
Companies need to take diversity and cross-culture training program seriously for successfully manage diverse workforce (Mullins, 2007). Human resource development processes which are intended to have impact on organizational and individual learning and where he find out they can play an important role in developing and sustaining a competitive global business environment (Brewster, 2000). Cross-culture training has been advocated as a means of facilitating cross-culture adjustment. In order to improve the effectiveness of diversity training programs and maximize the change that occurs during training, it is important to follow a systematic approach. Different types of trainings which can involve people of different cultures based on the performance goals for the organisation.
Increasingly global competition had made attracting and developing the brightest employees and using the best ideas from around the world. They are looking for ways to take greater advantage of their human resource. At the same time, their structure is changing from a focus on individual countries to a focus on their business as a whole. The goal was to achieve greater economy of scale and spread best practices to all of their operation. This would lead to greater work across national and cultural borders. Tesco focuses diversity as all the ways people differ, such as thought gender, age, nationality, styles, religion, education and culture. They had brought people from very different backgrounds and cultures into the company and got them to work together. Tesco wants to make the best use of all their employees by eliminating any kinds of barriers, such as cultural diversity in full participation to meet the challenges of the future.
Organisational culture is strongly appeals to management’s concern with projecting an image of the organisation as a community of interests. Perhaps most importantly culture insists to the concentrate of an organisation, its mission, values seem to have become a necessary asset of the modern organisation (Cummings & Worley, (2001). Cultural innovation is bound to be more difficult than cultural maintained, where diversity may change in organisational culture. This can lead to tensions between organisational and individual interests, which can result in ethical and legal problems for participants. Racial, cultural, ethical and physical concerns issues can create misunderstanding between colleagues.
Training can be an important factor in whether an organisation is able to successfully achieve its goals. With diversity training, Tesco can minimize the organisational conflict between colleagues and management. So implementing training has become a primary part of the diversity initiatives. But in Tesco’s diversity training is not effective, which is found from staffs comments. Proper cross-cultural training can be make successful environment for work.
The organisational context in which teams can create opportunities as well as challenges for team functioning. To meet organisational goals, each team must be effective in terms of its internal functioning. In addition, each team must effectively manage its relationships with other teams, individuals and managers in the organisation (Turner & Haslam, 2001). Many studies indicate that teams characterized by relations-oriented and task-oriented diversity are likely to be less experience lower levels of cooperation. So, effective diverse team is important for Tesco which can lead to stay competitive with other organisations.
From the above of discussion and findings the data can to provide a productive meaning of the research and the results successfully meet the conditions of the next part. Which will provide an overall summary of this dissertation, in addition the recommendations based on the research findings are also included.
This chapter presents a summary of the main findings as a series of statements. It offers conclusions, recommendations and directions for the future research. The limitations will show the data collection or analysis and how these could have been improved.
Many businesses are now operating globally and it is now common practice to bring together teams with members from a number of different countries. What is less common, however, is for these teams to deliver consistently high quality results. Human resource management can and should consider ensuring that their teams capitalize on their cultural differences for opening up thinking and coming up with innovative solutions (Christopher & Gibson, 2002). Human resource departments in every organisation have very similar responsibilities. It is above all the increasing globalisation of business that requires employees from various cultures to work together. Even in purely domestic operations, firms are being forced to form cross-functional, inter-departmental, inter organisational and cross-divisional alliances in order to make maximum use of resources and thus increase their competitive advantage (Earley & Gibson, 2002).
Orlando (2000, p.547) find out that, employers realise they have to actively recruit and maintain a diverse workforce in order to the changing demographics in this country and abroad. Cultural diversity contributes to improved productivity and market performance. He stated, while there is no unanimity about what diversity means, but there is a considerable agreement about its components. In a study, most respondents listed gender, race, culture, age, national origin and religion. In other words, these comprised of demographic building blocks that represent diversity at work. With cross border mobility becoming much easier the number of people moving from one country to another has grown significantly. This has also led to more people from different cultural and ethnic backgrounds. Globalisation and the advances in communication and transportation technology have reduced trade barriers and increased interaction among people (Carrell & Mann, 1995).
The cross-cultural management is responding to reflective change within the business globe in particular and the appearance of diversity as a concept which can be used as a competitive position. However, a new role for cross-cultural management is allowing new ways of approaching issues to create effective business solutions. It may be support by a developing academic paradigm which is the most long-term insights of existing theories while applying them to require combined working between diverse groups.
Multiculturalism is an approach that acknowledges and accommodates a variety of cultural practises and traditions. Only humankind possess culture, in the sense of the classical definition by the nineteenth century anthropologist Tylor stated that complex as a whole which includes knowledge, belief, art, morals, law, custom and any other capabilities and habits acquired by man as a member of a society,” (Gooderham & Nordhaug, 2003, p.144).
A diverse multicultural workplace enables a company to handle diverse projects. It enables a company to compete better in today’s multicultural market. It also enables a company to see outside their comfort zone, beyond their sight. In the last decades many scientist tried to define intercultural difference to enhance the communication between different cultures. The most important studies were conducted by Geert Hofstede, Edward Hall and Fons Trompenaars (Erlenkamp 2007,p.7), that show the importance of multicultural workforce and human resource management of many organisation do study these theories to implement it in their employee training for an increasingly diverse workforce. Where he stated that according to them, for the next hundred years countries will remain culturally vary on diverse. An awareness of culture as a factor within business can lead to an explicit engagement with the topic, where many business and management models and theories appear to be culture-blind, and their ideas emerged in a particular time and place.
Managing diversity focuses on individuals rather than on groups. This does not mean that all the work done in the name of equal opportunities which is not valuable, and that positive or affirmative actions. Kandola & Fullerton (1994) argue that an organisation should manage diversity effectively to adopt a non potential treatment view that does not give individuals preference because they are members of minority group.
An understanding of diversity demands a work climate that respects individual differences and treats all members of staff with mutual respect. Diversity challenges are many traditional organisations need to manage diversity in a manner that benefits the well-being of all members of staff. One of the most significant aspects of managing diversity is that of gender equality and the participation of men and women in the workforce. An increasing number of organisations are appearing to recognise the business case for diversity as part of the creative process (Mullins, 2007).
Managing diversity is about ensuring that all employees have the opportunity to maximize their potential and enhance their self-development and their contribution to the organisation. It recognizes that people from different backgrounds can bring fresh ideas, which can make the way work is done more efficient and make products and services better. Managing diversity successfully will help organisations to nature creativity and innovation and thereby to improved competitiveness (CIPD, 2007).
An organisation’s diversity approach is a function of internal and external pressures for diversity, where a learning and strategic perspective can lead management to view diversity as a source of competitive advantage. There have been theories and much research into how cultural diversity affects in organisation. The analysis of the research brings conclusion that cultural diversity would be expanding more and more into organisations.
Main sample of this study was management and employees level from selected organisation, where working with colleagues made it easier to access the data but still there were some limitations. The researcher has very limited time frame that impact on its research methodology. This research is limited to a single industry, which is super market sector. The research is based only 50 participants from selected organisation; in that case the sample size can be spread widely and moreover the researcher in-depth interview can also be conducted instead of structured close ended questionnaire which may provide deep insight to the research issue. And while the researcher took the interview, participant did not have enough time to discuss deeply insight about other subsidiaries of managing diversity in their organisation.
The researcher recommends is that more research needs to done. As the research identify some internal gap within the organisation so the researcher recommends the investigation into the role of managing diversity in the organisation. These recommendations may also help the managers and employees to change their attitude for working with different cultural people and they can build-up their mind working in organisational environment as a whole. The recommendations are in the following ways:
a) It can be recommended that management’s perspective and priorities with respect to diversity can range from resistance to active learning and strategic perspective. And within management’s priorities, the organisation’s strategic responses can choice from reactive to proactive.
b) The approach of diversity is informed by a concept of recognizing and valuing many individual differences in order to achieve competitive advantage. This implies differential treatment at an individual level. Managers need to focus on staff’s individual response about diversity at workplace.
c) Employee’s involvement and participation is important to decision making. It is recommended that all the staffs should be the part of new decisions and the management should give them participation before and during implementing actions.
d) A dominant principle in the anti-discrimination legal framework is important role for business; it is recommended that workplace should be equality based which is the procedural fairness.
e) Line managers have the crucial role in the advancement of innovative workplace diversity policy but there is lack of clear direction.
f) Motivated employees are the most important in global marketplace. So management should give priority to select a motivated employee in the workplace.
Overall, Successful organisations are becoming more flexible, quick to change directions and customer service oriented. Diversity management is requiring employers to develop an approach that best fits the unique requirements of their organisation.
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