In 1950 the global human population was 2.5 billion, in 2013 it has increased to 7.2 billion and by 2050 the UN predict it will reach 9.6 billion (The Economist , 2013). Shared with the statistic that since 2011, 52.1% (United Nations, 2012) of humans live in an urban area, highlighting the need for an increased and evolved ability to manage diversity. This global trend has created the most diverse workforce in modern times, generating pressure for companies, institutions and governments to implement practices which recruit, train, promote and retain individuals within the workplace (Bratton and Gold 2012; Kirton and Greene 2010). The strategic management of diversity in the workforce will be further discussed using a three stage approach, in order to fully analyse the pros and cons of a business case approach to diversity management.
The first stage will have two discussion points; firstly defining diversity to create a common understanding of the topic. Secondly it’s important to distinguish the difference between the terms of equal opportunity and diversity management, exploring how they have evolved from academic and practical perspectives. The second stage will focus on diversity management with particular emphasis on analysing the pros and cons of a business case approach. This critique will be supported by theories and contemporary resources to highlight the impact this approach can have on the stakeholders involved. The third stage will consider the implementation and industry type. This will highlight the limitation that by splitting diversity into different case types rather than focusing on an inclusive strategy causes fragmentation rather than concentrating on the individual contribution.
Table of Contents
1. Stage One
2. Stage Two
3. Stage Three
4. Conclusion
Objectives & Topics
This paper aims to critically analyze the pros and cons of the business case approach to diversity management within modern organizations, exploring how this strategic framework influences workforce management and organizational success.
- Theoretical definitions of diversity and equal opportunity
- Strategic implementation of diversity management
- Benefits and financial motivations of the business case approach
- Limitations, short-termism, and "narrowness" of the business case
- The role of industry context and sustainable competitive advantage
Excerpt from the book
Stage Two
A business case approach forms of a recommendation to an individual or group of decision makers such as a board of directors, this recommendation will seek to implement a strategic action for the organisation. This type of approach is supported by analysis in respect to the benefits, financial costs and the risks in comparison to alternative strategic options. Finally a business case approach will suggest the most effective way of implementing the recommendation (Gambles, 2009). Therefore the first advantage for a business case approach is that it provides diversity management with a platform from which a strategy can be formed and ultimately be considered alongside traditional strategic options.
A business case approach to diversity management allows for the specific benefits to be identified and measured using quantifiable data, for example changes in performance measurements. Cox and Blake (1991) pool together within a literature review the benefits of diversity into six dimensions. These dimensions are linked to creating competitive advantage and include, cost, resource acquisition, marketing and creativity, problem solving, system flexibility and organisational flexibility (Kramar & Syed, 2012). Within the review Cox and Blake (1991) use measured examples to demonstrate the importance of diversity management for instance marketing benefits. Avon, one the largest global direct selling companies, created a business case for diversity and used it to increase profitability within inner city markets in the US. The strategic plan repositioned employees from Black and Hispanic groups into manager positions in these loss making markets, this move turned these markets into some of Avon’s most profitable (Cox & Blake, 1991). This highlights the importance a business case approach can have; it allowed Avon to solve a strategic issue by using its existing talent pool to influence consumer purchasing practices.
Summary of Chapters
Stage One: This section defines diversity and distinguishes it from equal opportunity, tracing their evolution from academic and practical perspectives.
Stage Two: This chapter analyzes the business case approach, highlighting its benefits for organizational strategy and performance, supported by examples such as Avon.
Stage Three: This section discusses the implementation of diversity, the importance of industry context, and the risks of fragmented, "case-by-case" approaches.
Conclusion: This section synthesizes the discussion, reaffirming that while the business case can drive strategic focus, it must be balanced with broader social considerations to avoid short-termism.
Keywords
Diversity Management, Equal Opportunity, Business Case Approach, Strategic HRM, Competitive Advantage, Workforce Diversity, Organizational Performance, Social Identity Theory, Short-termism, Industry Context, Human Resource Management, Stakeholder Impact, Inclusion.
Frequently Asked Questions
What is the fundamental focus of this paper?
The paper examines the strategic management of workforce diversity, specifically focusing on the advantages and disadvantages of using a "business case" approach.
What are the central themes discussed in the work?
The central themes include the transition from equal opportunity policies to strategic diversity management, the quantification of diversity benefits, and the limitations of purely profit-driven diversity strategies.
What is the primary research objective?
The primary objective is to critically evaluate whether the business case approach provides a sustainable and effective framework for managing diversity in modern organizations.
Which scientific methodology is applied?
The paper utilizes a qualitative analysis based on a literature review, comparing academic theories with practical case studies and empirical research findings.
What is addressed in the main body of the text?
The main body is divided into three stages: definitions and historical context, an in-depth critique of the business case approach, and an exploration of implementation frameworks and industry-specific challenges.
Which keywords best characterize this work?
Key terms include diversity management, business case approach, strategic HRM, competitive advantage, and organizational performance.
How does the author describe the "business case" approach?
It is described as a recommendation-based approach that supports strategic actions by analyzing costs, benefits, and risks to secure management approval.
What is the "narrowness" flaw identified by the author?
The author notes that a business case often creates a "blinkered view," where companies only support diversity if it immediately improves performance, ignoring long-term or qualitative benefits.
What role did RaboBank play in this research?
RaboBank serves as a practical case study to demonstrate how a business case approach can improve market share but may also lead to internal weaknesses if not implemented holistically.
What is the significance of the "MOSAIC" framework?
The MOSAIC framework is cited as a way for organizations to move away from fragmented, ad-hoc diversity efforts toward a consistent, long-term, and individual-focused strategic approach.
- Quote paper
- Luke Gipson (Author), 2013, What are the pros and cons of a business case approach to diversity management, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/268980
