Diversity Management and Culture

Requirement

Assessment is a 2,500 words individual essay with Harvard referencing style that contains a summary of the critical theories and concepts. The concepts covered include understanding organisational HRM through

(1)    Diversity management
(2)     Culture
(3)    International performance management
(4)    Training and development.

The assessment will be submitted in essay format and headings and sub-headings are required. The essay must follow the structure, instructions and cover all elements. The essay must be written in third person and supported with a minimum of 15 contemporary (beyond 2006) refereed journal articles – do not cite the internet.

Other instructions
-    Avoid generalising example; “the company has many problems” unless you qualify their statement further.
-    Full details of scope, be specific and refer to ‘scope’.
-    Tie in the issues/problems with key concepts (cultural diversity, training and development, international performance management).Case study is the focal point tie in concept that relates to it.
-    Need to include in text citations.

Solution

Introduction:

The organizations these days operates in many geographies and with diverse set of people. The need emerges due to various economic and cultural based reasons and due to thisthe HR Management turns out to be critical. The complete and thorough HR management is necessary for the motivation of the employees and providing them the environment in which they feel that they are safe and their work will be respected and rewarded. The essay is towards understanding four such scenarios of good HR Management. The case discussed is of a company named Fly Rich which deals in Aircraft and is currently running operations in Australia, Singapore, Vietnam, and China.

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Key Areas of Concern:

Fly Rich Aircraft is prevalent in many geographies and have to deal with variant set of people and that is something which is the reason for their concern. They main key areas, which they are concerned about are:

  1. -    Culture: Unable to maintain a uniform culture across the organization.

  2. -    Diversity Management: Unable to manage the diverse workforce that they have, to ensure that everyone is able to deliver the best.

  3. -    Performance Management: Unable to manage the performance of the diverse work force as per the regional and global level expectations

  4. -    Training & Development: There are issues in delivering quality training and there is no culture of peer learnings in place.

Diversity Management:

Key Issues:

Diversity Management is a matter of concern for the company due to the diverse work force that they have to deal with. The issue is that the people in the various organization levels are not ready to jell together properly may it be management or the senior staff. Then there is another point of worry that may attract legal actions due to discrimination towards people with disability. There is no need realization that is achieved in the company to understand the importance of working together. No one is practically clear about how to manage the diverse staff effectively.

Short Term Solution:

There are a few low hanging fruits that may be implemented quickly and the main advantage of this would be that there will be culture of diversity inclusion that will start to pile up in the company. The main concern is that is identified in companies dealings with diversity is that they are unable to understand or behave in the way that is liked by the other member(Dike, 2013). For this some immediate team building sessions must be arranged by the company that makes the dealing with diverse team members easy and satiate the ways needed about how to behave in ambivalent situations(Mayhew, 2013). 

Next is the issue that comes up is the senior – junior gap that is a concern area for Fly Rich. The immediate action that may be taken in this regard is forming of some cross domains team from various levels. In such a way that the senior members will be the mentors and the juniors would be the mentees(IFAS, 2013). Every senior member has to be member of one such team to build the talent of future in the organization. The results will impact the Annual Ratings of both mentors and mentees. This is to ensure that everyone is senior about these cross – level teams.

Long Term Solutions:

Cultural Inclusion Programs:

The diversity is to manage the people from various ethnicity together. Since the company is operating in 4 different countries. There must be an inclusion program that should be run must send a set of identified people every year to cross location deployment, this will try to infuse the new culture in the system and thorough training about various cultures must be provided along. At this point the leadership at every location must have a representative from each location as well. This will start to include the necessary changes from the top and hence slowly it will become the part of the system as needed(Fischer, 2007).

Workforce Diversity Inclusion program:

Legal compliance is a very serious issue to be followed and hence, there must be very strict instruction to all the HR team members that there shall be no discrimination with the candidate based on her physical disability, gender, caste etc. There must be a separate audit team that must do a bi – annual audit to ensure that the person shall not be reject based on some external factor other than incompetency to perform the job. This will slowly become part of the culture and special policies must be kept in place to protect their rights(Wrench, 2007). E.g. No Bullying policy must be placed on board to ensure that the people with disability shall feel safe and confident.

Culture: 
Key Issues:

The major issue that is coming up due to improper culture is no proper communication between teams and that leads to compromise in the quality delivered. Quality was ones the known trait for the company and now they are getting complaints for that and clients are even holding payments for long due to improper quality. The culture of integration is not there and hence the systems are not harmonized, everyone does their bit and don’t care about the bigger picture of organization achievements and outcome(Mujtaba, 2015). This is the current state of affair that is making the situation more troublesome for the company.

Short Term Solution:

Importance of Communication:
The first issue that must be redressed is ensuring that employees realize the importance of harmonious working and proper communication. Till they time they don’t see the impact, monetary or non – monetary, on them, till that time they will not realize the worth of it. There must be some sessions that must be organized at various levels, which shows the team that what is impact it is causing to the company of the departments are not harmonious in their working(Avrich K., 2013). It must be brought in the mind that till the time the company is not receiving their money from client they are not in a position to pay the bonuses and other allowances. This will trigger the sense of urgency in the minds of the employees.
Effective Communication:
Further to that some training sessions on effective communication must be arranged to teach the teams about the benefits of communication and how are these benefits flowing to them(Cupach, 2010).
When they will see the actual benefits that they are getting out of it, then they will also start to communicate effectively.
Defining Ownership:
Lastly and the most important of all is the identification of levers of miscommunication and start to hold them responsible for the issue. When the ownership comes, everyone starts to take the job effectively and seriously(Jones G. R., 2014).

Long Term Solution:

Cross Channel Teams:
The need of the hour is to come up with a well-structured cross cultural teams which can perpetuate the learnings of cross culture communication and the learnings of how to effectively communicate with the teams in a way that there is no scope of confusion or misinformation. These teams will work together temporarily and later on assure that effective communication is followed form their end(Hayes, 2008).
Training sessions on Diverse Cultural Handlings:
There are specialized trainings that are needed in order to keep the communication harmonious. Like in Australia the usage of the word “Kindly” is not acceptable and they use the word “Please” instead. Smaller changes like these will lead to a better communication set up(Avruch, 2010).
Realization of Cost of Quality:
The cost of quality has a huge impact on the company, not just the money part but also the image part. If the image is lost then the scope of repeat business is simply lost and that has an impact on the topline, which ultimately perpetuates to the employees in form of job loss or salary cuts. The same must be communicated to the employees as well, so that they realize the worth and start to work in harmony for better quality and output.

International Performance Management:

Key Issues:
The entire performance appraisal system is concentrated at Australia and no interference of other geographies at all. There is no properly defined appraisal process for expatriates. The appraisal is not done on the basis of business impacts, but is done on ad – hoc basis. Overall, there is no proper performance management system that can provide a stable and productive system. The decisions are made on “AS – IS” basis and not on “TO – BE” basis and it leads to a troublesome situations for the company, where a decision taking for the betterment resulted in a worsen situation(Andrew Wolk, 2010). There is a dire need for a definitive performance management system.

Short Term Solutions:

Understand each Geography Thoroughly:
Every Geography that Fly Rich operates in has different culture and hence different set of expectations and performance management. Each of the geography and its culture is to be understood properly, so that some regional level performance measurement systems can be implemented. The monitoring has to start at the base level and then to be centralized(DTI, 2010). The idea of centralization is good, but the data sources must be perfect.
Remove the country specific performance management system:
If the idea is to centralize ultimately, then the country specific processes have to be removed at all the levels. Since it is said that there is no formal process at local level, so there must be some unstructured methods that would be practice, all these must identified and removed. This will further stabilize the system(Mujtaba, 2015).
Prepare the Expectation Gap Chart:
There must a thorough understanding of the differences that are expected at each location. This chart will open up the differences easily and hence assure that measures may be taken up to fill up those gaps. These are just to ensure that that the target must be set and defined, it should not be that people are making efforts towards something futile.

Long term Solutions:

Put up an ERP System in place:
The main concern is of the data sharing and harmonious data visibility must be in place to ensure that all the decisions are passed on to the stakeholders effectively. In the aircraft industry, where there are many spare parts to be dealt with, the decision is made for each spare parts based on the situation and the need has to be perpetuated to the entire system  and the effective communication may be achieved through an effective ERP system in place. Any good ERP system can serve the purpose and the capability of cloud may also be unleashed here(Tadinen, 2013). 
Weekly Discussion and Meetings must be arranged:
The expectations from the system changes every day and to ensure that everyone is on the same pace, the meetings are needed, so that all the stakeholders are working as per the expectations and requirements. In the unconnected world there are all the chances to deviate from the core. In these meetings all the stakeholders can put up their constraints and hence changes may be proposed.
When this iterative process is followed the resultant leads to a better system that is able to serve the needs for everyone, a composite performance measurement system that will help in monitoring the system in a better manner.

Training and Development:

Key Issues:
Mobility and movement of employees is always involved in the business and hence special trainings must be organized to ensure that the employee is able to jell with the new environment. This aspect is missing in the company since the expatriate training is just limited to half a day. There is a scope to provide a solid training program but no one is taking ownership for that and hence this part is always left unattended(Miller, 2007). There is no peer learning and training as well and hence there is poor taking over of roles and no defined succession plans and systems. 

Short Term Solutions:

Defining the specific Budget for Training and development:
There is a need that the management must provide a specific budget for training and development activities. This will empower the people who wish to arrange the trainings with a specific standard and hence the scope may be improved(Kramer, 2010).

Team for defining the calendar of training – Leadership insights:
What sort of trainings that must be given is very important and hence leadership insights are needed in that, as they only know in which direction they want to take the company. This will help the department to come up with a specific training calendar, so that people can enroll themselves in these trainings.

KRAs for trainings and Development:
The training and development must be a mandatory KRA for all levels in the organization. This will ensure that everyone will have to fulfill certain requirements for number of training hours etc. The mentor mentee program will be handy here, since mentor will have the KRA to guide the mentee for specific trainings and mentee has to clear those trainings successfully.

Specially designed Trainings for Expats:
There is a need to understand the need of an expat that an expat has to jell in the system quickly and he is there for a special purpose. In order to speed up the process, there must be some specialized training which helps him to get accustomed to the culture quickly is needed(Hayes, 2008).

Long Term Solutions:

Hiring of an External Agency for Cultural Training and Development:

The cross cultural training is very much needed since it satisfies two issues of the company which are Diversity and Communication management. Since this such an inherent part of the company, so some external set of experts must be brought in to be able to achieve some success out of these trainings(IFAS, 2013).

Mentor – Mentee Program:

The Mentor – Mentee Program will be a mandatory program in the company in which a senior will be assigned as a Mentor of a new joiner. The role will be to define the training and skill metric of the mentee and the mentee have to abide to it and attend the training and also clear it. It is the role of Mentor to justify the training and get it approved form the team. To get the desired trainings for the mentee will be the main KRA for the mentor.
Trainings for various levels and new joiners:
There is a need to define certain trainings for the change management for an employee whenever he joins the company or whenever there is a change in the level of the employee. This is to ensure that the person is able to understand the role and the criticality linked to the role more effectively and able to deliver better results.

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Conclusion:

The major point of understanding here is that in case the company expands they always wish to find the economies of scale and for that the most probable option is expansion. This expansion can always be achieved by finding newer avenues of geographies and hence the company turns into a multinational company. What is to be ensured here is that when the company is small, there are not many issues with the work force management since everyone is alike and the similar kind of policies are perfect enough to satiate the needs of the employees. But when the company expands, the needs become different and hence various other types of avenues are needed to fulfill everyone’s need and also keeping everyone happy and motivated. 
If the employees are not motivated or happy, there are very less changes that they will be able to perform well and hence that is going to hamper the overall performance of the company. In order to achieve success, changes in the management is needed to fulfill the needs of diversity and hence the report tries to access the same by studying the case study of Fly Rich Company. By following this analysis some level of betterment can be brought into the company. 

References:

  • 1.    Andrew Wolk, A. D. a. K. K., 2010. Building a Performance Mesurement System, Cambridge: Cambridge University.

  • 2.    Avrich K., M. C., 2013. Conflict Resolution and Human Need: Linking Theory and Practice, New York: Routledge.

  • 3.    Avruch, K., 2010. CROSS-CULTURAL CONFLICT, Arlington: Institute for Conflict Analysis & Resolutio.

  • 4.    Cupach, W. R. C. D. J. &. S. B. H., 2010. Competence in interpersonal conflict , Waveland: Long Grove.

  • 5.    Dike, P., 2013. The impact of workplace diversity on organisations, London: ARCADA - Degree Programme in International Business.

  • 6.    DTI, 2010. Performance Measurement, Texas: Business Balls Publications.

  • 7.    Fischer, M., 2007. Diversity Management and the Business Case, Hamburg: Hamburg Institute of International Economics (HWWI).

  • 8.    Hayes, M., 2008. Managing Cross-Cultural Conflict Productively, London: Griffith Publications.

  • 9.    IFAS, 2013. Diversity in the Workplace: Benefits, Challenges, and the Required Managerial Tools , Florida: University if Florida IFAS Extension .

  • 10.    Jones G. R., G. J. M., 2014. Contemporary Management, New York: McGraw Hil.

  • 11.    Kramer, C., 2010. Training and Developing People, Houston: APPLIED HUMAN RESOURCE MANAGEMENT.

  • 12.    Mayhew, R., 2013. Disadvantages in increasing diversity in the workplace, Houston: The Houston Chronicle.

  • 13.    Miller, B. C., 2007. Quick activities to improve your team: How to run a successful team-building activity, New York: Journal for Quality and Participation.

  • 14.    Mujtaba, D. P. &. B. G., 2015. Conflict Management Practices for Diverse Workplaces, Florida: Journal of Business Studies Quarterly.

  • 15.    Tadinen, H., 2013. Human resources management aspects of Enterprise Resource Planning (ERP) Systems Projects , Geneva: Swedish School of Economics and Business Administration .

  • 16.    Wrench, J., 2007. Diversity Management and Discrimination. Immigrants and ethnic minorities in the EU, Ashgate.: Aldershot.

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