Critical Analysis Essay

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Ensuring Diversity in the Workforce

Emad N. Alkhadabah

Central Michigan University

Master of Science in Administration

MSA 698: Directed Administrative Portfolio

Dr. Larry F. Ross

April 17, 2021

Ensuring Diversity in the Workforce

Compelled by the prominent regulatory and market forces, companies are considering adopting various measures for the increment of diversity in the organizational workforce and top management teams, and the board of directors. The inclusion of women and minorities is considered to be attaining a high level of significance in business. Diversity control in businesses has recently displayed significant interest in business economists along with researchers. Academics along with the administrators usually agree that diversity in the organizational setup is usually strategically vital in enhancing value to the organization in terms of monetary and other aspects. Diversity management and its effects on the financial performance regarding any firm is a critical field of study and has been widely developed in the business context (Goode, 2014). This research paper significantly looks at diversity management regarding financial performance in firms in the current business era.

Diversity management is considered a dimension regarding corporate social responsibility types of efforts usually carried out by an organization. It has costs for the business firms as well as in their capability to attain higher profitability rates. However, it is vital to understand that embracing diversity usually enhances the social responsibility of the corporate organization and adds greatly to its reputation, which is usually highly valued by the organizational managers. Diversity is vital in enhancing the enrichment of the talent pools with different types of perspectives (Goode, 2014). Taking proactive types of measures in the improvement of diversity is vital in protecting the firms from being considered socially irresponsible and against social sanctions. It is vital to understand that this needs to be undertaken to the extent that the organization in question also strives towards preserving its profitability rates and investor returns.

Therefore, the most vital practical effect regarding this research is that the organizations and businesses in the current era need to effectively strike a balance between their various diversity management policies and the degree of management and cohesion that the managers wish to influence on the organization. This will help ensure that the organizations possess a wide range of talent and abilities and are socially responsible as a business. It also means that they will be in a better position to sustain financial development in the businesses.

Types of Diversity Management

To understand diversity management, it is vital to have comprehensive knowledge of diversity management types that are present. They are two in number. There is the intranational as well as the cross national diversity type of management. Intranational diversity management is usually utilized in referring to the management of a workforce that is usually considered to comprise citizens and immigrants in a single national type of context. Diversity types of programs usually focus on providing employment types of opportunities to the minority groups and the recent immigrants. For instance, a good example is that a French organization may be entailed in the implementation of policies as well as programs with the key aim of enhancing sensitivity as well as in the provision of employment to the minority ethnic groups that are in the nation (Seierstad et al., 2017).

The second type is called the cross-national type of diversity management. It can also be referred to as international diversity management. It is used to mean the management of a workforce comprised of citizens from distinct nations (Seierstad et al., 2017). It may also entail immigrants from distinct nations who are involved in seeking employment. A good example is considered to be a US based organization that has branches in Canada along with China and Korea. The organization will be involved in the establishment of the diversity programs and policies applicable to the US headquarters along with its overseas branches. The key issue associated with this type of cross-national diversity control is that the parent firm needs to consider the legislative and cultural laws in the host nations that it operates in, dependent on the places the employees live. Emad, I am not sure who helped you with this paper over at the writing center, but they did not do a good job based on the corrections above.

Features of Diversity Management

Some features are usually utilized in the identification of diversity management. First and foremost, there is voluntary diversity management. Unlike the legislation, which is usually implemented via sanctions, diversity management is considered a firm's voluntary action. It would be self-initiated by the firms that have a workforce from distinct ethnicities as well as religions and gender. There is not any legislation used in coercing them or any self-initiated incentives in the encouragement of companies to enhance the implementation of diversity management programs and even policies.

Nonetheless, diversity management is an aspect that offers tangible advantages. Unlike in the past, when diversity management was perceived as a legal constraint, organizations usually utilize diversity strategy to tap into the identified potential regarding all the staff and offer the organization a competitive edge in the industry it serves. It usually allows each employee to enhance their talents and skills to the company regardless of their differences. A diverse type of workforce is one that enables the company to serve the customers better globally. Diversity management also possesses a broad definition. While the legislation and affirmative action usually target a particular group, diversity management utilized a braid definition since the identified metrics for diversity are usually unlimited (Barberis et al., 2018). 

Diversity Management and Financial Performance

Diversity is considered to be an issue associated with fairness as well as is considered as being an aspect that is used in driving innovation along with performance. A survey carried out by Technical University of Munich on more than 1500 companies across US as well as China, India, Austria, France, Germany and Switzerland as well as various types of industries and even company sizes examined diversity management in the management positions in regard to age, industry background, gender, country origin and career path helped in understanding the relationship between diversity management and financial performance in firms. Technical University of Munich carried out the survey. Through the survey, there was an effective examination of the correlation regarding the variables individually and collectively with the identified percentage regarding revenues from the commodities introduced in the past three years as an aspect for innovation effect. Innovative firms are considered to be the ones that have fresher product type of portfolio as well as they ended being highly profitable (Global Diversity Management: A Fusion of Ideas, Stories and Practice, 2019). APA problem!

It is indeed evident that there is an essential statistical relationship between diversity and innovation outcomes in the nations that were examined. The most diverse types of enterprises are considered to be the most innovative as was effectively measured by their identified revenue mix. Companies that usually emphasize diversity management in their operations and career path are deemed to have a 19% higher level of innovation types of revenue and 9% higher level of EBIT margins on with Innovation (Christiansen et al., 2016). 

Very few firms have enabling conditions for diversity, including the fair employment types of practices like equal pay and participative leadership, top management support for diversity and even open communication practices. Firms that have all these practices in place are considered to have improved diversity scores and, as an outcome, have improved innovation type of performance. This is a strong suggestion that diversity acts as a representation of the tangible missed opportunities and the significant potential upside for most of the firms (Christiansen et al., 2016). 

In total sums, the presence associated with the enabling elements is considered to be worth 12.9% regarding Innovation revenue (Christiansen et al., 2016). With this potential influence associated with diversity for the average respondent type of company, it is evident that the innovation associated revenues could rise by 1% through the enrichment if the diversity regarding the management teams as well as 1.5% regarding the national origin, 2% concerning the industry origin, 2.5% in regard to gender and 3% about the administrators with the distinct career paths (Christiansen et al., 2016). With the higher levels of increments on the more types of dimensions, the entire uplift potential could also be more essential. You have structural grammar problems in many of the sentences. You should not use the same word many times in one sentence.

Effectives Practices for Enhancing Diversity Management

Organizations and businesses can effectively implement the most appropriate practices to help them in the maintenance of a competitive type of business advantage as well as in the capitalization on the identified potential regarding its diverse type of workforce. There are a few effective types of practices that a company can implement. First and foremost, there is ensuring commitment from the top control. Workforce diversity can be successful if it is effectively adopted by a shared type of vision within the company's top management. The senior management in a company is usually responsible for policy formulation and they can effectively promote workplace diversity dependent on the various policies they make (Goode, 2014). 

There is also the need for the identification of the current talent pools. In a company whereby most of the people are leaving the workforce rather than they are getting fired, there is the need for the management to employ current talents. Most of the companies as well as businesses usually prefer the traditional type of new employee sources like the competitor firms as well as graduate types of schools and in the recruitment of the most appropriate talent. There is the need for the companies to go beyond the identified traditional current hire types of sources and take part in the exploration of the other kinds of talent pools. Hiring people with diverse skills and knowledge can be vital for companies in delivering better quality types of services to a universal client base.

Nonetheless, there is the need to offer a safer avenue for enhancing dialogue on the issues that are associated with diversity. There is the need for the companies and businesses to come up with resource groups whereby the identified employees from the same types of backgrounds can link and communicate their various types of concerns in a safer environment. Individuals from the minority groups usually feel isolated from the organizations and may increase employee turnover (In Barberis & In Buckley, 2018).  Creation of avenues for enhancing mentorship and networking, and even socialization is essential in the increase of employee engagement and performance levels. Successful staff members can effectively demonstrate how they found success within the company and mentoring the current staff members.

Moreover, there is the need to make diversity a part of the company's objectives. A company and a firm that is entailed in the practice of workforce diversity need to not shy away from letting the universe know that the identified company embraces diversity and operates with individuals from different backgrounds all over the world. The company can begin by encouraging and supporting its identified staff, who are usually involved in volunteering in distinct causes like disability awareness programs. This helps it have effective diversity management, which will help the company realize the various types of benefits that come with the implementation of diversity management regarding financial management in firms.

There is also the need for organizations to ensure that they effectively distinguish between diversity and affirmative types of action. A variety of governments worldwide have been considered to have Implemented affirmative types of actions programs to offer various types of opportunities for women and other types of minority groups (Christiansen et al., 2016). While it is vital to note that such types of affirmative action’s usually complemented diversity, firms need to develop a differentiation strategy to help distinguish between diversity and that one of affirmative action. Diversity is considered to be proactive instead of being reactive and it usually needs an alteration in the company. Individuals that are from diverse types of cultures, as well as backgrounds and beliefs, usually bring a variety of work styles as well as thoughts and even points of view that a company can utilize in enhancing efficiency as well as in the encouragement of creativity in the concept of product development (Christiansen et al., 2016). 

Conclusion

Given the significance associated with globalization and Technology as the drivers of performance, diversity management plays a key role in the firm and the Financial performance in organizations. Diversity effect is considered to be the highest for organizations with a high level of emphasis on digital innovation as measured by their identified digital types of investments as a proportion of operating expenses. Through the research, it is evident that diversity management usually helps in enhancing the success of financial management in firms. There have been high levels of the justified type of criticism currently that structural diversity regarding equal access to the senior jobs and equal pay for individuals of different backgrounds is not growing fast enough.

However, it is vital to note that there has been the realization of a powerful relationship that exists between diversity as well as innovation and even performance which adds some type of additional economic along with technological motivation in an aim to address the gap that is prevalent in Diversity Management about financial management. Diversity has at some point been critiqued as being a culturally normative type of concept. From the research, it is evident that diversity can help in enhancing innovation performance in nations as distinct as India and Germany. There are various ways in which this can be done as illustrated in the research paper for enhanced efficiency and feasibility in organizations. The research paper reveals that the power associated with diversity still needs to be effectively unlocked with efficient practices such as having an inclusive type of culture (Bendl et al., 2015). 

References APA problem – 0/0/doubled-spaced! Also, references are not full justification.

Bendl, R., Bleijenbergh, I., Henttonen, E., & Mills, A. J., (2015). The Oxford handbook of diversity in organizations. Oxford University Press.

Christiansen, L., Lin, H., Pereira, J., Topalova, P., & Ariss, R. (2016). Gender diversity in senior positions and firm performance: Evidence from Europe. Washington, D.C.: International Monetary Fund.

Goode, D. S. J. (2014). Diversity Managers: Angels Of Mercy Or Barbarians At The Gate: An Evidence-Based Assessment Of iUniverse.Com.

Global Diversity Management: A Fusion of Ideas, Stories and Practice. (2019).

Missing data? In Barberis, J., In Arner, D. W., & In Buckley, R. P. (2018). The regtech book: The financial technology handbook for investors, entrepreneurs and visionaries in regulation.

Missing data? In Seierstad, C., In Gabaldón, Q. P., & In Mensi-Klarbach, H. (2017). Gender diversity in the boardroom: Volume 1.

APA problems with the reference page.

Emad, this paper is okay. The content and analysis need a bit of work because of the way it is written. Even after I made corrections to help the paper flow better, it was still difficult to read and understand its diversity management connection to financial management. One of the patterns is that your sentences are wordy and should be short and to the point. As you know, I have discussed this many times. There are also problems with the APA, particularly with the reference page and format. You need to follow the guideline in the APA book/guides. If you have particular questions, you should ask me. I will be happy to guide you on this matter. I have no idea who reviewed your paper at the writing center, but they made the paper problematic, or you did not understand what they corrected. I recommend that you review my changes with the original paper to understand what I changed and why. No paper should be full justification. Let me know if you do not understand something. Be safe, Dr. Ross