Diversity Leadership in International Human Resource Management - Assignment Example

Diversity leadership in IHRM Cross-Cultural Leadership Table of Contents Introduction 3 Discussion 4 What is diversity management? 4 Benefits of diversity management 4 Diversity management and Cross cultural leadership style 5 Evaluate the advantages and disadvantages of key areas of cross-cultural human relations, business idiosyncrasies and moral values to diversity management 8 Analysis 10 Critically evaluate cross cultural leadership practices in western and non-western organizations 10 Conclusion 12 Recommendations 13 References 14 Introduction In order to attain competitive advantage and business challenges, the most essential requirement of the organizations is human resource. This is because; it is the human resource that helps an organization to enhance its profitability and brand image thereby amplifying its brand image and reputation among other rival players. As a result of which, the organization may enhance its inner strengths by reducing its weakness and upcoming threats. But in order to make them possible, it’s extremely essential to recruit human resources mainly on the basis of their experiences and education thereby reducing the variance of age, race, religion, caste and ethnicity. This is because; organizations are recognised as a stage of individual of heterogeneous nature and qualifications thereby enhancing the mobility of human resources or workforces. As a result of which, maximum extent of the organization both in western and non-western organizations, the degree of young workforces are increasing rapidly thereby increasing the ethnic proportion of total work-force by almost 75 percent as compared to previous days. This strategy proved extremely successful in the organizations of both western and non-western countries that reduced the gap within the employees of different castes and races. Therefore, it might be stated that workplace diversity is recognised as one of the most essential industry concern in this age of information technology. This is mainly, due to the desire of the organizations to fascinate and retain the best employees in long run. So maximum extent of the organizations in this age, desire to manage and control work force diversity in an effective way with the help of cross-cultural leaderships, eclectic work group design along with various business idiosyncrasies. This essay is divided into five phrases mainly highlighting the importance of workplace diversity and its relationship with cross-cultural leadership styles and eclectic work group designs. Other than this, this essay also describes the advantages and disadvantages of cross-cultural human relations, business idiosyncrasies as well as moral values of diversity management practices. Other than this, it also evaluates the cross-cultural leadership practices in both western and non-western contemporary working situations. Discussion What is diversity management? According to Daud & et. al. (2013) diversity is considered as the most accepted phenomenon of an organization in this age of competitiveness. This is because; diverse workforces help an organization to enhance its productivity and brand image in the market among other rival players by utilising their experiences and skills. However, it might be possible only if the management eliminates all sorts of differences within the multicultural workforces thereby amplifying the uniqueness among them. Only then, the organization might become able to cope up with the changing demands and requirements of the customers that may improve its reputation. Due to these causes, maximum extent of the organizations in both western and non-western countries desire to manage and control the knowledgeable and qualified workforces for a longer period of time and this procedure is described as diversity management. Benefits of diversity management Management of diversity is an on-going process that helps an organization to discover the inner talents and experiences of the individual that amplifies its prosperity and equity in the market (Liebowitz, 2008, pp. 812-823). In addition to this, it also helps to: Improvement in creativity. Increases the market share and market value. Increases competitive advantage. Increase of distinctiveness. Diversity management and Cross cultural leadership style In order to handle and control the human resources or work forces of the organization in an effective way, it’s extremely essential to understand the psychology of different individual. By doing so, the leader or the manager of the organization may easily interact with these individual and analyse their ideas and views regarding any issue as described by cross cultural leadership (Karsten & Illa, 2005, pp. 718-723). Such type of interaction helps in enhancement of the relationship within the employees or work forces of varied cultures, creed and castes thereby reducing the rate of conflicts. As a result of which, the rate of productivity of the organization enhances thereby amplifying its reliability and trust in the market. In addition, paternalistic leadership style is also quite popular in both western and non western organizations that implements strong authority or discipline within the association. Due to which, the employees or work forces of different cultures become bound to follow the rules and regulations of the leader or manager thereby amplifying their level of committed or devoted towards the assigned tasks. Due to extreme dedication towards the assigned tasks, the rate of profitability of the organizations is increasing at a rapid rate in numerous emerging western countries and non-western countries like UK, Hong Kong and Asia as presented by the below mentioned chart. Source: (The economists, 2010) In addition to this, due to paternalistic or cross cultural leadership style, the participation of female workforces of varied age-groups is also increasing significantly as compared to previous era as presented below: Source: (Davies, 2013) Not only this, due to authoritarian or paternalistic leadership style, the concept of compensation gap is also reducing thereby increasing the level of uniformity and consistency within the organization as shown in the below graph. Source: (Davies, 2013) Therefore, due to such type of leadership style, the employees get more motivated towards their assigned objectives as stated by transformational leadership style. This type of leadership style is also commonly viewed in the western and non-western organizations as compared to others. Due to which the level of trust and reliability of the leaders over the staffs or employees increases thereby improving their interpersonal relationships. This helps to improve the motivation and inner morale of the employees that reduces the chances of attrition or switch over (Murphy & Fafard, 2012, pp. 723-733). Along with this, retention of the experienced staffs within the organization also helps in introduction of varied types of inventive products and services that may satisfy the requirements of the consumers. As a result of which, the brand image and dependency of the organization within the minds of the consumers enhances thereby improving its level of competitiveness in the market among others. Therefore, the mentioned causes are primly responsible for the improvement of the total income and profit margin of an organization as compared to other rival players (Finnegan, 2010, pp. 512-523). Therefore, it might be clearly depicted from the above mentioned charts and reasons that cross cultural leadership styles are directly related to the concept diversity management of international human resource management (IHRM). Similarly, according to the concept of eclecticism, varied types of assumptions are presented over a specific information or fact in order to assess the various aspects. However, this might be possible only if the workforce of the organization is diverse and multicultural in nature. This is because; implementation of eclecticism helps to analyse the behavioural aspects and attitudes of the individual in an effective way, prior making any specific decision in the organization. This helps to make the judgements in an appropriate way thereby reducing the rate of inter-personal conflicts among the employees thereby amplifying the level of cooperation and consistency among them. Apart from this, due to the implementation of the concept of eclectic work group design, the rate of uniqueness and harmony enhances, which is extremely essential to retain the level of sustainability of the organization in this age (Dibble, 1999, pp. 456-478). In addition, in such type of work group design, all the employees, irrespective of age, race and gender try to offer their full concentration over the common objective or goal of the organization. As a result of which, it becomes quite easy to accomplish the goal efficiently. Therefore, it might be clearly stated that concept of eclecticism is extremely essential for a diverse workforce of varied cultures and creeds. Evaluate the advantages and disadvantages of key areas of cross-cultural human relations, business idiosyncrasies and moral values to diversity management In this age of competitiveness, relationship among the employees is recognised as the most essential element of success for an organization. This is because; if the interpersonal relationship among the employees remains good, then it might prove effective in resolving varied types of dilemma’s or problem (Swart & et. al. 2012, p. 79). Not only this, it might also prove effective in enhancing the inner skills and morale of the employees thereby amplifying the productivity and total revenue of the organization. As a result of which, the brand value and equity of the organization might also get enhanced in the market as compared to many other rival players. In addition to this, the level of dominance of the organization might also get enhanced thereby reducing the threat of business challenges. Furthermore, by developing an effective relationship, the management might easily analyse and understand the inner skills and motives of the employees. By doing so, the management might understand his or her experiences prior assigning the tasks, in order to make it effective in all aspects (Davidson & et. al. 2011, pp. 223-234). Such type of relationship might not only enhance the dedication and commitment of the employees but also reduce the level of conflicts and controversies among them. In addition, effective relationship also helps in enhancement of the level of skills and knowledge’s of the employees thereby amplifying their level of performances (Northouse, 2010. pp. 334-356). Therefore, it might be stated that cross cultural human skills not only helps in assessment of the emotions and psychologies of an individual in an effective way but also helps in advancement of the skills and abilities. As a result of which, such type of human skills also helps to solve varied types of organizational problems. Thus, cross-cultural relationship or skills might prove effective in understanding new experiences as well as new talents that may become useful n future era. However, human relationship might also prove negative for the organization thereby hindering its growth and productivity (Dobratz & Waldner, 2006, pp. 1-8). This might occur due to opposite attitudes and behaviours of the employees, working to attain a single task. Therefore, due to interpersonal conflicts among the employees, the level of confidence and loyalty towards the work also gets reduced that hampers the sustainability of the organization. Therefore, human relationship might offer negative impacts over the organizational productivity as well. Apart from this, in spite of cross cultural human relations, business idiosyncrasies also acts as another prime reason that may hinder the prospects and growth of the organization in this age of aggressiveness (Snell & Bohlander, 2010, pp. 256-268). This is because; these risks are entirely unusual in nature such as lack of market share of a new product or lack of total sale etc that may hamper the brand image and reputation of the organization in the market. As a result, in order to cope up with such unusual risks, the management might offer extra pressure over the employees that may hinder the relation among them (Compton & et. al. 2009, pp. 123-133). Due to which, the inner morale and motivation of the employees to perform the tasks reduces thereby increasing the rate of attritions. Such type of incidents is quite common in both western as well as non-western countries and its rate of attrition is also extremely high as shown in the below figure: (Source: Davies, 2013) Hence, it might be depicted that human relationships and morale is directly responsible for the improvement of the organizational profit and image. Thus, human relationship might be stated as a phenomenon that may create or destroy the popularity of an organization in long run. Analysis Critically evaluate cross cultural leadership practices in western and non-western organizations In maximum extent of the organization operating non-western countries like United Kingdom, Germany, France and United States, authoritarianism is highly appreciated. This means, a strong corporate culture is maintained that need to be followed by all the employees of the organization. In this type of leadership style, management or CEO is the highest decision maker of the organization and all other employees are bound to follow them. As a result of which, irrespective of age-groups, race and castes, all the employees need to offer highest level of dedication and commitment to achieve the assigned tasks (Blair, 2001, pp. 216-217). Moreover, due to authoritarian organizational culture, level of interpersonal conflicts among the employees is quite less. This is extremely essential for an organization, as it helps in resolving varied types of business threats and challenges. Other than this, such type of leadership practices might also prove effective in maintaining a unique culture within the organization thereby amplifying its image and dominance in the market. In addition, due to such type of leadership style or approach, the level of trust and involvement of the employees enhances that increases the total sale and efficiency of the organization in the market (Boone & Van Den Bosch, 1997, pp. 109-127). On the other hand, in non western countries such as Japan, Asia, China and Korea, transactional leadership style or practice is followed. In this type of leadership style, performance and supervision are the prime criteria (Bevan, 2007, pp. 251-262). On the basis of which, incentives as well as various rewards are offered by the management of the organization. Therefore, in order to attain such type of rewards, the employees get highly motivated towards their assigned tasks thereby amplifying the profit margin of the organization. This also helps in enhancement of the reputation and equity of the organization in the market among others. So, such types of leadership styles are highly preferred by the organizations operating in non-western countries. Conclusion Conclusively, it might be stated that the leadership styles acts as the catalyst that enhances the operations and functions of the organization in the market. Along with this, leadership style also enhances the inner morale and confidence of the employees that improves the commitment towards the assigned tasks. Due to which, the total sale and productivity of the organization enhances thereby improving its net income and popularity in the market. This is extremely essential for an organization operating in either western or non-western countries so as to improve its competitive position and sustainability in long run. Apart from this, proper leadership style also helps in maintenance of proper cooperation and unity among the employees thereby reducing the ratio of attrition. This is extremely essential for an organization to retain the experienced and knowledgeable staffs within the organization so as to invent varied types of new products and services. Due to these reasons, maximum extent of the organizations desire to implement appropriate or suitable leadership styles or practices. So that, implementation of appropriate leadership practices enhances the strengths of the organization and reduces its negative impacts. Recommendations In order to improve the distinctiveness and dominance in the market, the organization might try to implement participative leadership style. This is because; in this type of leadership style, the employees are offered the opportunity to offer their ideas and suggestions regarding any aspect or issue, prior implementation. This helps in improvement of the self-esteem and inner morale of the employees thereby amplifying their respect and value. This might also help in improvement of the interpersonal relationships among the management and the employees thereby enhancing its coordination and cooperation. As a result of which the total productivity and profitability of the organizations as compared to many other rival players. Moreover, such type of leadership skills might also prove effective for the organization to reduce its business challenges and risks thereby amplifying its uniqueness and equity. References Bevan, D. 2007. Ethics and HRM, in Human Resource Management: a critical text, edited by Storey, John. London: Thompson Learning, pp. 251-262. Blair, K. J. 2001. An army of women: Gender and politics in gilded age Kansas. The Journal of American History, Vol. 88(1), pp. 216-217. Boone, P. & Van Den Bosch, A.J. 1997 Discerning a key characteristic of a European Style of Management (Int. Studies of Mgt. & Org., Vol. 26, No. 3, pp. 109-127). Compton, R. L. & et. al. 2009. Effective Recruitment and Selection Practices. 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