Diversity and HRM Strategies - Case Study Example

ASSESSMENT NUMBER: 1 ASSESSMENT TITLE: A SHORT REPORT ON DIVERSITY AND HRM STRATEGIES COURSE CODE: HRMT19016 COURSE NAME: HUMAN RESOURCE DEVELOPMENT STUDENT NAME: HE MINTING STUDENT NUMBER: S0214758 ASSESSMENT DUE DATE: THURSDAY (10 MAY 12) 11: 45 AM Table of Contents Page Table of Contents Page 1 Executive summary 2 1.0 Introduction 3 1.1 Background Information 3 1.2 Objectives 4 2.0 Company analysis 4 3.0 HRM plans and policies 5 3.1 New leadership approaches 6 3.2 Valuing of other people 6 3.3 Recognition of individuals and teams’ efforts 7 3.4 Ethical management policies 8 3.5 Timely and adequate communication 9 3.6 Empowerment of employees 9 4.0 Key HR issues 10 4.1 Ethics and culture 10 4.1.1 Organizational ethics 10 Reference List 14 Executive summary This report was commissioned to study into Human Resource Management (HRM) Strategies and Diversity in global organizations. As a consultant, the work was to develop a detailed HRM plan and policies, the key Human Resource issues that need to be addressed in strategic management such as ethics and culture and finally report to the management together with strategic HRM recommendations that can be used to improve on strategy formulation. This study has managed to establish in global companies, diversity is well-known in human resource and that it’s the responsibility of the HRM team to create and enact different plans and policies in order to make sure that differences that exist at workplace are all accommodated. In addition, this report has taken wider look on the HRM plans and policies that generally can be applied at workplace to ensure fairness, justice and equity among all the employees. Further, issues such as ethics and culture have been addressed in relation diversity at Levi Strauss and Co. Finally, as a human resource consultant, based on this assessment, there will be four main recommendations that can be used in developing effective HRM strategies in an employee diversified company. The recommendations include: identifying the goals of employee benefits program, constant reviewing of employee management and benefit schemes, evaluation of the overall HRM strategies and benchmarking the strategies with international conventions on labor. 1.0 Introduction 1.1 Background Information In many years, Human Resource diversity has become a subject of debate for many organizations especially those that have a global outlook. Perhaps this is because of the challenges that human resources from diverse backgrounds present to the organization. Human resource (HR), diversity is affected by such factors as migration of persons from one region to another and who have continued to impact greatly on the HR strategies of many organizations. This is because the organizations have the responsibility to work towards creating those policies and procedures that will accommodate each and every person irrespective of the background (Richter et al. 2011, p.2149). Continued global movement and international mobility has led into a situation where individuals relocate from their actual working place to seek for employment elsewhere in the world. This global mass movement has totally impacted on the working environment given that individuals have different values, beliefs and perceptions which they tend to demonstrate wherever they go. This is to mean the way people interact at workplace, the social life of individuals and the mode of communication and more especially the language used in communication is likely to change. This is a continuous trend in the contemporary society. In essence, the work of the human resource management (HRM) is to enact different policies and procedures that should be realigned in with these movements and international mobility. The purpose is to make good use of different diversities in order to create positive change in the organization in terms of performance (Batt 2000, p.549). 1.2 Objectives The primary objective of this report is to critically evaluate the concept of HR diversity in order to develop strategic HRM plans and policies by addressing key issues related to this concept such as, ethics and culture and workplace diversity. The report will also develop recommendations that would be used by different organizations to make sure that favorable environment is created for all diversities. This report will make use of the Levi Strauss and Co. case to this report. 2.0 Company analysis Levi Straus and Company was started in 1853 was founded by Levi Strauss who was an immigrant. Levi Strauss is the world is biggest brand in manufacturing and marketing jeans and other clothing to more than 110 world countries. Currently there is no any other company that manufactures jeans and casual pants that has a global presence like the Strauss. The company’s products are manufactured and sold in different brands such as Levi’s and Dockers as well as Levi Strauss. This brand is the most recognized in the industry and has been registered in more than 160 countries. The company employees over 8,850 staff every year including 1,000 who work at its headquarters in San Francisco California. The company’s workforce comprises employees from all countries where the company has presence. This is to mean that the company’s HR diverse is great (Marvin 2012). 3.0 HRM plans and policies Given the number of years that the company has been in operation, its expansion to the global markets, has continued to pose very serious challenges. For instance, the company is expected to comply with different HR policies and procedures that apply in different countries. Workplace polices are also some of the issues that are addressed differently by different countries. All this has to do with the operating environment. In addition, mode of communication and the language used as become a grand challenge given that no single language can apply across the globe. Alongside, the company has continued to experience, differences in culture and HR ethics (Chung 2012, p.2333). Given these scenarios, it is the responsibility of the company to address a number of issues which all for easy reconciliation of HR elements among all employees irrespective of individual background. This has to be clearly outlined in the company’s HRM plans and policies. These HR policies and procedures are particularly important in this era when the company is undergoing transformation in order to diversify its product base and at the same time ensure that its intensive global touch and more especially in emerging markets (Kathy and John 2001, pp.57). Competition is also very eminent in the global market and existence of adequate HR policies and procedures will ensure competitive advantage. The following are key issues that have been identified and that need to be included in the HRM plan and policies: 3.1 New leadership approaches The leadership is expected to be proactive in identifying issues that affect employees in different countries. This is important in addressing employees’ needs at workplace and they should be provided. Furthermore, employees from varying countries have differences in attitudes as well as beliefs hence making it difficult to establish a sense of cohesiveness and community. In the changing society, the needs of the employees have also continued to change. For instance, many of the employees are affected with global economic recession which has prompted many companies to cut on their expenditure by declaring some of its redundant and retiring some of them. In America for instance, the existing financial crises must be addressed by the company that has been in operation for over a century by designing cost measures that will ensure that the company does not cut on employees or reduce on their wages as illustrated by Sparrow (2012, p. 2034). The company can address this problem by focusing on the needs of the employees and assuring them security on their jobs. In addition, new approaches should also enact HR policies that promote equity, fairness and justice at workplace. For Strauss Company to continue to prosper, it must create a fair play ground where all potential employees irrespective of their race, age, culture and socio-economic background are given equal opportunity to compete for the available job opportunities. 3.2 Valuing of other people Valuing others at workplace is an ethical issue. The Strauss Company’s workforce is composed of employees from different backgrounds. Management of these different cultures, values and ethics is at the core of the company. Respect for every person is given priority at the company. It is important for managers to think broadly in terms of ethical issues. The HRM plan and policies should seek to promote and advocate for fair treatment of each and every person working for the company. This is particularly important in creating a working environment where individuals are regarded as somebody irrespective of the background. Fight against discrimination of any sort must be encouraged. The company must understand the overall importance of respecting others and recognizing that no culture or value is superior to the rest and that most important thing in the team is to accommodate each and every person (Schneider et al. 2000, p.3). 3.3 Recognition of individuals and teams’ efforts Recognition of employees at workplace is aimed at encouraging people to work an extra mile towards achieving the predetermined company goals and objectives. Recognition takes the form of rewarding the extra efforts individuals make to the company in terms of performance. The operating environment is increasingly becoming very competitive and correlating the company reward programs will play a major role in retaining employees. This is because the HR is always very sensitive of what their peers in the industry get in terms of rewards (Sheehan and Sparrow 2012, p.2393). The ultimate objective of this plan is to ensure that the business is able to stand the global competition. Recognition is also important in motivating individuals at workplace. Employee recognition and rewarding in the company can play a very major role in enhancing fair competition among individuals and teams. Employee recognition should be applied across the board and must be accompanied by other incentives such as appraisals and assignment of new and challenging roles. This HRM strategy is important in encouraging individuals to make good use of their skills and capabilities. This will consequently influence the overall performance of the company (Fleetwood and Hesketh 2008, p.239). 3.4 Ethical management policies Ethical issues in HRM arise when the managers are expected to work and comply with the company policy on HR. This is important in ensuring that one is committed to doing well for the company, for himself, the other employees and the environment. The human resource manager is expected to come up with a clear guideline on what is expected of the employees and how the company intends to support them to realize stated objective. Ethical issues include fair pay for employees which clearly reflect the individual contribution to the company (Legge 1995, p.65). Every employee is expected to sustain his life from what he gets in terms of pay from the services he provides to the company. In addition, ethical management seeks to address issues related to creating fair and safe working conditions. Fair working conditions are particularly important in ensuring that employee personal needs are balanced with work demands. This can be well addressed in the relationship that exists between work and personal life where as an individual continues to work hard to meet his work demands, should also be able to meet his family obligations. The HRM plan should create a working environment where employees should be allowed to work within a reasonable length of time so as to allow for flexibility at work. While working on this policy, many businesses have recognized that there is need to balance between work and personal life. Finally, ethical management demands for fair pay and good working relations where individuals’ concerns are listened to and attended to and when required. This is important in culminating trust and loyalty to the company management as argued by Wood (1995, p.49). 3.5 Timely and adequate communication Communication is a very important aspect of HRM. This is because it helps in understanding what is happening in and outside the company. The plan and policy on communication demand that there be a formal way of communicating issues between the managers and the employees. According to communication is very critical in curing silent anxiety that may exist among the employees based on issues of speculations and the next move of the company based on the changing of the operating environment. The HR strategic plan and policy of a company allows for creation of a systematic channel through which information should flow to and from top management (Sheehan and Sparrow 2012, p.53). This is important in addressing issues related to conflicts between the employees and the HR function. In addition, policy on communication should be used to encourage freedom of expression and openness in the company. It is through timely and adequate communication that the employees will feel that their opinions are respected and that they count in making important decisions that affect their well being in the company. 3.6 Empowerment of employees Empowerment of employees is also an important aspect of HRM strategy. This is because employees are allowed to make their own decisions without necessarily waiting for the management decisions. This is one area where diversity plays a very major role in the company performance. This is because in a group of employees there is always a possibility that there will be persons with special capabilities, skills and experiences. In other words, HRM plan and policies make use of diversity to identify special capabilities that exist in a team and how they can be tapped for the benefit of the company according to Lindell, MK and Brandt (2000, p.85). 4.0 Key HR issues 4.1 Ethics and culture In any company that is undergoing transformation there are several issues that do emerge. Among this issues are ethical and cultural aspects (Hodgkinson et al. 2009, p.277). For instance, Levi Strauss and Company in the recent past has embarked on transforming its internal operations in order to align itself with new objective of manufacturing and selling office wear alongside its traditional brand. The responsibility of ethics and culture in any company is to ensure that the company has got values it lives and the ways in which behave towards them. Ethics define what is expected of each and every person in relation to the company norms and practices (Bagshaw 2004, p.159). This part of the report will discuss ethics and culture as emerging issues in any company undergoing transformation in relation to Levi Strauss and Company. 4.1.1 Organizational ethics Ethics is directly related with HR diversity. Ethics has been enacted in many companies with the aim of addressing diversity. It requires affirmative action for ethics to prevail in largely diversified workforce. Ethics is also used as an honor to diversity by ensuring that all differences are respected. In ethics it’s not a matter of right or wrong but its all about accepting differences. In addition, ethics in HRM seeks to do away with discernment of what is right or wrong (Levi Strauss and Co. 2009). I do believe that diversity and ethics is not the final word. As a matter of fact what matters most is the capacity the company has to go beyond by accepting the connections that exist between ethics and diversity. To show how these two issues relate at workplace, this report seeks to use the case of Levi Strauss Company. For many years, the company has had a very long tradition that demonstrates ethical practices at workplace. These practices have been fully supported by the company’s policy outlined in the in the Aspiration Statement, Code of Ethics and other list that contain the Company’s Ethical Principles. According to the company profile, the ethics program greatly relied on the company employees rather than big volumes of rules and regulations, something that has made it easy for the company to align itself with its values. The set principles and regulations are only put in place to guide decisions. It is the responsibility of the managers to try and find out if there is any connection between actions committed and the company principles on ethics. In addition, the principles do not even provide the course of action to be taken against those that have defied the company ethics. It is the responsibility of the manager to refer on what the company principles state on respect for others (Wood 1995, p.53). This is a very important aspect of ethics at Levi Strauss and Company. This is because it is used as a control measure for any person who may plan an action that may infringe on respect for others. At the company, employees and individual teams who are involved in making decisions, the company’s set of ethical principles is used as a guide of what is expected of them in terms of the company commitment. At this point every person is expected to see the connection between ethics and diversity. Respect for others and fairness as well as compassion great foundations for honoring the existing differences (Levi Strauss and Co. 2009). 4.1.2 Organizational culture In many years, Levi Strauss and Co. has acknowledged that hard work is a pioneering spirit. This spirit is used to individually and authentically inspire the production of quality products and services. The company is dedicated to elevating and enhancing the dignity of the employees who contribute immensely to the processing and distributing the company’s products to the market. In improving the company’s operating environment, the company has also embarked in investing more time, energy and heart as well as resources in enhancing and improving the lives of the sourcing communities (Levi Strauss and Co. 2009). The company’s code of conduct has also been enacted to outline the company’s terms of engagement with regard to labor, health and safe working environment. This has been done particularly to allow for general improvement of life both within and outside the company. The company has been the pioneer of the Universal Declaration of Human Rights and International Labor Organization (ILO) Core Conventions. Further, the company has also been working on ways to assess how well the employees are meeting the code requirements and how they can be supported to improve. Finally, at Levis Strauss and Co., different programs have been enacted which are aimed at strengthening employee rights. Finally, as part of the company’s effort towards improving working conditions, the company is working with suppliers, local orgarnisations and government as well as buyers who in one way or the other contribute the overall performance of the company (Marvin 2012). 5.0 Conclusion World over it is the primary aim of any company to maximize its returns and at the same time ensure less expenses. The Levi Company has widely recognized that its important resource towards realizing its objective is its employees. Their corporate strategy is well aligned with its HRM, which greatly values its employees because of the large resources involved in recruiting, selecting and training them. It is important to note that losing even one employee can be very expensive. Further, the company has recognized the need to have a well trained, knowledgeable and experienced workforce. At Strauss, it has also been established that the employees are given the opportunity to share in making decisions that affect their lives. This way the company has managed to deal with complex situations which might have been very difficult to manage. Further, flexible benefits are very critical in providing more lifestyle choices for the employees. This is important in motivating employees towards productivity. 6.0 Recommendations In ensuring property management of Human Resource Diversity, the following strategic recommendations have been put forward to help human resource managers to come up with working environment where individual differences are accepted for increased company productivity: Identify the main goals that should be contained in the employee’s benefits program package. This is important in ensuring that relevant policies and plans are enacted that will bring about positive change at workplace. It is also important to continuous review the employees’ benefits schemes, working terms, interactions modes and engagement. This will help determine what the right packages are for the employees. Further, this will help boost strategies aimed at enhancing respect for all prevailing differences. Steps and initiatives taken also ought to be evaluated to find out if they well correlate with the overall business strategy. This is to ensure that any programs introduced to support employees are also important in enhancing the company productivity. Finally, it’s important for the HRM to continuously relate their strategies with the important conventions by different organization such as the United Nations (UN) and International Labor Organization (ILO). This is to help find out if the company is on the right track towards creating fair and safe working environment for all employees. Reference List Bagshaw, M 2004, ‘Is diversity divisive? 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Marvin T, 2012, Working ethics: The “Valuing Diversity and Ethics” Workshops, viewed 22 April 2012, http://workingethics.com/valuesanddiversity.html Richter, AW, Dawson, J & West, MA 2011, ‘The effectiveness of organizational teams: A meta-analysis, International Journal of Human Resource Management, vol.22, pp.2749- 2769, (online Emerald). Schneider, KT, Hitlan, R and Radhakrishnan, P 2000, An examination of the nature and correlates of ethnic harassment experiences in multiple contexts, Journal of Applied Psychology, vol.85, no.13, pp.3-12, (online EBSCOHOST). Sheehan, M and Sparrow, PR 2012, Global human resource management and economic change: a multiple level of analysis research agenda, International Journal of Human Resource Management, vol.23 no.12, pp.2393-2403, (online EBSCOHOST). Sparrow, PR 2012, Globalising the international mobility function: the role of emerging markets, flexibility and strategic delivery models, International Journal of Human Resource Management, vol.23, no.12, pp.2404-2427, (online Emerald). Wood, S 1995, ‘The four pillars of HRM: are they connected?’, Human Resource Management Journal, vol.5, no.5, pp.49-59, (online EBSCOHOST). Read More