Diversity In Organization Case Study

Globalization and technology advancement bring the world closer and closer. People no longer live in isolated environment. They interact and exchange value, knowledge, background, culture and way of thinking. Looking at business perspective, competition become more dynamic than ever before. They need to have creative ideas in order to satisfy the high demand of customers. Diversity in organization is a key to solve this common issue. This is why most multinational corporation is more successful in term of doing business than local ones. Research proves that having a variety of background of employees is a key to sustainable competitive advantage.

For example, British American Tobacco, a world’s second largest listed company in tobacco industry, develop a human resource management tool where employee is an inherent asset. Senior employees will be provided with international assignment which they have opportunity to work, on medium term basis, across different countries. The tool which is referred to as “Center of Excellent” is a unique yet promising management activity. Diversity can be in many types, i.e., age, gender, race and ethnicity, education, physical and mental ability, culture, problem-solving ability, critical-thinking ability, team-building ability, communication ability, income, and number of experience.

It is harder to manage people from different background and belief. Suppose diversity is not well managed, discrimination and conflict of interest may come into the organization.

In brief, an organization with a range of skills operate more successful than that with a unity of background. However, it requires management’s awareness of its usefulness, implication and application so that they can utilize diversity to the maximum