Danvita: Cultural Diversity in a Danish MNC

In recent years, diversity and inclusion have emerged as an essential business practice. Why are diversity and inclusion so critical to organizations nowadays? Do they really help organizations achieve better results? Why is it a unique issue in the 21st century workplace? To answer these questions, organizations should look into factors such as globalization. Globalization increases interactions around the world and diversifies the profile of the workforce, which also contributes to the changing composition of the current workforce. While globalization offers extensive opportunities for organizations, it also imposes many challenges that require new responses. Organizations are not only looking for ways to effectively manage a diverse workforce but also to leverage it to achieve better outcomes.

The creation of goals and timetables for actually hiring and promoting minorities and women in positions where they are underrepresented. This ensures that employers are acting in good faith in the prevention of discrimination.

Diversity has been a hot-button topic for many of today’s companies. Diversity programming and initiatives are regularly implemented by organizations of all types and sizes. As it relates to an organization’s human resources operation, diversity will continue to be an ever-changing term as the work towards equitable treatment for all continues.

“It ensures that all individuals receive equal treatment and equal protection under the law, while respecting and valuing their diversity” (R.S.C, 24)

Development of this case was made possible by a grant from the Society for Human Resource Management

“Our aims are to be supportive, fair, just and free from discrimination. In line with these objectives, we will challenge discrimination on the grounds of gender, race, age, disability, sexuality and faith; actively promote Equality and Diversity; and ensure that the legislation and policy requirements within the six strands of Equality and Diversity are implemented into all our working practices”

* have employees who value individuals and their diversity, respect others and openly share information, knowledge and views to help colleagues succeed.

Organizations, the world over, are embracing innovation in order to stay competitive by putting into action organizational management that includes, among others, culture, workforce diversity, and diversity management (Marsella, 2009). Although not much has been written about the interconnection of managing diversity (cultural, and workforce included) and organizational competitiveness (Cox & Blake, 1991), the contemporary way of conducting business calls for a large globally diverse workforce from various cultures, backdrops, beliefs, and ethnicities (Mazur, 2010). However, there are challenges associated with organizational management pertaining to culture, diversity workforce, and diversity management that conflict, or are at odd with national employment laws, as well as international labor law. This article deliberates over legal considerations while taking pertinent organizational managerial practices on culture, workforce diversity, and diversity management.

As America moves towards a multicultural mosaic, we are not a melting pot as we are much more of a salad bowl. The mosaic is one of different genders and cultures, each unique in its own way. Learning to understand each of these flavors gives way to doors in the world of sociology. Although there are many aspects of sociology for the topic of the assignment, we will discuss the importance of understanding diversity (cultural, ethnic, gender) by managers and professionals in the workforce. According to Forbes magazine, “Mixed gender executive boards have outperformed all-male ones by 26% over the last six years, according to research by Credit Suisse, while global studies have shown that organizations with diverse and inclusive cultures are

All this considering the existing differences due to gender in addition to those of ethnic or cultural origin. In addition, business practice: strengths and weaknesses and key challenges will approach the business reality in this area of action, at local, state and European level. What is the state of the matter nowadays in our environment? Good practices of diversity management will be announced in different countries and business environments with a greater tradition of migration, and will highlight the main weaknesses and strengths that derive from business practice.

The general line of reasoning is that if we learn to incorporate each other’s diverse traits and characteristics in the workplace, we can then use these differences to foster an innovative environment, which will give the company a competitive advantage over the competitors that do not accept workforce diversity. According to the Allied Academies International Conference, “Diversity is rapidly becoming a common practice among companies due to the increasing number of minorities entering the job market today. As these groups become more prevalent throughout companies, upper-level employees are facing numerous challenges when determining what changes must take place to create a positive working environment for everyone. Management is responsible for the development and implementation of effective policies directly relating to diversity to ensure the acceptance of minorities into the workplace and to aid in minorities’ success through equal opportunities and treatment.” (Marcia L. James, 2001, Academy for Studies in International Business Proceedings)

In today’s society there are many culturally diverse people in the workforce. Most organizations can no longer make the assumption that every employee has similar beliefs or expectations. When entering into the global marketplace, people are considered one of the most valuable resources to an organization’s success. A well-managed culturally diverse workforce has the potential to thrive if managed correctly; or if mismanaged, there can be devastating negative attributes. With great expectations, culturally diverse employees can foster positive outcomes in the workplace. A company’s acknowledgement to embrace diversity and change, and implement the value of management techniques are

High level of Productivity: Increasing productivity at the workplace has been one of the major challenges for managers and leaders and to the company in general. Due to the fact that every organization has its own unique company structure and objectives, different strategies may be used to challenge or address the company in order to increase productivity. One of those strategies involves adopting workplace diversity and managing it effectively. When management takes the welfare of its workers at heart by means of offering them proper compensation, health care and employee appraisal, it enables workers to feels they belong to the company irrespective of their cultural background by remaining loyal and hardworking which helps to increase the company’s productivity and

Diversity brings the company benefits which have been recorded extensively: the company reports that workforce diversity enhances team performance at all levels and positively impacts on customer’s success. Diversity also reportedly also enhances Ericsson’s ability to win new business and improve service excellence. Diversity management improves their corporate and employer image, and increases the attractiveness of the company among present and future stakeholders and also enables them attract and retain best candidates as employees. Ericsson shows strong commitment to diversity in all areas. Ericsson is guided by its core values of professionalism, respect and perseverance which define how they work together, and treat customers and partners. The company’s success is dependent on its diverse and engaged workforce, and Ericsson is committed to supporting its people.

Diversity in workforce “include, but are not limited to: age, ethnicity, ancestry, gender, physical abilities/qualities, race, sexual orientation, educational background, geographic location, income, marital status, military experience, religious beliefs, parental status, and work experience”(Thomas 1992). Diversity in the workforce is initially perceived as a response toward the increasing diversity of the consumers in the market (Agocs & Burr, 1996). From there, it has been observed that capitalizing on existing differences among the employees provide benefits to the organization. Diversity in workforce fosters and encourages