Small Business Managemnt

Topics: Management, Human resource management, Multiculturalism Pages: 15 (4506 words) Published: April 19, 2013
International Journal of Multidisciplinary Research Vol.2 Issue 4, April 2012, ISSN 2231 5780

*Assistant Professor, Maharaja Surajmal Institute, C-4 Janak Puri, Delhi-110058. **Associate Professor, Maharaja Surajmal Institute, C-4 Janak Puri, Delhi-110058.

ABSTRACT Work, workers and workplaces are not what they used to be or where they used to be says Peter F. Drucker in his new book, ―Management Challenges for 21st century‖ which provides insightful and timely information for individual and organizations alike as they work towards common goals in the next one hundred years. Among the eight new assumptions, workforce diversity is placed at the third position in terms of importance. Management being a social discipline deals with the behavior of PEOPLE and HUMAN INSIGHT. Hence, workforce diversity is the biggest challenge and at the same times the biggest opportunity for the 21st century managers. "Diversity Management" is a strategy to promote the perception, acknowledgement and implementation of diversity in organizations. Successful diversity management policy and program will eventually make a huge difference in the communication among employees and the general productivity of the organization. Today‘s organization need to recognize and manage workforce diversity effectively. The main focus of this paper is to empirically assess the relationship between workforce diversity and organization performance. Our main finding is that diversity is either positively associated with productivity or there is no significant relationship between diversity and productivity. We never find a significant negative relationship between establishment-level diversity and productivity. This leads us to conclude that establishments that employ a more diverse workforce are no less productive than establishments that employ a more homogeneous workforce. KEYWORDS: Ethnicity, Geographical Diversity, Multiculturalism, Socio-economic diversity. ___________________________________________________________________________

INTRODUCTION The world's increasing globalization requires more interaction among people from diverse cultures, beliefs, and backgrounds than ever before. People no longer live and work in an insular marketplace; they are now part of a worldwide economy with competition coming from nearly every continent. For this reason, profit and non-profit organizations need diversity to become more creative and open to change. Maximizing and capitalizing on workplace diversity has become an important issue for management today. Diversity is generally defined as acknowledging, understanding, accepting, valuing and celebrating differences among people with respect to age, class, ethnicity, gender, physical and mental ability, race, sexual orientation, spiritual practice, and public assistance status. Diversity


International Journal of Multidisciplinary Research Vol.2 Issue 4, April 2012, ISSN 2231 5780

issues are now considered important and are projected to become even more important in the future due to increasing differences in the population of various countries. Companies need to focus on diversity and look for ways to become totally inclusive organizations because diversity has the potential of yielding greater productivity and competitive advantages. Stephen G. Butler, co-chair of the Business-Higher Education Forum believes that diversity is an invaluable competitive asset that America cannot afford to ignore. Managing and valuing diversity is a key component of effective people management, which can improve workplace productivity. Demographic changes (women in the workplace, organizational restructurings, and equal opportunity legislation) will require organizations to review their management practices and develop new and creative approaches to managing...
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