Incorporating Diversity in HR Functions Case Study

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Introduction

Human resource diversity [HRD] at the workplace is delineated as a crucial concept that is responsible for developing positive and inclusive work environment. Diversity creates positive impact on HR function by increasing the responsibilities of HR department as it guides in amending such practices that associated with laws (Banfield, Kay and Royles, 2018). TK Maxx [Large scale organisation] and Amity Fish [Small and medium sized enterprise] will be selected for undertaking the analysis. Report will present whether diversity improves organisational performance or not. The essay will analyse the assumption [Diversity led to improve the organisational performance] mentioned in core text given by Hook and Jenkins, 2019 along with highlighting the influence on HRM. The analysis will be done within referring to PESTLE model and findings will be based on relating two businesses that are of different size within different sectors.

Main Body : Workforce Diversity in HRM

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Workforce Diversity and its impact on HRM

Diversity and inclusion led to an impact human resource functions such as-recruiting, training and record keeping. The diverse workplace added new inputs and ideas through which effective environment at organisation can be created that develops motivation among employees in terms of performing their tasks in a significant manner (Bennett, Saundry and Fisher, 2020). The diversity parameters in organisation impacts recruitment strategy under which HR guides to employ people from all types of background and religion. The specific requirement relates to education and experience which is required for performing the job. Apart from this, there is no significant demand could be implied related to background, race, religion, gender and caste, following these requirements depict discrimination at the workplace.

Training programmes are organised by HR team in order to promote the skills and abilities of employees. Diversity plays an important role in such programmes as well, it enables people from different background to interact with each other, work together and provides opportunity in relation to understanding each other. Supervisors would get benefit from these kind of training programmes as they promote workplace diversity where subordinates get chance to understand each other along with assuring respect. Diverse workplace helps in workforce management and organisation often gains competitive advantage through this. Within adopting multiplicity approach, people from different cultures have been approached that ensure input from diverse mind-set. The stereotypes on-to which organisation works creates influence on employees. For instance- adopting diversity results in enhancing the morals of employees whereas, lacking in diverse culture would lead to decrease the satisfaction of sub-ordinates in the business.

Hence, from aforementioned description this could be articulated that, HR functions gets influenced by diversity, practices become more specific and multicultural approach implemented in the business which promotes higher employee engagement and also enhances the productivity of business. Diversity is directly linked with HR practices, not compliance with these, creates negative impact on the business. Therefore, it is highly required for the organizatios to lay more focus on these aspects. For instance- organisation does not follows the concept of diverse culture then, this lead to create impact on the business in negative manner (Bennett, Saundry and Fisher, 2020). Employees in the business does not feel valued and this lead to impact their working abilities which results in reducing organisational performance.

TK Maxx HR & Diversity Impact

The TK Maxx is a retail firm that runs on large scale, it is one of the leading off-price retailers of home fashion within UK. The company comes in the list of flexible retailers at the global level which involves opportunistic buying (TK Maxx, 2022). Emphasizing on the HR processes on the organisation- it has been witnessed from the secondary sources that, TK Maxx HR department undertakes the series of practices such as- recruiting, selecting, training, orientation, compensation, benefits and reward management. Human resource department of company is responsible for creating a diverse workplace in business and organisation takes important decision in this area within analysing the external factors that has potential in terms of impacting the internal operations of the company. In order to undertake in-depth analysis of the external environment factors that impacts HR process of TK Maxx and create accountabilities for adopting diversity in business PESTLE Model is being used.

Political factors associate with the regulations implemented by government, TK Maxx is a global firm which means the company operates in different country and therefore, it is essential to follow rules and regulations specified in each country. Promoting diversity and equality comes under the mandatory rules and not following this results in imposing heavy penalties on business. However, HR department of the company has adopted diverse work policies within analysing the political factors (Hook and Jenkins, 2019). TK Maxx believes in adopting diversity and inclusion at the workplace through which opportunities to everyone at the global level is being provided without undertaking any type of discrimination.

Incorporating Diversity in HR Functions Case Study

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Brexit is the topmost example of economic factors and due to this HR of TK Maxx relies on employees from other countries. It can be said that, to some extent this factor promotes diversity as employees from the different countries have been approached in the company. The sociological component influences HRM practices & procedure; ethnicity, gender, race and social class these are the major factor that impacts HR processes. Culture norms and values are accountable for shaping the expectation of workplace and encourages interaction between the employees. TK Maxx HRM gets affected by these factors and therefore, they have adopted multicultural pattern. Under which employees from different background have been given the opportunities and subordinates are guided towards respecting each other cultural values. The policies of the business are shaped in such manner so that everyone in the company does not get judged on the basis of their background. TK Maxx HR practices focuses on promoting diversity as organisation is a global firm and for them it is important to create an impression at international level. This can be done within promoting diverse workplace and promoting equality at the workplace.

Technology is already creating huge influence on HRM, without using technology, organisation is not able to approach candidates from diverse background. Furthermore, in order to organise training in the company, webinar and seminar needs to be conducted which is not possible without technology (Introducing Human Resource Management, 2019). Legal aspects such as employment Act also places major impact on HR practices. On the basis of this, HR department of TK Maxx needs to ensure that every employee should be treated in equal manner and there is no discrimination should be taken place on the basis of their caste. Environmental factors also create impact on HR practices within TK Maxx. Organisation needs to use sustainable practices so they can maintain their position in the market.

From the analysis it has been witnessed that, there are certain HR Practices which gets impacted due to the concept of diversity at workplace. TK Maxx is a large-scale organisation that aims of implement diverse workforce and this is enabling company to approach talented workforce and along with this organisation is performing mandatory steps which is required in order to manage diversity at workplace. Hence, this could be said that HR functions of business gets influenced due to external factors and most specifically diversity impacts HR department. Employment law within the legal factor is one of the important legislations that focuses on promoting equality in the business and supports in performing diversity practices. Managing employee relation is the core attribute of diversity. In an organisation there are varied numbers of employees and all of them from different background. There might be possibilities that at a certain point of time conflict might arise between them and due to this, subordinates get demotivation (Introducing Human Resource Management, 2019). In such situation, HR department plays the most important role in considering needs of employees. It is the accountability of HR that they need to focus on the requirements of employees and accordingly actions should be taken in the business. This helps in promoting the productivity of employees and further enable HR in terms of retaining them.

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Evaluation of Amity Fish Co HR Functions & Diversity Impact

Amity Fish Company runs on small-medium scale and deals in supplying seafood within UK. In comparison to large organisation, HR practices of Amity Fish are comparatively less. However, recruitment, training & employee retention are the most important functions that are being taken in consideration by organisation (Amity Fish, 2022). Whether it is small- or large-scale companies, basic HR functions needs to be adopted by each business. Promoting diversity at the workplace is something that does not categorized on the basis of the size of business. In case, small businesses does not promote diversity at the workplace then, they are not able to achieve their goal (Adejumo, 2021). One of the topmost issues experienced by organisation due to ignorance of diversity is related to lack of productivity and employee engagement within the business. Political and social factor results in developing hurdles for small business. For instance, in UK- EDI- Equality, diversion and inclusion at the workplace is highly essential to be followed irrespective of the size of business (Introducing Human Resource Management, 2019). In similar manner, Amity Fish is bound to adopt these practices while recruiting employee. HR of organisation recruit’s employee on the basis of their skills, there is no judgement has been done on the basis of their background. Economic factors such as increasing labour cost impact HR in Amity Fish as organisation is not able to approach employees due to increase in labour cost.

Social issues can be experienced by the business in case they do undertake inclusive practices. For instance- diversity is just not for employees it is specifically for consumers as well. Amity fish deals in food supplies and business is entitled to provide products to customers from all type of background (Jonsen et al, 2021). The firm does not have enough investment to undertake technological advancement and this impacts HR Practices on negative note as they are not able to train employees however, by incorporating diversity business is able to assure employee engagement in the organisation which is prior for enhancing organisation’s practices. In case, organisation starts discriminating between employees on the basis of their caste then, heavy penalties have been imposed on the business. Therefore, Amity Fish focuses on this aspect and they assure equal opportunities to all of their employees. In terms of environmental factor, organisation focuses on reducing food waste so they can contribute in managing negative environmental impact.

Amity Fish focuses on adopting inclusive practices that can lead to promote diverse workforce in the business. Furthermore, it has been analysed that, external factors lead to impact the business HR function in terms of recruiting employees. Amity fish is a small-medium sized organisation that also requires the inclusion of diversity in organisation specifically in HR functions so employees from different background can feel satisfied in the company and they can perform their task in productive manner.

Discussion

From aforementioned analysis, it can be said that, whether organisation deals in small or large scale it is important to include diverse culture in the business. Diversity plays most important role in the organisation as it enhances the organisational performance while impacting HR practices. Furthermore, varied issues such as- lack of motivation, decreased employee engagement and increased turnover, these are the topmost issues that have been solved by diversity. TK Maxx deals in retail industry whereas Amity fish operates in food supply sector and both of these firms are of different size. However, from the evaluation it has been witnessed that, two of these companies gets impacted by external factors and diversity plays vital role in solving issues (Jaiswal and Dyaram, 2020). Diversity needs to be incorporated in HR functions as it helps in enhancing organisational performance in significant manner and therefore, specific focus needs to be implied in this area. In both the organisation, while recruiting candidates, it has been focused out that no applicant should be judged on the basis of their background or status. All of them needs to be given equal opportunities.

HR department in the organisation is accountable for developing workforce and each practice aligns with allocation of manpower, providing training and retaining. In all of these practices, diversity needs to be followed so everyone can get equal opportunities and equality can be assured in the business. This helps in managing employee relation and focus can be assure on following CIPD [Charted Institute of Personnel and Development] (Brewster et al, 2016). CIPD highlights relation between employees and employer that are based on industrial relation standards. Diversity is the core attribute in CIPD and therefore, organisation is guided in order to adopt diverse culture so, employees at the workplace gets motivation and they can perform their task in significant way. In this manner, trust development with employees can be enhanced that led to create motivation in them and as a result, subordinates perform their task in significant manner. This helps in enhancing the organizational culture.

There is no doubt in stating that, diversity led to create positive impact on business performance in varied ways. Different mind-set can be used in collective manner through which effectual decision can be implemented in the business. Furthermore, it supports in maintaining team unity that enhances the employee engagement in the business. This can be done while promoting diverse culture and therefore, diversity has been proven effectual for enhancing organisation’s environment. The assumption “Diversity led to improve organisational performance” proves to be true and this can be evidenced with the analysis. Diversity practices are directly linked with employee’s values and therefore, it contributes in enhancing organisational performance (Jaiswal and Dyaram, 2020). With the implementation of diverse culture HRM issues such as- lack of motivation in employees, conflicts, ineffective interaction with employees and negative threat from external factors can be solved and effective workplace in the business can be maintained.

Conclusion

Conclusively, this could be articulated that incorporation of diversity in HR function plays most important role in increasing the efficiency of workplace. The ideas have been taken from core text of Hook and Jenkins, 2019 along with undertaking individual research. PESTLE analysis used in order to evaluate the external factors that impacts HR practices and diversity in HRM. This has been witnessed that, in order to promote organisational culture, it is essential to develop sense of belongingness in employees and this can be done while promoting diverse culture. Therefore, it is important for HR department to employ diversity in their practices

References

Books and Journals

• Adejumo, V., 2021. Beyond diversity, inclusion, and belonging. Leadership. 17(1). pp.62-73.
• Banfield. P., Kay. R., and Royles. D., 2018. Introduction to Human Resource Management 3rd Ed. Oxford: Oxford University Press.
• Bennett, T; Saundry, R; Fisher, V. 2020. Managing Employment Relations (CIPD), Kogan Page
• Brewster. C., Sparrow. P., Vernon. G., and Houldsworth. E., 2016. International Human Resource Management 4th Ed. London: CIPD.
• Hook., C., Jenkins, A., 2019. Introducing Human Resource Management. 8th ed. Pearson.
• Jaiswal, A. and Dyaram, L., 2020. Perceived diversity and employee well-being: Mediating role of inclusion. Personnel Review.49(5). pp.1121-1139.
• Jonsen, K., Point, S., Kelan, E.K. and Grieble, A., 2021. Diversity and inclusion branding: a five-country comparison of corporate websites. The International Journal of Human Resource Management. 32(3). pp.616-649.

Online

• Amity Fish, 2022. Online. Available through: < https://www.amityfish.co.uk/>
• Introducing Human Resource Management, 2019. Online. Available through: < https://read.kortext.com/reader/epub/404231>
• TK Maxx, 2022. Online. Available through: < https://www.tkmaxx.com/ >