DIVERSITY

Theresa Schweninger

This paper will give an account of diversity and multiculturalism. First, I will provide a definition of diversity. Next, I will examine the difficulties of leading people who are not like you. After that I will go on with the value of diversity for a company and which advantages diversity offers. Then, I will explore the feminine style of leadership, and finally I will discuss the issue of global diversity. Definition of diversity While a variety of definitions of the term diversity have been suggested, this paper will use the following definition: Diversity refers to the differences among people, for example in age, ethnicity, gender, race, or abilities such as education or skills. Diversity today Nowadays there is a big change in the working population. There is a trend toward working longer, which means that the workforce tends to be older. Furthermore, women and immigrants are increasingly met in the working environment. However, these rapid changes are having a serious effect on leadership. Leaders must have the ability to deal and work with people from other cultures and backgrounds. Many companies want their leaders to develop this

competence and have therefore established diversity programs. Such programs stand for including, hiring and developing unequal workforce and to show that the minority is accepted and respected. In addition, globalization is omnipresent. A lot of companies are doing business all over the world and get a substantial percentage of their sales from abroad. Corporations like Starbucks, who deal with highly saturated markets at home, find that doing business in other countries is the only way for them to grow. Overall, companies are aware of the positive effects of diversity management because with this potential they can raise their benefits and be strong on the market. Advantages because of diversity As mentioned above, diversity can help you gain a competitive edge. One study has shown that diversity offers a competitive advantage because minorities can understand what diverse customers want and need and make them connected to the company. Furthermore there is also some evidence that people are more motivated and work more effectively when the working climate is good. If the employees are treated in a fair way and if they are feeling comfortable and respected they are

willing to work harder for their employer. Moreover, diversity leads to higher flexibility for a company. Unequal employees think differently. Hence, there is a broader and deeper base of ideas and ways to solve problems. Additionally, a mix of individuals who are different in experience, age, gender or physical abilities have diverse perspectives, and they are creative and innovative in many ways. Ivan Seidenberg, the CEO of Bell Atlantic is a firm believer in diversity. If everybody in the room is the same, youll get a lot fewer arguments and a lot worse answers, he says. The results of a study show that companies with higher creativity and innovation have a higher percentage of women employees than less innovative organizations. Ways women lead These days, women move constantly into higher positions in companies, because their style of leading tends to be more effective than male leadership. Women are more likely to focus on the needs and values of a multicultural environment. On one hand the style of female managers concentrate on interpersonal skills. Their characteristics are motivating others, offering intellectual stimulation and providing more inspiration. On the other hand women prefer a less competitive environment

than men. Female managers are most of the time willing to let their employees know information for their development. Furthermore, women enhance others feelings of self-worth. Linda St. Clair, a successful personnel manager for manufacturing in a major technology firm says that her key to success is to help her employees to get what they need to be effectively creative. To sum up, the interactive style of leadership, which women prefer, is more relationship-oriented and because of that more effective. Global diversity and cultural intelligence In an increasingly global economy leaders must be aware that cultural and social differences may cause difficulties and conflicts. National cultures are often difficult to understand because they have different social value systems. The degree of power distance, for example, is much higher in Malaysia, the Philippines and Panama than in Denmark, Austria or Israel. That means that employees in the latter countries are less willing to accept inequality in power among institutions, organizations and individuals. Another example for social values is the degree of individualism versus collectivism. Countries marked by collectivism have tightly knit social networks (e.g.

Guatemala, Ecuador and Panama), unlike others, such as the United States, Great Britain and Canada. Leaders working in international companies must therefore be aware of such cultural differences and must adapt their leadership style accordingly if they want their companies to be successful. Leadership diversity vs. leadership style Increasing leadership diversity also means introducing new ways of leading to companies. Most American top-level managers have been male, white and heterosexual and generally hired and promoted employees who were like them because they found it easier to work with people who act, think and look like them. With stronger leadership diversity, leaders must learn to handle different types of personalities and to adjust their leadership style if necessary. This may require changing a leadership style according to cultural needs or having a more feminine leadership style that values relationships, cooperation and group decision making. Conclusion This assignment has explained the central importance of diversity. Firstly, it was shown that leadership diversity plays a key role in todays economy. The second major finding was that diversity offers a lot of

advantages such as competitive advantages, flexibility or creativity. The more different people are, the more ideas are born. After that it was shown how women lead. In comparison, the female style is more effective than the mens because of the focus on interpersonal skills. After that, the issue of cultural intelligence, which says that managers must adapt to cultural and social differences, was explored. Finally, the relationship between leadership diversity and leadership style was examined. Personally, I believe that many companies, especially in Europe, still underestimate the importance of introducing diversity measures and that we will see some major progress in this respect in the years to come.