Managing a Culturally Diverse Human Resource Report

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Updated: Dec 12th, 2023

Introduction

Most of the Arab Gulf States such as the United Arab Emirates have constructive engagements with diverse personnel and clients who assist in the current acceleration of economic growth as well as that of the dependants who are mainly developing countries benefiting from oil exports or other wide range of products and machinery.

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One of the credible factors the Arabs Gulf States ought to address urgently includes employees’ management issues.

Thesis statement

This paper discovers and addresses some of the challenges relating to management of employees faced by some companies in Arab Gulf States, particularly issues relating to foreign workforce and its effects.

The paper relies on findings from successful firms in United Arab Emirates. Labour markets face major consequences of segmentation, cultural challenges, performance expectations and other challenges relating to current indoctrination trends.

Literature Review

Contemporary Issues

Job markets

The Gulf States have recently been the largest markets or best choice for most international job seekers. The governments of United Arab Emirates encourage migration as a measure to ease pressure associated with labour markets, reduce rates of unemployment as well as accelerate economical developments.

It is the most dynamic, established and most efficient measure for curbing the alleviating levels of poverty among most developing nations (Walters et al, p.32).

Migration

Oil wealth has attracted many immigrants into the Gulf States in search for better paying jobs especially people from developing countries. This a big challenge that HR systems of most United Arab Emirates companies faces today and in future. The economy growth mainly relies on the forces and foreign employees deliver majority required labour.

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Reliability on such is evidently a huge challenge on employees’ management such as among popular wealthy emirates clusters in Abu Dhabi and Dubai. The United Arab Emirates has successful international companies such as Voltas Limited, a Tata Group company or Levtech Consulting Company in Abu Dhabi employs from different states with different cultural procedures.

Cultural and Gender Disparity

The labour market faces a big challenge of under representation of women due to their cultural believes and prior HRM styles. Existence of the high quality education enables women to enjoy the same rates as their male counterparts. Women make up majority of population in Kuwait, Saudi Arabia and Bahrain (Pollock, p.9).

Human management has to ensure there is no gap difference in gender participation and enhance future substantial democratization advantages (Pollock, p.9).

Social identity theory

Contemporary Thinking in an Organization

Cultural diversity entails the experiences and characteristics of different people within an organization. It includes the whole spectrum of human beings including ethnicity, race, age, gender, disability, religion and the sexual orientation. Most importantly, diversity ought to focus on individual work style, communication technique, role level, level of performance and economic significance.

The main aim of diversity is to tap talent and unique qualities along these dimensions. Diversity therefore focuses on differences and similarities at the workplace. This influence over individual identity and perspective goes beyond legally specified dimensions and from that perspective, it can be a source of non-discriminatory opportunities and affirmative statutes within the work setting.

The workplace ought to have non-discriminatory programs through the organization culture. This is the key element representing dignity and respect for all, to encourage knowledge or experience gain and team work. There ought to be some proactive measures required to deal with conflicts associated with workplace diversity and cater for ways of fostering the practice.

Common Pros and Cons Associated With Diversity

Cultural diversity boosts company’s competitive situation in the market. Unlike the early days when marketers thought that certain goods or services were universally acceptable, cultural diversification enables today’s marketers to know that different cultures demand for different taste of the same product or service.

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Large chain stores like Wal-Mart or Woolworths are in a position to establish the best way of presenting their products depending on location. (Booyens, p.56)

Today we see a business scenario where small and medium sized companies are able to give big company a run for their money because they have understood the concept of trading in a multi-cultural setting.

The twenty first century creates openings for engaging in technological aspects and resources such as internet trading, which assists to overcome physical boundaries. A culturally diverse company is rich in knowledge pertaining people from various countries thus has enough chances of enhancing trade (Mathis et al, p.16).

A business with ethnic diversity can easily serve a wide base of clients without much effort considering the ease for workers to relate with clients. The clients have a diverse representation in the firm thus high interactions between client and server.

There is a wide variety and well-balanced pool of knowledge created by diverse cultures in the workplace. Knowledge is power to gain experience, creativity, customer support or participation, lasting results and eventually long-term high profit margins (Booyens, p.163).

Lack of acceptance and discrimination are characteristics of failure to enhance cultural diversity in the workplace. People from different background still have personal features hindering this form of development.

The cultural diversity within an organization with such people can be the main source of conflicts, group-work failures and thus fall of business operations and eventually poor economical growth. The diversity issue can therefore be a negative aspect if it lacks proper implementation procedures.

Proactive measures of resolving diversification at the workplace

Implementation of cultural diversity at the workplace should be subsequent to strategically planning. Execution or change management must entail employees’ inspiration through infusion or integration of various aspects, such as those involving diversification into the business procedures or requirements.

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It ought to apply from the top executives, who should show commitment and importance of diversity. Having the employees understand the importance of diversity from the word goes reduces any possibilities of conflicts.

The top Human Resource leaders must engage an upbeat measure of solving diversity related conflicts by regularly emphasising on its benefits to the firm. The business cultural commitment to diversity requires legal gazetting with the external regulator body to emphasize on the consequences regarding those conflicts that break the rule.

In relation to Booyens writing (p.163), a company need to have programs for performing prior training to employees on how to deal with counterparts from different cultural setting. Arguably, it is impossible for employees to be careful on issues regarding stereotyping, language differences, time differences and individual versus collective mindset, as a measure of avoiding conflicts or resolving diversity related disagreements.

Fostering cultural diversity at the workplace

Promotion of cultural diversity in the workplace ought to take place before commencement of hiring. This means that one should include diversity in the business plan. In line with Daft and Marcic (p.244), discovery of strengths or benefits of an action occur well prior to proper planning.

These calls for the HR management to be responsive over recognizing, respecting and capitalizing on various aspects of the society mainly regarding ethnicity, race and gender. A good manager should note that even outside the work setting; one finds exposure of various cultural practices.

According to Daft and Marcic (p.244), a good system capitalizes on the employees strengths while minimizing on the weaknesses. The differences between employees’ culture should entail proper usage, to strengthen understanding and enhance stronger bonds through team works as a measure to capture global clientele.

An entrepreneur should know that diversity is something more than mare moral obligation or a necessity for a business but is a business opportunity.

Elements of managing diversity

Evidently, majority of the companies have embraced the aspect of Human Resource Information System to enhance better styles of carrying out proceedings in HR departments. Competition calls for total integration of technology in the human resource department, to reshape the pattern of conducting business and maintain competitiveness in the global economy.

Like the past motives, today’s business goals entail making profits by selling products or services that satisfy the societal needs (Walters et al, p.7). The only difference is on the use of technology for better enhancement and thus quicker and higher profit margins.

Given the resolution of the society to embrace change, it is necessary to examine relationship between the Human Resource Management and integrations of technology. It also addresses the future expectation for professionals in various industries.

The HR management involves solution of various business strategic plans and failure to incorporate the IT is one of the root cause of the current collapse or liquidation of some firms. There is eminent need for a business to shift with the societal norms less it perish in the near future.

Consistent with Voltas Limited, proper HR Management calls for professionals to engage in understanding clients and employee’s behaviours competently, by basing the logistics on past and present status, to be in a position of predicting the future (Walters et al, p.4).

According to Walters et al (p.4), future HR managers should use the technological advancement to control three aspects of businesses namely, “business strategy, HR mastery and Technology” as evident in today’s ever-dynamic world of technological management.

Theoretical Concepts of Strategic HRM in the 21st Century

Resource dependence Theory

This is a conceptual advancement to cater for reduction of environmentally dependent concepts and uncertainties and maximizing on available resources such as human resources (Mathias et al, p.34). Today most companies have realized the key role of their HR departments.

The HR department should be the key business strategic planner through deployment of technology such as the web-based analysis of economic factors influencing the business in order to increase profitability.

Discovery of knowledge as the key resource for the HR department is the basis for future predictions that HR management will necessitate for new and radical management strategies and practices. The field of information technology ought to replace firms’ important administrative tasks.

The tasks that involve merging of firms, integration of new resources such as outsourcing and involving of joint ventures are all concerns of the HR managers. Other common tasks entitled to HR department today include involvement on leadership such as directors’ roles, necessary political actions and formation of inter-organizational relationships.

The managers in the HR department should be the strategic business associates who ought to ensure business gains from the planning strategies. According to Mathias et al, (p.34) HR management system should have the sole role of ensuring maximization of profit margins through enhanced quality and technology based on human management as a way of creating value to the organization.

Signalling theory

The aspects of internet required for the HR management, which comprise of the intranet technology, electronic education for the clients as well as the employees, self-service for the client, gathering of the client’s response, virtual reactions to comments through surveys and electronic comments forms the signalling features.

The HR managers must be in a position to perform a critical SWOT analysis of a firm and offer prospective analysis. A good example of the analysis involves the operation of Saudi Arabia ARAMCO Company (Walters, p.5). It is an international producer, marketer and distributor of oil and gas products competing in the global markets.

SWOT Analysis summary

STRENGTHWEAKNESS
OPPORTUNITYS-O( MAX-MAX)W-O (MIN-MAX)
THREATSS-T (MAX-MIN)W-T (MIN-MIN)

S-O, the company should pursue opportunities that are within their strength.

W-O, the company need to minimize on any of their internal weakness and try to utilize external opportunity coming their way

S-T, ARAMCO has to maximize on the available strengths and avoids threats from the external environment

W-T, these are external environment factors that should fully be minimized to enable the growth of the company

Swot Analysis Chart

Swot Analysis Chart

HR Feedback to improve ARAMCO Supply Chain

Strategic Theory for Future Human Resources plans

Most of the employees as well as the clients have access to computers and internet connections. The aspect of electronic trading has already been acceptable among users. In line with Daft and Marcic, (p.150) the future implication and planning of these technological advancement means advancement in employees’ productivity and therefore the general performance will increase drastically.

During the integration of information technology into business, the aim is to eventually manage and improve the customer’s relationship, manage the intelligence in the business setting, plan for the resources, manage people especially in terms of the knowledge, manage supply chain, enhance electronic trade as well as support decision making procedures (Daft and Marcic, p.244).

Today utilizing the available technology is inevitable, the question remain whether the companies are utilizing the technology in the right manner especially for the human resource departments.

According to Daft and Marcic, (368) what lies ahead is a human resource department focused on a knowledge based economy, where the race remain between the rivalry companies over fast learning and flexible organization with the aim of taking the advantage over the already technologically acquainted markets.

The technological advancement allows companies to be in a position of collaborating and exchanging information over contraction or stockholding and the recent merging programs.

Major future understanding of the IT integrated in the HR management entails definition of the intended and anticipated outcomes. The current increased usage of technology in the workplace shows that it is inevitable for the HR departments to adopt the web-based systems.

Resource-based view Theory

In future, users expect the human resource information technology to manage the company’s benefit plans and all the employees’ information. The benefits management plans enable the HR department to deal with the ever-growing databases. The HR faces the challenge of dealing with dynamism and limited resources due to expansion of databases and growth of information.

Conclusion

An effective HRIS or HRMS should have provision for any requirements of the business such as the need to track, analyze or process employees’ information for instance from the previous employers databases. An advanced HRIS ought to avail customization probabilities to cater for unique business needs.

The employees are in a position to do personal benefit analysis and updates such as changing profiles like the personal addresses thus relieving the management most of the strategic functions.

With such connecting intelligent system, it is easy to facilitate equal treatment of data pertaining management of employees, development of knowledge, development of careers and facilitation of equal treatment. There is eminent need for future systems to enable employers to collect and analyze information legally with the aim of ethically assisting and providing effective support to reporting employees.

Works Cited

Booyens, S.W. “Introduction to Health Service Management.” Juta and Company Ltd. South Africa. 2008.

Daft, Richard.L. and Marcic, Dorothy. “Understanding Management.” Cengage Learning, 2008

Mathis, Robert, L., Jackson, John. H. and Elliott, Tonya L. Human Resource Management. Cambridge, MA: Thomson Southwestern Publishers, 2007

Pollock, Michelle. “Qatar: A Model for Education Reform in the Arabian Gulf.” World Education News and Reviews May 2007. Web.

Walters, Timothy N., Alma Quadratic, and Lynne M. Walters. “Miracle or Mirage: Is Development Sustainable in the United Arab Emirates?” The Middle East Review of International Affairs (MERIA). (September) 10:3. 2006

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IvyPanda. 2023. "Managing a Culturally Diverse Human Resource." December 12, 2023. https://ivypanda.com/essays/managing-a-culturally-diverse-human-resource/.

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IvyPanda. "Managing a Culturally Diverse Human Resource." December 12, 2023. https://ivypanda.com/essays/managing-a-culturally-diverse-human-resource/.

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