Having a diverse team is now more important than ever with the change in social attitudes and the rise in globalisation. This has now led women having equal rights and equal pay to men as well as the perception has moved from them just being mothers and housewives but instead as people who can be the CEO of companies. While in Europe the free movement of people law since a Schengen 1990 agreement means that companies can now recruit people from Romania and Bulgaria as easily as recruiting someone from the UK in addition, there have many been global visa relaxation rules which allow individuals to move for business reasons. This has meant companies now more diverse with more minorities and with more women than ever before and therefore is up to managers to deal with these differing cultures, social view and political views with these companies.
Therefore, in many a great leader who is someone who is able to work with anybody no matter the skin colour or sexual orientation after all one of the greatest leaders ever Nelson Mandela worked with the same people in politics who put him in prison for 27 years. Therefore this view was supported by (Maytree 2007) “Leaders develop the vision of society and institutions which guide us; Leaders have the power to make decisions which affect a significant number of people: An inclusive society where everyone has the opportunity to lead”. This means that a leader tends to have lots of power and is able to shape how society acts and therefore for someone to be a great leader they need to be able to include everyone.
Now being diverse not just because you have to do as otherwise you would face bad media headlines or you just do it as a token gesture instead there is proof that being diverse provides increased growth and earnings for the company. . This view is not necessarily just my own singular view, but shared by Forbes magazine who viewed “Diversity is essential to the growth and prosperity of any company: diversity of perspectives, experiences, cultures, genders, and age. Why? Because diversity breeds innovation. And innovation breeds business success” ( Toronto diverse 2014) . Therefore the strength of diversity is not that it looks good in the company brochure or is a good way to show off the company brand, but instead it is vital for the most important thing in a business. Making more profit!!! This is something a great manager will be to recognise and should act upon especially as there is now major evidence to support the claims such as the Mckinsey model which shows how a diverse model leads to a higher ROCE
As well as there is this chart by Forbes which shows that over 85 % believe that diversity workplace will help drive more innovation for the company
In addition to that top companies in America with over £10 billion in revenue around 56 % agree diversity is crucial to creating innovation and through innovation can stay at the top of the competition this further complimented by a director at Intel commenting “Because of our diverse workforce, we’ve experienced a boost in productivity. When you can move people to contribute to their fullest, it has a tremendous impact,”(Forbes , 2013 )
In addition to that top companies in America with over £10 billion in revenue around 56 % agree diversity is crucial to creating innovation and through innovation can stay at the top of the competition this further complimented by a director at Intel commenting “Because of our diverse workforce, we’ve experienced a boost in productivity. When you can move people to contribute to their fullest, it has a tremendous impact,” (ISS, 2014)
Therefore if a manager does not use diversity to produce better results than in many ways it is a stupid and failing manager when all the evidence points to the contrary, when major American companies believe that through diversity you can create better innovation and that through diversity you are able to create more returns your investment than a manager has to use the evidence. Methods to help achieve more diversity would be through following Adidas example, which has used targets to increase women on board or gender-balanced recruiting and child care assistance which are vital ways of getting more women to work for you. While this Forbes diagram shows the method company use to help with the assistance of diversity.
Banking Industry Sector
An area where diversity is probably one of the most important skills and greatly appreciated and needed is the banking sector as banks are very international therefore they need to do, they make decisions which affect different countries, different cultures and different beliefs therefore if they are all white male American they will be unable to fully understand all of that. This has been commented on by Credit Suisse “Having a diverse workforce is very important to our strategy. It allows us to capture new clients and address the needs of our existing businesses” ( Edge 2013) in addition to Deutsche Bank “Diverse teams and companies make better decisions and in the aftermath of the financial crisis, diversity is even more of a priority,” ( Forbes, 2013) Therefore banking which is now a far more complicated and highly competitive business than before needs to use diversity to follow the evidence that leads to innovation and through that they get their competitive advantage. Therefore, it is vital that the managers of the company recognise the potential value of having these diverse and therefore is able to manage them accordingly, even though they may have different social or political views that the consensus of the workplace. As well as that if companies are not diverse, then they are failing to represent modern society, especially in countries such as the USA and western Europe which are now full of people of different races and ethnicity and have moved on from just the traditional homogeneous races that they traditionally were associated with the country . So if companies are not diverse they end up missing out on a massive talent pool which severely restricts their ability to stay atop of the competition and be able to beat them.
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Edge, America , 2005. Strengthenig American Businesses and our Economy Through Racial Equity. Americas Edge, [Online]. 1, 1- 8 . Available at: http://www.americasedge.amazonaws.com [Accessed 15 September 2014].
Forbes, 2013. Fostering Innovation Through a Diverse Workface. Global Diversity and Inclusion, [Online]. 1, 1-20. Available at: http://images.forbes.com/forbesinsights/StudyPDFs/Innovation_Through_Diversity.pdf. [Accessed 04 September 2014].
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Reaping The Benefits Of Diversity For Modern Business Innovation – Forbes. 2014. Reaping The Benefits Of Diversity For Modern Business Innovation – Forbes. [ONLINE] Available at: http://www.forbes.com/sites/ekaterinawalter/2014/01/14/reaping-the-benefits-of-diversity-for-modern-business-innovation/. [Accessed 08 September 2014].