The challenge of managing diverse teams

“Research has consistently shown that diverse teams produce better results, provided they are well led. The ability to bring together people from different backgrounds, disciplines, cultures, and generations and leverage all they have to offer, therefore, is a must-have for leaders” (Ibarra and Hansen 2011: 71).

 At present, organisations have become extremely cosmopolitan due to identities, different cultures and lifestyles. Globalization and modern economic conditions require the organisations to interact closely with people from diverse backgrounds in order to be competitive within a global world. Therefore, workplace diversity has become an extremely important challenge for organization’s management. Leaders and business managers of today need to find the ways of working with multicultural teams for their evolving and changing. This blog will discuss the opportunities and challenges of the diverse team management, and present some effective strategies to manage diverse workforces.

‘People value their individuality and enjoy the right of self-expression. Membership of a group means giving up some of that personal identity. The real skill of management is therefore to make full use of people’s individuality for the mutual benefit of the group as a whole. Laurie J. Mullins

Managing diverse teams in organisation

Managing diversity means to manage people in terms of the employee’s and employers’ best interests. Today, many companies realize that properly managed diversity can provide organization’s creativity, effectiveness and successful development. It causes innovative ideas, which generate the creation of new products and services to meet the needs of the customers. Functioning with diverse team enhances the motivation in the organisation. Team diversity in the organisations influences on the better image and reputation of the company, and impacts on the extension of business. Moreover, management team diversity allows multiplying motivation and productivity due to the employees’ satisfaction in terms of fairy treatment, dignity and equality at workplaces (Green 2015). Many organisations use diversity initiative for high recruitment of the workforce and their retention (Esty 1995). Globalization has connected heterogeneous teams capable to create solutions for markets extension.

Tuckman’s Model

In order to face challenges and solve problems in diversity teams management the Tuckman’s Model is used for developing teams. It provides such stages as forming, norming, storming and performing to become one team (Laurie 2015).

Figure 1: Tuckman’s Model (Proulx 2012)

Bass’ Transformational Leadership Theory.

“Research evidence clearly shows that groups led by transformational leaders have higher levels of performance and satisfaction than groups led by other types of leaders” Ronald E. Riggio

Another model, which is called transformational leadership model, was created by Dr. Bernard Bass and includes 4 components, such as idealised influence, individualized consideration, intellectual stimulation and inspirational motivation (See Figure 2) (EBA 2016). According to Bass, transformational leadership is based on the leader’s impact on followers.

Figure 2: The transformational Leadership Model (EBA 2016)

 Diversity faces different challenges 

In managing diverse teams challenges are inevitable. Managers have to overcome such difficulties as the loose of personnel and work productivity and create a successful diverse workforce (Green 2002). Among challengers for managers there also legal actions against the organisation and complaints (Devoe 1999).

Diversity can be the reason of open conflicts and chaos, in case if there are misunderstanding, discrimination, prejudice and mistrust in the organization. Unfortunately, it happens when the organization becomes more diverse and employees are not able to work effectively together. Long existed organization culture can resist prospering and surviving of the diversity teams in corporation. Furthermore, most of communication in the organisation may be segmental, i.e. between people with similar backgrounds. This situation may be the reason of subgroup separation and “perceiving other groups as a threat to their values” (Garden 2008). With this in mind, the leader needs to explain their common task, making the team members to be involved to the project, better communicate and feel the significance of each other (Knippenberg 2013).

The examples of best companies, successfully managed diversity teams

Best business companies successfully work with diverse workforces and have financial benefits. Thus, in Google about 36 percent minority people and 33 percent of women work and this company is in the first place according to the rank “Work for fortune 500 magazines”. (fortune 2016).

Edward Jones and Starbucks employ about 60 percent women and have fourth and seventh position respectively in the same rating.

Procter & Gamble (P&G) has been a leader of people’ development from diverse backgrounds more than 12 years. The diversity mission of the company is “Everyone valued. Everyone included. Everyone performing at their peak”. (Lafley 2016).

Chairman, President and Ceo of P&G

Chairman, President and CEO of P&G says: “At P&G, our focus is on creating brands and products that improve the lives of the world’s consumers. When we truly leverage the strategic value of diversity and inclusion, we understand consumers better, we innovate more consistently, and we develop each other and ourselves much better, much faster, and much stronger.”

This mission is fulfilled by senior executives, cross-cultural mentors and leaders through marketing, communication and development of multicultural employee resource groups. Moreover, P&G is also a constant leader in the work with disable people, supplying multicultural marketing and managing diversity teams.

Recommendations for successful diversity teams managing

Leaders and managers of the organisations have to learn certain skills about managing diversity in the workplace for successful business development (Flagg 2002).This knowledge includes:

• The understanding of discrimination and its consequences.
• Knowledge of Laws and regulations.
• Recognition of their own cultural prejudices (Koonce 2001).
• The desire, in case of necessity to change the organisation (Koonce 2001).
• Creation of a work environment and Roosevelt (2001).
• Providing access to opportunities and information; equal employment and affirmative action (Losyk 1996).

Managing diverse teams as a reflection of the increasing process of globalization is extremely beneficial to both organizations and employers. If diversity managed in a good way in organisation, it increases its creativity and productivity. In case, if diversity is managed imperfectly, the organisation will face more difficult problems in communication, interpersonal conflicts, working relationships, as well as work productivity.

References

Bass, M. & Riggio, E. (2008) Transformational Leadership. Mahwah, New Jersey: Lawrence Erlbaum Associates, Inc.

Devoe, D. (1999( Managing a diverse workforce. San Mateo, CA: InfoWorld Media Group.

 EBA (2016) Transformational Leadership: Leading Change Through Growth and Empowerment [online] available from <http://www.educational-business-articles.com/transformational-leadership/> [20 February 2016]

Esty, K. & M. S. (1995) Workplace diversity. A manager’s guide to solving problems and turning diversity into a competitive advantage. Avon, MA: Adams Media Corporation [online] available from <https://edis.ifas.ufl.edu/pdffiles/HR/HR02200.pdf > [22 February 2016]

 Fortune, (2016) 100 Best Companies to Work For [online] available from <http://fortune.com/best-companies/> [22 February 2016]

Flagg, A. (2002) Managing diverse workgroups successfully. United Behavioral Health.

Gardenswartz L. & Rowe A. (2008) Diverse Teams at Work : Capitalizing on the Power of Diversity’. Virginia : Society for Human Resource Management

Green K. (2015) ‘Diversity in the Workplace : Benefits, Challenges, and the Required Managerial Tools’.  Food and Resource Economics Department, UF/IFAS Extension

Knippenberg D. (2013) Diversity mindsets and the performance of diverse teams’. Organizational Behaviour and Human Decisions Processes 121, 183-193

Koonce, R. (2001) “Redefining diversity: It’s not just the right thing to do; it also makes good business sense.” Training and Development.

Laurie J. Mullins (2013) Management and Organisational Behaviour 134

Lafley, (2016) Procter Gamble [online] available from <http://www.diversityinc.com/procter-gamble/A.G.Lafley [22 February 2016]

Loysk, B. (1996). Managing a changing workforce: Achieving outstanding service with today’s employees. Davie, FL: Workplace Trends Publishing.

Riggio, R, (2009) Are you a transformational leader. Psychology Today [online] available from <http://blogs.psychologytoday.com/blog/cutting-edge-leadership/200903/are-you-transformational-leader> [23 February 2016]

Roosevelt, T. (2001) Elements of a successful diversity process. The American Institute for Managing Diversity. Society for Human Resource Management

Leadership & Ethics

 

“Ethical Leadership is defined as “the demonstration of normatively appropriate conduct through personal actions and interpersonal relationships, and the promotion of such conduct to followers through two-way communication, reinforcement and decision-making”… [and] the evidence suggests that ethical leader behavior can have important positive effects on both individual and organizational effectiveness” (Rubin et al 2010: 216-17).

Present corporations and organization have to face ethical leadership as one of the burning issues to conduct beneficial business. The issue of ethical leadership is often misunderstood in business.  The number of corporate scandals has been recently increased along with financial crisis. For instance, Lay and Skilling, Enron’s leaders, were far away from ethical leadership, trustful relations and ethical behavior as well. As the result of the accounting cooperation with Enron, a big accounting company Arthur Andersen was destroyed.

People do not trust business leaders in building sustainable institutions (Bill 2010). In this blog, I will discuss what is necessary for a good ethical leader, providing the effective leadership and the stable development of organization.

Deontological and teleological perspectives

Normative ethical theories are divided into deontological and teleological perspectives. A deontological theory is based on the specific moral obligations and duties, which are self-evident and have intrinsic value. According to the deontological theory, moral actions can be evaluated due to rightness or wrongness (Ethics at a Glance 2015).

These approaches consider the ethical leadership as “good” phenomenon in connection with moral principles (Lakshmi 2014). The Confucian approach supports the moral leadership, and argues that leadership bases equally on “moral principles and the ethical vision of a good life” (Becker 2009).

According to Immanuel Kant moral universal principles should be acted without any exception and people need to do “what is morally right, regardless of the consequences” (Johnson 1952).  Holmes (1993) described strong deontological theories, in which “goodness is irrelevant to the rightness of an act”, and weak deontological theories, in which “goodness is relevant”.

In contrast, a teleological theory states the rightness or wrongness of actions and is based on the “goodness or badness of their consequences” The examples of teleological theories are ethical egoism and utilitarianism. (Ethics at a Glance 2015).

4 V model of ethical leadership

For better understanding the relations between leadership and ethics, it is necessary to describe the 4 V model of ethical leadership. It was created by B.Grace as a framework that balances the “internal beliefs and values with the external behaviors and actions” in order to achieve the common good. To implement this model it is necessary to follow 4 steps.

                        Figure 1:  4 Values model of ethical leadership (Ghuman 2010).

• Values: The ethical leaders have to understand the core values for identifying themselves.
• Vision: The ethical leaders need to think and shape a future for goals’ achievements.
• Voice: The ethical leaders need to articulate the vision in order to motivate others to action.
• Virtue: The ethical leaders need to behave virtuously in order to do well for common goal (Ghuman 2010).

Examples of Good ethical leaders and unethical leadership

Despite so many examples of ethical and unethical leadership at present, in this part of the blog we will discuss the experience of Jim Skinner, McDonald’s CEO, as one of the best examples of a good ethical leadership. In contrary, another negative example of unethical leadership will be also shown.

Jim Skinner, the ex Chairman of the McDonalds Corporation (2008)

Jim Skinner applied a coaching leadership style, and he is seen as a leader and symbolic promoter of the company’s ideas and initiatives (McDonald’s Corporation 2008). He is a really “charismatic and transformational leader, who “reinvented” the corporation “with a new vision and direction” (Hume 2007). His successful leadership focuses on customer satisfaction, creativity, the way how people present themselves and do not lose the primary objectives (Hume 2007).

On the other side, such leaders as Bruno A Kaelin, the former vice president of Alstom and  David Colby the former CFO of Wellpoint can be characterized by unethical and immoral influence on the corporations, full of professional flubs (Kostigen 2009). Bruno A Kaelin was accused of a bribery case, while David Colby had relations with 30 women.

Recommendations of a good ethical leadership

Leadership means to be responsible and ethical in private and professional life. Ethical leaders are the models of behavior for their followers both in the organization and group. (Phil 2015). An ethical leader should have various peculiarities and characteristics, such as honesty, the ability to make decisions in favor of the leading organization, to use the power according to ethical norms and requirements.

Jaramillo, Bande, & Varela (2015) consider the leadership as phenomenon related to ethical climate. According to (Russell and Stone 2002) ethical leaders follow the principles of integrity. Leaders play a significant role in preserving an ethical climate in organization (Reed 2011). Bart (2011) argues that ethics is extremely important and should be widely used in business in order to conduct moral principles.

George (2010) argues that aligned employees need to commit values of the organization being “the part of something greater than themselves”. A good example of an aligned organization is Johnson & Johnson, which uses their Credo values in leading the company. According to George (2010) in order to be an effective leader, he should be able to sustain excellent results during the extended period of time and focus on the customers. Only “authentic leaders”, as well as aligned, empowered and collaborative employees will be able to lead the organization to long-term and profitable business results (George 2010).

A strong ethical leadership, with articulated values, culture and vision, adherence to ethical standards and responsible norms as well as honesty and trust to customers, employees and stockholders provide organizations with a strategic advantage and sustainable development.

References

Assumptions in Normative Ethics [online] available from <http://rhchp.regis.edu/hce/ethicsataglance/DeontologicalTeleological/DeontologicalTeleological_01.html> [12 February 2016]

Bart, C. (2011) ‘Ethics: The Key to Organizational Culture’, Canadian Manager, Business Source Complete, EBSCOhost, 36, 3, pp. 4-6

Bill, G. (2010) The New 21^st Century Leaders [online] available from <https://hbr.org/2010/04/the-new-21st-century-leaders-1/> [11 February 2016]

Ethics at a Glance. `(2016) Deontological and Teleological

Hume, S. (2007) McDonald’s CEO Jim Skinner – R&I’s , Executive of the Year [online] available from <http://www.rimag.com/article/CA6553963.html> [13 February 2016]

Jaramillo, F. & Varela, J. (2015) Servant leadership and ethics: a dyadic examination of supervisor behaviors and salesperson perceptions’, Journal of Personal Selling & Sales Management Business Source Complete, EBSCOhost, 35, 2, pp. 108-124.kkk

Johnson, C. (1952) Meeting the Ethical Challenges of Leadership: Casting Light or Shadow. New Delhi: Sage 4^th ed.

Karminder, K. (2010) Management: Concepts, Practice & Cases [online] available from <https://books.google.kz/books?id=QfxemvtRxo4C&pg=PA406&dq=4+V+model+of+ethical+leadership&hl=ru&sa=X&ved=0ahUKEwi634LN0c3LAhWrj3IKHbgUBQYQ6AEILTAC#v=onepage&q=4%20V%20model%20of%20ethical%20leadership&f=false> [14 February 2016]

Kostigen, T. (2009) The 10 most unethical people in business [online] available from <http://www.marketwatch.com/story/the-10-most-unethical-people-in-business> [08 February 2016]

Lakshmi, B (2014) Leadership Ethics in Today’s World: Key Issues and Perspectives’, ASCI Journal Of Management, Business Source Complete, EBSCOhost, 44, 1, pp. 66-72

McDonald’s Corporation (2008) [online] available from <http://www.mcdonalds.com/corp.html> [11 February 2016]

Phil, R. (2015) Article leadership [online] available from <http://ctb.ku.edu/en/table-of-contents/leadership/leadership-ideas/ethical-leadership/main> [12 February 2016]

Reed, L. & Scott R. (2011) A New Scale to Measure Executive Servant Leadership: Development, Analysis, and Implications for Research. Journal of Business Ethics 101 (3): 415 – 4 34. doi : 10.1007/ s10551-010-0729-1.

Robert L. Holmes (2013) The Ethics of Nonviolence [online] available from<https://books.google.kz/books?id=0XbHAgAAQBAJ&printsec=frontcover&dq=The+Ethics+of+Nonviolence:+Essays+by+Robert+L.+Holmes&hl=ru&sa=X&ved=0ahUKEwiitIjRzs3LAhWp_HIKHY68CQQQ6AEIHjAA#v=onepage&q=The%20Ethics%20of%20Nonviolence%3A%20Essays%20by%20Robert%20L.%20Holmes&f=false> [14 February 2016]

Russell, F. (2002) A Review of Servant Leadership Attributes: Developing a Practical Model. ” Leadership & Organizational Development Journal 23 (3): 145 – 157. doi : 10.1108/01437730210424