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