Theoretical Concepts of Diversity in Strategic Planning
Several theories have been advanced over the recent decades to explain the significance of workplace diversity in public corporations. The core of the theoretical framework is on the importance of adopting workplace strategies that ensure inclusivity of all stakeholders, from the management to the employees. As much as numerous theories exist in the field of diversity management in the workplace, the scientific management, social identity and self-categorizing theories have significant implications on strategic planning in the workplace. Though not developed exclusively for diversity management, the scientific management theory proposed by Winslow Taylor has a significance to strategic planning and diversity management. For instance, Taylor supposed that corporate leaders strive to find the most effective approaches to improving the performance of their workforce in their operational tasks (Su, 2017).
Because of the implications of the theory, corporate institutions presently comprehend the contributions of innovation and alternative perspectives to the efficiency and productivity. For instance, as part of their strategic planning procedure, managers in the modern time have learned to embrace the idea of workplace diversity prompts them to seek the most qualified employees with the ability to improve the productivity of their firms (Su, 2017). Since diversity is one of the means of ensuring that specific workplaces have the required levels of innovation, modern managers have increasingly found it necessary to reorganize their recruitment procedures to accommodate people from diverse backgrounds.
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The social identity model hypothesizes that perceived groups differences underpin intergroup behavior. The theory suggests that people will always pride in the groups with which they are associated and that they will always want to hold prejudiced perceptions towards those who do not belong to such groups (Hogg, 2016). Though the element of prejudice is not one of the core factors considered in diversity at the workplace, it is critical noting that it solidifies the connection among members of the same organization. For instance, managers who would like to improve the outcomes of their diverse workforce might want to create an image of their company as the best place to work. In doing so, the employees will be motivated to express the sense of pride that comes with working in at the institution in comparison with the rest of the corporations.
Overall, the social identity theory emphasizes the need for the development of workplace policies, through strategic planning, that enhance a sense of togetherness among the employees. The ideas of social identity theory overlap with those of the self-categorization theory, which describes the conditions that would make people to be perceive as members of a given social group (Reynolds, 2017). In this case, strategic planning plays a significant role in ensuring a sense of identity among stakeholders in the workplace.
Theory of Ethics Applicable to Strategic Planning
The development of organizational values, vision, and strategy is one of the foundations of any new venture. In addition, the creation of an ethical sense within any organization and aligning the activities of any institution with the wellbeing of all its stakeholders is a fundamental component of the process of strategic planning (Carroll, 2000). According to the cited literature, the idea of ensuring an alignment of the operations of a public corporation with the wellbeing, ethics, and needs of the stakeholders is called the stakeholder theory. According to the stakeholders, organizations have an ethical duty of remaining responsive to the unique needs of their stakeholders, both internally and externally (Hosmer, 1994). Strategic planning defines the approach that organizations should take in ensuring alignment with the needs of their stakeholders. Extant studies suggest that through strategic planning, organizations may consider four elements that would ensure an ethical alignment with the stakeholders. Precisely, the stakeholder theory would direct any manager of a public corporation to develop a code of ethics, undertake ethical training, develop confidential reporting systems, and have situational advice to the rest of the stakeholders concerning the role of ethics to the institution’s vision, strategy, and other factors.
Application of Ethics in Strategic Planning
Because the stakeholder theory suggests the inclusion of multiple stakeholders in ethical strategic planning, applying ethics to planning would involve a series of approaches. First, according to Smart, Barman, & Gunasekera (2010), any meaningful strategy to include ethical standards in the operations of any public corporation should start from its mission statement. The mission statement functions as a driving point for the entire organization towards the attainment of any set goals. For instance, it communicates the commitment of any public institution to specific sets of values and other issues that would be important in the development of organizational cultures. Transforming organizational culture to show great commitment to the observation of ethical standards in the operations of an organization is critical in ensuring that organizations remain responsive to their stakeholders.
Developing organizational codes of conduct is also another approach that public corporations may take in ensuring that they operate ethically. Codes of conduct are part of the strategic planning processes because they seek to incorporate the core values of institutions into the work practices of their employees and their relationship with the rest of the stakeholders (Štrukelj, 2017). Therefore, an ethical code of conduct directs organizations to stick to their commitment to ethical standards of operation. Organizations may also apply ethical standards to their strategic planning procedures through their public relations strategies (Çelikdemir & Tukel, 2015). In this case, the organization would always strive to understand the manner in which they may remain ethically responsive to their immediate communities through the formulation of approaches that improve their relationships. In public relations, the elements of corporate social responsibility apply in the determination of corporate ethical standards in dealing with the public (Hosmer, 1994).
The Overall Effect of Diversity in Strategic Planning
Diversity in the workplace has become one of the most necessary elements of the workforce for managers of public corporations who seek innovative approaches to operations. Strategic planning is the core of any effective operations of an organization because it provides a framework through which organizations can incorporate individuals from diverse backgrounds in their activities. From a strategic planning perspective, for example, organizations must strive to formulate policies that would be suitable for all the stakeholders (Simons, Pelled, & Smith, 1999). The fact that institutions have both internal and external stakeholders suggests the need for the policies to ensure effective coordination among all of them. Therefore, in their planning, organizational leaders should always strive to understand the needs and preferences of their stakeholders and commit the commitment of the internal stakeholders to ensuring their operations meet the needs of the rest of the stakeholders.
From the internal perspective, organizations should develop workplace cultures that focus on their ethical responsiveness to the society (Robin & Reidenbach, 2007). This way, the employees and the rest of the internal stakeholders would feel the motivation to work towards realizing the missions, visions, and objectives of their organizations. The element of diversity directs managers of public institutions consider the usefulness of every stakeholder in their strategy formulation because they are equally important in the realization of organizational objectives.
References
Carroll, A. B. (2000). Ethical challenges for business in the new millennium: Corporate social responsibility and models of management morality. Business Ethics Quarterly , 10 (1), 33-42.
Çelikdemir, D. Z., & Tukel, I. (2015). Incorporating Ethics into Strategic Management with Regards to Generation Y's view of Ethics. Procedia-Social and Behavioral Sciences , 207 , 528-535.
Hogg, M. A. (2016). Social identity theory. In Understanding peace and conflict through social identity theory (pp. 3-17). Springer, Cham.
Hosmer, L. T. (1994). Strategic planning as if ethics mattered. Strategic Management Journal , 15 (S2), 17-34.
Reynolds, K. J. (2017). Self‐Categorization Theory. The Wiley‐Blackwell Encyclopedia of Social Theory . Retrieved June 3, 2018 from https://onlinelibrary.wiley.com/doi/pdf/10.1002/9781118430873.est0327
Robin, D. P., & Reidenbach, R. E. (2007). Social responsibility, ethics, and marketing strategy: Closing the gap between concept and application. The Journal of Marketing , 44-58.
Simons, T., Pelled, L. H., & Smith, K. A. (1999). Making use of difference: Diversity, debate, and decision comprehensiveness in top management teams. Academy of management journal , 42 (6), 662-673.
Smart, V., Barman, T., & Gunasekera, N. (2010). Incorporating ethics into strategy: developing sustainable business models . CIMA.
Štrukelj, T. (2017, October). The importance of socially responsible strategic planning. In IOP Conference Series: Earth and Environmental Science (Vol. 90, No. 1, p. 012003). IOP Publishing.
Su, Y. (2017). Taylor Scientific Management Theory Carding and Significance of Organization Management. Social Sciences , 6 (4), 102-107.
