20 Aug 2022

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What is Organizational Diversity?

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Academic level: Master’s

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Preliminary Deliverable 

From an organizational perspective, diversity can be applied to encompass the acknowledgement, acceptance, understanding, and appreciating the differences among individuals with reference to ethnicity, class, gender, race, disabilities and so on. It is essential for corporations to uphold diversity and explore varied ways of becoming all-encompassing organizations since a diverse organization has the potential for realizing better productivity at work and gain advantages for edging out competition ( Kelli et al., 2003 ). In fact, diversity can be deemed as an invaluable asset for every corporation that seeks to have competitive advantage. In this case, my research seeks to look into the topic of organizational diversity covering the scope of management of diversity in Walmart. 

Management of diversity is a crucial element of effective individuals in the place of work. Current trends and changes in corporate practices require organizations to develop their own creative ways of upholding all forms of diversity. Progressive modifications in the management of diversity has the potential of boosting performance at work as well as improving the experiences of customers. Other positive restructuring measures could as well result in increased productivity at the workplace. Notably, substantial changes have been witnessed across organizations due to downscaling and outsourcing employees and in turn, these changes have massively implicated the human resource management ( Kelli et al., 2003 ). This research will prove effective in expanding my knowledge on organizational diversity and thus help me in my role as a human resource manager in the future. Particularly, the findings will be useful in enhancing diversity in the workplace to ensure that although employees demonstrate interdependence in the workplace, individual differences are respected to reduce conflicts and boost productivity. Moreover, through the mechanisms of enhancing diversity at the place of work, the findings will enable me to decrease lawsuits in the company while at the same time increasing the opportunities for marketing, enhancing the image of the company, recruitment and boosting innovation within the organization. 

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Background -Walmart stores Inc. 

Walmart stores Inc. is an American retail corporation that operates internationally through a number of hypermarkets, discount departmental stores as well as grocery stores. Krieg, 2013 indicates that the company was founded in 1962 in Arkansas by Sam Walton. At the time, the retail industry was less pronounced as it is today. In fact, following the Second World War, an evolution was witnessed in the approach of retailing where discount retailing became the trend. Particularly, the retailing involved departmentalized merchandizing commerce. With this trend, Walmart commenced operations in small-towns all over the Midwest and the Southern America where it grew considerably. Eventually, the company expanded into the major cities which increased its market share of the retail business. The major breakthrough for the company came in during the 1980s as Wal-Mart diversified its retail operations. Over the years, the company has continued to expand where it has surpassed all other major retailers such as Kmart, Target, BestBuy, Costco, and Kroger to become the fortune 500 company it is currently. Notably, the fortune 500 company is a privately owned enterprise controlled by the Walton family. Currently, 50% of the shares are owned by Walton sons through the holding company, Walton enterprises and individual shares. Other shares are owned by institutions and mutual fund holders. 

The primary mission upheld by the company is to save people’s money so that they can live better. One structure of the retail industry provided by Krieg, 2013 is the economies of scale enjoyed by the most established companies like Walmart. The company is able to reduce its prices to effectively attract consumers to a level where other companies find it difficult to gain entry into the market. Walmart has a surplus distribution system which makes it difficult for potential retailers to enter the market particularly those dealing with grocery. These include good locations, brand name loyalty, and financial capability to shield other competitors. 

The company is highly esteemed in the entire world owing to the huge market share it controls as well as market value. In fact, Walmart is the most prominent company in grocery provision in U.S where more than half of the sales come from the United States. Krieg, 2013 reveals that outside the U.S, the company operates as Walmart International in 28 countries. This comprises different formats including retail and wholesale. The two categories are further supported by supercenters, superstores, hypermarkets, warehouses, drug stores, cash and carry, electronics holdings, and digital provisions (Furjanic, n.d.). Countries such as China, the UK, Canada, India, Brazil, Japan, Argentina, and Chile are home to wholly own subsidiary stores operated by Walmart. Roberts & Berg, 2012 illustrates that in Africa, Walmart operates in Kenya, Botswana, Tanzania, Uganda, and South Africa among others. Sum’s club division operates as membership only warehouses plus samsclub.com in America. Sum’s club allows its members to have online access to goods and services at sum’s club.com and via the e-commerce mobile application. Moreover, it provides delivery services to members through services such as club and pick as well as providing home delivery or to the club. These openings have boosted sales and as a result, the company has consistently made massive sales. For instance, in 2011, Walmart had sales revenues of $418 billion. In 2016, Walmart’s sales topped $478 billion, depicting a consistent growth in sales. 

Organizational framework at Walmart 

The organizational framework at Walmart determines the business ventures that the company engages. Walmart’s organizational framework also executes the limits on the mechanisms used in handling business challenges. On the other hand, the organizational culture stipulates the mechanisms of coping with difficulties in the place of work. The human resources depict skill and resilience as demonstrated by the progressive success evidenced in Walmart. Notably, Walmart utilizes a hierarchical functional organizational framework ( Lichtenstein, 2011) . The framework has two crucial aspects: the hierarchy and the function-based classification. On the one hand, the aspect of hierarchy outlines the line of authority and command which is vertically aligned throughout the framework. For instance, with the exception of for the CEO, every other employee reports to a senior employee. As such, the mandates and directives issued by the executives at the chief ranks of Walmart’s organizational framework are effected through the managers at the middle level and eventually to the rank-and-file workers in the stores of the company. 

Conversely, the function-based classification aspect in Walmart’s organizational framework consist of sets of personnel accomplishing specific functions ( Lichtenstein, 2011) . For instance, the function-based classification is seen in the department for the function of human resource management. The same case is seen in the department for the function of marketing as well as the department for the function of information technology among other function based departments. With the hierarchical functional organizational framework, the corporate managers at Walmart manage to effortlessly influence the whole organization ( Lichtenstein, 2011) . For instance, new guidelines and policies advanced at the Walmart’s main command center are directly distributed to the regional executives and to the managers at Walmart stores. Through this approach, operative monitoring and regulation are accomplished throughout Walmart ventures. 

Types of diversity and the role each plays in the culture of the organization

Gender 

Recently, the Walmart has been criticized by different groups and individuals including labor unions, human rights advocates, religious groups, company customers and employees. These groups have been complaining of the company’s policies and business practices including accusations of gender discrimination. However, Walmart demonstrates gender diversity in the organization with the inclusion of all genders in the workforce. In fact, Walmart has instituted the Women’s Resource Council which has the objective of supporting Walmart’s dream of making the company to be the finest workplace for all categories and levels of women. Towards this end, the Women’s Resource Council makes efforts to advance the improvement of the workplace environment to be all the more inclusive. Measures taken include; supportive efforts for women associates to allow them flexibility, enhancing the pipeline for talents, and engaging in women empowerment programs. Through ensuring gender diversity in the workplace, Walmart ensures that it fosters its culture of a diverse and inclusive workforce that improves the company’s competitiveness. 

Age 

Walmart demonstrates age diversity at the workplace where young and old employees work at different levels of operations. Having an age diverse workforce enables the transfer of knowledge across the associates for improving efficiency at work. The younger employees provide the academic skills while the older employees provide the experience which makes a wholesome workforce ( Walmart, 2015) . Moreover, having a workforce with people of diverse ages enables easier allocation of tasks which promotes harmony in the workplace. This age diversity promotes the organizational culture at Walmart by making every employee to feel valued and useful in contributing to the company’s mission. 

Race/Ethnicity 

Diversity and inclusion at Walmart takes into account the different races to ensure a racially diverse workforce. Towards this end, Walmart has various resource groups that look into the interests of the various racial groups in the company. To begin with, there is a resource group named UNITY which is concerned with the African American individuals ( Walmart, 2015). This group seeks to make sure of the inclusion of the perspectives and experiences of the African American employees to strengthen the organization in line with its culture. Another different group is the APAN , which is devoted to integrating and connecting the organization with individuals from the Asian Pacific cultures. Other resource groups include the HLARG, which deals with the Hispanics, and the TRIBAL VOICES which is dedicated to Native Americans. Other than having these resource groups, Walmart ensures equality in job opportunities and promotions. 

Religion 

Walmart has no favorite religion for its employees and there is freedom of worship. The human resource through the diversity office regularly emphasize on the significance of inclusion of employees from all beliefs, faiths, and creeds ( Walmart, 2015) . Moreover, the diversity department organizes inter-religion summits that provide openings for sharing the diverse religious alignments among the associates to show ways in which religion intersects throughout the workplace to promote the organizational culture. 

Sexual Orientation 

Walmart has a resource group named PRIDE which is tasked with cultivating an all-inclusive work environment in which all employees, with the inclusion of transgender associates, comfortably and freely operate without any form of discrimination. Pride serves the interests of employees of all forms sexual orientation, including gay and lesbian employees, ensuring that they feel comfortable at the workplace. Notably, in the year 2014, Pride operated hand in hand with the Human Resource department to establish the guidelines for Gender Transition in the workplace for use in all Walmart facilities throughout the United States ( Walmart, 2015) . The guidelines also serve as a reference for Human Resource executives in facilitating the process of fostering discourse and considerations regarding transgender concerns at the workplace. Furthermore, the guidelines consist of information on the provision of a welcoming, safe, and caring environment for employees going through gender transition. This promotes the culture of the organization by ensuring that opportunities are equally provided to employees regardless of their sexual orientation. 

Disabilities 

The inclusion of persons with disabilities is well considered where Walmart has instituted a resource group named Associates for Disability Awareness and Education (ADAE). This resource group is tasked with creating an enabling environment for the engagement, education and empowerment of employees, families and communities impacted by various forms of disability by way of inclusion, discussing ideas, sharing resources and effecting the best approaches ( Walmart, 2015) . Walmart also ensures their consideration in ensuring supplier diversity in keeping true to the organization’s culture. Moreover, Walmart has ensured that its facilities are friendly for the movement of persons with disabilities as a way of considering their inclusion. 

Commitment to diversity by the top leadership of the organization 

The top leadership of Walmart has progressively demonstrated their commitment to diversity. The President and CEO of Walmart International, David Cheesewright, demonstrates his commitment by stating that diversity is at the heart of Walmart as individuals from diverse backgrounds bring different views and opinions to the company. He further insists that having a diverse team enables the company to obtain the best of everything by considering the ideas and opinions of raised ( Walmart, 2015) . It is clear that being an international company, Walmart serves customers who depict all manner of diversity. Thus, by embracing diversity within the company, the leaders are able to serve the customers in a much better way every time. Particular diversity efforts spearheaded by the top leadership include the Global Women’s Economic Empowerment Initiative that is dedicated towards training at least one million women throughout the world in manufacturing, agriculture, and the retail business in emerging markets. 

Similarly, the top leadership promotes diversity along the supply chain to ensure inclusivity. Supplier diversity is accomplished through broadening the selection of communities served. Through the supplier diversity measures, the top leadership ensures that there is increased sourcing from supply ventures that are possessed by individuals from various backgrounds. As such, the minority communities, persons with disabilities and women have the chance to do business with the company for their economic empowerment. Furthermore, Walmart’s top leadership ensures collaboration with prominent organizations that campaign for the businesses owned by diversity. Such organizations include; Disability Supplier Diversity Program (DSDP), US Black Chambers, Inc, and National Minority Supplier Development Council among others. The Global Chief Diversity Officer, Sharon Orlopp states that the leadership has ensured the provision of economic opportunities for tens of thousands of people of color and women in every year. In fact, she states that in the promotions done in the year 2014, 40 percent comprised of people of color while 54 percent were women ( Walmart, 2015) . Moreover, the top leadership ensures the publication and release of Walmart’s diversity and inclusion report as a reflection of their commitment to diversity. 

Organization’s reputation regarding diversity initiatives 

With the continued diversity initiatives, Walmart has built its image among the public, the retail industry, and the company’s stakeholders. The company has proven that management of diversity goes beyond the provision of equal opportunities in the workplace and extends into other pertinent areas of the associates’ lives. Although Walmart had been previously criticized for some negative aspects in the company, the management has stepped up and responded positively to the criticism and used it to enhance its image all the more ( Eric, 2015 ). Although associates at Walmart do not form trade unions, the company has promoted communication in every dimension to ensure that the grievances are addressed. As a result, the stakeholders have encouraged the company to progress with its initiatives and set the pace for other companies ( Eric, 2015 ). Regarding the industry, the company is highly esteemed for making such initiatives in promoting diversity. Other big retail companies such as Kmart and Target have viewed the initiatives as positive for the industry. 

Policies, procedures, and practices regarding all forms of diversity in the workplace 

Walmart has specific policies regarding diversity in the organization. One of the policies is on disabilities where employees with disabilities are entitled to a wide range of practical accommodations in case of a medical need to have a change at the workplace. The policy, procedures, and practices involve changing the job functions of the individual and reassigning them to a position where they can comfortably operate ( Walmart, 2014) . After having the policy revised, the disabilities policy agrees that pregnant employees be allowed practical accommodations that are similar to those of disabled employees. This policy is in line with the Disabilities Act. On the other hand, the age policy allows the hiring of individuals of various ages in line with the policy of equal opportunities. Additionally, Walmart allows workers to take early shifts regardless of their age in various jobs. Individuals with performance issues due to age are permitted to transfer to different departments where they can work efficiently instead of taking drastic measures such as firing the individuals. 

The policy on gender is aligned to ensure that no worker is denied an opportunity in employment, promotion and job transfer. Moreover, the policy emphasizes on equal wages for workers at the same level of work without any preferences to a particular gender. This policy is in line with the gender equality act which deems illegal, all forms of gender-based discrimination. Similarly, the policy on race and ethnicity outlines the essentiality of treating individuals from different racial backgrounds equally ( Walmart, 2014) . This equality is depicted in hiring, promotions and wage s where equality is emphasized. Regarding religion, Walmart has a policy that strictly underlines religious tolerance within the workplace. As such, every employee is entitled to the religion of their choice and their religion has to be respected by the management as well as other employees at Walmart. The pertinent law to this policy is the freedom of worship act which outlines that individuals are free to choose their religion without any consequences whatsoever. On the other hand, the policy on sexual orientation denotes the importance of embracing individuals with different sexual orientations such as the LGBT group. Additionally, the LGBT group has acknowledged the policy and deemed it good for business as evaluation is based entirely on job performance and nothing else. 

For each of the policies on diversity, individuals are encouraged to report any form of discrimination to the diversity department which promises to look into the matter and take appropriate action ( Walmart, 2014) . In most cases, mediation is preferred rather than law suits but in both are evidenced in Walmart. Consequences for being found guilty of any form of infringement on diversity could lead to sacking, fines and penalties or even prosecution. 

Possible improvements upon the current diversity strategy 

Currently, the organization has made strides at ensuring respect for the various forms of diversity at the workplace. Nonetheless, continued improvement could do no harm as it will only enhance the company’s image further. Walmart could further improve its diversity policies to outline their compliance with various acts. A particular area has been on pregnancy leave ad thus Walmart could outline clearly that the company complies with the pregnancy discrimination act to ensure the provisions of certain accommodations for pregnant workers. Regarding the other policies, improvements could be done to include practical accommodations for various categories of diversity at the workplace. In fact, Walmart could implement enforceable agreements that seek to ensure the due consideration of all forms of diversity and provides due accommodations that individuals are entitled to within the law. Furthermore, Walmart could ensure that individuals who have suffered diversity discrimination are well compensated to improve the overall organizational performance. 

In conclusion, it is essential for corporations to uphold diversity and explore varied ways of becoming all-encompassing organizations since a diverse organization has the potential for realizing better productivity at work and gain advantages for edging out competition. At Walmart, various forms of diversity such as gender, age, race/ethnicity, religion, sexual orientation and disabilities are well outlined and considered in the organization’s culture. Moreover, the top leadership shows commitment to diversity as seen in the various measures taken. All the same, the policies could be improved to enhance diversity which will potentially improve the organization’s overall performance. 

References 

Eric, E. (2015). Managing the reputation of a mega-brand . Retrieved on September 6, 2017. https://www.google.com/amp/s/www.stonetemple.com/managing-the-reputation-of-a-mega-brand-with-walmarts-chad-mitchell/amp/?espv=1 

Furjanic, S. E. (n.d.).  Walmart

Kelli, G., Mayra, L., Allen W., Karl K., Derek F., & Jennifer L. (2003). Diversity in the Workplace: Benefits, Challenges, and the Required Managerial Tools 

Krieg, K. (2013).  Sam Walton: Founder of the Walmart Empire

Lichtenstein, N. (2011). Wal-Mart’s Authoritarian Culture. The New York Times

Walmart. (2014). Global Statement of Ethics 

Walmart. (2015). Diversity and inclusion report

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StudyBounty. (2023, September 16). What is Organizational Diversity?.
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