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How Managing Diversity Can Help Better Performance | H.R Sample | NN1P

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Question

Question

Critically discuss the following statement and evaluate how this is being applied to one of the two companies listed below:

‘Successfully managing diversity can lead to better performing employees and potentially better financial performance for an organisation.

  • Novartis
  • Johnson & Johnson (My Option)

For one of the companies above, apply and discuss the influence/effect of the topics above on the chosen company.

Note:

The topic above requires two hypotheses to be tested:

Hypothesis 1- a diverse workforce improves employee performance

You have to investigate whether there is an in fact any correlation between diversity and employee performance. In addition, you have to investigate, using company examples whether the statement is true (diversity improves employee performance) or false (diversity does not have any effect upon or reduces employee performance).

Hypothesis 2 – a diverse workforce improves financial performance

You have to investigate whether there is an in fact any correlation between diversity and financial performance. In addition, you have to investigate, using company examples whether the statement is true (diversity improves financial performance) or false (diversity does not have any effect upon or reduces financial performance).

Solution

Introduction

In this report the study would therefore focus on understanding the concept of workplace diversity and ways in which it is connected to employee performance and also influence financial performance of the Johnson & Johnson.

Brief about the company Johnson & Johnson

Established in 1886 the American multinational company, Johnson & Johnson has forever valued people as their greatest asset of the company. Ever since inception, team Johnson & Johnson has successfully engaged in inventing unique healthcare products for the well being of people. Their healthcare products specifically focused on introducing children health care items. According to the company’s core vision only those people who are driven by personal values of helping society or based on the corporate social responsibility could work and grow in the organisation (Armstrong, Flood, Guthrie, Liu, Maccurtain, & Mkamwa, 2010). Diversity is given tremendous importance by the management to encourage people to work freely and incorporate change. They mentioned that “Our Credo” involves the passion for improving health condition of people across the world. According to the Johnson& Johnson team, differences in age, gender, physical ability, race, nationality, style of thinking, sexual preference and background enriches the work environment. It is due to these differences that people could connect better and nurture a positive work environment in spite of having differences (People & Diversity | Johnson & Johnson, 2015).

They also believe in recruiting people from diverse background to help in offering customer driven services to consumers from different background and grow business around the world in a positive way

Diversity in the work place

The concept of work force diversity is about involving people from different background and nurturing them to maintain a positive working environment and accelerate the overall performance of the firm through adequate diversity management strategy. Diversity in the work place includes race, sexual orientation, ethnic background, gender, personality, education, age etc. Diversity is not only about ways in which people from one background is perceived by the company, but also about ways in which perceives other. It has been further studied that such behaviour affects the overall interaction system of the organisation (Patrick & Kumar, 2012). Hence to enable adequate functioning of the organisation, the human resource team is expected to handle the issue of diversity based communication in a strategic manner so that the differences could be eliminated. The HRM should further help in developing a positive environment where people from different background could work in an engaged manner and ensure growth and productivity both for individual and the organisation.

Workplace diversity and employee performance in Johnson & Johnson

 According to the researchers, at Johnson & Johnson’s value driven Credo help in attracting as well as retaining staff from different background. The organisation is also known for the iconic people friendly and inclusive employer who consistently helped in developing a supportive workplace. Johnson & Johnson has adapted a supplier diversity programme since 1998 to help in daily operation (Jnj.com).

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Work place diversity is identified as one of the greatest strengths of Johnson & Johnson. It enables people from different background to work in an engaged manner. Some companies, however, identify the workplace diversity concept as an investment that enables them to perform better (Rice, 2012). Based on a study from the reports published by the company, it could be mentioned that diversity encourages innovation and creative thinking. It also help in nurturing a highly productive and creative environment that leads to positive changes through participation and performance. Hence while diversity has the potential to embrace variety in the work place, it is the responsibility of the company to create an inclusive environment where people could work happily in an engaged manner to experience growth and profitability (Jnj.com).

Diversity workforce enhances financial performance in Johnson & Johnson

The company believes that they nurture a group of active employees who work towards company’s development. The company provides scopes for individual growth and opportunity. It has been time and again highlighted by human resource researchers that happy employees are productive employees. Hence when Johnson & Johnson is known for its employee inclusion approaches, it is evident from the company reports that the employees perform well and this helps in growth and profitability.  Productive employees offer quality services and this enable the firm to increase its business (Patrick & Kumar, 2012). When there is positive environment and employees function happily, they could easily satisfy the customer expectation and grow business. It has been analysed that after the adaption of the various models of diversity workforce such as “Our Credo” as mentioned in the report published the company experienced seamless growth and profitability (Patrick & Kumar, 2012)…..

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