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 Diversity in the workplace is one of the critical part of business operations.  In the modern competitive environment it has become essential aspect and corporations are using diversity programs in the workplace frequently in order to sustain in the corporate market for longer duration (Liang, Shih and Chiang, 2015). Cultural diversity is major player in the organization that supports in increasing satisfactions level of workers and making them loyal towards the brand. It consists of several elements such as age, culture, religion, social status and gender. In the modern business words enterprises are recruiting different individuals in the workplace that creates multicultural and multiracial dynamic environment in the organization. That supports in generating innovative ideas that can be used by the management for the development of company (Benschop and et.al, 2013). Diversity in the workplace impact positive and negative on the workplace. Due to language barriers and cultural difference people feel unable to make communication with the peer group. That creates the situation of misunderstanding and enhance conflict situation in the workplace. It is very essential  to adopt effective strategies by the management so that diversity can give optimistic outcome to the entities. Whenever firm plans to enter into global market then it has to identify the cultural background of particular place so that it can train its staff members accordingly. That helps in minimizing the miscommunication issues and helps in increasing revenues of the companies. Some people think that female are not capable to work in the officially environment that creates situation of discrimination (Chua, 2013). It is necessary to provide equal opportunities to the man and female so that skilled people can stay in the organization for long er duration.

Present report is based on the Tesco which is leading retailer and working well in the global market. Cited firm is serving millions of consumers every day. Organization hires candidate from different locations and cultural background.  It understands the advantage of skilled persons and pay more focus on experience or skill rather than culture, race or gender. Diversity, equal opportunities are central of the cited firm (Y. Lacey and Groves, 2014). Tesco is having mixture of several age group persons that brings broad range of knowledge in the workplace. Management treats equally to all age group persons because older are having experience and youngster are having innovative ideas. Combination of different age group always give optimistic results to the organization. Key purpose of Tesco is to create value for customers in order to increase their loyalty so that they buy products from the cited firm. Managing diverse workforce is the important factor and that cannot be avoided by the big organizations (McPhail,  McNulty and Hutchings, 2016). Effective management of diversity encourages creativity and brings innovative ideas that can help in enhancing working performance of company. Present study will critical review the importance and impact of diversity in the workplace. In addition to this several management strategies will be discussed that can help in overcoming issues of diversity in the company (Hammers and et.al, 2014).


To investigate impact of diversity in workplace; study of Tesco”.


  • To understand the conceptual framework of diversity in workplace.
  • To investigate types of diversity in the organizations
  • To identify the impact of workplace diversity in Tesco.
  • To understand challenges faced by the firm in diversity in workplace.
  • To suggest strategies that can help in managing diversity in the workplace of Tesco.


Concept of diversity in workplace

With the changing environment of the business, owner are involved in making adoption of the diversity policies and strategies that assist in appealing their employees, clients, vendors as well as suppliers. In accordance with the views of Bond and Haynes, (2014) it has been examined that diversity in the  workplace is bringing with the host of greater benefits and potential disputes for the owners of the firm in order to manage. Diversity within the place of work is regarded as essential aspect of sound management of the individuals. It is related with valuation of each one within the firm as an individual. Effectiveness in the diversity strategy goes beyond legal compliance as well as seeks at adding value to the firm and has greater contribution towards benefit of the employee, their well being as well as engagement. The concept of diversity is regarded as the value of the deviations among the individuals and the manner in which such differences can effectively make contribution towards richer, more creative as well as more productive environment working.   

As per the views of Sliter, Boyd, Sinclair, Cheung and McFadden, (2014) it has been gained that workplace diversity is regarded as the range of differences among the individual within the business. Such is sounding simple but diversity is encompassing race, gender, ethnic, group, age, personality, cognitive style, tenure, business function, education, background and etc. Diversity is not only include the manner in which the individual perceive themselves but it is also comprised the manner in which they are perceiving others. Such kind of perception affects their interaction to a greater extent. For greater assortment of the personnel to function in an effective manner as business, human resources professionals are required to tackle the problems that are related with communication, adaptability as well as change. Diversity would enhance in an significant manner in the years to come. Business that is successful has to determine the importance towards immediate action as well as are ready and willing towards making expenditure on the resources in order to manage the diversity within the workplace at present. In accordance with the views of Lønsmann, (2014) it has been examined that there is presence of greater number of advantages of diversity at workplace. It has been examined that success of the firm and competitiveness is dependent on the ability to embrace diversity and attain the benefits. While the business is making assessment of  handling of diversity at workplace issues, makes and execute the diversity plans and thus greater number of benefits are attained. Such is related with increase in adaptability. The firm making employment of diverse workforce can supply huge number of solutions to the issues within the service. Further it can allocate the resources in an effective manner. The personnel who are from diverse backgrounds can bring the talent and experience of the individual towards recommending the ideas which are flexible in adaption of fluctuation in the market as well as demands of customers. Along with this another benefit is associated with broader range of services. A diverse collection of skills and experience assist the firm in offering services to the customers across the globe. As per the views of Harvey and Allard, (2015) it has been gained that workplace diversity has benefit in terms that through such there is presence of variety of the viewpoints. A diverse workforce who are feeling comfortable in communicating different viewpoints offers a larger pool of ideas as well as experiences. It has been determined that with this the firm is able to draw from the pool in order to meet the requirements of business strategy and also needs of the customers in an effective manner. The firm that possess diversified workforce can do the execution in more effective manner. In accordance with the views of Barak, (2016) it has been gained that business that are encouraging diversity in workplace are promoting all their personnel to perform to their greatest ability. The wider strategies of the firm can be executed later and such leads to increasing the productivity, profit as well as return on investment. In contrast to such there are several challenges that are being faced as a reason of diversity in workplace. This is related with resistance to change. It has been determined that there is always presence of personnel who will make refusal towards accepting the fact that social and cultural make up of the firm is altering. Further in addition to this another challenge is in successful management of diversity within the workplace. It has been gained that the training of diversity alone is not adequate for the business diversity management plan. A diversity can be developed and executed towards development of culture of diversity that permeates each department and function of the business to a greater extent.

Types of diversity

As per the views of Bond and Haynes, (2014)  it has been examined that the world is considered smaller than it is used to be. Technology, multinational firms as well as immigration have converged towards making production of diverse workplace. By viewing the people at varied backgrounds working together is considered as common within the big cities and also in certain suburban as well as rural areas. The several forms of diversities are enumerated in the manner stated as below:

  • Age: At any point of time there can be three or four generations at work. This includes the people at varied ages who can bring different experiences, worldviews and strengths at place of work. There is presence of several people who makes delay in retirement and stay within the place of work for longer duration of time. 
  • Religious: It is comprised of the people of all faiths and of no organized religious faith. Religious diversity in the place of work can result in specific set of challenges. This is specifically so for faith based firm who possess some kind of ideology or the personnel who are wishing to live in consistent manner with their beliefs within the firm that are expressly non-religious. For instance, someone might not want to take part in the compulsory event of the firm that posses religious overtones. In other case employee who are tired of all personal days can take day off for a holiday which is central to their religion but it is not being recognized by the business.
  • Racial/ ethnic: As per the views of  Sliter, Boyd, Sinclair, Cheung and McFadden, (2014) it has been examined that such is regarded as another kind of diversity. People of color area also considered as the part of workforce in US through they are not being treated in fair manner. Blacks, Asians, Native Americans and Latinos have played important role in making development of several industries. At present there are more widely hired in the professional, service, corporate as well as public places related with the employment. 
  • Disability: It is has been examined that government is encouraging towards hiring of the individual with the physical, mental and emotional disabilities by means of federal laws. They also offers funds top the firm in order to employ such workers. In accordance with the views of Harvey and Allard, (2015) it has been examined that the personnel having the issues related with disabilities are required to be offered with suitable accommodations. Such accommodation assist the employees in performing in an adequate manner their duties without reducing the expectations or standards that are related with the performance.  

Impact of diversity on the  operations of retail business organization

In accordance with the views of Pitts and Recascino Wise (2010) diversity has positive impact on the growth and success of retail business units. Moreover, diversity implies for the people who come from different backgrounds such as educational, culture etc. In this, each people differs in terms of their uniqueness and competency level. Thus, workforce diversity provides high level of assistance to the business unit in making effectual teams. By doing this, business unit accomplish the activities within the suitable time frame and thereby would become able to build or sustain competitive edge over others. However, on the critical note, Jonsen and et.al., (2013) said that diversity at workplace has high level of impact on the productivity and thereby profitability aspect of business organization. When diverse background people works with each other then it may result into high level of conflict. The rationale behind this, individuals from different backgrounds are highly differs in terms of communication, thinking level etc. Hence, conflicting situation has high level of impact on work co-ordination and thereby overall performance level. 

According to Martín Alcázar and et.al., (2013) range of services can be increased by the firm through the means of diversity. Collection of people with varied knowledge, skills and abilities enable business unit to serve customers at global level. For instance: Tesco can avoid language and cultural gap by maintaining diverse workforce. Moreover, diverse employee base becomes able to deal with the customers of all type with the high level of confidence. Hence, by considering this, it can be stated that Tesco can enhance customer satisfaction and loyalty by building highly talented and diverse workforce. On the other side, Podsiadlowski and et.al., (2013) argued that to manage the diversity level business organization has to incur high level of training cost. Usually firms conduct seminars and design lectures to promote the diversity level. The main motive of such training session is to encourage personnel to accept ideas, thoughts and opinions of others. Along with this, training session also provides deeper insight to personnel about the manner in which they need to deal with the conflicting situation or aspects. It is one of the main aspects due to which firm is required to organize training session on periodical basis. This in turn imposes high level of cost in front of the corporation and thereby affects financial aspects.

 Byars-Winston and et.al., (2011) stated in their study that diverse workforce helps higher management in developing suitable strategic framework that makes contribution in the attainment of goals. Moreover, two peoples belonging from different backgrounds think differently. Hence, by motivating personnel to share their views and experiences firm can take strategic action and would become able to meet the customer’s needs and requirements significantly. In this way, diversity helps company in building a highly competent or talented workforce. In contrast to this, Kormanik and Chyle Rajan (2010) presented that diversity creates unhealthy competition at workplace which in turn have high level of impact on the organizational productivity as well as success. At workplace, competition is good and helps business unit in attaining success. However, when employees do not accept the culture of other individuals and starts to compete against each other then it may result into ineffective working environment. Moreover, company can get the desired level of outcome only when employees work in a team cohesively. Hence, firm where employees prefer to work separately then growth rate will be slow to a great extent.&n

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