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New Advances in Business


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.  

By conducting research, Thomas (2012) found that diversity facilitates high level of learning and growth at workplace. It enables firm to offer opportunity to the personnel to enhance their knowledge by sharing ideas with each other. The rationale behind this, diversity facilitates transfer of knowledge at workplace to the significant level. In the present era, employees prefer to work with the organization which offers learning and growth opportunities to them. In this way, by satisfying such need of personnel firm can reduce employee turnover and absenteeism to a great extent. However, it is to be critically evaluated by Nica (2013) that informal groups which are created at workplace highly affect the level of social integration. Moreover, when informal groups according to the educational and other aspects are created then it hinders the sharing of knowledge, skills etc. Such aspect places negative impact team productivity, efficiency and business growth. Hence, by keeping all such aspects in mind it can be stated that workforce diversity has both positive and negative impact on the operational aspects of retail business organizations.

 Difficulties which are facing by retail business units in managing diversity at workplace

 From investigation, it has been assessed by Pitts and Recascino Wise (2010) that language is the most significant issues that have high level on business performance. Moreover, at workplace different people use varied languages to speak with each other. Hence, it is one of the main issues that is facing by retail business organizations at workplace. Moreover, in the absence of having usage of common language it is not possible for the personnel to understand the views of each other. Hence, such aspect closely influences the growth and productivity of business unit significantly. On the other side, Jonsen and et.al., (2013) found that companies which are operating in the retail sector are facing issues in relation to the encouraging towards team teamwork. Inclusion of employees is the biggest challenge in the case of diversity management. Lack of teamwork has greater impact on the success of firm. Beside this, Martín Alcázar and et.al., (2013) depicted in their study that diversity is the serious issue or challenge which in turn has great impact on organizational growth. Usually, individuals resist working with the people from different backgrounds and cultures. In this, business unit faces difficulty in developing positive attitude among the personnel. Hence, by considering all such aspects it can be presented that diversity management is the biggest challenge for retail business organization.

Strategies that can be undertaken by Tesco to manage diversity

From research Kormanik and Chyle Rajan (2010) identified that training is the most suitable ways that can be employed by Tesco to manage the diversity level. By conducting seminar and workshop firm can develop awareness among the people regarding the benefits of diversity. Training session will help Tesco in persuading personnel about the extent to which diversity will prove to be \more beneficial for them as well as an organization. In addition to this, by organizing training activity firm can motivate personnel to work in a team. This in turn may result into maximization of productivity and profitability. Moreover, team work is the prior requirement to gain competitive edge over others. In addition to this, by organizing coaching classes Tesco can overcome the language barrier or issues to the significant level. Further, through the means of training session Tesco can encourage people to adapt culture of other. All the above mentioned measures will assist in building and maintaining highly supportive culture.

Further, Byars-Winston and et.al., (2011) mentioned in their study that by undertaking participative style of leadership firm can manage diverse employee base in an effectual way. By taking into account such aspect it can be stated that Tesco should motivate personnel to come up with the innovative ideas and suggestions. Along with this, by motivating employees to share their views about the areas in which they are facing difficulty in performance Tesco can suitable measure within the specified time frame. Moreover, without having ideas regarding the employee’s difficulties Tesco would not be in condition to develop suitable framework for the upcoming time period. Along with this, Podsiadlowski and et.al., (2013) evaluated that by making specific rules and norms business organization can mange diversity in the best possible way. Hence, by framing ethical rules and aspects Tesco can encourage personnel to respect each other and work in a cohesive manner. Hence, by doing this Tesco can develop high level of co-ordination among the groups and become able to contribute in the success.

Diversity within the place of work is referred to as bringing all the individual together that are belonging to the different ethical backgrounds, religions, as well as age into productive and cohesive unit. For the sake of surviving in the present business environment company is required to manage and utilize its diversity in workplace with greater effectiveness. Management of diversity in workplace has to be part of culture of the whole firm. In accordance with the views of Barak, (2016) it has been examined that in order to manage the diversity in workplace there is greater requirement towards confirming that all the individual from hiring to promotion and raises are on the basis of employee performance. Tesco is avoiding the tenure, ethnic background and other type of policies into the policies of the human resources. Management of the diverse place of work starts with the stronger policy that is associated with equality from the business. Once such policy is at place the firm start at executing the measures of diversity across the whole business. In order to mange the workplace diversity there is greater need for Tesco to promote the diversity when making creation of teams and special work groups in the organization. In case the manager is creating the work group that does not make use of the skills in an effective manner then such group needs to be changed and inclusion of all the qualified staff member needs to be done within that.

Along with this for managing the diversity in workplace Tesco us treating the complaints related with discrimination in an effective manner. Further it is encouraging the people towards reporting all the instances associated with discriminatory behavior. Such are dealt with to a greater extent in order to manage diversity. 


 From the discussion it has been analyses that diversity is the vast subject but it is essential for the organizations to manage it properly. It is gained that workplace diversity is considered as involvement all different cultural, age group persons in the organization in order to bring innovative ideas in the workplace. It is about to give value of all individuals in the company and treat them equally. So that they feel satisfied and be loyal towards the brand. In the modern globalized era it is necessary for the entities to adopt diversity policies and effective strategies in order to enhance loyalty of consumers, employees, suppliers, investors etc (Hunt, Layton and Prince, 2015). From the discussion it is found that diversity in workplace is the inclusion strategy that supports organization in accomplishing their goal significantly. It is analyzed that similarity and difference in age, culture, physical ability, race, gender among employees create the situation of diversity in the organization. It is necessary for the management to manage the diversity of workplace effectively in order to gain competitive advantage. From the secondary data it is analyzed that companies those which embraces diversity that are more competitive and innovative (Abreu, Cunha and Barlow, 2015).

From the literature review it is gained that there are several types of diversity such as cultural background, age, race, religion, sex etc. These all impact on the business in both way but by managing the diversity in the workplace effectively organization can sustain in the corporate market for longer duration. Secondary data has described that race and ethnicity is one of the major type of diversity (Muro and et.al, 2014). People belongs from different religion and race that find difficulty to work in completely differed environment. Consumers those who belong from different race they find difficult to make communication with the employees.  From the study it is gained that gender is another type of diversity that can create problem in the workplace. Due to poor management most of the firms are suffering from sexual harassment or sexual advances issues (Reynolds, Rahman and Bradetich, 2014).

From the secondary sources it is analyzed that age is the major type of diversity, different age group people feel uncomfortable when they have to work together. In such condition conflicts takes place by organization have to treat all people equality and have to give equal opportunities to them so that it company can utilize skills of workforce effectively. From the literature review it is found that diversity in workplace impact negative and positive in both ways. Multicultural aspects supports in motivating people and bringing innovative ideas in the workplace (Hunt, Layton and Prince, 2015). In addition to this, it helps in reducing operational cost of the company because by bringing diversify individuals in the workplace company can develop positive environment that can help in improving efficiency of the workplace. It impacts positively and retain the skilled employees in the organization. From the secondary sources it is analyzed due to multicultural miscommunication takes place and that creates confusions in the workplace. Due to this, people feel demotivated and they do not share their feeling with the management (Y. Lacey and Groves, 2014).

From the literature review it is gained that diversity in the workplace creates challenges for the companies. Miscommunication is one of the major issue faced by the entities when they hire people from different cultures.  They feel unable to understand language of each other by this way confusions takes place. Age is the biggest factor that creates challenging environment for the management. Younger believes that innovative ideas can enhance efficiency of the company whereas old people think that traditional methods are well for the working. That  creates problem in the workplace and actual operational efficiency of the company get decreased. Diversity brings discrimination in the workplace environment (McPhail, McNulty and Hutchings, 2016). It is found that mangers promotes same culture employees more and people those who belong from other religion feels demotivated. By this way individual do not perform well and that affects the overall profitability. From the discussion it is found that diversity enhances operational cost of the company. That is the challenge for the entities like Tesco because they can not avoid these aspects. When company brings different people in the workplace then it has to give them training so that they can make effective communication and conflicts do not take place. But arrangement of training, making them conformable in the workplace are very costly (Muro and et.al, 2014). But if firm do not give them training them employees will not be able to understand the needs of users that would hamper the sales volume of the organization to great extent. In such situation company fails to offer them products as per their needs that hamper brand image of the organization to great extent.   

From the literature review it is gained that Tesco is managing diversity in the workplace significantly. Cited firm is using the skills of workforce well and motivating them so that they retain in the workplace for longer duration.  Tesco has adopted the strategy of giving training to the staff members. By this way people get to know about objective of the firm and they understand each other. By this way managers set clear direction for all different cultural people so that no confusions takes place (Abreu, Cunha and Barlow, 2015). Training is the best way through which negative impact of diversity can be minimized and it can help in encouraging people and making them loyal towards the brand. By this way people put their best efforts that enhance the working performance of the organization to great extent. Tesco has formulated employee forum which is working for the welfare for the workers. By this way people feel satisfied and they like the workplace because they have confident that discrimination will take place. That supports in enhancing their efficiency and by this way management develop loyalty of the workforce towards the organization (Hammers and et.al, 2014). From the discussion it is gained that equal opportunities are another strategy that can help in minimizing adverse effects and improving working performance of the company. By this way people will share their innovative ideas that would help in enhancing efficiency of workplace (Benschop and et.al, 2013).


From the discussion it can be concluded that managing diversity is the important elements that impacts positively on the organization. But it is necessary to make such strategies that can help in motivating people so that they work together and support the management in accomplishing their goal soon. Company has to manage diversity well that would help in getting optimistic results and will help in increasing performance of the organization. From the above report, it has been concluded that diversity is highly significant in the recent times which in turn assists company in delivering quality services.

Moreover, now customer expectations are increased significantly as compared to the before times. In this, retail business unit can attain success only when it has highly talented people who have ability to deliver quality services to the customers. Hence, by offering employment opportunity to all the talented people according to their knowledge and skills required for the job firm can build talented workforce. Besides this, it can be inferred that diversity places positive impact on the functioning of business unit. Diversity facilitates innovation at workplace and thereby aid in the profitability aspect of firm.

It can be revealed from the report from the report that communication, integration and co-ordination are the main issues which are associated with diversity. Hence, higher management of Tesco should keep in mind such aspect at the time of strategy and policy formulation. The reason behind this, Tesco has built diverse workforce with the motive to attain goals and objectives.  Further, it has been articulated that companies lay emphasis on diversity are facing major issues regarding communication, teamwork and development of supportive culture. Hence, working on all such aspects retail business organizations including Tesco can retain talented personnel for long run. It can be summarized from the report that by placing emphasis on training session Tesco can promote diversity within the firm. It can be seen in the report that by practicing participative style of leadership firm would become able to manage the diversity in an effectual way.

It can be concluded from the present report that there is presence of greater diversity in the place of work. This has to be dealt with in an effective manner so that benefits arising from this can result in influencing the firm in an positive manner. This can otherwise adversely influence the firm as well. It has been inferred that there is presence of several kinds of diversity. This is associated with age, religion, ethnic background as well as disability. It is important that discrimination need not to be done based upon such so that targets of the firm can be attained with greater effectiveness. The business that are able to manage the diversified workforce are making best use of the skills that are being possess the employees. With diversity in the workforce greater skills and qualified personnel are possessed by firm and thus it is able to carry out its operations within global market as well. In the present era conflict associated with diversity needs to be resolved so that business can survive in an effective manner.    

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