Diversity Management in Multinational Organizations: A Case Study of the Pharmaceutical Field in Egypt.

• Author: ElDayem, Mohamed Abd

INTRODUCTION

Globalization is in need of more interaction between people from diverse backgrounds. People no longer live and work in isolated environments; they are now a part of a worldwide economy competing inside a universal framework. For this reason, all types of organizations, "profit and non-profit," need to become more diversified to keep in the competitive race. Taking full advantage and benefit of workplace diversity is an important issue for management.

Managers need to identify the ways in which the workplace is changing and progressing. Managing diversity is a momentous organizational challenge, so managerial skills must adapt to accommodate a multinational work environment.

Diversity can be defined as acknowledging, understanding, accepting, and valuing differences among people with respect to age, class, race, ethnicity, gender, disabilities, etc. (Esty et al., 1995).

Companies need to adopt diversity, which has the potential to increase greater work productivity and competitive advantages, in addition to searching for ways to be comprehensive organizations (SHRM 1995). Stephen Butler believes diversity is an irreplaceable competitive asset (Robinson, 2002). Managing diversity is a key component of effective people management in the workplace (Black Enterprise, 2001).

Demographic changes (women in the workplace, organizational restructuring, and equal opportunity legislation) will necessitate that organizations evaluate their management practices and develop new and creative approaches to managing their employees. Those positive changes will increase work performance and customer service.

Multinationals are a new type of organization resulting from today's economic structures adapting to the global economy; therefore, diversity is beneficial to both associates and employers. There is no single recipe for success. It mainly depends on the manager's ability to understand what is best for the organization based on teamwork and the dynamics of the workplace. Managing diversity is more than ensuring equal employment opportunities and affirmative actions (Losyk, 1996).

Pharmaceutical organizations require its employees to maintain a high level of dedication for their success. On the other hand, all employees need to be equally treated without any discrimination or unfairness. A diversified management will lead to a positive workplace, reflecting positively on productivity and perfection.

LITERATURE REVIEW

Diversity Definition

Differences are people's variations in terms of "race, culture, gender, age, and physical adequacies'. Some definitions of difference also include variables such as ethnic origin, national origin, class, religion, ways of learning and communication, place of birth, and profession.

According to Thomas (1991), "Managing diversity is a comprehensive managerial process for developing an environment that works for all employees." Therefore, leaders who are successful at managing diversity in the workplace may increase profits and lower expenses for their organizations (Lindenberger & Stoltz-Loike, 2010).

Diversity and the Workplace

Changes in federal and state equal opportunity legislations have made discrimination in the workplace illegal. These laws specify the rights and responsibilities of both associates (employees and employers) in the workplace and hold both groups accountable. Although associates are interdependent in the workplace, respecting individual differences can increase productivity. Diversity in the workplace can reduce lawsuits and increase marketing opportunities, recruitment, creativity, and business image (Esty et al., 1995).

Increasing and taking advantage of workplace diversity has become an important aspect for management today. Managers should expect change to be slow, while at the same time encouraging change (Koonce, 2001). There are selections of activities that an organization can engage in, in order to manage the diversity of their workforce. Quite a few researchers studying diversity in the work environment have discovered that organizations that focus on socialism in the workplace see more advantages of workplace diversity than organizations that focus on individualism (Chatman & Spataro, 2005; Dwyer, Richard, & Chadwick, 2003). It has also been discovered that a focus on teamwork builds better relationships, promoting identity that moves beyond surface level differences within a department or organization (Jayne & Dipboye, 2004).

Diversity and Globalization

At the present time, growing globalization needs more interaction among people from diverse cultures, different ways of thinking, and different backgrounds than in the past (Green et al., 2002). Considering that the world economy is now globalized, as well as more culturally diverse, multicultural work forces are making work environments different from traditional ones. People are no longer living and working in a...