rational choice in an uncertain world
TRANSCRIPT
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Running Head: RATIONAL CHOICE IN AN UNCERTAIN WORLD
Rational Choice in an Uncertain World
An Assignment Submitted by
Name of Student
Name of Establishment
Class XXXX, Section XXXX, Summer 2012
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Table of Contents
Purpose of the paper........................................................................................................................ 3
Introduction ..................................................................................................................................... 3
Background ..................................................................................................................................... 3
Statement of Problem ...................................................................................................................... 4
Description of Decision Making Process ........................................................................................ 6
Research proceduresused in managing diversity by Hp ............................................................. 6
Implementation of diversity management strategies at Hp ......................................................... 7
Hp diversity approach ................................................................................................................. 8
Facing increasingly multicultural labor force ............................................................................. 9
Gender non-discrimination practices at Hp ............................................................................... 10
Proposed evaluation system to assess the effectiveness of diversity management strategies at Hp....................................................................................................................................................... 11
Conclusion .................................................................................................................................... 12
Appendix ....................................................................................................................................... 13
References ..................................................................................................................................... 14
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The purpose of this paper is to describe and analyze an issue, experienced by your organization,
which requires, required, or will require a resolution to be determined through the decision-
making process. Accordingly, the paper will describe and analyze diversity issue within Hp.
In the recent past, increased globalization, high labor force diversity and complexity of
jobs has result in increased diversity within organizations. Indeed, diversity has become a central
aspect in many organizations (Ruffano 2005). Though, there is no one single definition of
diversity, it can be defined as the difference in social and cultural backgrounds among individual
working in the same organization (Barak, 2005). As restated by Ruffano (2005) diversity
management has become a critical business issue among organizations with multicultural
employees. It diversity management affects the performance and efficiency of employees and an
organization in general. It is against this background that this paper as sought to tackle this issue
in a practical organization. Accordingly, this paper will analyze the issue of diversity
management at HP, leading multinational Information Technology Company. The paper will
start by giving the background of the company, and subsequent sections will discusses the
concept and models the company has used in its diversity management.
Established in 1939 by two friends Bill Hewlett and Dave Packard, with its headquarters
in Palo Alto, California, Hp has continued to gain praise for its innovative products, competitive
spirit and ethical operations (www.hp.com).
Presently, Hp has expanded to become the leading seller of personal computers and
software in the world. It has a workforce of about 349,600 workers across the world, and in 2011
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its revenue stood at $127.4 billion (www.hp.com). The company boosts of effective
management, innovative product range and huge market share (estimated at 20% of the worlds
share in personal computers). The company designs, makes and services a range of products and
systems for computation and communications. Hps products and services consumed and applied
in industries, education, healthcare, business engineering and even at home. Since it has a
presence in 120 countries across the world with a workforce of about 349,600, it has a
multicultural workforce that has created the challenge of diversity management (www.hp.com).
However, as early as 1940s, Hp had foreseen this issue and responded by formulated the well-
known the open corporate culture concept. Groeger (2008) as points out that the two
founders of the company formulated a management style that was new in the corporate cycles,
referred to as management by walking around. Later, the company coined a new term of
corporate culture termed the Hp way. All these efforts were meant to ensure that the
management creates an approach that can address diversity management.
As stated before, Hp is faced by the challenge of diversity management. The increasing
diverse workforce in the company presents a continued demand for successful interaction among
this diverse workforce. Individuals experiences of diversity and concepts of diversity
management matters since they inform recruitment processes and what occurs after the
recruitment. The diverse global labor force has moved diversity management to the peak of
management issues. Labor force migration, gender as well as ethnic differences have continued
to radically transform the composition of the labor force, making the diversity issue more
complex. A number of studies have noted that diversity though challenging can be used creates
creativity and innovation, hence, diversity presents both challenges and opportunities to an
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organization. As such, Hp understands that if it effectively handles diversity, it exploit the
opportunities that comes with diverse workforce.
As Barak (2005) points out, diversity becomes beneficial when organizations wishes to
expand its strategy, tactics, viewpoint, reposition, or launch a new product or service. If the
organization effectively managers diversity, it will be in a position to reap from synergistic and
cultural benefits such as improved innovativeness, flexibility and improved communication.
Indeed, Ruffano (2005) argues that when diversity is successfully management, it become a
competitive advantage for the organization. Ruffano (2005) adds that, to survive present day
competitive environment, organizations need to predict and respond to business changes. Ability
change entails ability to learn and this requires diversity.
On the other, when diversity is not successfully managed it create problems to the
organization. This will be through reduced productivity and low moral among employees. It can
as well hinder creativity and communication with the organization. Such problems are common
in organizations that seek convergent processes, where employees are required to think or
conduct themselves in a similar manner(Barak, 2005). However, bearing in mind that people
comes from different cultures; such an attempt may just increase confusion and ambiguity in the
organization.
The above overview of the issues underscores the complexity of the diversity issue. As
noted by Ruffano (2005)diversity presents a double edged knife; thus the challenge of diversity
management is to formulate conditions that reduce its possibility to hinder performance, whereas
increasing its possibility to increase performance.
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Research proceduresused in managing diversity by Hp
As noted by Alder (2002). the managers ability to identify diversity and its possible
benefits and costs determines how an organization will deal with diversity management.
Accordingly, Alder (2002) established three ways to manage the diversity, these are parochial,
ethnocentric and synergistic (see appendix). Hp carried out both employee and customer surveys
in relation to its diversity management practices. These surveys established the effectiveness of
the previous diversity management practices at the company. Through these surveys the
company was able to select synergistic approach to address the diversify issue. This approach
underlines cultural contingency as the best way to approach the issue of diversity management.
Synergistic approach recognizes the similarities and differences among various cultures that exist
in a global organization such as Hp. These similarities and differences are seen as beneficial in
designing and advancing organizational structures and systems (Alder, 2002).
Alder (2002) formulated four steps necessary to create cultural synergy (see figure 1).
After the research carried out by the company, it went through these four steps to attain this
synergy. Similarly, Alder (2002) as well established five strategies that can be used to manage
cultural diversity (see, figure 2). The most effective strategy is cultural synergy that can be
achieved by appreciating different cultures while maintaining self culture. While applying this
strategy, Hp has tried to uphold cultural synergy by treating markets, workplaces and community
differently. When Woking with individuals who hold different views, a person can learn to view
challenges from different viewpoint, learn new approaches of tackling problems, and therefore,
can help in creating cultural synergy. This is what the company has done.
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In doing the research that resulted in the company adopted the synergy approach; the
company involved the management, the employees and customers. All these groups were
important because they are the stakeholders in the company. In addition, they are directly
impacted by diversity issues and therefore, their participation is necessary for the success of the
strategies adopted to address diversity management.
Implementation of diversity management strategies at Hp
Hp began its diversity management practices at its inception through its open corporate
policy. Accordingly, this management approach was termed as management by walking
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around, this was motivated by the belief that each employee wanted to go a great job. Hps open
culture brought an environment of trust and shared understanding in its early years. Hp believed
that trust was key t its profitability and growth.
In 1957, when Hp went public, it formalized its policy of the Hp way. This unique
organizational culture is founded on the set of five organizational values and seven company
objectives. The five values include, trust and respect, teamwork and flexibility, uncompromising
integrity, high standard of achievement and innovation (www.hp.com).
According to Dong (2002), Hp way is a management approach that focuses on
integrity, teamwork, creativity respect and corporate social responsibility. Dong (2002) asserts
that this culture initiated by Hp has spread across the Silicon Valley and is acknowledged as the
foundation of Hp as well as Silicon Valley success. When Hp merged with Compaq it restated it
five organizational values and included two more values, passion for its customers and agility
(Dong, 2002). Indeed, when the founders of the company (Packard and Hewlett) passed on, they
were mainly remembered for the Hp way culture they had created.
Hp diversity approach
Hp diversity and inclusion approach is well outlined as shown in figures 3; these figures
illustrate Hps practices and achievement in relation to diversity. At Hp, employees have been
taught to understand that diversity and inclusion are a requirement for creativity and innovation.
Throughout the various Hp branches across the world, employees are putting their individual
differences aside to work towards the goals and objectives of the company. The company has
continued to create a diverse and inclusive work environment. This is not a one time process, but
a continuous process that has taken years and has been by values and effective leadership.
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The company views diversityas presence of many exceptional persons within the
company, the industry and community. Diversity in this case entails men and women from
various countries, cultures, environment, ethnicity, skills, competencies and other aspect that
create differences that make each employee unique. Inclusion as used by Hp implies creating
work environment where all the people working in the company have a chance to fully
contribute towards the success of the company. At the same time, the individual is valued for
his/her unique skills, competencies and thinking. Inclusion as well entails forming a global
community where the company connects each person trough innovative products and services
and its cutting edge workforce. Indeed, the company has managed to integrate diversity and
inclusion firmly within the company.
The company has acknowledged that creating a diverse and inclusive workplace is a
continuous process that needs regular renewal. Each stage in this process has its importance that
has to be remembered. All these stages create a diversity value practices applied by the company
in building its competitive global labor force and work environment.
Facing increasingly multicultural labor force
With growth and internationalization of Hp to different regions and countries, its
employees have become highly diverse, though they have helped Hp to achieve its full potential.
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Developing and appreciating the talents and skills of each employee creates new ideas to Hp.
Accordingly, the company has been able to benefit immensely from the creativity and innovation
resulting from individuals who have varied experiences, viewpoints and cultures. This aspect is
the driving force of inventions that are witnessed at Hp. The highly multicultural labor force at
Hp has helped the company to win the high competition present in the marketplace. In return,
Hp has ensured that it provides an inclusive and flexible environment, which motivates
employees to give their best. The company understands that to serve its customers well, it must
be able to attract, nurture and retain diverse employees. Towards this end, the company has
cultivated the values of trust, dignity and mutual respect as basic beliefs that are demonstrated in
the conduct and behavior of its employees.
Gender non-discrimination practices at Hp
Hp has undertaken non-discrimination policy; this is done through electronic job posting,
domestic partner benefit and, non harassment conditions. Since its inception, the company has
shown a continued commitment towards its employees and fair labor practices. Accordingly, its
policies and supporting practices in relation to gender non-discrimination entail a set of values
comprising of a deep understating that each and every employees should be shown respect and
dignity. In view of this, the company does not allow any form of discrimination against its
employees or potential employees on the basis of creed, race, gender, religion, color, age,
disability, national origin or any other aspect that result in discrimination. At the same time, the
company complies with all relevant local and national laws regarding non-discrimination and
equally opportunity.
These efforts and practices of Hp towards non-discrimination have been recognized by
various regulatory bodies. This has been demonstrated by the high scores the Hp has continued
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to get on the Corporate Equality Index that are given by Human Rights Campaign Foundation
(www.hp.com).
Proposed evaluation system to assess the effectiveness ofdiversity management strategies
Assessing and evaluating diversity is difficulty and requires much time. However, to
effectively manage diversity, the company will have to implement different initiatives to assess
and evaluate its diversity management practices. There are several methods that can be used;
these include employee surveys that can be used to collect data to establish their views one year
after the previous survey was carried done. Data gathered from these employee surveys will give
the company a basis to make yearly comparisons about its diversity management practices. In
addition, this information can be reviewed to establish performance in areas such as selection
and hiring, turnover rates and employee retention. More so, data can be used to establish if
workers from diverse groups are represented at each level of the company, particularly at the
management level.
Apart from employees surveys, the company can as well use annual performance
reviews and 360-degree feedback to evaluate its diversity management practices. The annual
performance method can be used to establish if the various units within the organization are
achieving effective and profitable performance by using a more diverse workforce. The 360-
degree method can be used to offer employee feedback relating to how managers address
diversity issues. The results can be used by the management to improve on how it addresses the
diversity issues.
Additionally, the company can use customer feedback and employee focus group to
evaluate its diversity management practices. The focus group will be used to collect information
from employees to establish their viewpoints on diversity practices implemented by the
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company. Customer feedback will allow the company to get feedbacks from the customers if
their diverse needs are being satisfied through the products and services from the company.
The above evaluation methods can be used simultaneously to provide a broad perspective
of the effectiveness of the companys diversity management practices.
Diversity has become a challenging issue for many organizations. Indeed, diversity
management is a complex issue that requires effective strategies to deal with it. Companies that
are able to deal effectively with diversity are able to create a competitive advantage. As seen in
this paper, Hp has tried to address diversity management by creating cultural synergy at its
workplace. However, this paper suggests that some improvement can be made, for instance, the
company need to develop leadership skills, give feedbacks in a sensitive manner, and promote
cross cultural awareness. In addition the suggested evaluation methods can be used to pinpoint
areas that need further improvements. It should be understood that culture is dynamic and to
effectively address diversity, strategies implemented must be regularly reviewed to cope within
changes cultural trends.
Form this paper, its certain that Hp provides a good example of how diversity can be
managed. Indeed, other companies can use this case study as an example of how they should
address the issue of diversity in their companies. With the globalization ever taking place, we are
bound to see more and more diverse individual working together in the same workplaces and
increasing the complexity of diversity management.
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Alder N (2002).International Dimensions of Organizational Behaviour: Fourth Edition, McGill
University, South-Western, Thomson Learning
Barak M (2005).Managing Diversity towards a Globally Inclusive Workplace,Sage
Publications, London
Dong J (2002). The Rise and fall of the Hp Way, Palo Alto Weekly, Online Edition
Groeger M (2008).The Hp Way, an Example of Corporate Culture for a Whole Industry :
Accessed On 28/9/2012 from: http://www.silicon-valley-story.de/sv/hp_way.html
Hp (2012): website, www.hp.com
Ruffano N (2005).Making Diversity Work, Net Effects Series, Pearson, Prentice Hall,Upper
Saddle River, New Jersey