MANAGEMENT OF WORKFORCE DIVERSITY IN THE MULTINATIONAL ERA-CHALLENGES AND STRASTEGIES There is no real wealth but the labor of man.

- Percy Bysshe Shelley

Human Resources have become one of the key determining factors for the organizational success. Nowadays modern business environment is highlighted and also dominated by the contributions of the multinational and global businesses. n the era of globalization! business organizations around the world are being influenced mostly! than any other entity or activity. "lobalization has not only offered enormous o##ortunities but also has thrown e$ual number of challenges which have to be managed by modern firms. n this conte%t the role of HR is #aramount in acce#ting and solving these challenges. &odern organizations es#ecially &ultinational cor#orations are running around the globe searching for $uality human resources. 'ith the advancement of develo#ing countries in terms of their #urchasing #ower &N(s are shifting their focus from develo#ed countries to the emerging economies for their market and business e%#ansion. )hese conditions left multinationals with no other o#tion e%ce#t to choose at least some talent from the host countries. *s the com#anies are transforming themselves from local to multinational the organizational workforce is getting more and more diverse in terms of their culture! nationality! traditions! customs !values! taboos etc. )his diversity hel#s the organization in the long run to become more fle%ible and to develo# multi#le com#etencies. 'ork#lace diversity is a #eo#le issue! focused on the differences and similarities that #eo#le bring to an organization. "enerally s#eaking! the term +'orkforce ,iversity- refers to #olicies and #ractices that seek to include #eo#le within a workforce who are considered to be! in some way! different from those in the #revailing constituency. )he challenge ahead for the managers is to maintain and manage this workforce diversity by creating a favorable organizational environment in which all the stakeholders can en.oy the organizational success. *s the sco#e of the business increases the magnitude of workforce diversity also increases. )his #a#er is intended to e%#lain the intricacies of workforce diversity and the a##ro#riate strategies to offset this ./m#hasis was given to the strategies that &N(s are im#lementing and #lanning to im#lement in order to manage the workforce diversity.
0 S 1 0arma! *ssociate Professor! ,e#artment of &anagement Studies! &RP" (ollege! 0izianagaram

Future challenges for Multinational corporations )he im#act of the dynamic international economy has become a ma.or force in business in general and in human resource management in #articular. *s we move into the twenty-first century! there can be little doubt that human resource management faces some of the greatest challenges since its definition as a se#arate staff function almost a century ago. )hese challenges are the result of numerous influences! such as the changing nature of the economy and governmental-legal influences! new organizational forms! global com#etition! and the ever increasing diversity among the workforce. )hese forces made the organization2s HR function more strategic. *s organizations are com#eting at global level human resources have become an im#ortant com#etence for multinational organizations. Nowadays because of globalization national boundaries no more can #revent human talent transfer. *s many of the global cor#orations e%#anding their business revenues by venturing into develo#ing nations it has become inevitable to em#loy workforce from the res#ective host country. )his situation is creating lot of diversities in the work environment and also in the workforce. ,iversity in organizations may arise from three im#ortant dimensions namely organizational! e%ternal and internal as shown in the figure No.3./venthough diversity in the organizations is increasing the multinational com#anies are using it to create new talents and skills. *s markets and customers are diverse for multinational cor#orations there must be em#loyee diversity to match the tastes and #riorities of a global customer.

Source: Diversity learning, knowledge diversity and inclusion: Theory and practice as exemplified by corporate universities, Equality, Diversity and Inclusion: n International !ournal

0 S 1 0arma! *ssociate Professor! ,e#artment of &anagement Studies! &RP" (ollege! 0izianagaram

Here some of the famous &N(s diversity strategies are discussed. SAMSUNG Workforce Status *s of the end of 4534! the total number of em#loyees at Samsung S, ! including contractual and dis#atched workers! stood at 36!763. )his re#resents an increase of 3!489 workers from the #revious year! largely attributable to the o#eration of new #roduction lines built in (hina and Southeast *sian countries as well as the overseas develo#ment center. *ccordingly! the share of overseas workers increased com#ared to 4533! accounting for 67: of the total workforce. The Principle of Respecting Human Rights Samsung S, affirms its commitment to res#ecting human rights through the #rinci#le of +Res#ect for ndividual ,iversity and ,ignity- that is incor#orated within management #rinci#les. *ll business activities! including investment decisions and su##lier transactions! are based on the s#irit of res#ecting human rights. Prohibition of Force !"hil #abor an $iscrimination Samsung S, com#lies with the nternational ;abor <rganization (onventions and the laborrelated laws of its domestic and overseas #lants. )herefore! strictly #rohibit child and forced labor in all o#erations both domestically and abroad. n conducting day-to-day business activities they forbid any discrimination based on skin color! gender! religion! social status! age! #olitical stance! and nationality. *ll em#loyees are given fair o##ortunities and #erformance-based com#ensation according to their ability and a#titude. ,uring 4534! there were no violations of #olicies regarding child labor! forced labor or discrimination. Female %mplo&ees Samsung S, stays committed to creating and #romoting an environment where female workers can realize their full #otential t maintains a female worker $uota when hiring new university graduates and has invested in fostering a women-friendly working environment= a case in #oint is its +&aternity Protection Rooms!- as well as education #rogramme for female em#loyees aimed at nurturing their .ob com#etency. )he S-' N >S, 'omen n Network? (ouncil was formed in 4535 and has been active ever since. )he network consists of high-#erforming female managers
0 S 1 0arma! *ssociate Professor! ,e#artment of &anagement Studies! &RP" (ollege! 0izianagaram

from each business division and serves the role of #resenting role models and growth visions for future female leaders and hel#ing them secure leadershi# and com#etitiveness. @ollowing Samsung S, 2s new #lan to intensify its su##ort in 453A for S' N! the (ouncil will discuss ma.or issues! including e%#anding o##ortunities for female em#loyees! and the results are reflected in the com#any2s HR #olicies. Samsung S, also #lans to hold a +@emale (onference!where internal and e%ternal female leaders will be invited as guest s#eakers to give lectures under themes such as leadershi# and work-life balance! as well as an annual leadershi# skills training #rogram for female managers to hel# enhance their leadershi# ca#abilities. $isable %mplo&ees Samsung S, makes continued effort to increase the #ercentage of disabled em#loyees. *t the end of 4534! the number of disabled em#loyees stood at 33A! or 3.7: of the total full-time workforce in 1orea. Samsung S, is working towards increasing the ratio of em#loyees with disabilities in 453A as well.

0 S 1 0arma! *ssociate Professor! ,e#artment of &anagement Studies! &RP" (ollege! 0izianagaram

Who is an Ethical Leader? A person who has an established reputation of: Consistently upholding a set of ethical principles (moral person); AND Creating the perception in others that ethics & values are important to organizational operations (moral manager). 2. Who is an Ethical Leader ? Personal Traits Committed to set of principles Open communicator/listener Honest, sincere & forthright Concerned for others Aware of opportunities for role modeling in smallest of ways Predictable & trusted Focused on the greater good Professional Conduct Leads with an ethics agenda Institutionalizes shared organizational values Persistently talks about ethics Communicates decision-making process & impact on long-term Actively works to reward others or hold people accountable 3. Effective Ethical Leaders Repeatedly lets employees know that: Every person has to make ethical decisions They are not alone Every organization faces ethical challenges How we as an organization react to ethical challenges 4. Impact of Ethical Leaders When leaders: Talk about the importance of ethics; Keep promises & commitments; Model ethical behavior; Discipline employees who violate ethical standards; & Consider ethics when making important decisions 5. Impact of Ethical Leadership: employees: Observe less misconduct; Feel less pressure to commit misconduct; Are more willing to report misconduct; & Are satisfied with the process of reporting. Ethical leadership IS a demonstrable part of an effective ethics & compliance program. 6. Impact of Ethical Leadership: Ethical Leaders help employees connect: P olicies (organizational); L aw (societal); U niversal values (ethical); & S elf (personal/moral/religious). 7. Norm Augustine In his own words The toughest of all ethical cases is where you have two principles that you strongly believe in that appear to be absolutely in conflict: loyalty to a friend and total repulsion, revulsion by the notion of spying, basically on a competitor in that fashion. The people who think they are helping by cheating, wind up hurting the company. 8. CEO of General Electric Jeffrey Immelt wrote in 2002, GE spends billions each year to protect one of our most valuable assets our reputation . 9. Byrne (1999) paints a tragic picture of Dunlaps business behavior, In Dunlap's presence, knees trembled and stomachs churned. Underlings feared the torrential harangue that Dunlap could unleash at any moment. At his worst, he became viciously profane, even violent. Executives said he would throw papers or furniture, bang his hands on his desk, and shout so ferociously that a manager's hair would be blown back by the stream of air that rushed from Dunlap's mouth. Hair spray day became a code phrase among execs, signifying a potential tantrum (paragraph 4, under head dead computers). 10. Ten Principles of highly ethical leaders Treat all employees as unique, valuable individuals Support each employees freedom, growth and development Communicate to employees by name with respect Model and encourage a balanced life of good work and rest Honor and respect employee families 11. Protect employees' life, safety and health Create a working environment free of sexual harassment Be fair and just in financial matters Communicate honestly and truthfully Cultivate a positive attitude towards others and their accomplishments

0 S 1 0arma! *ssociate Professor! ,e#artment of &anagement Studies! &RP" (ollege! 0izianagaram

1. Roles and Responsibilities of CEO Presented by: Avtar Singh 2. Chief Executive Officer (CEO ) The Chief Executive Officer (CEO) is the officer who has ultimate management responsibility for an organization. The CEO reports directly to the Board of Directors and appoints other managersto assist in carrying out the responsibilities of the organization. 3. Functions : To implement the strategic goals and objectives of the organization Enable the Board of Directors to fulfill its governance function To give direction and leadership toward the achievement of the organizations philosophy, mission, strategy, and its annual goals and objectives 4. Major Functions / Accountabilities : Board Administration and Support Supports operations and administration of Board by advising and informing the Board of Directors, interfacing between Board and staff, and supporting Boards evaluation of chief executive Program, Product and Service Delivery- - Oversees design, marketing, promotion, delivery and quality of programs, products and services Financial, Tax, Risk and Facilities Management Recommends yearly budget for Board approval and prudently manage organizations resources within those budget guidelines according to current laws and regulations 5. Merger / Acquisition / Investment decesion- If decision is to sell the company, establish price and terms . Community and Public Relations Assures the organization and its mission, programs, products and services are consistently presented in strong, positive image to relevant stakeholders Fundraising Oversees fundraising planning and implementation, including identifying resource requirements, researching funding sources, establishing strategies to approach funders, submitting proposals and administrating fundraising records and documentation 6. LEADER: Advises the Board Advocates / promotes organization and stakeholder change related to organization mission Supports motivation of employees in organization products/programs and operations VISIONARY / INFORMATION BEARER: Ensures staff and Board have sufficient and up-to-date information Looks to the future for change opportunities Interfaces between Board and employees Interfaces between organization and community 7. DECISION MAKER: Formulates policies and planning recommendations to the Board Decides or guides courses of action in operations by staff MANAGER: Oversees operations of organization Implements plans Manages human resources of organization Manages financial and physical resources BOARD DEVELOPER: Assists in the selection and evaluation of board members Makes recommendations, supports Board during orientation and self-evaluation 8. Responsibilities of CEO 1. Executive Leadershp and Strategic Vision CEO articulate strategic vision. CEO presents a role CEO communicates high performance standards and also shows confidence in the followeres abilities. 2. Manage the strategic planning process 9. Time Management for CEOs Categorize tasks into ABC A = Most Urgent and important tasks needing personal attention of CEO B = Not so important tasks which could be handled by others also C = Not important now but may become A or B category tasks later 10. CEOs Time Management Tasks Preferred Time % Actual Time % Strategy Monitoring Performance Leadership Stake Holders People Development 35 15 30 10 10 10 45 15 35 05

0 S 1 0arma! *ssociate Professor! ,e#artment of &anagement Studies! &RP" (ollege! 0izianagaram

0 S 1 0arma! *ssociate Professor! ,e#artment of &anagement Studies! &RP" (ollege! 0izianagaram