Diagnosis and Analysis of the Problem Diversity is the workforce is an important concept which was initiated in Pennymart by the CEO. One of the key issues in the organisation which resisted the best practise of diversity to flourish effectively was the concern related to leadership. This was apparent as the company initiated the diversity concept at an early stage and created diversity forums for the employees of different races and cultures to put their views forward. The other problem identified from the case of Pennymart is its recruitment strategy.
The organisation recruited people of different castes and races in the workforce at the ground level. However, the recruitment style in the management level was not diversified as they focused on appointing people of white origin. The implication was that the white people in the management level were dictating the people at the lower level. This was weakening the organisation as the diversification implemented for the betterment of the company was not being conducted effectively. Diversifying the recruitment process is a vital concept which can be implemented through the use of strategic recruitment plan for effectiveness of the organisation.
The scenario determined in case of Pennymart highlighted a lack of strategic recruitment plan and thus the good practice of diversification did not work for the benefit of the organisation. As per the concept of diversity, people management is an important constituent which signifies managing people equally irrespective of their gender and caste effectively. The company employed various women employees in the workforce but did not restructure the organisation which was the need. It is observed that diversification is effective only if the company restructuring is done simultaneously.
The structure of Pennymart needed change and the management required to focus on restricting the operational activity rather than expanding at the initial stage after the implementation of diversified workforce. The main issue regarding the failure of the organisation was a lack of communication between the management and the workforce. Moreover, with the diversification, the CEO should have implemented the diversity management training programs to help the workers in acquiring knowledge and increasing the rate of productivity. The implementation of diversification requires organisational change and effective management by efficient monitoring of the people (Green & et.
al. , 2003). One of the other vital issues faced by the organisation was a lack of policies and strategic plans.
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