An Analysis of Caltex Australia Lmtd's Management of Diversity Policies


Term Paper, 2015
11 Pages, Grade: 1,0

Excerpt

Contents

Introduction

Current Diversity Management Strategies

Analysis of Current Diversity Management Strategies and the Application of the Six Approaches Framework by Brosnan

Effectiveness of Current Strategies

The Diversity Needs of Caltex Australia Lmtd

Recommendations

Conclusion

Bibliography

Introduction

Caltex Australia Limited is a multinational petroleum brand corporation working with 3500 employees in more than 60 countries throughout the Asia-Pacific region as well as the Middle East and southern Africa. Operating in the oil and gas industry Caltex accommodates its largest oil retail network in Australia and pursues a strong commitment to sustainability in terms of environment, workforce and customer relations.

Nowadays diversity management gains a significant relevance. It describes “the systematic and planned commitment on the part of organisations to recruit and retain employees from diverse backgrounds” (Kirton 2009). Due to profound and rapid change in demography diversity management becomes a necessary adjustment for global corporations which is simultaneously a precious “competitive advantage bringing real value to companies by adding to the collective skills and experience of the organisation” (Australian Institute of Company Directors, 2010).

This report focuses on Caltex’s diversity management and explores opportunities of improvement by applying the Six Approaches Framework of Brosnan. An implemented set of practices valuing diversity in a workforce primarily directed at improving business goals and not consequently following a legal requirement, “entails a positive duty [on international corporations] to promoting race equality policy” (Ahmed & Swan 2006). By analysing the company’s lacks in diversity management, the report includes recommendations how to manage diversity at Caltex more efficiently.

Current Diversity Management Strategies

Caltex implemented three special major strategies to promote diversity concerning women, indigenous employment and flexible working arrangements.

WOMEN:

Firstly, Caltex claims to be steadily endeavoured to increase its number of female employees in high managing positions. In order to support female managers in an industry still dominated by men, the Caltex Women ’ s Network was founded in 2011 as an initiative focused on the development of female talents and leadership skills. The network invites women from all business departments to “gather, connect, inspire and grow by attending various (…) professional development and networking functions” (Caltex Australia 2010).

INDIGENOUS EMPLOYMENT:

Secondly, the obligations of the Australian Employment Covenant (AEC), a national industry-led initiative aiming at closing the gap between indigenous and non-indigenous Australians in 2012, set a rise in indigenous employment as a long-term aim on Caltex’s diversity agenda. Targeting the establishment of a friendly and understanding working atmosphere, Caltex provided a mandatory cultural awareness training for all executives teaching them the importance of Aboriginal culture for the work environment.

FLEXIBLE WORKING ARRANGEMENT:

Thirdly, Caltex supports its employees in balancing career and family by offering special innovative working arrangements. By acknowledging that returning back to work after a maternity leave is challenging for many young families, Caltex offers a twelve week paid parental leave as well as a package of benefits available up until the baby’s second birthday such as paying a 3% bonus each quarter or providing access to nurses or childcare specialists.

Analysis of Current Diversity Management Strategies and the Application of the Six Approaches Framework by Brosnan

Brosnan’s Six Approaches Framework introduces six distinctive notions of managing diversity. Each is unique and offers advantages and disadvantages. Applying this framework to Caltex leads to a comprehensive assessment of its current diversity strategies. The sociohistorical and linguistic approach do not fit for Caltex, hence will be left out in the following description due to a limitation in words for this assignment.

1) Ethnospecific approach

The ethnospecific approach offers a training for employees being in frequent contact with members of one unfamiliar culture or business practices. The only hint for an ethnospecific approach at Caltex could be found in the cultural awareness training for managers working with indigenous people as outlined earlier.

2) EEO/Antidiscrimination approach

This approach refers to a legal, regulatory and administrative basis given by the government to ensure antidiscrimination and equal employment conditions for all people. Caltex follows these obligations by having signed the Australian Employment Covenant (AEC) and committed to increase the total number of indigenous Australians working for Caltex to 2,5%.

3) Psychological\interpersonal approach

This approach considers culture as a shared set of values, beliefs, attitudes, customs and practices in a society. By understanding one’s own culture, one’s other culture is displayed as an alternative and the individual develops a sense of respect and acknowledgement for different cultures. An exchange of experiences is crucial in that approach. Caltex’s installation of the initiative “Your Voice” can be seen as an application of the psychological approach by providing an open dialogue for employees to share cultures and experiences.

4) Productive diversity

The Productive Diversity approach focusses on linguistic and cultural diversity as a beneficial resource for efficiency, innovation and a broader range of perspectives which can be utilized to increase the company’s performance. Cross-cultural communication as well as embedding productive diversity in a company’s structure and mainstream activity is of essential value. Already the existence of Caltex’s Diversity Management Policy and its implementation can be seen as proof for an initial fulfilment of Productive Diversity.

Effectiveness of Current Strategies

According to their website Caltex aims at leveraging its workforce’s full potential by utilizing different experiences and skills in order to maximise profits and achieve outstanding business goals (Caltex Australia Limited 2010e).

Wrench notes on the imperative necessity of measuring the objectives after having implemented diversity policies to ensure that it does not act as a “cover-up” or a “softer term”, which might distract from the actual application of diversity policies (Wrench 2005).

WOMEN:

Caltex’s focus on gender equality is reflected in its measurable outcomes, which are reviewed annually (Caltex Australia Limited 2010a). This is not only constrained to common staff but applied throughout the whole company including top management. Having had 2% females on 2012’s Board of Management, Caltex noted a 10% increase in the following year (Caltex Australia Limited 2010i). Currently there are two women among eight men on Caltex’s board (25%), reflecting an increasing tendency to employ women in senior positions. Elizabeth Bryan is Caltex’s chair and promoting gender equality on the board’s annual objectives to “do more than a bit of tokenism”(Caltex Australia 2014i).

The current objectives aim at having increased the percentage of women in senior leading positions to 33% in 2017, having secured their employment throughout all departments as well as having maintained minimal gender payment differences (Caltex Australia Limited 2012). 31% females were employed throughout Caltex in 2011 recording a slight increase of 3% in 2012 and in 2013. A couple of years ago women were twice as likely to leave Caltex Australia compared to men, but due to networking events and mentoring Caltex was able to reduce female voluntary turnover rates steadily to keep it below 7% (Australian Mining 2013).

INDIGENOUS PEOPLE:

Both, the Board Objectives of 2012 as well as the Annual Report of 2013, set an increase of indigenous employment on Caltex’s agenda. In 2012 Caltex hired a specialist indigenous employment agency to offer indigenous people employment supported by an external mentoring. In 2013 Caltex recorded a slight increase in indigenous employment due to their 83% fulfilment to the Australian Employment Covenant (Caltex Australia Limited 2013). Furthermore, in 2014 Caltex went into sponsorship with the Clontarf Foundation, which improves education, skills, experience and prospect of indigenous men by offering internships and a career service.

FLEXIBLE WORKING ARRANGEMENTS:

Caltex’s flexible working arrangements, which help employees to balance family and career, is outstanding and has already been awarded multiply. In 2014 its Baby Care Package won the category “Best Employer Initiative for Women” at the National Australia Bank’s Women’s Agenda Leadership Award (Women’s Agenda 2014). Moreover, the 2014’s annual report announces the establishment of a Parental Transition Group in 2015 acting as a supportive network for existent, expectant and returning parents (Caltex Australia Limited 2014a).

SEYMAN’S MAIN ACTIVITIES IN MANAGING DIVERSITY:

Having analysed the effectiveness of current diversity strategies leads to the application of Seyman’s five main activities in performing a successful diversity management.

The provision of training for employees such as the Caltex Learning Curriculum and Leadership Competency Framework fostering leadership and communication skills and offering coaching and mentoring to promote each individual’s potential to its fullest is already a promising beginning for Caltex.

Moreover, the empiric data from the Caltex Annual Flexibility Survey 2014 affirmed Caltex’s inclusive work environment to 67%, noting a 4% rise from last year’s results due to their steady evaluation of feedback for improvement. One of these improvements was the foundation of Caltex’s “Your Voice” concluded under the term evaluation for Seyman incenting continuous improvement derived from feedback.

The third main activity refers to the change in management styles e.g. in recruitment practices. On their website Caltex states that they actively “seek to recruit from a rich and diverse pool of qualified candidates at all levels” (Caltex Australia Limited 2010a) in order to have the best basis for the company’s success and maintain a growing business through an informed understanding of diverse market needs and conditions.

Leveraging full potential of a diversity management strategy requires the involvement of top as well as middle management to mark it as a mainstream activity. The top management is supposed to show commitment, act as a model and make sure that diversity management is also included in the organisation’s structural pattern. Caltex has not installed a separate unit for diversity affairs yet but compromises it under Human Resources Committee. Further information on this committee were not able to find.

By highlighting several times that it is in the responsibility of each individual as well as leader to respect diversity and communicate respectfully with the people one works with, builds a strong argument that diversity is taken seriously at Caltex and no discrimination or harassment is tolerated.

Being selected as a finalist for the Australian Human Resource Institute Inclusion and Diversity Award for both gender equity in workplace award and Sir Ken Robinson Award for Workforce Flexibility proves Caltex to be outstanding in these two facets of diversity and impresses employees with its commitment and engagement (Caltex Australia Limited 2014a).

The Diversity Needs of Caltex Australia Lmtd.

Even though Caltex has already multiply been awarded for its well implemented diversity management, Caltex’s primary focus on gender equality, indigenous employment and flexible working arrangements made it neglect on other layers of diversity. Hence, its diversity management is not balanced. Diversity in modern terms does also encompass disability, migration, sexual preference and distinctiveness in multiple terms which haven’t been included in Caltex’s diversity management at all.

[...]

Excerpt out of 11 pages

Details

Title
An Analysis of Caltex Australia Lmtd's Management of Diversity Policies
College
University of Mannheim
Grade
1,0
Author
Year
2015
Pages
11
Catalog Number
V436041
ISBN (eBook)
9783668767676
ISBN (Book)
9783668767683
File size
493 KB
Language
English
Tags
analysis, caltex, australia, lmtd, management, diversity, policies
Quote paper
Jenny Streb (Author), 2015, An Analysis of Caltex Australia Lmtd's Management of Diversity Policies, Munich, GRIN Verlag, https://www.grin.com/document/436041

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