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.
Table of Contents
1. Introduction
2. Current Diversity Management Strategies
3. Analysis of Current Diversity Management Strategies and the Application of the Six Approaches Framework by Brosnan
4. Effectiveness of Current Strategies
5. The Diversity Needs of Caltex Australia Lmtd.
6. Recommendations
7. Conclusion
Objectives and Topics
This report aims to evaluate the diversity management practices at Caltex Australia Limited by applying Brosnan's Six Approaches Framework to identify both the strengths of current initiatives and potential areas for strategic improvement in an increasingly globalized industry.
- Analysis of existing diversity strategies regarding gender, indigenous employment, and flexible working arrangements.
- Application of the Six Approaches Framework by Brosnan to assess organizational management styles.
- Evaluation of the effectiveness and measurable outcomes of current diversity initiatives.
- Identification of gaps in the current diversity strategy to ensure a more balanced and comprehensive approach.
- Recommendations for fostering a more inclusive work environment through structural and cultural changes.
Excerpt from the Book
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.
Summary of Chapters
Introduction: Provides an overview of Caltex Australia Limited and the increasing importance of diversity management as a competitive advantage in the global oil and gas industry.
Current Diversity Management Strategies: Details the primary initiatives implemented by Caltex, focusing specifically on gender equality, indigenous employment, and flexible work arrangements.
Analysis of Current Diversity Management Strategies and the Application of the Six Approaches Framework by Brosnan: Evaluates the company's existing policies through the lens of Brosnan's framework, specifically identifying how components like the ethnospecific and psychological approaches are utilized.
Effectiveness of Current Strategies: Examines the measurable outcomes and impact of current initiatives, noting trends in female representation and indigenous employment fulfilment.
The Diversity Needs of Caltex Australia Lmtd.: Highlights the imbalance in the current strategy, noting the neglect of wider diversity dimensions such as disability, migration, and sexual preference.
Recommendations: Suggests improvements such as aligning diversity goals with SMART criteria and establishing formal diversity councils to better integrate diverse perspectives.
Conclusion: Summarizes the overall assessment that while Caltex's current programs are pioneering, they must broaden their scope to remain competitive.
Keywords
Diversity Management, Caltex Australia, Six Approaches Framework, Brosnan, Gender Equality, Indigenous Employment, Flexible Working Arrangements, Corporate Sustainability, Organizational Culture, Workplace Inclusion, Human Resource Management, Employee Retention, Globalized Workforce, Competitive Advantage, Performance Measurement.
Frequently Asked Questions
What is the primary focus of this report?
The report focuses on evaluating the current diversity management strategies at Caltex Australia Limited to determine their effectiveness and identify areas for improvement.
Which theoretical framework is applied to analyze the strategies?
The report utilizes the "Six Approaches Framework" developed by Brosnan to assess how Caltex manages its workforce diversity.
What are the three main areas of diversity addressed by Caltex?
Caltex concentrates its diversity efforts on gender equality, indigenous employment, and the provision of flexible working arrangements.
What is the main goal of the proposed recommendations?
The recommendations aim to create a more balanced and comprehensive diversity strategy that addresses neglected facets like disability and migration while improving the structural integration of diversity management.
How is the effectiveness of the diversity strategies measured?
Effectiveness is measured through yearly reviews of internal data, such as female representation in management, turnover rates, and adherence to commitments like the Australian Employment Covenant.
Why is diversity management considered a competitive advantage?
It is viewed as an essential adjustment for global corporations to leverage collective skills, foster innovation, and increase the company's overall performance.
Does Caltex have a dedicated department for diversity?
No, the report notes that Caltex does not have a separate unit for diversity affairs, instead managing these issues under the Human Resources Committee.
How does the "Your Voice" initiative fit into the diversity strategy?
The "Your Voice" initiative is identified as an application of the psychological/interpersonal approach, providing a platform for open dialogue and the sharing of cultural experiences among employees.
What is the impact of foreign ownership on Caltex's diversity needs?
Being part of a foreign-owned corporation like Chevron requires Caltex to adjust to an increasingly globalized workforce, necessitating a better management of diverse cultural norms and languages.
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- Jenny Streb (Autor:in), 2015, An Analysis of Caltex Australia Lmtd's Management of Diversity Policies, München, GRIN Verlag, https://www.grin.com/document/436041
