Reasons why Diversity Management is important

Includes Hofstede model

Essay, 2020

16 Pages, Grade: 1,7



List of illustrations

List of abbreviations

1 Introduction
1.1 Occasion of essay
1.2 Purpose of essay
1.3 Structure of essay

2 Theoretical principles about diversity
2.1 Definition of the term Diversity Management
2.2 Classification of diversity sizes

3 Six dimensions model of national culture by Geert Hofstede
3.1 Power distance
3.2 Individualism versus collectivism
3.3 Masculinity versus femininity
3.4 Uncertainty avoidance
3.5 Long-term versus short-term orientation
3.6 Indulgence versus Restraint

4 Diversity management in practice
4.1 Benefits by diversity
4.2 Implementation of diversity Management

5 Critical review

6 Conclusion

List of literature

List of illustrations

Fig. 1: Sizes of diversity

Fig. 2: Cultural dimensions theory

Fig. 3: Diversity-Dimensions

List of abbreviations

Abbildung in dieser Leseprobe nicht enthalten

1 Introduction

The importance of the human diversity in companies and organizations in Europe has been growing up continuously since the 1990s. The very fast technological progress and the lowering of international political barriers are fuelling the advance of globalisation and making cross-border communications and trading worldwide easier. Therefore, it is not a surprise that cross-cultural expertise and language skills are ever more frequently requested in companies and the advantages of human diversity are focused to the economic research since the 1990s.

1.1 Occasion of essay

Today the issue of the human diversity does not longer examine the benefits of using people with cross-cultural or linguistic skills only. Meanwhile these parameters have been supplemented and includes those of demographic characteristics, personal know-how, values, beliefs, character, social status and natives generally. In addition, nowadays the economics research does not investigate the obvious advantages in companies and organizations only and is also avoidable disadvantages through the use of heterogeneous groups and team designs.

1.2 Purpose of essay

The overall objective of this essay is to explain the importance of human diversity in companies and organisations. It contains reasons why this topic can no longer be ignored for successful corporate management of enterprises in today's world. Furthermore, as a kind of sub-target cultural differences will be considered and the six dimensions model of national culture from organisational anthropologist Geert Hofstede will be presented.

1.3 Structure of essay

Zunächst erfolgt ein Theoriekapitel indem die Begrifflichkeiten der Aufbau- und ablauforganisation grundlegend definiert werden. Darauf aufbauend wird auf die Vor- und Nachteile der Zentralisierung, bzw. Dezentralisierung eingegangen. Es folgt die Erläuterung des Change Managements, die damit verbundenen Widerstände innerhalb einer Organisation und die Definition des Shared Service Centers. Für das Theoriekapitel wird eine wissenschaftliche Literaturrecherche verwendet.

Anschließend erfolgt im dritten Kapitel die Konzeptentwicklung über das Thema Aufgabenverlagerung in ein Shared Service Center. Es wird die Situation beschrieben und anschließend die Chancen und Risiken dieser Organisationsentwicklung Themenbezogen erörtert. Daraufhin folgen eine Beschreibung der Herausforderungen unter Berücksichtigung rechtlicher Grundlagen und ein Vorschlag zur möglichen Umsetzung der Aufgabenverlagerung. Im vierten Kapitel werden die Ergebnisse hinsichtlich des Aufbaus der Arbeit und den Ergebnissen kritisch reflektiert. Abschließend wird im letzten Kapitel das Ergebnis in Form einer Schlussbetrachtung zusammengefasst.

2 Theoretical principles about diversity

This chapter explains the theoretical basics of diversity management. It declares the term itself, his origin in the economic sciences and the possibility to classify diversity acc. different attributes.

2.1 Definition of the term Diversity Management

The term diversity management is made up of two parts. The terminology diversity was historical created during the antidiscrimination revolts from the African-American population against the racism in the USA. In the 1950s several minority groups used the hype for his own advantage to strikes against discretion in the population generally. Based to the world globalisation diversity came to Europe and not least to Germany in the 1990s. The European integration, demographical changes, migration and refugee movements keep the subject in trend. In history diversity means variety, heterogeneity and the difference of persons and groups. Nowadays diversity is supplemented to look at similarities between persons and groups too. The term management is often equated with leadership. It refers to the concrete, structured, planning, design, control and monitoring of tasks, processes and work areas within the organisation.1 The complete term thus describes the implementation of benefits through the diversity of people as well as the reduction of disadvantages within the organisation. The objective of a diversity management system is to use the different appearances and individuals of humans preferably efficiently to reach the best possible collaboration within the enterprises.2 The successful creation of added values through diversity is called inclusion.3 In addition, diversity management deals with the analysis of structures, personnel processes and changes in organisational culture with regard to the most efficient diversity.4

2.2 Classification of diversity sizes

Different classification models have beed developed since diversity is in the economic research focus. One typically model distinguishes demographic characteristics, know­how, value system, personal character and social status.5 Each attribute has lower features too. The demographic characteristics contents for e.g. age, gender, personally disabilities, the demographical education situation and the marital status. The attribute know-how subdivides task-based knowledge, soft skills from previous careers and work experience generally. Further breakdowns can be extracted from the following figure.

Abbildung in dieser Leseprobe nicht enthalten

Fig. 1: Sizes of diversity.

Source: own graphic based on Nerdinger/Blickle/Schaper (2019), p.129.

The classification of diversity makes it easier to identify problems in organizations in a targeted manner and develop measures which can be realized from the management in practice. It can also be used to illustrate comparisons with other enterprises or the industry sector generally.

3 Six dimensions model of national culture by Geert Hofstede

That there is another way to classificate the sizes of diversity will be explained in this chapter. The Dutch organizational anthropologist professor Geert Hofstede is the creator of the cultural dimension's theory which classificate different cultures in six groups. In 1980 he examined 40 different countries in his own research study and assign them to four different dimensions.6 The four dimensions are called power distance, uncertainty avoidance, individualism versus collectivism and masculinity versus femininity. After continued research, a fifth dimension, long-term versus short-term orientation, was added in 1991.7 Hofstede examined at least 93 different countries and comes to the result that cultures can be differentiate according six dimensions as shown in the following figure.

Abbildung in dieser Leseprobe nicht enthalten

Fig. 2: Cultural dimensions theory.

Source: own graphic based on Hofstede/Minkow, (2010), p.53 et seq.

The different dimensions of the cultural theory will be shortly explained in the following sub chapter. To not to exceed the scope of this work just the power distance will be explained more detailed.


1 cf. Vahs (2012), p.20.

2 cf. Nerdinger/Blickle/Schaper (2019), p.129.

3 cf. Scholz (2014), p.202.

4 cf. Bartscher/Nissen (2017), p.570.

5 cf. Nerdinger/Blickle/Schaper (2019), p.129.

6 cf. Hofstede (1998), p.6.

7 cf. Hofstede (1998), p.6.

Excerpt out of 16 pages


Reasons why Diversity Management is important
Includes Hofstede model
AKAD University of Applied Sciences Stuttgart
Catalog Number
ISBN (eBook)
ISBN (Book)
Diversity, diversity management, hofstede, FGI03
Quote paper
Fabian Franke (Author), 2020, Reasons why Diversity Management is important, Munich, GRIN Verlag,


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