Recently, there has been an increasing discussion of globalization among politicians and political scientists, economists, and managers at both the national and international levels. The phenomenon of globalization is undoubtedly one of the most popular themes of our time, especially within the framework of effective diversity management. This paper explores the theory and practice of company management in the context of globalization, leading to the diversification of the company’s workforce.
Improvement of Management Practices
Globalization is a social process in which the boundaries of social and cultural systems are blurred. In other words, the essence of globalization is the openness of borders to trade and financial flows. Advocates of globalization see its main advantage in increasing productive competition that is not limited to protectionist frameworks under a global division of labor (Cho et al., 2017). The development of globalization and the enlargement of transnational corporations lead to changes in the ways, methods, and techniques of their management, to a transition from classical control to the notion of system management.
Globalization of the market and strengthening of international competition have had a significant impact, first of all, on the principles of management, expressed in the search for new approaches to the protection of market positions and the formation of opportunities for continuous development of enterprises. Thus, it is necessary to understand that the developed and tested practical technologies of company and personnel management can be considered for success (Olsen & Martins, 2016). At the same time, the dynamics of changes in the external environment and conditions for the application of proven approaches, technologies, and tools for effective management require consideration of their additional adaptation and development in the new conditions of supervision.
Modern HR management is focused on the survival of the organization through the use of its internal resources, its human capital, and the intellectual potential of its employees. The enterprise of modern type assumes at least informal obligations to rationalize the individual abilities of employees and to give everyone a chance to make a career (Weisinger et al., 2017). The focus on employee development, career planning, and business activity has long been a hallmark of innovative strategic personnel management in successful companies. Achieving effective management through the introduction of a culture of workforce diversity ensures that each employee is allowed to find growth and success in his or her career.
The task of effective management in this environment is to adapt the organization to the use of employees with a variety of characteristics. Achieving the company’s success in the context of globalization has objectively required continuous innovation to improve customer satisfaction and service. This has led to the need to shorten the development and introduction of new products into the market that can generate the desired income over an extended period. At the same time, it should be taken into account that competitors in the international market also take advantage of innovative opportunities to strengthen their market position.
Diversity Management Effect
The Diversity Management Policy recognizes that employees are different from one another, and these differences if properly managed, will contribute to more skilled and efficient performance. The policy does not focus exclusively on discrimination; instead, it focuses on understanding differences between people (Suryani et al., 2020). Such differences may include visible and invisible factors such as gender, age, education, race, disability, nature, and style of work. The idea of managing corporate diversity is based on the assumption that capturing these differences will create a rewarding environment in which everyone feels valued, employees’ abilities are fully applied, and organizational goals are achieved.
Diversity management is a guarantee that all employees attain their full potential and contribute to the organization as much as possible. It implies the value of diversity, the number of differences between people, and the qualities that they bring to their work, which can lead to a more grateful and productive environment (Holck et al., 2016). It is wrong to assume that diversification management is just part of a civil rights agenda and one way to show one’s loyalty to people’s racial, gender, and age differences (Park, 2020).
On the contrary, it allows a manager to effectively run any heterogeneous team, see and appreciate the individual characteristics and potential of his subordinates, and capitalize on them (Knapp & Sheep, 2019). Diversification management will prove useful not only when it comes to differences based on race or gender, but also when several opinions, characters, and beliefs are encountered. This approach to managing a company is highly effective because it has several advantages (Jaiswal & Dyaram, 2019).
These include increased employee loyalty, more effective decision-making with a variety of experiences and cultures, and an expanded client base. Definition of effective management and high professionalism of supervision is required in a new environment to define and systematize the primary approaches, concepts, technologies, and tools of effective management, the application of which can lead the company to success in different situations.
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