Leading and Managing Business Organizations: Importance of Diversity Management and Scientific Management Theory

This report discusses the importance of managing diversities among staff for business firms, challenges faced by Sainsbury supermarket, aspects of Scientific Management theory, and its characteristics. It also explains why the scientific theory is not completely phased out entirely in the operations of some organizations.

LEADING AND
MANAGING BUSINESS
ORGANIZATION

Table of Contents
INTRODUCTION...........................................................................................................................3
.QUESTION 1..................................................................................................................................3
Why is it important for Business organisation to manage the diversities among their staff?......3
Some challenges which Sainsbury Supermarket would face in their attempt to manage the
diversity among their employees described below :....................................................................4
.Question 2.......................................................................................................................................5
Despite its weaknesses, certain aspects of Scientific Management is continued to exist in
several organizations today..........................................................................................................5
Discuss the broad characteristics of Scientific Management theory :.........................................6
Reasons of why the scientific theory is not completely phased out entirely in the operations of
some organisations : ....................................................................................................................7
CONCLUSION................................................................................................................................8
.REFERENCES...............................................................................................................................9

INTRODUCTION
Leadership means an individual's capability to motivate, influence & empower others to
participate toward organization success. It is the heart of a business. Managing business
organization consists of controlling groups or set of business entities to accomplish
organizational goals (Awoke, 2020). The report will discuss the importance of managing
diversities among staff for business firm. Moreover, the report will discuss the challenges faced
by Sainsbury supermarket in attempt to manage their diversified workforce. Study will also
examine certain aspects of Scientific Management (SM) that are continued to exist in today
organization. This will also study about the characteristics of SM theory & how they apply in
operations of some industries.
.
.QUESTION 1
Why is it important for Business organisation to manage the diversities among their staff?
Workplace diversity means the various differences between individuals in an
organisation. Various types of diversities including age, religion, gender, race, citizenship status,
mental & physical conditions and so on. Diversity not only means how individuals analyse
themselves but also how others look them.
The various importance of diversities which need to be managed by organization is as follows:
 Greater Creativity and Innovation : Globalization bring many new challenges &
changes in the business world. Competition is one of those changes which require high
creativity and innovation to compete with challenging firms & achieve success. Diversity
in workplace brings more creativity & innovations. This is because mixing of diverse
individuals together which is most important aspect of success.
 Improves Productivity : Diversity and productivity runs simultaneously. Productivity is
based on efficiency & productivity of the employees, employers & staff in an
organization. Diversity in workplace boost productivity because diverse staff is better to
understand different types of customers needs & according to that give ideas to fulfil
them.
 Reduced Employee Turnover : Diversities in the workplace helps company to selecting
a wide variety of employees based on their abilities & talents. This helps business
organization achieve success & growth internationally. Hiring diverse employees also

helps in reducing employee turnover. Many company doing blind hiring for including a
wide range of employees from different cultural backgrounds.
 Connect to a Wider Range of Consumers : The most important benefit of diversified
staff is it helps in connect to a wide range of customers. Hiring employees of different
backgrounds, cultures, languages etc. can assure that company successfully expand their
business globally.
 Improves Employer Brand And Global Reputation : Diversified staff play a important
role in strengthen a high global reputation for the company. This helps in increased
opportunities & profitability for the company and its employees. This help in boosting the
employer's brand & esteem for their employment ethics & practices.
 Increased Revenue : By obtain all the advantages of a diverse workforce, co. will
achieve their goal of increasing revenue. A recent study by the Boston Consulting Group
develop that organizations with a diversified staff generated 19% more profits as compare
to company with low diversified staff.
Some challenges which Sainsbury Supermarket would face in their attempt to manage the
diversity among their employees described below :
 Communication issues : Different countries people have different language
understanding. It leads to a communication issues between employees due to language
barriers, different communication styles, or people with hearing loss. Sainsbury
supermarket also face communication problem among their diversified employees. For
ex., people use the same language as English but variations of tone & colloquialisms
between Australian, American & British English could probably generate
misunderstandings.
 Slower decision-making : Different culture people have different opinions, perspectives,
& ideas. This is good for innovation but it also arises conflicts among employees & can
slow down Sainsbury decision-making and growth toward their goals. Diverse staff have
different way of understanding the same situation and putting out their ideas but excess
number of opinions give failure to reach at any final result (Akinnusi, Sonubi and
Oyewunmi, 2017).

 Discrimination : As company diversify its team, it's chances to see more discrimination,
biases & harassment. In fact, 61% of employees have observed or experienced
discrimination at the workplace based on gender, age, race. Sainsbury will base their
judgements on unintentional biases against their best intentions. Due to this distrust can
arise between employees they doubt each other's capability to do their jobs.
 Resistance to Change : Different countries employees have different perspectives due to
that they are not easily ready to accept change. Because they have a fear of losing job due
to lack of knowledge about that change. To overcome this problem Sainsbury need to
ensure that employees realize the benefits of that changes & accept that changes
positively. For this company give training to employees for better understanding of what
changes will be coming.
 Generation Diversity : The generation gap between employees related to difference in
outlook & behaviour, own preference and expectations can arise problems in managing
diverse workforce. Each generation grown up in a different environment and because of
that they have different work expectations. For managing this generation gap Sainsbury
need to set up a Corporate Mentoring Program. Mentoring can have a positive impact on
the employees and help in increase an employee's confidence, skills & engagement (Sabo
and et.al; 2017).
.Question 2
Despite its weaknesses, certain aspects of Scientific Management is continued to exist in several
organizations today
Scientific Management theory is costly & highly expensive for any organization. It is not
beneficial for small firms because they cannot afford to acquire it. This is also a time-consuming
theory & based on assumptions, if assumptions are proved wrong then firm will suffer losses.
Several aspects of Scientific Management (SM) continue to exist in several organizations
today are discussed below :
 The main benefit of SM theory in today's organization is it concentrate on the activities
done by employees. It increases the productivity & make the workers efficient. This helps
in achieving the goals of a company and its shareholders (Wang and Wang 2020).

Moreover, use of SM in today's operations brings better opportunities to participate in
global markets successfully & increase the overall profitability.
 SM has exceeded to development of overseas market. This brings various new
opportunities for firms & their employees. SM also come up with those methods of
production that are cheap & most effective. Due to development of SM theory,
companies has been capable to produce high quality products. Improvement of quality
give competition advantages to the company and increase their profitability.
 Implementation of SM theory is also helped in division of labour between the employees.
This helps industries in produces better results & high standards. This is because every
employee work in that area in which they are skilful & professional. This distribution of
work improves their efficiency & encourage them for better work.
 The best example of today organization who adopt the SM theory is the American Fast
Food restaurant that is known globally because of its advanced management skills. The
company acquire the management style by Ford who follow Taylor's ideas. Ford believed
that the business organization profits can be increased by working of every employee
according to an assembly line (Deterding, 2019). The American co. has acquired this in
their operations for design of various branches of the food chain. These methods
minimize the number of steps that employee would take to accomplish a certain duty.
Discuss the broad characteristics of Scientific Management theory :
 Systematic Approach : SM is a systematic way to management & its values ensures that
all tasks are finished in a scientific & systematic manner.
 Brings Complete Mental Change : SM give absolute mental change both in the
employees and employer (owner) of the organization. Both participants start working for
more & superior production targets instead of only pursuing high profits. They are
capable to understand that better & increased production will immediate result in
increasing profits that will give gain to both the parties (Copola Azenha, Aparecida Reis
and Leme Fleury, 2021).
 Improves the Efficiency of Workers : The main objective of this theory is to increase
the productivity of workers. This task is achieved through various types of studies such as
motion study, time study & fatigue study.

 Give Due Weight age to Specialization : SM requires dividing each work into several
small parts and each part is assigned to the person who is expert in doing that work. This
help in improved & more work being done in very less time.
 Discards Traditional Management : SM approach completely scrap traditional
management. It brings adoption of new & modern techniques with the aim of earning
more profit and improving the productivity & efficiency of employees.
 Attempts to minimize Wastes : SM objective is minimized the waste of material, time,
machine etc. This approach is very useful in attaining higher level of performance &
simple way to accomplish goals (Mierzwiak, 2019).
Reasons of why the scientific theory is not completely phased out entirely in the operations of
some organisations :
 Today organizations also improves the efficiency of workers this will give benefit
ultimately to the organization itself. For ex. Time study is used to study the time limit of
a person in which one product is produced & standard time is set. Then compare the time
of employees to analyse deviation then give training to them to improve deviation.
 SM's approach of minimize wastes of material, time & money is also used in the
operations of companies. It helps in lowering down the cost of production, improves
productivity & earn more profits.
 Today companies will follow modern way of doing business instead of traditional method
in their working. For increasing productivity and accepts the new technologies for new &
innovative products and successfully survive in the competitive market (Kim and Song,
2017).
 Specialization approach of SM are also applied this in some organization operations
because this give due weight age to specialization. The specialization helps in formulate
innovative products & give new ideas to solve any problem.

CONCLUSION
The report has concluded about the importance of managing the diversities among their
staff for any business organizations. The report has also shed light on the challenges that are
faced by Sainsbury Supermarket in attempt to manage the diversity among their employees.
Furthermore, the study has examined in detail about the certain aspects of SM theory continue to
exist in several organization today that increase productivity & efficiency of firms. There are
also some weaknesses of the SM theory but carefully apply of this theory give various benefits to
the industries. The report has also discussed the characteristics of SM theory in detail & also
explain about the importance of characteristics in the operations of some organization.

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