Effectiveness of Employee Diversity for Improving Performance and Productivity in UK Retail Sector

This research investigates the impact of employee diversity on the productivity of employees within an organization. It covers the secondary information from the secondary sources such as books, articles, newspapers etc. and includes the strategies adopted by an organization to maintain employee diversity in the workplace. The chosen organization for the research is H&M.

RESEARCH
METHODOLOGIES
(Effectiveness of employee diversity for improving the performance and
productivity of an organisation within UK retail sector.)

ABSTRACT
The main purpose of the investigation is to find out the various effects of employee diversity
on the productivity of employees within an organisation. It includes the different research
methods which are used for recording information in a systematic manner. It covers the
secondary information from the secondary sources such as books, articles, newspapers etc. This
assists in meeting defined aim and objectives in a systematic manner. Thus, primary and
secondary research methods are used to carry out investigation.

Contents
ABSTRACT.....................................................................................................................................2
INTRODUCTION...........................................................................................................................4
Background of the topic..............................................................................................................4
Relevance of the proposed research to business research...........................................................4
Place the proposed study in context............................................................................................4
Justification of the chosen topic..................................................................................................5
Value of this research..................................................................................................................5
RESEARCH AIM, QUESTIONS AND OBJECTIVES.................................................................5
Research Aim..............................................................................................................................5
Research Objectives....................................................................................................................5
Research Questions.....................................................................................................................6
LITERATURE REVIEW................................................................................................................7
What is the concept of employee diversity within an organisation?..........................................7
What is the effectiveness of employee diversity in improving the performance and
productivity of business?............................................................................................................7
What are the major challenges faced by H&M in the absence of employee diversity?..............8
What are the effective strategies through which employee diversity can be increased within
H&M?.........................................................................................................................................9
RESEARCH METHODS..............................................................................................................11
REFERENCES..............................................................................................................................14

INTRODUCTION
Background of the topic
Workplace diversity refers to the term which is commonly used for the workplace
composed of staff with different characteristics such as race, gender, sexual orientation, ethnicity
etc. An organisation with workplace diversity is the company who has staff with broad range of
experiences and characteristics (Bogers, Foss and Lyngsie, 2018). In an organisation, employees
are the individuals who take out the activities of the organisation so that pre-determined targets
could be attained. Diversity in an organisation means the acceptance and inclusion of individuals
of every background. A diverse workplace is one of the significant assets because it considers
strength of every employee and the potential they get. With the concept of employee diversity,
an organisation values differences of each other and brings these together and uses this for the
success of whole organisation (Buengeler, Leroy and De Stobbeleir, 2018). The present research
report focuses at carrying out detailed data about the concept of employee diversity within an
organisation so that positive working environment can be created and overall productivity could
be enhanced. This report also includes the strategies adopted by an organisation to maintain
employee diversity in the workplace. The chosen organisation for the research is H&M.
Relevance of the proposed research to business research
The current investigation has great relevance to business research because it highlights one
of the elements that hold great importance in today’s world. Employee diversity is the significant
concept in an organisation because employees are the significant asset to carry out business
operations in a significant manner. This research takes out all the strategies that are necessary for
maintaining diversity in the workplace.
Place the proposed study in context
The existing study has great significance because it shows the impact of employee
diversity on the productivity of the organisation (Luu, Rowley and Vo, 2019). The main research
problem identified in the current investigation is eliminating differences between employees
working in the organisation so that organisation could focus more on recruiting diverse
workforce. In simpler words, company faces issue in forming strategies to gain attention of
employees so that they can work with people who are different from them.

Justification of the chosen topic
The main reason of conducting the investigation on the topic of employee diversity is to
create awareness about the need of different employee in an organisation. This also focuses on
highlighting the impact of employee diversity to improve the business performance and whole
productivity of the organisation (Triguero-Sánchez, Peña-Vinces and Guillen, 2018). There are
two other significant objectives which are aimed by me through the existing investigation. In
respect of personal perspective, I will learn about the behaviour of people regarding the diversity.
This will also assist me in developing personality which respects differences of the people and
gives importance to each characteristics. On the other hand, in respect of professional
perspective I will learn about the strategies through which I will include employee who belong
from different religion and know different languages. Through this investigation I will also learn
about the different methods of research through which I can investigate about the necessary
elements for the successful organisation and gain a lot of important information about the
company. Thus, the present investigation is important in respect of personal as well as
professional perspective.
Value of this research
The present investigation has great value because it shows the importance of diversity in an
organisation for the success and increased productivity (Khan and et. al., 2019). This also holds
great value because it includes great piece of information for researchers, students, organisations
etc. In respect of researchers, this research is of great value as they can use this investigation as
secondary source. However, in respect of students this research is also important because they
can easily understand the concept of employee diversity for their academic purpose. This
investigation is also quite important for organisations because they can also adopt employee
diversity strategies which they can adopt in their workplace.
RESEARCH AIM, QUESTIONS AND OBJECTIVES
Research Aim
To identify the effect of employee diversity for improving the performance and
productivity of organisation”: A Study on H&M
Research Objectives
 To discuss the concept of employee diversity within an organisation

 To evaluate the effectiveness of employee diversity in improving the performance and
productivity of business
 To determine the challenges faced by H&M in the absence of employee diversity
 To discern the strategies through which employee diversity can be increased within H&M
Research Questions
 Explain the concept of employee diversity within an organisation?
 What is the effectiveness of employee diversity in improving the performance and
productivity of business?
 What are the challenges faced by H&M in the absence of employee diversity?
 What are the strategies through which employee diversity can be increased within H&M?

LITERATURE REVIEW
What is the concept of employee diversity within an organisation?
According to (Luu, Rowley and Vo, 2019), Diversity in an organization means that
different employees are accepted on the number of factors such as age, race, gender, ethnicity,
education and religion. A diverse organization is considered as an important asset as it helps in
recognizing the strengths and knowledge of employees and the potential they bring in achieving
the goals and objectives. Valuing the different talent and skills of employees helps in bringing
the team coordination and cooperation which results in creating a positive working environment
for achieving success. Employee diversity is an important concept in an organization as it helps
in indentifying the nature and style of working in order to achieve high productivity and growth.
Employee diversity brings different perspectives, new ideas, creates innovation and enhances the
opportunity to develop unique talent in the company. When the employee comes from different
backgrounds, they bring skills and knowledge gained from everyday experiences that helps in
improving their career growth. Different employees have different knowledge related to a given
task which provides a insight to different organizations on how to utilize their skills in order to
gain profitability. This helps in creating new ideas and innovative solutions in order to achieve
high growth and success in the business. Diversity in the company workplace brings several
benefits as a whole which helps in achieving competitive advantage over other rival companies
in the market (Buengeler, Leroy and De Stobbeleir, 2018). By delegating responsibilities and
role to employees on the basis of their background helps the company in becoming more
efficient and effective in the production of a particular product.
What is the effectiveness of employee diversity in improving the performance and productivity
of business?
According to (Gomez and Bernet, 2019), Most of the organizations focus on building
employee diversity in the company it helps in bringing new talent and knowledge which results
in high growth and productivity. Diversity in workplace promises in making more creative
teams, productive, flexible and innovative. Diversified employees are more productive and
creative as they belong to different backgrounds which helps in gaining high job satisfaction and
financial stability within an organization. When the company hire different varieties of people
with different skills and knowledge helps in bringing more innovative and creative ideas in

achieving the goals of the company. An organization which embraces diversity and considers
equality culture tends to enjoy a strong and positive image in the minds of the customers. It is
important for all the companies to hire variety of individuals coming from varied cultures so that
they capitalize their diverse set of skills in the company to full potential. This will help the
company in improving their performance and productivity in the competitive environment. A
diversified workforce helps in bringing new ideas, perspectives, thoughts and notions that can
contribute to good and effective decision making in the company. Effective relations between
employees and managers is very essential for ensuring long term sustainability and profitability
in the company. Employee diversity helps in empowering team members and departments to
reduce conflicts and deal with issues in a positive manner. Working with people coming from
different study backgrounds allows the company to expect more of new ideas and innovations
which helps in improving the employee performance and productivity.
What are the major challenges faced by H&M in the absence of employee diversity?
According to (Igbrude, 2021), Employee diversity in an organization is a very essential
part which helps in hiring talented and skilled people that belongs to different background
experience. Diversity in the company working environment promotes teamwork, respect and
acceptance. Companies that solve diversity issues tends to achieve higher productivity, morale
and profits. Bringing a diverse workforce in the H&M company leads to several challenges
which are discussed below:
 Communication issues - When companies hire different variety of people, they face
issues related to communication because of language barriers, different perspectives and
thoughts. Young generation people will prefer to communicate through online portals
whereas older people will prefer their phones to communicate in a better way. This is a
major challenge of H&M company because it will lead to conflicts between employees
and will result in negative productivity.
 Slower process of decision making - Different thoughts, perspectives, ideas and
opinions are considered good for innovation, but can result in slow decision making and
growth towards achieving goals. This challenge effects the operations of H&M company
and decreases its productivity and growth in the competitive market. So the company
must recognize and acknowledge contributors to ensure team members to feel valued and
important.

 Cultural misunderstanding and conflicts- Misunderstandings and conflicts occur in the
company when the company brings different people from varied cultures together. This
challenge in the H&M company effects the working performance of employees as they
do not feel motivated and confident in the company. It is important for the company to
create an environment where all employees feel free to share their thoughts and view
point in order to improve relations with other employees.
What are the effective strategies through which employee diversity can be increased within
H&M?
According to (Muthee, 2021), The main aim of employee diversity in the company is to
create a working culture where differences of individuals are respected, all employees are
equally treated and to receive similar opportunities for career advancement and growth.
Workplace diversity helps in providing various benefits such as increased employee engagement,
improved profits, higher collaboration, stronger brand image and reduced turnover in the
company. There are various effective strategies that H&M company adopts to increase employee
diversity:
 Influence diverse job boards - Post job openings on different job portals to increase
employee diversity for hiring talented and qualified employees in the company. H&M
company must provide different job opportunities on diverse job portals in order to attract
more number of people with diverse backgrounds in the company which helps in
increasing productivity and growth.
 Offer mentorships - Effective mentorship programs help in developing growth
opportunities for employees to build strong relations with superiors. H&M company must
focus on building comprehensive mentorship program which helps in promoting diversity
within the company. When the employee receives proper guidance and assistance from
leaders it will help them in improving their performance and also boosts confidence
which results in high profitability.
Conduct diversity training - Training plays a very important role in improving the skills and
knowledge of newly hired staff for achieving high success in the competitive market (Nyakoi,
2020). H&M company must conduct diversity training to increase the motivation levels and
skills for attaining goals and objectives of the business in an effective and efficient manner.
Effective training programs helps the company in creating a positive working environment for all

their diversified employees which belongings to different study backgrounds and have different
experiences.

RESEARCH METHODS
Research methodology is the chapter that helps in collecting and evaluating information
in a systematic way. It helps in designing the whole investigation in such a manner so that
defined objectives could be achieved. There are several kinds of research methods that assist in
collecting and analysing data. Some of the methods that will be used by researcher for doing the
investigation are given below:
Research design: Research design is the method that follows Saunders research onion
framework for collecting and analysing in a systematic way. This framework gives certain layers
through which data can be assembled and objectives could be easily attained. These layers are
explained below in a detailed way:
Research Philosophy: Research philosophy defines the conviction in which information
is assembled by researcher for achieving the expected outcomes and results. The philosophy is
categorised into two types so that investigation could be completed in a systematic way. The
types are: positivism and interpretivism philosophy. Researcher will choose positivism
philosophy as it is organised and effective method for easy analysis of the assembled numerical
data. The main reason of choosing behind positivism philosophy is that it measures only
quantitative information (Basias and Pollalis, 2018). It is considered as scientific method through
outcomes are carried out in comparable and statistical form. It also facilitates in taking out
appropriate decisions and steps as per the real time situation.
Research Approach: Research approach defines the process which is used by researcher
in respect of conducting the whole investigation in a systematic way. For the successful
completion of investigation, researcher needs to select appropriate approach. The approach is of
two main kinds that are: inductive and deductive approach. Investigator will select deductive
approach because this assists in evaluating numerical and statistical data in a proper way. The
main benefit of deductive approach is that it measures information quantitatively in the real time
situation (Ryder and et. al., 2020). Thus, deductive approach is selected so that information could
be analysed in a proper manner.
Research Strategy: This is the research method that facilitates investigator to assemble
and analyse data according to the topic. With the assistance of appropriate research strategy
researcher conducts investigation in an appropriate way. There are several kinds of strategies
which are: survey, action research, case study, archival research, interview, observation etc.

Investigator will choose survey as the research strategy because it helps in the collection of
numerical and quantitative data in the shorter time period. The main advantage of the survey is
that it assists in collecting numerical data in the raw form. The purpose behind selecting survey
as the research strategy is that it helps in assembling new opinions and views of people.
Research Choice: It is the procedure where data is identified as per the requirement of
the investigation. The choice accommodates investigator to attain desired results because it helps
in identifying the kind of data need to be assembled. The choice is of two significant kinds that
are: qualitative and quantitative research choice (Niknejad, Hussin and Amiri, 2019). Researcher
will select quantitative research choice so that numerical piece of information could be
assembled and research could be made accurate and reliable. The main advantage of selecting
quantitative research choice is that it accommodates in doing research with relevant information.
Sampling: Sampling is the procedure that provides two research methods for selecting
right number of respondents to collect data. This is of two kinds which are: probability and non-
probability sampling. Investigator will choose probability sampling because it helps in selecting
right number of respondent by following random sampling method. 30 managers will be chosen
from H&M to collect data because they can provide great information as they work closely with
each strategy of the whole organisation. Therefore, random sampling method gives equal chance
to each respondent while collecting information from them.
Time Horizon: Time is the component that assists in completing the whole investigation
in a systematic manner. There are two important parts which are: longitudinal and cross-sectional
time horizon. Researcher will choose cross-sectional time horizon because it assists in
completing every activity in a real time situation. The major benefit of cross-sectional time
horizon is that it helps in the completion of whole investigation in a timely and systematic way.
Data collection and analysis: Data analysis and collection is the other significant method that
assists in collecting apt data in a significant way (Abutabenjeh and Jaradat, 2018). The several
kinds of method used for collecting information a systematic are briefly defined below:
Data collection procedure: Data collection is the strategy that helps in the assembling
information related to the selected topic. It is quite significant for assembling valid, relevant and
appropriate method so that predicted outcomes could be carried out. It is categorised into two
kinds which are: primary and secondary data collection. Researcher will choose both the method
for the collection of information.

Data collection technique: Primary data collection method will be used by investigator
to assemble raw information about the topic. For the accumulation of raw data, questionnaire
will be developed so that new opinions and views from the different individuals could be
assembled. On the other hand, researcher will also select secondary data collection method so
that used and published data could be recorded in relation to the selected topic. The secondary
sources that will be considered by researcher are: books, articles, newspapers, publications,
journals etc.
Data analysis: Data analysis is the method which assists in analysing information in a
systematic way. There are two kinds of data analysis which are: frequency distribution analysis
and thematic analysis. Researcher will choose frequency distribution analysis so that numerical
information could be evaluated and analysed systematically. This will facilitate in analysing the
relevancy of gathered numerical information (Hayward and et. al., 2021).
Ethical consideration: Ethics are the element which holds great importance in the
research because it helps in conducting investigation in an ethical manner. Some of the ethical
principles which will be followed in the current investigation are: getting informed consent, not
harming chosen respondents, providing respondent withdrawal opportunity etc.
Reliability and validity: The current investigation will be reliable as well as valid because
it constructs appropriate questionnaire. The reliability of the current investigation is maintained
by included appropriate close-ended questions in a systematic way. The validity of the
investigation is maintained by making every respondent the significance and purpose of
conducting the investigation.

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