Critical Analysis of Zara: Enhancing Cultural Diversity for Competitive Advantage
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This essay critically evaluates the practices and behavior implemented in the workplace of Zara for achieving competitive advantage and enhancing cultural diversity.
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Running head- MANAGEMENT Critical Analysis of Zara Name of the student Name of the university Author note
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1 MANAGEMENT Introduction Managementisanimportantparameterofbusinessforthecompaniesand organizations. Managing the operations through performance management plans, reviews and audit enables the personnel to identify the drawbacks within the operations. Sharing the drafts and reports of the audit with the managers assists in undertaking proper steps towards estimating the future course of action according to the identified and specified requirements (Taylor, Fisher & Dufresne, 2002). Theoretical considerations act as an agent for the personnel and the researchers to delve deeper into the business dynamics. The theories selected reflect the approaches attached for analysing the organization, its competencies and capabilities. These approaches indicate the steps adopted by the personnel for executing their roles within the workplace. Thematic analysis is fruitful in terms of developing comparative analysis of the current condition with that of the current position of the contemporary brands. This comparative study can be related with the modern approach for analysing the position of the organization amidst the competitive ambience of the market. Within these aspects, one of an important aspect is the behaviour of the personnel towardsdealingwiththetasks.AccordingtoAlvessonandSveningsson,(2015), consciousness towards preservation of the traditional values reflects the compliance to the Ethical Code of Conduct into the execution of the tasks. This behaviour is accounted as one of the good practices for organizations like Zara. This essay, through the application of the modern approach, attempts to delve deeper into the business dynamics of Zara. The thesis statement of this essay is tocritically evaluate the practices and behaviour implemented in the workplace of Zara for achieving competitive advantage for enhancing the cultural diversity.
2 MANAGEMENT Discussion Founded in 1975, Zara has achieved accolades and glory by emerging as the most popular fashion retailer in the threshold of United Kingdom. With its headquarters in Spain, theorganizationhasitsoutletsinmorethan10000stores,spreadworldwide.The organization mainly deals in various and wide ranging apparels, indicative of large scale customer satisfaction. According to the annual report of 2018, the annual revenue of the company was $18.9 billion (Zara.com, 2019). It operates under Inditex, a multinational clothing company in Arteixo, Galicia. Catering to the needs, demands and requirements of the customers from different cultures is the main reason for selecting Zara. This is in alignment with the theme of culture selected for shedding light on the modern theoretical perspective, chosen for critically analysing the workplace culture of Zara. Practising customer oriented business helps Zara to stabilize their market position amidst the competitive ambience of the market (Zara.com, 2019). In order to analyse the organizations, there are multiple perspectives, which the personnel need to apply. These aresymbolic, modern and the contemporary. Symbolic interpretive perspective comprises of subjective knowledge of the Zara personnel regarding handlingtheallocateddutiesandresponsibilities.Oneofthenegativepointsofthis perspective is biasness, which contradicts the true essence of culture. Postmodern perspective relates to the application of acquired knowledge in exercising the power and authority. Within this,Winnubst, (2017) is of the view thatcommunication style used by the personnel of Zara for maintaining the hierarchy, gains a primary position. Modern perspective proves effective in terms of analysing the workplace culture of Zara. This is in terms of the focus on objective knowledge through elimination of biasness.
3 MANAGEMENT Out of the three perspectives, modern seems to be relevant in the competitive ambience. This is in terms of deviating from the rat race to earn more profit than the contemporary brands. Focusing on the objective knowledge is assistance for the Zara managers in terms of gaining an insight into the capabilities of the employees. This insight, in turn, acts as an agent towards preparing the employees for tackling the real scenario of the market. On the other hand,Hartnell et al., (2016) states that fairness in the testing methods helps in reducing the instances of biases in the workplace. Herein lays the appropriateness of Equality Act (2010), which enhances the cultural diversity. Rationality in this approach is crucial for the managers for creating an example for the employees. Typical example of this is theoretical perspective towards solving the critical problems. Progressive evaluation helps the managers of Zara to enhance the cultural efficiency. Shared values are the key towards enhancing the competencies, skills and capabilities (Körner et al., 2015). External influences are considered to play an important role in shaping the workplace culture of organizations like Zara. Typical example in this direction is the technologies, which alters the business dynamics. Clarity in the job roles drives the managers into the journey of leaders. Consistent approach towards enhancing the efficiency is the initiative towards enhancing the brand image of Zara. On the contrary, postmodern approach can be placed equal to that of the modern competitive scenario of the market. This is in terms of the exposure of power and authority, the personnel are provided with. However, Zara managers expose their power in motivating the employees, so that they recognize their capabilities and act accordingly (Zara.com, 2019). Evaluation of this performance is fruitful in terms of making estimates regarding the actions, which needs to be undertaken for enhancing the workplace culture. As a matter of specification, this perspective deals with psychoanalysis of the performance. This
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4 MANAGEMENT helps the managers to delve deep into the mindset of the employees. Herein lays the appropriateness of personality tests. ThemesJustification Structure and designSegmentationoftheproductline into men, women and children Creativity of the design team Season oriented manufactures Functional organizational structure IdentityInnovations in logo CultureTeamwork Open communication Flexibleemployment opportunities Training Internal promotion Ethical Code of Conduct Health and Safety legislations Organizational learning, tacit knowledge and Knowledge management Learning by doing Perspective making and perspective taking Developmentofpositiveand progressive knowledge Neo functionalist discourse Aesthetics, Performance and NarrativeTransmissionoftheknowledge regardingthesales,profitand
5 MANAGEMENT productivity from the managers to the employees Power and ControlManagers Policies Ethical code of conduct GenderrMale and female workers Relevance of the seven themes to Zara Table 1- Thematic analysis of Zara (Source-Zara.com, 2019) Functional organizational structure is assistance for Zara in terms of catering to the needs, demands and requirements of the clients and the customers. The departmental units collaborate for completing the projects within the stipulated time. Group discussions reduce the intensity of conflicts, discriminations and harassments within the workplace. This group work reduces knowledge gaps, enhancing the compatibility and adjustment skills. Sharing the ideasofinnovativelogosisanattempttowardsenhancingthebrandimage.Open communication between the managers and the team members is assistance in terms of enhancing the cultural diversity. Implementation of Ethical Code of Conduct in the business strategies avert any kind of unethical or misconduct (Zara.com, 2019). Strictness in this direction makes Zara one of the preferred choices among the clients and the customers in terms of culture. Cultural training is provided to the employees of Zara so that they learn about the ethical behaviour, which they need to expose for enhancing their personality. Flexibility in the employment opportunities along with health and safety are the components, which assures the employees, that their interests are taken care. The managers of the opinion that employees learn fast when
6 MANAGEMENT they experiment their capabilities and competencies under the challenging and enduring ambience. Training forms an important element in terms of gaining an insight into the needs of the employees. Herein, Maslow’s Hierarchy of Needs can be applied. This is in terms of the self-esteem, which the employees need to enhance for attaining personal and professional development. This can be achieved through the proper implementation of the motivational factors like rewards, recognition, bonuses and leaves.Valmohammadi and Roshanzamir, (2015) opines that governing the performance of the employees is accounted as the most important responsibility of the managers. Fairness and transparency in the performance reviews and audit is the typical example in this direction. Along with this, increasing the job posts for the employees from diverse cultural backgrounds is an attempt of the Zara managers towards enhancing the cultural diversity. Diversity prevails in the workforce of Zara. Typical evidence of this lies in the 70000 professionals of which 82.8% are young women. The average age of the employees is 26 years. Zara follows the corporate culture of the parent company, Inditex, which comprises of teamwork, open discussions among others. Open forums conglomerates the different cultures, enhancing the scope and arena of diversity. In contrast to this,Chang and Lin, (2015) states that liberal approach towards dealing with the interests of the workers, makes them an asset for the organization. Hearing their voices influences the thinking skills and authority of the personnel. Flexibility in the employment opportunities is an initiative towards unleashing the competencies, capabilities and skills of the personnel. Training and career enhancement plans are conducted by the managers of Zara in terms of enhancing the preconceived skills, expertise and knowledge of the employees. Mention can be made of the journey mapping, which helps the managers to review the
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7 MANAGEMENT feasibility of the performance in terms of the identified and specified requirements. Typical evidence of this is the annual review of the performance through audits and meetings. Mention can be made of the strategic vector for the management system. On the other hand, O'Neill, Beauvais and Scholl, (2016) points out that implementation of the Code of Conduct helps in legalizing the corporate social responsibilities. From the modern perspective, the attempts of training at Zara relates to the act of enhancing the social adjustable skills of the employees. Ethical approach in this context indicates the respect attached to the culture of the personnel. Health and Safe Act acts as an agent for catering to the wellbeing of the clients and the customers. Strictness in implementing the Code of Conduct on the manufacturers and suppliers is thetypicalevidencefortheexposureofmodernperspectivetowardspreservingthe workplace culture. In this, the managers ensured that the personnel complied with the standards and codes of the legislative requirements. A collaborative approach in this direction relates to the initiatives for reducing the instances of biases and prejudices among the employees (Xenikou, 2017). Organizational culture of Zara adversely affects the design and structure. This is in terms of the assumptions, values, norms and attitudes. Whenever a task is allocated, the members indulge in teamwork. The approach towards dealing with the tasks indicates the power and authority, reflecting the behaviour. Indulging in the group discussions helps the managers in assessing the behavioural approach of the employees. Modern perspective in this approach relates to the measurement of the behaviour through 16 Personality Test, personal profile and SWOT analysis.Lundberg, (2015) argues that thescores of these tests are used for estimating the areas, in which training needs to be provided to the employees.
8 MANAGEMENT Culture also plays an important role in unleashing the leadership skills and abilities of the Zara managers. Here, the dimension of power distance, as specified by Hofstede, can be related. Autocratic leadership style helps Zara managers to control the thought processes of the workers. Usage of uncertainty avoidance index is assistance towards measuring the extent to which the conflicts, discriminations and harassments have affected the productivity. However, the critics oppose this application. This is in terms of the mere production in comparison to the needs and requirements of the competitors regarding the “just in time “deliveries (Zara.com, 2019). Everyorganizationexposessomeuniquebehaviourforachievingcustomer satisfaction. In order to delve deeper into the behavioural dynamics, the business dynamics need to be made clear. In terms of Zara, the practices relate to job design, recruitment and selection, coaching and mentoring, training, rewards and performance appraisal. The modern perspectives related to these practices are as follows- Recruitment and selection- Application process, interviews, job offers and training Job design- teamwork, challenging and enduring tasks, flexible promotion offers and autonomy Training- guidebook materials, culture training Coaching and mentoring- customized training, shop assistant mentors and recruitment programs (Zara.com, 2019) Rewards and appraisals- internal promotion, variable salaries These approaches can be classified into four categories-human resources, contingency, productivity and systems. Human resources approach relates to the management of the workers. The managers of Zara revise the recruitment and selection policies for hiring the right candidates. Adopting direct marketing techniques is assistance in terms of strengthening
9 MANAGEMENT the customer base. Typical example of this is the social media, where the application forms are uploaded. The HR manager is entrusted with the responsibility to ensure that the employees are receiving proper training from the supervisors. Offering lucrative promotion offers is a means for ensuring proper growth and development of the skills, abilities and competencies of the employees. Typical evidence of this is the performance appraisals, which allows the managers to evaluate the readiness of the employees for venturing into the next level of their performance (Zara.com, 2019). Contingencyapproachindicatesthatdifferentsituationsneeddifferentbehavioural approach. In the application of differing approaches, the personnel of Zara encounter various variables, leading them to the appropriate solutions for enhancing the productivity. Adopting this approach is assistance for Zara managers in terms of gaining an insight into thinking skills and judgement of the employees. This assessment reflects the application of the gained knowledge for executing the allocated duties and responsibilities. Chatman and O’Reilly, (2016) are of the opinion that productivity approach relates to the comparison between the input and the output. This is executed through the consideration of charts, tablesand graphs. Adequate opportunitiesare provided to the clientsand the customers regarding making their voices heard in the meetings. Capability and need analysis is emphasized for the enhancing the sales productivity of Zara. None of the workers are forced to work overtime, which reflects adherence to the protocols of Working Ombudsman. Frequent inspections are conducted by the statutory bodies of law, which helps in reducing the instances of illegal practices. Systems approach sheds light on the interaction between the human and technological resources. Within this,Cao et al., (2015) points out thatthe modern perspectives are implementation of Data Protection Act (1998), Computer Misuse Act among others. These
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10 MANAGEMENT legislations prove beneficial in terms of reducing the intensity of the cybercrimes, adding to the judicious use of the systems. Along with the systems, there are different models for assessing the organizational behaviour. These are autocratic model, custodial model, collegial model, supportive model andsystemsmodel.Autocraticmodelrelatestothegovernancebyaleaderonthe performance of the team members. Like other organizations, rewards are used by the Zara managers to extract the required labour. According to the arguments ofBrettel, Chomik and Flatten, (2015), conducting need analysis upon the employees is an initiative towards the preservation of their public interests. On the other hand, custodial model assures the employees that the managers are aware of their needs and requirements. Typical example of this is the career enhancement plans, journey mapping, health insurance, incentive programs and others. Adopting this model helps Zara managers to maintain the stability in the relationship between the employees and the managers. In case of the collegial model, the managers play the role of coaches for guiding and supporting the team members. Exercising the power is reflected through dissemination of inspiring stories to the team members.Kangas et al., (2018) proposes that loyalty programs are introduced for making the employees aware of their role in the workplace. In case of Zara, the managers provide adequate motivation and encouragement to the employees for setting long terms goals. This is in terms of mapping their progress according to the identified and specified benchmarks. Supportive model is one of the productive options for gaining an insight into the practices and behaviour of organizations like Zara. This is because the managers understand the motivational factors, which affect the performance of the employees. Typical examples in this direction are supporting the employees to undertake self-organization exercises. Along
11 MANAGEMENT with this, the managers also guide the employees in making actions plans for improving the standards and quality of their performance. Enough opportunities are provided to the employees so that their capabilities and competencies are enhanced (Kontoghiorghes, 2016). Apart from this, systems model act as a cornerstone for stabilizing the foundation of the organizationalculture.Zaraprovidestechnologicaltrainingtotheemployees,which enhances their virtual awareness. Conclusion Culture is one of important parameters, which reflects the approach towards catering to the interests of the clients and the customers. Within this, mention can be made of ethical code of conduct, which reflects the behavioural approach of the personnel towards handling the tasks. Theoretical approaches in executing the tasks help in delving deeper into the capabilities and competencies of the organization. Typical evidences of this lies in the models, which shed light on the behaviours. Structures and hierarchies adversely affect the culture of Zara. Functional organizational structure relates to the relationship among the employees and managers. Teamwork relates to the collective approach, as mentioned by Hofstede in his cultural dimensions. In this, open communication reflects the liberal approach in making the voices of the employees heard. Surveys and feedback prove beneficial in gaining an insight into the effectiveness of the business strategies in terms of the identified and specified benchmarks. Catering to the cultures enhances the workplace diversity of Zara. This enhancement further leads to the identity formation of the brand image. Along with this, equal ratio of the male and female workforce also relates with the dimension of masculinity and femininity, mentioned by Hofstede. Organizational learning, in case of Zara, reflects the need based training, which is imparted to the employees. This approach helps in organizing the activities
12 MANAGEMENT according to the requirements. Career plans and programs are prepared, which reflects the consciousness towards unleashing the professional skills, abilities and competencies of the employees. Post training tests helps the managers to measure the capability of the employees towards making practical application of the learnt skills in executing the tasks. Scoring the performance of the employees helps in preparing graphs for the performance. Reviews are conducted annually for preparing reports on the upgradation of the standards and quality.
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