Leading and Managing Diversity in Business Organizations: A Report

This report delves into the significance of diversity within business organizations, emphasizing its impact on productivity, innovation, and customer base expansion. It uses Sainsbury's, a multinational retail company, as a case study, examining the challenges faced in managing workforce diversity, such as communication barriers and prejudices. The report then explores the relevance of scientific management, highlighting its systematic approach, focus on efficiency, and advantages in large organizations. It discusses how scientific management, with its emphasis on specialization and structured processes, can enhance productivity and profitability. The report concludes by summarizing the key findings and implications for effective business management, underlining the importance of both diversity and scientific principles for achieving organizational goals and competitive advantage.

LEADING AND
MANAGING
BUSINESS
ORGANISATIONS

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Examine why it is important for business organisations to manage the diversities among the
staff..............................................................................................................................................3
Analyse some of the challenges which the Sainsbury Supermarket would face in their attempt
to manage the diversity among the employee's. .........................................................................4
TASK 2............................................................................................................................................5
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business organisation can be defined as an entity which is established for the purpose of carrying
out the commercial activities of the business. The employee's play a very essential role in
achieving the objective of the organisation. The report will discuss about the importance of
diversity among the staff. This report will be on Sainsbury which is a multinational company
dealing in retail business(Betta, 2019). The company was found by John James Sainsbury in the
year 1869 and is headquartered in London, England, UK. The challenges which the organisation
face in managing the staff is also been discussed in the report.
TASK 1
Examine why it is important for business organisations to manage the diversities among the staff
It is very important for business organisation to possess diversity in the workforce. This helps in
increased productivity since the employee's have different skill-sets and can perform various
functions in the company. Sainsbury should follow these practises in order to manage the human
resources in the organisation.
 Fresh Opinions : Diversity in the workforce allow the organisation to explore a variety
of tasks and assignments. The employee's will offer their opinions and views which can
help in formulating strong and effective policies for the business. Sainsbury should
encourage the staff members in order to increase their involvement in the decision
making. This can lead to increased performance of the company(Hatammimi, Adnyani
and Kinasih, 2022).
 Company Efficiency : When the employee's of the organisation come from different
background and experiences, it leads to better and efficient handling of tasks. Sainsbury
needs to form teams by involving staff members from different background which will
improve the quality of work. It also increases the morale of the employee's and instil a
desire to be more effective and work more efficiently.
 Employee Innovation : The diversity in workforce is very essential since it promotes
innovation among the workers. Sainsbury should try to provide freedom to the
employee's so that they can perform the work in their style. This will help the company in
improving the overall performance(Jermsittiparsert, 2020). Innovation and creative

activities are very essential for the smooth functioning of the operations of the business.
A heterogeneous workforce will be able to exchange unique ideas and present fresh ideas.
 Reduce Employee Turnover : When the organisation encourages inclusion and diversity
in the workplace, the workers feel valued and accepted. Sainsbury should look to make
the employee's happy by giving them various benefits and perks. This will help the
company in retaining the skilled staff and attracting new individuals who possess diverse
knowledge. The cost of the recruitment also gets reduced due to the reduction of
employee turnover. The company can use these excess funds and time in a more effective
and efficient manner(Lima, McMahon and Costa, 2021).
 Increased Revenue : Every business wants to earn more and more profits which will
help in achievement of goals and objectives. Sainsbury should reap the benefits of a
diverse workforce in order to become successful in the market. The company can build a
dominant position with the help of this diverse workforce. This can also help the
organisation in expanding its current business operations to a new level. A diverse
workforce is more likely to understand the needs of the customers and come up with the
ideas to fulfil them.
 Increased customer base : The diverse workforce helps in connecting with a large
number of customers which lead to creation of a strong and loyal customer base.
Sainsbury can hire new individuals of varying backgrounds, skills and knowledge to
ensure that the company is appealing to a wider target market(Rane and Narvel, 2021).
Analyse some of the challenges which the Sainsbury Supermarket would face in their attempt to
manage the diversity among the employee's.
Every business faces issues in managing its workforce. Some of the challenges faced by
Sainsbury supermarket in managing the diversity in the workforce are discussed below :
 Unfair Prejudices : There are various individuals which cannot bear the people who
have different opinions on the situation. It creates an adverse effect on the quality of
work. Sainsbury can face problem of negative reputation and uncomfortable work
environment. This will lead to reduction in the revenues of the company which also
impacts the overall profitability of the business.

 Communication Barriers : These barriers are quite common in the organisations which
have a diverse workforce. This can lead to gaps in the communication process which will
directly impact the efficiency of the business. Sainsbury should try to avoid this issue by
hiring multilingual individuals to perform translations. The company can also conduct
various educational courses for the employee's in order to teach new languages. This will
also help the workers in communicating with the foreign clients. Bridging the
communication gap between the employee's will help the organisation grow and reach
greater heights of success in the future.
 Different Interpretation of professional etiquette : The people who have different
background and culture tend to behave differently. This can cause confusion and
misunderstanding between the team members which directly lead to conflicts. Sainsbury
should make a culture which promotes integration and collective team work in the
organisation. It should also make sure that all employee's understand and respect each
other's traditions(Rizun, Revina and Meister, 2021).
TASK 2
Scientific management is the combination of the 2 words and is the application of principles and
methods of science in management field. It is the art of knowing the best ands cheap way for
managing business. Its the art of what is to be done and by whom. They are applied in the
management field such as recruitment, selection, placement of employees and training. Here are
some features of scientific management theory-
 Systematic approach- This theory is the systematic approach towards the management
and its usage makes sure that all tasks are accomplished in a systematic and scientific
manner. By use of this theory Sainsbury is organizing its business operations in a
systematic way for better results.
 Brings the completes mental change- The scientific management theory brings the
complete mental change in owners and employees of the Sainsbury organization. Both
parties start for aiming of better manufacturing targets rather then only chasing the
profits. It enables for comprehending the increased and better production resulting in
higher profits benefiting both parties. This change in attitude is very significant.

 Discards the traditional management- This approach completely discards the old
management concept and calls for adopting the new techniques aiming at the
improvement in employees efficiency.
 Needs strict observance of rules- This theory needs very strict observance of rules as
they are formed by the management of Sainsbury after the analysis and there is less
chance of errors. In this approach the timing is important and makes it different from
traditional management.
 Improves the efficiency of employees- The main motive of the scientific management is
to enhance the efficiency of employees. It is done by conduction of different kind of
studies like times study,motion study and fatigue study. It makes the theory a tool for
increasing the efficiency of employees which benefits the business organisation.
 Gives weightage to specialisation- Theory involves dividing the work in small parts
where every part is allotted to the individual who is expert. It leads to better and more
work performance in less time. So, it can be said that it gives weight age to specialisation.
the force of specialisation cleans away the dirt and wastages generated by the old way if
performing the activities. The main advantages are better results and performance.
 Useful in big organizations- Theory is quite extensive for implementation so it is useful
in big organization like Sainsbury which can easily implement it in its firm. Company can
allocate the necessary resources to the implementation of this theory.
 Attempts in minimising risks- This theory aims at reducing the time,materials,
machines and many more for achieving higher level of performances and quickly achieve
the goals. Sainsbury has opted this for reducing the time and resources for achieving the
objectives and goals(Rowlinson, 2020).
Scientific management is very relevant even after so many years as it has clear and strict
approach. It induces the structural system in the business organisation which defines the
functions of the different departments, groups and peoples. The theory is developed in a way that
it formalizes the process of keeping the records of time and motion where the operations of the
job are done in the sector. Use of this theory in Sainsbury has increased the productivity and
focuses on the activities performed by the employees in the business organisation. It has resulted
in making the employees more efficient. It also increase the capacity of the production of the

company whereas the new methods focuses only on profits but the scientific management theory
helps in meeting the goals and objective of all the stake holders. Theory makes the operations of
the business well analysed and the most effective and efficient way are discovered in it for
enhancing the organization productivity.
In addition the use of scientific managements in today's business operations improves the overall
profitability and provides the firms the better opportunity for competing in the global markets. It
is derived from ability of business organization for maximizing the effort of all stake holders in
the enterprise. Secondly the scientific management has lead in developing of offshore markets
for Sainsbury which is possible due to the ability of analysing the techniques used in the
company. The use of these techniques has made the organisation to come with cheap and most
effective way of production. Discovery of scientific management has resulted in manufacturing
of high quality goods. It has lead to the quality improvement which has increased the overall
profitability of Sainsbury.
Discovery and implementation of this theory in the firm has lead to creation of division of labour
between the employees resulting in producing the better results and high standards. It has helped
Sainsbury in creation of better productivity in organisation and contributing to the increased
quality of goods. It is due to that every employee work in field in which they are skilled. The
theory is very relevant in today's time as the help in coming up with good and organized
structure of organisation. The approach of creating the good organisational structure is used for
improving the efficiency and provide the employees a motivation even at low level. Most of the
business organisation have adopted the scientific management in the business operations.
Sainsbury has opted the style and improved the profitability of the company by having every
employee work in accordance to the assembly line. It has lessened the no. of steps the employees
will take for completing the duty and avoid the unnecessary tasks and extra times. It is because
the skills are wasted in simple business operations. Division of labour and specialisations is used
in the company for achieving goals as in retail stores there are many people doing the job.

CONCLUSION
From the above report, it can be concluded that in every business workforce play a vital role in
performing the business operations. Sainsbury should try to analyse the existing issues and
formulate various strategies to overcome these problems. The company can use various models
and theories for increasing the overall performance of the business. By following the scientific
management theory, the organisation can keep proper records of time and motion. The company
should pay special attention on its business processes in order to keep a check on its activities.

REFERENCES
Books and Journals
Betta, M., 2019. Business, organization theory, and the current challenge of
neocharisma. Business and Society Review, 124(2), pp.261-281.
Hatammimi, J., Adnyani, P.I. and Kinasih, Y., 2022. Examining the Business Organization of
Creative Industry in an Emerging Market. Asia Proceedings of Social Sciences, 9(1),
pp.127-128.
Jermsittiparsert, K., 2020. Leadership and industry 4.0 as a tool to enhance organization
performance: Direct and indirect role of job satisfaction, competitive advantage and
business sustainability. In Agile Business Leadership Methods for Industry 4.0. Emerald
Publishing Limited.
Lima, E.S., McMahon, P. and Costa, A.P.C.S., 2021. Establishing the relationship between asset
management and business performance. International Journal of Production
Economics, 232, p.107937.
Rane, S.B. and Narvel, Y.A.M., 2021. Re-designing the business organization using disruptive
innovations based on blockchain-IoT integrated architecture for improving agility in
future Industry 4.0. Benchmarking: An International Journal, 28(5), pp.1883-1908.
Rizun, N., Revina, A. and Meister, V.G., 2021. Analyzing content of tasks in Business Process
Management. Blending task execution and organization perspectives. Computers in
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Rowlinson, M., 2020. Business history and organization theory. In Management and
Industry (pp. 7-38). Routledge.