The Impact of Cultural Diversity on Employee Engagement and Retention

This research project focuses on the impact of cultural diversity on employee engagement and retention at the workplace, specifically analyzing Tesco Plc. It aims to review the importance of creating and managing equality and diversity, analyze the impact of cultural diversity on employee engagement and retention, and determine effective HR practices for better management of cultural diversity.

The impact of cultural
diversity on the employees
engagement and retention at
workplace.”

Table of Contents
Research Topic: The impact of cultural diversity on the employees engagement and retention at
workplace. A research project on Tesco Plc....................................................................................1
Introduction......................................................................................................................................1
Background to the study.............................................................................................................1
Aim and objectives......................................................................................................................1
Rationale for selection of topic...................................................................................................1
Research questions......................................................................................................................2
Literature review..............................................................................................................................2
To review about the importance of creating and managing equality and diversity at workplace.
.....................................................................................................................................................2
To analyse the impact of cultural diversity on the employees engagement and retention at
workplace of Tesco plc...............................................................................................................3
To determine some more effective HR practices to ensure better management of cultural
diversity at Tesco plc which lead to enhanced employees engagement and retention...............3
Methodology....................................................................................................................................4
Results and Findings........................................................................................................................6
Conclusions......................................................................................................................................8
Recommendations............................................................................................................................9
REFERENCES................................................................................................................................9

Research Topic: The impact of cultural diversity on the employees
engagement and retention at workplace. A research project on Tesco Plc
Introduction
Background to the study
The concept of cultural diversity is related with creating a more inclusive and diverse
workforce which comprises of employees from different background and culture (Annabi and
Lebovitz, 2018). Management of cultural diversity create mangy advantages in form of improved
skills and capability of employees but still many issues and challenges related with maintain
employees coordination and engagement level are also faced (Naim and Lenka, 2018). Thus,
current investigation is lead out on Tesco Plc which is well known multinational British retailer
to analysis about the impact of cultural diversity on the employees engagement and retention at
workplace.
Aim and objectives
Aim of the research
To get a better insight about the importance of equality and diversity along with analysing
the impact of cultural diversity on the employees engagement and retention at workplace. A
research work on Tesco plc
Research Objective
 To review about the importance of creating and managing equality and diversity at
workplace.
 To analyse the impact of cultural diversity on the employees engagement and retention at
workplace of Tesco plc.
 To determine some more effective HR practices to ensure better management of cultural
diversity at Tesco plc which lead to enhanced employees engagement and retention.
Rationale for selection of topic
It today's business environment where a high level of competition is prevailing, it become
vital and importation for all business organization to focus and emphasis on effective
management of cultural diversity. Thus, selection of current research topic is rationale as it
facilitates analysis of impact of cultural diversity on the employees engagement and retention at
workplace. Further, selection of current research topic also meets the personal and academic
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purpose of researcher along with enhancing skills and competencies. The current study helps in
meeting the personal purpose of researcher as the selection of topic as per the personal interest of
the investigator. Beside this, academic and professional purpose are also met by current study, as
it ensures improvement in managerial skills and other competencies through practical experience
of managing all research activity. Beside this, review and survey of various literature also
supports and boost the knowledge and understanding level of the investigator.
Research questions
 What importance is associated with creating and managing equality and diversity at
workplace?
 What possible impact is lead out by cultural diversity on the employees engagement and
retention at workplace of Tesco plc?
 What are the some more effective HR practices to ensure better management of cultural
diversity at Tesco plc which lead to enhanced employees engagement and retention?
Literature review
To review about the importance of creating and managing equality and diversity at workplace.
From the perspective of Annabi, H. and Lebovitz, S., 2018, equality and diversity are the
two most important aspects while managing an organisation. The objective of equality and
diversity is that each employee working in an organisation should have all opportunities and they
should be trated equally whether they belong from any religion, caste, gender. While having a
diverse workplace, it provides many benefits like talented people can be hired if job roles are
available to everyone and not just to few people, when employees are treated equally and diverse
attitude is there among whole workplace, then they also feel enthusiastic to work for that
particular organisation. (Jones, Murray and Tapp, 2018)Equality and diversity is also treated
important because employees are from different cultures so they have their talent and skills, own
ideas so it is an advantage for the business also as they can sell their products at international
level too. From the view point of Anja Zojceska, ensuring equality and diversity has become the
most necessary advantage for an organisation. Diversity increases creativity as people have their
own experiences and have their own views and ideas which lead to great creativity in the
organisation. When any problem arise in an organisation then diverse workplace is able to solve
their problems faster in comparison with other companies who don't persue equality and
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diversity in their work environment. The most important for an organisation to focus on is their
reputation and company reputation is increased when all employees are treated on equal basis in
organisation. (Annabi and Lebovitz, 2018)
From the view point of David Kndia, 2020, equality is very much important at workplace in all
the cases whether they work remotely or in an office. All the people should have same access to
all the opportunities without any kind of discrimination. Both biasedness as well as
discrimination in an organization would create an impact on the growth level.
To analyse the impact of cultural diversity on the employees engagement and retention at
workplace of Tesco plc.
From the view point of Pandita, D. and Ray, S., 2018, in today's world employee
engagement is very necessary to ensure success in the organisation. There is a proper relation
between nemployee engagement as well as diversity at the workplace. Diversity includes people
from various religions, are of different age so they offer different and creative ideas to
organisation as well as chnages in their existing working methods. (Schroth, 2019)Diversity at
the workplace is crucial because there are many decisions which are taken by management teams
so they should not take decisions alone and engage employees in their decisions also and listen to
their new ideas as well as perspectives. So, employees should also feel that they are been treated
with respect from whole management team. Employee retention also gets affected by cultural
diversity in the organisation.(Jugdev, Mathur and Cook, 2018)There are different viewpoints of
all employees working in the organisation which initiates growth because through those different
ideas, problems are solved in more better way. Business culture also helps employees to focus on
the importance of diversity which establish an environment where employees feel like they are
also treated as their team members. In case of Tesco, their workplace culture is famous for its
equality as well as diversity.(Kim, Lee and Cho, 2020) The company's main focus is on
developing organisational culture. They treat their employees as a part of their management
teams and all workers feel that everyday is acreative day for them. Innovation is also important
for them because it lead to company growth and success so in of Tesco also, company is growing
and has achieved success. As per the view point of Zoe Mackey, 2019, organizations have started
growing their workplace diversity through hiring procedure. The diverse hiring practices
improve the level of employee retention. Diversity deals with certain characteristics with respect
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to each employee race, gender and so on. Employees mostly like to do work at that place where
they feel that they been considered by the management team.
To determine some more effective HR practices to ensure better management of cultural
diversity at Tesco plc which lead to enhanced employees engagement and retention.
According to Kim, Y.J., Lee, S.Y. and Cho, J.H., 2020, there are some HR practices that
leads to better management of cultural diversity. There are some HR practices that leads to
growth of organisation like training and development, designing jobs, recruitment. In case of
training and development, it is considered as the best approach for effective management of
cultural diversity because when a company hires employees and they are provided training for
development of organisation so it should be provided in such a way that all employees should
given training on equal basis and a diverse workplace culture should be established. In case of
designing jobs, there are different roles which are assigned to all employees and if they are
properly implemented then a diverse workplace culture is innovated. (Coetzee and van Dyk,
2018) In case of recruitment been done in the organisation equal opportunities exists while
selecting all employees. At a workplace better management can only be done if all employment
practices are been performed in a effective manner. In case of Tesco, there are many employees
working in the organisation and all belong from different culture and backgrounds. There main
HR practice which they were following was that they had a very friendly and supporting staff
who behave with each other as well as with other companies in the most effective manner. The
company is still considered as the outstanding place to work. It is also an effective workplace
because their measurements and control systems are constantly tested so that their efficiency can
be monitored. (Meng and Berger, 2018). Beside this, some more effective HR practices to ensure
better management of cultural diversity at Tesco plc which lead to enhanced employee’s
engagement and retention comprises of having comprises of having a systematic recruitment and
selection process as it support higher level of transparency in selection of candidates which boost
diversity at workplace. Beside this, implication of participative management style could also be
as effective HR practices to ensure better management of cultural diversity at Tesco plc which
lead to enhanced employee’s engagement and retention by the way of lading improved
involvement and participation of all employees. Thus, a hiker level of value and resect is feel by
employees from management through implication of participative management styles which
ensure improved employees engagement and higher retention of employees.
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According to the above analysis it is concluded that equality and diversity are the two main
things for an organisation. If a company wants to achieve success at their workplace, then all
employees should be treated equally. In an organisation employee engagement is also necessary
so in case when management teams takes any decision then they should be discussed with all
employees and they all should be given a chance to share their ideas and perspectives. As per the
view point of Henry G Jackson, 2017, it is the role of human resource to determine diversity
leaders within whole company in order to identify and develop people from every talent pool.
Workplace diversity is very crucial as it would create lot of impact on the company.
Methodology
Research philosophy:- There are two types of philosophies; positivistic and
interpretivism. Positivism philosophy focus on to uncover all laws which determines human
behaviour and mostly prefers quantitative methods which enables researcher to remain detached
from their respodents. (Zaharee and et.al, 2018) While in case of interpretivism philosophy, their
main focus is to gain in depth insight through lives of respondents so that they can receive
empathetic understanding and they mostly prefers qualitative methods which ensures them to
have close connection with their respondents. So, it is reported that interpretivisim philosophy is
more effective as it enable to lead the current study in a proper a swell as systematic way through
valid set of results. An analysis can be made out that the selection of interpretivisim philosophy
is suitable and justifiable for current investigation as it the one that supports and leads to in-depth
and theoretical form of information which supports and ensures better analysis of the topic based
on impact of cultural diversity on the employees engagement and retention at workplace.
Research approach:- There are two main approaches inductive and deductive. In case of
inductive approach the researcher starts while collecting data which is most important for them
in relation to their interest while in deductive approach people are associated with scientific
investigation. (Rodrigues da Costa and Maria Correia Loureiro, 2019). It is analysed that use of
Inductive approach is considered as more suitable form in comparison with deductive approach
because it is more efficient way for collecting theoretical information and also helps in its
scanning and analysis in order to achieve objectives for the existing project. Beside this, making
use of inductive approach for current investigation as also justifiable as it seemed in accordance
with interpretivisim philosophy thus ensures and supports a subjective and detailed investigation
on the selected topic.
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Research strategy:- For research project there are many strategies which can be used like
interviews, literature review, surveys. So, in case of research project of Tesco plc, literature
review is selected. Literature review means complete overview of knowledge which allows to
determine certain theories , methods for the current research. It presents both substantial findings
as well as theoritical and methodological contributions related to specific topic and they are
considered as the secondary sources. (Naim and Lenka,2018). The research would be collected
with the help of primary research as literature review is been conducted. On the basis of
literature review proper analyzation is done. On the basis of this whole investigation is done.
Research type:- There are two methods through which research can be done; Quantitative
methods are mostly in the form of interviews and observations as well as documents in terms of
numeric values. In this type of method statistical tests are used for analysis and it mainly depends
on measurable devices while qualitative methods mainly include focus groups (Ugargol and
Patrick, 2018)in depth interviews. In this type of method, no statistical tests are used and it
depends on skills rather than measurable devices. To do current investigation on Tesco plc,
qualitative method is used as it is considered as it supports collection of information in in-depth
and theoretical form which supports better understanding about perception and opinion on
searched topic. Therefore, use of qualitative method is seemed appropriate to have more
theoretical and detailed knowledge about the topic which supports a more conclusive and reliable
set of research outcomes (Dols, Chargualaf and Martinez, 2019). Beside this, with respect to
current investigation on Tesco Plc use of some past surveys and records has been made for
analysis and review of pre-existing data on the topic of impact of cultural diversity on the
employee’s engagement and retention at workplace.
Time horizons:- It means time frame for the research. The observations are also of two
types which are based on time horizons and they are cross sectional and longitudenal. Cross
sectional data is for considered when observations are for a single point of time only which is
mostly determined in surveys and in case of longitudinal data it refers to the observations in case
of particular variable which are for years, quarters,months or even days. (Owen and et.al, 2018)
Data collection:- Information is collected from only secondary sources of which provide
analysis of pre-existing facts and theories that lead to support through past results (Pandita and
Ray, 2018). With respect to current investigation, the gathering and review of information has
been only made from the secondary form of information which comprises of per existing books,
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articles, records, documents and journals. Analysis and review of facts has been made through
making use of systematic literature review which is based on survey of online article and
journals.
Results and Findings
With respect to current investigation based on analysis of secondary information it has
been find out that the equality and diversity comprises as a most vital and significant aspects
within every organisation. It has been find out that the concept of equality is important and vital
as it lead to atmosphere of fairness and positivity at workplace that is free from all kind of
discrimination. Thus, equality supports a healthy and positive workplace environment that leads
to enhanced motivation and performance of employees. Beside this, it has been also seen that the
concept of diversity is also vital and required with a firm as it supports a fair and transparent
hiring of employees without having any kind of discrimination based on their culture and other
characteristics. Thus, it has been find out that the concept of diversity enhace the overall
creativity and competencies of a firm through ensuring and leading out a more a more diverse
and competent workforce. It was been evaluated that due to effective cultural diversity no
discrimination is been done and on the basis of this organization was playing their roles and
responsibilities in an effective manner. Beside it has been also observed that the concept of
equality and diversity is also treated important at workplace because it ensures that employees
from different cultures work in coordination so they have their talent and skills, own ideas so it is
an advantage for the business also as they can sell their products at international level too
(Fuentes, Zelaya and Madsen, 2021). Therefore, it has been observed on the basis of current
study that ensuring equality and diversity has become the most necessary advantage for an
organisation as the concept of diversity increases creativity as people have their own experiences
and have their own views and ideas which lead to great creativity in the organisation and equality
brings a positive and fair workplace environment. Further, a discussion and analysis about the
main importance and reason of creating and managing the equality and diversity at workplace is
also facilitated by current study which consists of wider pool of talented employees, Enhanced
expansion opportunity, improved productivity and having better creativity and innovation level
at workplace.
Apart from this, the current study also provides and facilitated as better understanding
about the impact of cultural diversity on the employee’s engagement and retention at workplace.
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It has been find out based on the analysis and review of secondary information that overall a
positive impact is lead out by cultural diversity on the engagement and retention level of
employees at workplace. This fact that positive impact is lead out by cultural diversity is
supported with the reasons that Enhanced motivation level, Interaction with talented employees
and Positive workplace environment is lead out by cultural diversity which lead vital influence
and positive impact on the level of employee’s engagement and retention within a firm. As
cultural diversity is been there employees motivation level also get increased and on the basis of
this people always like to work together rather than creating any kind of conflicts. Beside this, it
has been also seen and find out that the diversity at the workplace is crucial that lead positive
impact on employee’s retention as there are many decisions which are taken by management that
should not take decisions alone and engage employees in their decisions also and listen to their
new ideas as well as perspectives ( Yuan and Woodman, 2021). Thus, maintaining diversity and
equality supports a participations and involvement of all team members so, employees feel that
they are been treated with respect from whole management team and have significant value in
the decision making and strategy formulation. Therefore, an analysis can be made out that the
concept of cultural diversity leads a positive impact on the employee’s engagement and retention
at workplace.
Further the systematic review of literature also provides a better analysis and outcomes
about the more effective HR practices to ensure better management of cultural diversity which
lead to enhanced employee’s engagement and retention. It has been observed and find out that
the providing of regular cultural training and development programmes are effective ways to
motivate and direct employees in an effective manner. Providing of cultural training ensures a
better coordination and communication among diversified employees by the way of enhancing
their skills and competencies level. Apart from this, having a fair recruitment and selection
process also supports a transparent hiring process that lead to equal opportunity for all candidates
therefore supports higher level of diversity and selection of talented candidates without any
discrimination ( Imam and Zaheer, 2021). It has been analysed that their main HR practice
consists of having a very friendly and supporting staff who behave with each other as well as
with other companies in the most effective manner to ensure better management of cultural
diversity which lead to enhanced employee’s engagement and retention. Implication of equality
act, 2010 is also a vital HR practises which supports a fair and positive workplace environment
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through leading out strict provision against any form of discrimination and biasness at workplace
( Nelson and Piatak, 2021). Apart from this, it has been also find out with current study that
adoption of participative management style is effective HR practices that can be adopted by a
company to have ensure better management of cultural diversity as it ensures proper involvement
of all employees without any discrimination which lead to enhanced employee’s engagement and
retention by the way of leading a feeling of value and respect from management.
Conclusions
According to the above analysis it is concluded that equality and diversity are the two
main things for an organisation. If a company wants to achieve success at their workplace, then
all employees should be treated equally. In an organisation employee engagement is also
necessary so in case when management teams takes any decision then it should be discussed
with all employees so that they also feel that they should work in such an organisation. It is also
necessary to maintain company's reputation and it can be only possible if in an organisation
equality is being performed.
Recommendations
Following recommendations can be made out for Tesco Plc to have better management of
cultural diversity at its workplace:
 Implication of fair HR practises and recruitment process is highly recommended for
Tesco plc as it lead to more clear selection and provides equal job opportunity for all
candidates belonging to different cultures, therefore lead to better creation and
management of cultural diversity at workplace.
 Implication and use of provisions of equality act, 2010 is also recommended and
suggested for Tesco plc as it provide and leads to a more strict legal framework to create
a positive and healthy workplace environment free from all kind of discrimination and
biasnees therefore, lead to better management of cultural diversity.
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