Cultural Diversity Management in the Workplace: An H&M Analysis

This report investigates the impact of cultural diversity on organisational behaviour, focusing on a case study of H&M. It examines the importance of cultural diversity in the workplace, identifies strategies for managing cultural diversity within H&M, and analyses the impact of cultural diversity on organisational behaviour. The research employs a deductive approach and quantitative methods, utilising primary data collected through questionnaires distributed to 30 respondents. The findings reveal insights into the benefits and challenges of cultural diversity, including its influence on reputation, opportunities for workers, profitability, communication, and employee engagement. The report concludes with recommendations for H&M to enhance their diversity management practices and foster a more inclusive working environment.

Research Project

Table of Contents
CHAPTER 1: INTRODUCTION....................................................................................................1
1.1 Research proposal.................................................................................................................1
LITERATURE REVIEW................................................................................................................2
2.1 Introduction...........................................................................................................................2
2.2 Literature review...................................................................................................................2
CHAPTER 3: METHODOLOGY...................................................................................................4
3.1 Research Approach...............................................................................................................4
3.2 Methodologies.......................................................................................................................4
CHAPTER 4: DATA COLLECTION AND ANALYSIS .............................................................5
4.1 Data collection......................................................................................................................5
4.2 Data analysis, presentation and discussion...........................................................................5
CHAPTER 5: CONCLUSION AND RECOMMENDATION.....................................................17
5.1 Conclusion...........................................................................................................................17
5.2 Recommendations...............................................................................................................17
CHAPTER 6: PERSONAL REFLECTIVE STATEMENT..........................................................18
6.1 Reflect on research methods...............................................................................................18
6.2 Research methods that could have been used.....................................................................18
6.3 Areas for further research....................................................................................................18
REFERENCES..............................................................................................................................19

TITLE: Managing cultural diversity in the workplace.
CHAPTER 1: INTRODUCTION
1.1 Research proposal
1) Overview of project
Cultural diversity is quality of the various cultures as opposed to global monoculture and
culture homogenization. Developing the cultural competence outcome in ability to be
communicate, understand and also communicate with the people across culture as well as work
with the different schedules and cultural beliefs. The cultural diversity at workplace is when
organisations are open to recruiting staff members from all sorts of the various backgrounds.
When the firms hire and sustain diverse pool of employees, this brings regarding various
advantages to firm and staff members. The culturally diverse employees have the various
thoughts, values, customs, traditions and opinions. H&M is Swedish multinational clothing
company and this is known for fast fashion clothing for women, men, children and teenagers.
This company is value driven and want to be lead way to inclusive world (Ang and Van Dyne,
2015). Score of H&M about diverse employees is 72/100 across the different culture categories
that placing in top 25% of organisations with more than 10000 staff members for diversity score.
Background of project
The cultures are mainly formed within ethnic groups and the nationalities which occur
within educational level and lifestyles. This is necessary for the business firms to acknowledge
many kinds of cultures which exists itself. The managers should find out the different ways to
assure that culture of staff members are respected to give working environment. Diversity and
inclusion are necessary as they are helpful in attracting talent, enhancing innovation and
facilitating better opportunities for company to be outperform them more homogeneous.
Diversity at workplace is necessary for staff members because it manifests itself in developing
better reputation for firm, leading to enhanced profit level and also develop opportunities for
staff members. H&M is value driven organisation that want to lead way to inclusive as well as
sustainable world. In this company, female staff members have rated team and benefits as high
categories which scored. It is committing about maintaining inclusive workplace. H&M
company promotes equality and diversity and also not tolerate any discrimination. This is
committed to following applicable labour and also employment legislations which operate.

2) Research Aim and Objectives
Aim
“To determine impact of cultural diversity on organisational behaviour.” A study on
H&M.
Objectives
 To examine importance of cultural diversity at workplace.
 To determine the different ways for managing cultural diversity in H&M. To identify impact of cultural diversity on organisational behaviour.
Questions
 What is the significance of cultural diversity at workplace?
 What are various ways used by H&M to manage the cultural diversity?
 What is the impact of cultural diversity on organisational behaviour?
3) Reasons for choosing research project
The reason behind conducting research project is that it gives the basic knowledge
regarding cultural diversity and its impact on the organisational behaviour. From conducting an
investigation, skills and understanding of researcher will be enhanced so that it can not face any
issues in future (Banks, 2015).
4) Activities and Timescales

LITERATURE REVIEW
2.1 Introduction
Literature review is explicit, reproducible and explicit method for determining and
examining existing body of the recorded work that produced through an investigator. In
conducting present report, secondary source of data collection has been used by consisting
different sources like websites, journals, articles etc.
2.2 Literature review
Importance of cultural diversity at workplace
As per the opinion of Sophie Deering (2020) Cultural diversity is an existence of variety
of the ethnic or cultural groups within society. At workplace, cultural diversity is result of values,
practices and traditions of staff members on the age, gender, race and religious. The cultural
diversity helps in create innovation because people of the various working style, backgrounds
and experiences which can be born from bouncing the ideas off to the each other and also giving
the feedback. The cultural diversity is helpful in develop the talent pool. Firm that embraced the
diversity will be helpful in attract the large number of people to vacant job positions and it will
be viewed as progressive for the company.
Different ways for managing cultural diversity in H&Ms
According to Bridget Miller (2020), Diversity can be beneficial for employer in several
ways. Having the diverse staff members in a group helpful in assure that there will be wide
spectrum of backgrounds and ideas which help H&M to have the innovative ideas. There are
some various ways of managing the cultural diversity in H&M given below:
Focus on retention- H&M company find that it is able to attract the diverse applicants
set but organisational culture remains the homogeneous because of high turnover rate for some
of the groups. There is a need to H&M to focus on the retention efforts so that it can help in
enhance organisational productivity.
Pay attention to organizational culture- At workplace, there will be actions and attitudes
which end up dividing workforce and welcome some groups. These all will require to maintain
diversity in workforce.
Impact of cultural diversity on organisational behaviour

On the basis of Michelle Seidel (2020) culture in the organisational behaviour tends to be
apply in two areas such as culture of employees and workplace. One influence other and both
can be the change forces as well as business momentum. Organisation behaviour is an interaction
that people at workplace have with others. These interaction arise in range of the situations from
working in team together, leading project and develop social network. The culture mainly
influence on the employee behaviour. In an organisation, there are different background people
and to manage this, H&M needs to consider culture in business because this is necessary to
manage culture of company in order to prevent from overbearing.

CHAPTER 3: METHODOLOGY
3.1 Research Approach
Inductive and deductive are two different research approaches. In conducting present
investigation, there has been deductive method used because it helps in give the authentic and
reliable information (Kottak, 2015).
3.2 Methodologies
1) Sampling- It is process through which an investigators choose representative subset of total
population that can be studied regarding specific subject area. There will be 30 respondents
chosen from whole population by using random sampling method because this gives the equal
chance to the selected people.
2) Type of Investigation- Research methods are explained as the scientific process related to
collection of information, analysis and make interpretation to deal with the arisen research
related issues (Laroche, 2012). There are two different kinds of investigation which mention
below:
Qualitative- This is mainly used about inquiry and develop deep understanding regarding
understanding of issues in natural settings.
Quantitative- This is structure way to gathering the data and also analysing for draw
valid conclusion.
In conducting the present investigation, there will be quantitative method use because it
give the information in systematic way and also give the answers about research questions in
context of justifying relationships.
3) Data analysis
It is explained as applying the logical and statistical techniques to explain, recap and
condense data and information. To analyse the present data, thematic analysis has been used by
developing the themes of collected information (Leach, 2014).
4) Cost, access and ethical consideration
For conducting an investigation, cost is a necessary factor and helpful in conducting
whole investigation in significant way. To collect information, researcher needs to have the
access about data collection by using authentic sources. Other than this, there is a need to
researcher to use the ethical considerations while performing research. It is a responsibility of an

investigator to collect the information by using authentic sources (Patsiurko, Campbell and Hall,
2012).
CHAPTER 4: DATA COLLECTION AND ANALYSIS
4.1 Data collection
This is process of collecting and also analysing information on the targeted variables to
give the answer of relevant questions. There are primary and secondary two different data
collection methods.
In conducting the present research, primary data collection tool will be used because this
gives the relevant information and the authentic outcomes. Through using this tool, questionnaire
will be developed and also mention questions on the basis of specific subject area (Santilli,
2012).
4.2 Data analysis, presentation and discussion
QUESTIONNAIRE
Name:
Age:
Gender:
Contact no.:
Q1) Do you have the knowledge about cultural diversity?
a) Yes
b) No
Q2) What is the importance of cultural diversity at workplace?
a) Developing great reputation
b) Opportunities for workers.
b) Leading to increased profitability
Q3) Does cultural diversity impact on the organisational behaviour?
a) Yes
b) No
Q4) What kind of issues faced by H&M due to the cultural diversity?
a) Miscommunication
b) Resistance to Change

c) Costs
Q5) What are various type of strategies used by H&M for managing the cultural
differences at workplace?
a) Communication
b) Training
c) Mentoring
Q6) What are the different ways adopted through H&M for managing the cultural
diversity at workplace?
a) Focus on retention
b) Pay attention to organizational culture
c) Giving diversity training
Q7) What are the benefits get by H&M from managing the cultural diversity at
workplace?
a) Increased productivity
b) Improved creativity
c) Increased profits.
d) Improved employee engagement
Q8) As per your opinion, which qualities should a leader possess to managing the
culturally diverse teams?
a) Empathy
b) Self- awarenesses
c) Commitment
Q9) Recommend some ways by which H&M can develop a common working culture for
sustaining employees for long period of time.
Frequency table
Q1) Do you have the knowledge about cultural diversity? Frequency
a) Yes 25
b) No 5
Q2) What is the importance of cultural diversity at workplace? Frequency

a) Developing great reputation 10
b) Opportunities for workers. 10
b) Leading to increased profitability 10
Q3) Does cultural diversity impact on the organisational behaviour? Frequency
a) Yes 22
b) No 8
Q4) What kind of issues faced by H&M due to the cultural diversity? Frequency
a) Miscommunication 15
b) Resistance to Change 5
c) Costs 10
Q5) What are various type of strategies used by H&M for managing the
cultural differences at workplace?
Frequency
a) Communication 10
b) Training 10
c) Mentoring 10
Q6) What are the different ways adopted through H&M for managing
the cultural diversity at workplace?
Frequency
a) Focus on retention 16
b) Pay attention to organizational culture 10
c) Giving diversity training 4
Q7) What are the benefits get by H&M from managing the cultural
diversity at workplace?
Frequency
a) Increased productivity 15
b) Improved creativity 5

c) Increased profits. 5
d) Improved employee engagement 5
Q8) As per your opinion, which qualities should a leader possess to
managing the culturally diverse teams?
Frequency
a) Empathy 10
b) Self- awarenesses 10
c) Commitment 10

THEME 1: Knowledge about cultural diversity
Q1) Do you have the knowledge about cultural diversity? Frequency
a) Yes 25
b) No 5
Interpretation: Cultural diversity is an existence of variety of the cultural groups within society.
At workplace, cultural diversity is result of the values, traditions, practices and beliefs of staff
members on the basis of age, gender, race and ethnicity. As per opinion of 25 respondents that
they have the better understanding regarding cultural diversity arisen at workplace. There are 5
respondents which disagree with the given statement.
THEME 2: Importance of cultural diversity at workplace
Q2) What is the importance of cultural diversity at workplace? Frequency
a) Developing great reputation 10
b) Opportunities for workers 10
a) Yes b) No
0
5
10
15
20
25
25
5
Column B

b) Leading to increased profitability 10
Interpretation: At workplace, cultural diversity plays a necessary role. According to 10
respondents that cultural diversity helps in developing the better reputation of company as firm
will promote the people of different culture and backgrounds. There are 10 respondents which
said the cultural diversity is helpful in gives better opportunities for the workers which belongs
to different backgrounds. Developing the positive work culture helps the staff members to
engage in activities. The cultural diversity is effective in identify and also respect the way that is
required. Other than this, there are 10 remaining respondents and according to their opinion,
cultural diversity helps in enhance profit level of company in an effective manner.
THEME 3: Cultural diversity impact on the organisational behaviour
Q3) Does cultural diversity impact on the organisational behaviour? Frequency
a) Yes 22
b) No 8
a) Developing great reputation
b) Opportunities for workers
b) Leading to increased profitability
0
1
2
3
4
5
6
7
8
9
10
10 10 10
Column B

Interpretation: Cultural diversity is not simple appropriate ideal if employee is intend to stay in
the business then cultural diversity is organisational imperative. As per opinion of 22
respondents that cultural diversity impacts on organisational behaviour in H&M. The cultural
diversity provides competitive edge. The cross- cultural business experience is attained in an
easy manner through having diverse culture within company. The cultural diverse teams are
innovative and come up with the creative strategies as well as solutions. Other than this, 8
respondents are disagree with given statement because as per their opinion that cultural diversity
negatively impact on organisational behaviour because people belongs to different backgrounds
are not able to adjust at workplace in an easy manner so this influence on organisational
behaviour.
THEME 4: Issues faced by H&M due to the cultural diversity
Q4) What kind of issues faced by H&M due to the cultural diversity? Frequency
a) Miscommunication 15
b) Resistance to Change 5
c) Costs 10
a) Yes b) No
0
5
10
15
20
25 22
8
Column B

Interpretation: There are different issues faced through H&M because of cultural diversity.
According to 15 respondents that cultural diversity face the problem related to
miscommunication because different culture people are not able to understand the language of
each other so they face the issues at workplace while communication. Other than this, there are 5
respondents which agree with resistance to change. There are 10 remaining respondents and they
said that cultural diversity enhance cost because there is a need to give training to the employees
which enhance cost of company or be expensive.
THEME 5: Type of strategies used by H&M for managing the cultural differences
Q5) What are various type of strategies used by H&M for managing the
cultural differences at workplace?
Frequency
a) Communication 10
b) Training 10
c) Mentoring 10
a) Miscommunication b) Resistance to Change c) Costs
0
2
4
6
8
10
12
14
16 15
5
10
Column B

Interpretation: H&M used the different strategies for managing cultural differences at
workplace. There are 10 respondents that communication is necessary in managing the
workplace better. As per opinion of 10 respondents that training is necessary because it helps in
enhance the knowledge and core competencies of employees so that they are able to work
together at workplace and focus on getting positive outcomes. According to 10 respondents that
mentoring is one of the effective strategy because this helps in guide staff.
THEME 6: Ways adopted through H&M for managing the cultural diversity
Q6) What are the different ways adopted through H&M for managing
the cultural diversity at workplace?
Frequency
a) Focus on retention 16
b) Pay attention to organizational culture 10
c) Giving diversity training 4
a) Communication b) Training c) Mentoring
0
1
2
3
4
5
6
7
8
9
10
10 10 10
Column B

Interpretation: As per mention graph, H&M finds effective ways to managing cultural diversity
at workplace. According to opinion of 16 respondents that company needs to focus on retention
of employees at workplace so that they can sustain at workplace for long period of time.
According to 10 respondents, company need to pay attention to the organisational culture. On the
basis of 4 respondents that company need to give the diversity training to employees so that they
can aware about the different working environment.
THEME 7: Benefits get by H&M from managing the cultural diversity
Q7) What are the benefits get by H&M from managing the cultural
diversity at workplace?
Frequency
a) Increased productivity 15
b) Improved creativity 5
c) Increased profits. 5
d) Improved employee engagement 5
a) Focus on retention
b) Pay attention to organizational culture
c) Giving diversity training
0
2
4
6
8
10
12
14
16
16
10
4
Column B

Interpretation: There are many benefits gained by company while managing cultural diversity
at workplace. According to 15 respondents that managing cultural diversity helps in increasing
organisational productivity. There are 5 respondents which agree with enhanced profit level. 5
respondents are agree with enhanced profit level. As per opinion of 5 respondents that managing
the cultural diversity helps in improving the employee engagement.
THEME 8: Qualities should a leader possess to managing the culturally diverse teams
Q8) As per your opinion, which qualities should a leader possess to
managing the culturally diverse teams?
Frequency
a) Empathy 10
b) Self- awarenesses 10
c) Commitment 10
a) Increased productivity
b) Improved creativity
c) Increased profits.
d) Improved employee engagement
0
2
4
6
8
10
12
14
16 15
5 5 5
Column C

Interpretation: 10 respondents are agree with empathy quality that leadership have. There are
10 respondents which said that leaders should have the self awarenesses quality. 10 respondents
are agree with commitment.
a) Empathy b) Self- awarenesses c) Commitment
0
1
2
3
4
5
6
7
8
9
10
10 10 10
Column D

CHAPTER 5: CONCLUSION AND RECOMMENDATION
5.1 Conclusion
It has been concluded from above mention report that cultural diversity arise from
considering the people belongs to different backgrounds. Managing the cultural diversity helps in
develop positive impact on organisational behaviour. People at workplace belongs to different
backgrounds and they are not aware about the organisational culture. So, aware the employees by
manager about organisational culture helps in develop the positive impact on organisation
behaviour. There has been discussed about the approaches and the data collection methods to
gathering information regarding the specific area for getting positive conclusion.
5.2 Recommendations
Present report taken into consideration on impact of cultural diversity on organisational
behaviour. There are some recommendations mention below:
 H&M should create the positive working culture at workplace so that people belongs to
different backgrounds can manage effectively.
 Company needs to provide the training to employees so that they are aware about
organisational culture and deal with the other people in significant way.
 For promoting the diversity at work, H&M should use the mentoring strategy.

CHAPTER 6: PERSONAL REFLECTIVE STATEMENT
6.1 Reflect on research methods
In present research, I used the quantitative method because this gives the relevant
information by using the authentic sources. It helps in conducting the wider study and give the
valid outcomes regarding specific area. There has been deductive research approach used by me
because it gives the possibility to analyse the quantitatively concepts. This method helps in
define the several rules and explained in an effective manner. In order to collect the information
and data, primary method of data collection has been used by developing questionnaire by
mentioning the different questions.
6.2 Research methods that could have been used
In present research, questionnaire has been used as methodology. By using the
questionnaire, researcher is able to collect the collect the data in large size and within less period
of time. Other than this, interview could have been used by the researcher because it observes the
opinions or viewpoints of interviewer. Interview is useful in obtaining the information in detailed
manner regarding personal opinions and perceptions. Through using the questionnaire,
ambiguities can be clarified in a proper manner and the incomplete answers to interviewees are
followed up effectively. With the help of this, interviewer can easily observe the actions and
expressions of interviewee.
6.3 Areas for further research
The given report is based on impact of cultural diversity on organisational behaviour in
H&M. By conducting the present research, an investigator is able to get some knowledge as well
as basic understanding regarding. This will be helpful in deal with any kinds of issues arisen
while conducting an investigation. Researcher is able to conduct an investigation in future in a
systematic manner and also determine the effective ways to overcome from the arisen hurdles.

REFERENCES
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Online
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through :<https://hrdailyadvisor.blr.com/2016/11/28/8-ways-improve-diversity-
workplace/>.
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[Online]. Available through :<https://smallbusiness.chron.com/positive-influence-
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