Analyzing Workplace Diversity and Its Impact on Tesco's Performance

This report investigates the impact of diversity in the workplace, specifically focusing on Tesco, a leading global retailer. The report begins with an introduction highlighting the importance of diversity in today's competitive business environment, followed by a literature review that defines the concept of diversity, explores its various types (age, religious, racial/ethnic, disability), and examines its positive and negative impacts on retail business operations. The report also identifies challenges faced by retail businesses in managing diversity, such as communication barriers and cultural differences. Furthermore, it discusses strategies that Tesco can undertake to effectively manage diversity, including providing equal opportunities and addressing miscommunication issues. The aim of the report is to analyze the impact of diversity in the workplace through a case study of Tesco, including understanding the conceptual framework, identifying different types of diversity, its impacts, challenges, and recommending strategies to improve diversity management. The report concludes with a discussion of the findings and provides recommendations for Tesco to enhance its diversity management practices, ultimately aiming to create a more inclusive and productive work environment.

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Table of Contents
INTRODUCTION...........................................................................................................................4
LITERATURE REVIEW................................................................................................................5
Concept of diversity in workplace...............................................................................................5
Types of diversity........................................................................................................................7
Impact of diversity on the operations of retail business organization........................................8
Difficulties which are facing by retail business units in managing diversity at workplace......10
Strategies that can be undertaken by Tesco to manage diversity..............................................10
DISCUSSION................................................................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................17

INTRODUCTION
Diversity in the workplace is one of the critical part of business operations. In the
modern competitive environment it has become essential aspect and corporations are using
diversity programs in the workplace frequently in order to sustain in the corporate market for
longer duration (Liang, Shih and Chiang, 2015). Cultural diversity is major player in the
organization that supports in increasing satisfactions level of workers and making them loyal
towards the brand. It consists of several elements such as age, culture, religion, social status and
gender. In the modern business words enterprises are recruiting different individuals in the
workplace that creates multicultural and multiracial dynamic environment in the organization.
That supports in generating innovative ideas that can be used by the management for the
development of company (Benschop and et.al, 2013). Diversity in the workplace impact positive
and negative on the workplace. Due to language barriers and cultural difference people feel
unable to make communication with the peer group. That creates the situation of
misunderstanding and enhance conflict situation in the workplace. It is very essential to adopt
effective strategies by the management so that diversity can give optimistic outcome to the
entities. Whenever firm plans to enter into global market then it has to identify the cultural
background of particular place so that it can train its staff members accordingly. That helps in
minimizing the miscommunication issues and helps in increasing revenues of the companies.
Some people think that female are not capable to work in the officially environment that creates
situation of discrimination (Chua, 2013). It is necessary to provide equal opportunities to the man
and female so that skilled people can stay in the organization for long er duration.
Present report is based on the Tesco which is leading retailer and working well in the
global market. Cited firm is serving millions of consumers every day. Organization hires
candidate from different locations and cultural background. It understands the advantage of
skilled persons and pay more focus on experience or skill rather than culture, race or gender.
Diversity, equal opportunities are central of the cited firm (Y. Lacey and Groves, 2014). Tesco is
having mixture of several age group persons that brings broad range of knowledge in the
workplace. Management treats equally to all age group persons because older are having

experience and youngster are having innovative ideas. Combination of different age group
always give optimistic results to the organization. Key purpose of Tesco is to create value for
customers in order to increase their loyalty so that they buy products from the cited firm.
Managing diverse workforce is the important factor and that cannot be avoided by the big
organizations (McPhail, McNulty and Hutchings, 2016). Effective management of diversity
encourages creativity and brings innovative ideas that can help in enhancing working
performance of company. Present study will critical review the importance and impact of
diversity in the workplace. In addition to this several management strategies will be discussed
that can help in overcoming issues of diversity in the company (Hammers and et.al, 2014).
Aim:
“To investigate impact of diversity in workplace; study of Tesco”.
Objectives:
 To understand the conceptual framework of diversity in workplace.
 To investigate types of diversity in the organizations
 To identify the impact of workplace diversity in Tesco.
 To understand challenges faced by the firm in diversity in workplace.
 To suggest strategies that can help in managing diversity in the workplace of Tesco.
LITERATURE REVIEW
Concept of diversity in workplace
With the changing environment of the business, owner are involved in making adoption
of the diversity policies and strategies that assist in appealing their employees, clients, vendors as
well as suppliers. In accordance with the views of Bond and Haynes, (2014) it has been
examined that diversity in the workplace is bringing with the host of greater benefits and
potential disputes for the owners of the firm in order to manage. Diversity within the place of
work is regarded as essential aspect of sound management of the individuals. It is related with
valuation of each one within the firm as an individual. Effectiveness in the diversity strategy
goes beyond legal compliance as well as seeks at adding value to the firm and has greater
contribution towards benefit of the employee, their well being as well as engagement. The
concept of diversity is regarded as the value of the deviations among the individuals and the
manner in which such differences can effectively make contribution towards richer, more
creative as well as more productive environment working.

As per the views of Sliter, Boyd, Sinclair, Cheung and McFadden, (2014) it has been
gained that workplace diversity is regarded as the range of differences among the individual
within the business. Such is sounding simple but diversity is encompassing race, gender, ethnic,
group, age, personality, cognitive style, tenure, business function, education, background and etc.
Diversity is not only include the manner in which the individual perceive themselves but it is
also comprised the manner in which they are perceiving others. Such kind of perception affects
their interaction to a greater extent. For greater assortment of the personnel to function in an
effective manner as business, human resources professionals are required to tackle the problems
that are related with communication, adaptability as well as change. Diversity would enhance in
an significant manner in the years to come. Business that is successful has to determine the
importance towards immediate action as well as are ready and willing towards making
expenditure on the resources in order to manage the diversity within the workplace at present. In
accordance with the views of Lønsmann, (2014) it has been examined that there is presence of
greater number of advantages of diversity at workplace. It has been examined that success of the
firm and competitiveness is dependent on the ability to embrace diversity and attain the benefits.
While the business is making assessment of handling of diversity at workplace issues, makes
and execute the diversity plans and thus greater number of benefits are attained. Such is related
with increase in adaptability. The firm making employment of diverse workforce can supply
huge number of solutions to the issues within the service. Further it can allocate the resources in
an effective manner. The personnel who are from diverse backgrounds can bring the talent and
experience of the individual towards recommending the ideas which are flexible in adaption of
fluctuation in the market as well as demands of customers. Along with this another benefit is
associated with broader range of services. A diverse collection of skills and experience assist the
firm in offering services to the customers across the globe. As per the views of Harvey and
Allard, (2015) it has been gained that workplace diversity has benefit in terms that through such
there is presence of variety of the viewpoints. A diverse workforce who are feeling comfortable
in communicating different viewpoints offers a larger pool of ideas as well as experiences. It has
been determined that with this the firm is able to draw from the pool in order to meet the
requirements of business strategy and also needs of the customers in an effective manner. The
firm that possess diversified workforce can do the execution in more effective manner. In
accordance with the views of Barak, (2016) it has been gained that business that are encouraging

diversity in workplace are promoting all their personnel to perform to their greatest ability. The
wider strategies of the firm can be executed later and such leads to increasing the productivity,
profit as well as return on investment. In contrast to such there are several challenges that are
being faced as a reason of diversity in workplace. This is related with resistance to change. It has
been determined that there is always presence of personnel who will make refusal towards
accepting the fact that social and cultural make up of the firm is altering. Further in addition to
this another challenge is in successful management of diversity within the workplace. It has been
gained that the training of diversity alone is not adequate for the business diversity management
plan. A diversity can be developed and executed towards development of culture of diversity that
permeates each department and function of the business to a greater extent.
Types of diversity
As per the views of Bond and Haynes, (2014) it has been examined that the world is
considered smaller than it is used to be. Technology, multinational firms as well as immigration
have converged towards making production of diverse workplace. By viewing the people at
varied backgrounds working together is considered as common within the big cities and also in
certain suburban as well as rural areas. The several forms of diversities are enumerated in the
manner stated as below: Age: At any point of time there can be three or four generations at work. This includes
the people at varied ages who can bring different experiences, worldviews and strengths
at place of work. There is presence of several people who makes delay in retirement and
stay within the place of work for longer duration of time. Religious: It is comprised of the people of all faiths and of no organized religious faith.
Religious diversity in the place of work can result in specific set of challenges. This is
specifically so for faith based firm who possess some kind of ideology or the personnel
who are wishing to live in consistent manner with their beliefs within the firm that are
expressly non-religious. For instance, someone might not want to take part in the
compulsory event of the firm that posses religious overtones. In other case employee who
are tired of all personal days can take day off for a holiday which is central to their
religion but it is not being recognized by the business. Racial/ ethnic: As per the views of Sliter, Boyd, Sinclair, Cheung and McFadden, (2014)
it has been examined that such is regarded as another kind of diversity. People of color

area also considered as the part of workforce in US through they are not being treated in
fair manner. Blacks, Asians, Native Americans and Latinos have played important role in
making development of several industries. At present there are more widely hired in the
professional, service, corporate as well as public places related with the employment.
 Disability: It is has been examined that government is encouraging towards hiring of the
individual with the physical, mental and emotional disabilities by means of federal laws.
They also offers funds top the firm in order to employ such workers. In accordance with
the views of Harvey and Allard, (2015) it has been examined that the personnel having
the issues related with disabilities are required to be offered with suitable
accommodations. Such accommodation assist the employees in performing in an
adequate manner their duties without reducing the expectations or standards that are
related with the performance.
Impact of diversity on the operations of retail business organization
In accordance with the views of Pitts and Recascino Wise (2010) diversity has positive
impact on the growth and success of retail business units. Moreover, diversity implies for the
people who come from different backgrounds such as educational, culture etc. In this, each
people differs in terms of their uniqueness and competency level. Thus, workforce diversity
provides high level of assistance to the business unit in making effectual teams. By doing this,
business unit accomplish the activities within the suitable time frame and thereby would become
able to build or sustain competitive edge over others. However, on the critical note, Jonsen and
et.al., (2013) said that diversity at workplace has high level of impact on the productivity and
thereby profitability aspect of business organization. When diverse background people works
with each other then it may result into high level of conflict. The rationale behind this,
individuals from different backgrounds are highly differs in terms of communication, thinking
level etc. Hence, conflicting situation has high level of impact on work co-ordination and thereby
overall performance level.
According to Martín Alcázar and et.al., (2013) range of services can be increased by the
firm through the means of diversity. Collection of people with varied knowledge, skills and
abilities enable business unit to serve customers at global level. For instance: Tesco can avoid
language and cultural gap by maintaining diverse workforce. Moreover, diverse employee base

becomes able to deal with the customers of all type with the high level of confidence. Hence, by
considering this, it can be stated that Tesco can enhance customer satisfaction and loyalty by
building highly talented and diverse workforce. On the other side, Podsiadlowski and et.al.,
(2013) argued that to manage the diversity level business organization has to incur high level of
training cost. Usually firms conduct seminars and design lectures to promote the diversity level.
The main motive of such training session is to encourage personnel to accept ideas, thoughts and
opinions of others. Along with this, training session also provides deeper insight to personnel
about the manner in which they need to deal with the conflicting situation or aspects. It is one of
the main aspects due to which firm is required to organize training session on periodical basis.
This in turn imposes high level of cost in front of the corporation and thereby affects financial
aspects.
Byars-Winston and et.al., (2011) stated in their study that diverse workforce helps
higher management in developing suitable strategic framework that makes contribution in the
attainment of goals. Moreover, two peoples belonging from different backgrounds think
differently. Hence, by motivating personnel to share their views and experiences firm can take
strategic action and would become able to meet the customer’s needs and requirements
significantly. In this way, diversity helps company in building a highly competent or talented
workforce. In contrast to this, Kormanik and Chyle Rajan (2010) presented that diversity creates
unhealthy competition at workplace which in turn have high level of impact on the
organizational productivity as well as success. At workplace, competition is good and helps
business unit in attaining success. However, when employees do not accept the culture of other
individuals and starts to compete against each other then it may result into ineffective working
environment. Moreover, company can get the desired level of outcome only when employees
work in a team cohesively. Hence, firm where employees prefer to work separately then growth
rate will be slow to a great extent.
By conducting research, Thomas (2012) found that diversity facilitates high level of
learning and growth at workplace. It enables firm to offer opportunity to the personnel to
enhance their knowledge by sharing ideas with each other. The rationale behind this, diversity
facilitates transfer of knowledge at workplace to the significant level. In the present era,
employees prefer to work with the organization which offers learning and growth opportunities

to them. In this way, by satisfying such need of personnel firm can reduce employee turnover
and absenteeism to a great extent. However, it is to be critically evaluated by Nica (2013) that
informal groups which are created at workplace highly affect the level of social integration.
Moreover, when informal groups according to the educational and other aspects are created then
it hinders the sharing of knowledge, skills etc. Such aspect places negative impact team
productivity, efficiency and business growth. Hence, by keeping all such aspects in mind it can
be stated that workforce diversity has both positive and negative impact on the operational
aspects of retail business organizations.
Difficulties which are facing by retail business units in managing diversity at workplace
From investigation, it has been assessed by Pitts and Recascino Wise (2010) that
language is the most significant issues that have high level on business performance. Moreover,
at workplace different people use varied languages to speak with each other. Hence, it is one of
the main issues that is facing by retail business organizations at workplace. Moreover, in the
absence of having usage of common language it is not possible for the personnel to understand
the views of each other. Hence, such aspect closely influences the growth and productivity of
business unit significantly. On the other side, Jonsen and et.al., (2013) found that companies
which are operating in the retail sector are facing issues in relation to the encouraging towards
team teamwork. Inclusion of employees is the biggest challenge in the case of diversity
management. Lack of teamwork has greater impact on the success of firm. Beside this, Martín
Alcázar and et.al., (2013) depicted in their study that diversity is the serious issue or challenge
which in turn has great impact on organizational growth. Usually, individuals resist working with
the people from different backgrounds and cultures. In this, business unit faces difficulty in
developing positive attitude among the personnel. Hence, by considering all such aspects it can
be presented that diversity management is the biggest challenge for retail business organization.
Strategies that can be undertaken by Tesco to manage diversity
From research Kormanik and Chyle Rajan (2010) identified that training is the most
suitable ways that can be employed by Tesco to manage the diversity level. By conducting
seminar and workshop firm can develop awareness among the people regarding the benefits of
diversity. Training session will help Tesco in persuading personnel about the extent to which
diversity will prove to be \more beneficial for them as well as an organization. In addition to this,

by organizing training activity firm can motivate personnel to work in a team. This in turn may
result into maximization of productivity and profitability. Moreover, team work is the prior
requirement to gain competitive edge over others. In addition to this, by organizing coaching
classes Tesco can overcome the language barrier or issues to the significant level. Further,
through the means of training session Tesco can encourage people to adapt culture of other. All
the above mentioned measures will assist in building and maintaining highly supportive culture.
Further, Byars-Winston and et.al., (2011) mentioned in their study that by undertaking
participative style of leadership firm can manage diverse employee base in an effectual way. By
taking into account such aspect it can be stated that Tesco should motivate personnel to come up
with the innovative ideas and suggestions. Along with this, by motivating employees to share
their views about the areas in which they are facing difficulty in performance Tesco can suitable
measure within the specified time frame. Moreover, without having ideas regarding the
employee’s difficulties Tesco would not be in condition to develop suitable framework for the
upcoming time period. Along with this, Podsiadlowski and et.al., (2013) evaluated that by
making specific rules and norms business organization can mange diversity in the best possible
way. Hence, by framing ethical rules and aspects Tesco can encourage personnel to respect each
other and work in a cohesive manner. Hence, by doing this Tesco can develop high level of co-
ordination among the groups and become able to contribute in the success.
Diversity within the place of work is referred to as bringing all the individual together that are
belonging to the different ethical backgrounds, religions, as well as age into productive and
cohesive unit. For the sake of surviving in the present business environment company is required
to manage and utilize its diversity in workplace with greater effectiveness. Management of
diversity in workplace has to be part of culture of the whole firm. In accordance with the views
of Barak, (2016) it has been examined that in order to manage the diversity in workplace there is
greater requirement towards confirming that all the individual from hiring to promotion and
raises are on the basis of employee performance. Tesco is avoiding the tenure, ethnic background
and other type of policies into the policies of the human resources. Management of the diverse
place of work starts with the stronger policy that is associated with equality from the business.
Once such policy is at place the firm start at executing the measures of diversity across the whole
business. In order to mange the workplace diversity there is greater need for Tesco to promote

the diversity when making creation of teams and special work groups in the organization. In case
the manager is creating the work group that does not make use of the skills in an effective
manner then such group needs to be changed and inclusion of all the qualified staff member
needs to be done within that.
Along with this for managing the diversity in workplace Tesco us treating the complaints
related with discrimination in an effective manner. Further it is encouraging the people towards
reporting all the instances associated with discriminatory behavior. Such are dealt with to a
greater extent in order to manage diversity.
DISCUSSION
From the discussion it has been analyses that diversity is the vast subject but it is essential
for the organizations to manage it properly. It is gained that workplace diversity is considered as
involvement all different cultural, age group persons in the organization in order to bring
innovative ideas in the workplace. It is about to give value of all individuals in the company and
treat them equally. So that they feel satisfied and be loyal towards the brand. In the modern
globalized era it is necessary for the entities to adopt diversity policies and effective strategies in
order to enhance loyalty of consumers, employees, suppliers, investors etc (Hunt, Layton and
Prince, 2015). From the discussion it is found that diversity in workplace is the inclusion strategy
that supports organization in accomplishing their goal significantly. It is analyzed that similarity
and difference in age, culture, physical ability, race, gender among employees create the
situation of diversity in the organization. It is necessary for the management to manage the
diversity of workplace effectively in order to gain competitive advantage. From the secondary
data it is analyzed that companies those which embraces diversity that are more competitive and
innovative (Abreu, Cunha and Barlow, 2015).
From the literature review it is gained that there are several types of diversity such as
cultural background, age, race, religion, sex etc. These all impact on the business in both way but
by managing the diversity in the workplace effectively organization can sustain in the corporate
market for longer duration. Secondary data has described that race and ethnicity is one of the
major type of diversity (Muro and et.al, 2014). People belongs from different religion and race
that find difficulty to work in completely differed environment. Consumers those who belong
from different race they find difficult to make communication with the employees. From the
study it is gained that gender is another type of diversity that can create problem in the

workplace. Due to poor management most of the firms are suffering from sexual harassment or
sexual advances issues (Reynolds, Rahman and Bradetich, 2014).
From the secondary sources it is analyzed that age is the major type of diversity, different
age group people feel uncomfortable when they have to work together. In such condition
conflicts takes place by organization have to treat all people equality and have to give equal
opportunities to them so that it company can utilize skills of workforce effectively. From the
literature review it is found that diversity in workplace impact negative and positive in both
ways. Multicultural aspects supports in motivating people and bringing innovative ideas in the
workplace (Hunt, Layton and Prince, 2015). In addition to this, it helps in reducing operational
cost of the company because by bringing diversify individuals in the workplace company can
develop positive environment that can help in improving efficiency of the workplace. It impacts
positively and retain the skilled employees in the organization. From the secondary sources it is
analyzed due to multicultural miscommunication takes place and that creates confusions in the
workplace. Due to this, people feel demotivated and they do not share their feeling with the
management (Y. Lacey and Groves, 2014).
From the literature review it is gained that diversity in the workplace creates challenges
for the companies. Miscommunication is one of the major issue faced by the entities when they
hire people from different cultures. They feel unable to understand language of each other by
this way confusions takes place. Age is the biggest factor that creates challenging environment
for the management. Younger believes that innovative ideas can enhance efficiency of the
company whereas old people think that traditional methods are well for the working. That
creates problem in the workplace and actual operational efficiency of the company get decreased.
Diversity brings discrimination in the workplace environment (McPhail, McNulty and
Hutchings, 2016). It is found that mangers promotes same culture employees more and people
those who belong from other religion feels demotivated. By this way individual do not perform
well and that affects the overall profitability. From the discussion it is found that diversity
enhances operational cost of the company. That is the challenge for the entities like Tesco
because they can not avoid these aspects. When company brings different people in the
workplace then it has to give them training so that they can make effective communication and
conflicts do not take place. But arrangement of training, making them conformable in the
workplace are very costly (Muro and et.al, 2014). But if firm do not give them training them