Diversity Management

Diversity affects all parts of the company. The global marketplace is changing daily, and we must respond in order to compete not only for customers but also for employees. ( Fred Kleisner, Chairman, President and Chief Executive officer Wyndham) In today’s society, when one hears the word “diversity” the first thoughts may focus on an individual’s race or gender. However, it is essential that society think of diversity beyond these two definitions. Diversity encompasses several definitions such as quality of being diverse or different, a point or respect in which things differ, and variety of multi formality.

(American Heritage dictionary, 1992). What is Diversity Management? The basic concept of managing diversity accepts that the workforce consists of a diverse population of people. The diversity consists of visible and non-visible differences, which will include factors such as sex, age, background, race, disability, personality and work style. It is founded on the premise that harnessing these differences will create a productive environment in which everybody feels valued where their talents are being fully utilized and in which organizational goals are met. 1

Ethically, diversity management practices recognize both individual and systematic social and psychological differences between people. Thus, any individual is a unique person, with a unique psychological and social status i. e. male/female; heterosexual/homosexual; black/white; working class/middle class and so on. Four Seasons Hotels and Resorts is an international chain of hotels and resorts. The theme of my project is to look at that how managing the diverse force can help to the “Four Seasons” to develop a culture where every individual values the differences every other individual has.

Hence diversity, especially diversity management in the human resource context will be my main area of concern through out this project. 1. 2 Problem Formulation In the problem formulation part of my report, I will be analysing different factors, which can affect a Canadian based company “Four Seasons” in opening a chain hotel/hotels in Denmark. First step for an international company i. e. Four Seasons is to get basic understanding of the area where the company wants to open the hotel. Finding answers on the following questions i. e.

What are the political, economic, social, and technological factors can affect the Four Seasons when to open a chain hotel in Denmark? What are the customer’s needs and behaviour? will lead me to find a problem to further discuss in my report. Research Question How can the concept of Diversity management help the “Four Seasons” to develop a Winning Culture? Interpretation Winning Culture here means to strive for an environment that naturally encourages employees to do their very best to win with integrity at all times,

To focus on developing leadership skills; encouraging personal accountability; maintaining a higher standard of ethics and integrity; and a building a workforce of diverse backgrounds, skills and potential. 1. 3 Limitations Establishing a chain hotel requires lots of legal/political regulations to be fulfilled. Choosing the location will also be one of the important decisions for the corporate management. Heavy capital and how to cover the fixed costs once the hotel starts functioning and looking at competition to develop service concept also worth discussing.

But because of the limitation of the pages and time and following the “narrow down process” to one particular issue, I will limit myself to write only about the diversity issues which can come across the “Four Seasons” when to establish and function in Denmark. 1. 4 Methodology Looking at the macro environment of the company, I will conduct a PEST analysis. I will be a conducting a Customer analysis to find the diversity of the customer’s need and the customers itself being diverse.

My findings based on this analysis will help me to suggest a Human Resource Management System to ensure diversity in all parts of hotel’s functions and operations. As a component of Diversity management I will discuss the theories related to Motivation, Teams and Leadership. I will use the theory of the Benchmarking2 to look at the diversity initiatives and the practices already adapted by the other hotels and companies. 1. 5 Data My project will be based on the secondary data collected from different Hospitality industry reports, articles, and magazines available on Internet.

I have also made use of the different course books and the books covering the topics on the Hospitality industry. Chapter 2 2. 1 Introduction: Four Season Hotels and Resorts Founded in 1960, Four Seasons has followed a targeted course of expansion, opening hotels in major city centres and desirable resort destinations around the world. Currently with 63 hotels in 28 countries, and more than 20 properties under development, Four Seasons will continue to lead luxury hospitality with innovative enhancements, making business travel easier and leisure travel more rewarding.

3 2. 2 Organizational Culture Corporate management of the “Four Seasons” describe its culture as follows Beyond the comfort of the bed, the beauty of the flowers, or the serenity of the spa, it’s the people of Four Seasons who make each experience so exceptional. The deeply instilled Four Seasons culture is personified in its employees-people who share a single focus and are dedicated, highly skilled and inspired to offer great service. 4 Description of the diversity will be the description of the desired culture for the “Four Seasons” throughout this report.

2. 3 PEST Analysis The macro environment e. g. (Political factors, Economic factors, Sociocultural factors and Technological factors) of the company “Four Seasons” in which company has to operate in Denmark, can be predicted by conducting a PEST analysis which is as under. 2. 3. 1 Political Factors Political environment of Denmark is quite stable. Danes pay the one of the highest income tax in the world with highest VAT (25%) in the world. Danish Government policies are favourable to the Labour market.

Much concern has been given to the well being, security and health issues of the work force. Labour law permits father or mother a leave of absence with pay for 52 weeks each time a child is born. Danish Government provides freedom of practising religion for the minorities.. 2. 3. 2 Economic Factors Denmark has a small, open economy, highly dependent on trade with other countries (2/3 of the GDP). Service sector is one of main contributors to the GDP of the country (76. 3% of the GDP). Exchange rate is quite stable.

In past few years, Danish DKR has seen constant strength against other foreign currencies of the world, especially US$. Economic growth is quite stable with low inflation rate (2. 4%). According to the chief economist, Danes are generally optimistic about their job security, and low interest on loans and tax relief have given them more money to spend. 5 It indicates that there will be a greater demand of luxurious goods and amenities in the near future. The Danish employment rate of 78% is among the highest in the world.

Danish Service sector employed 72 % of the labour force. The demographics of Denmark show a growing and large number of pensions with a corresponding reduction in the workforce needed to pay for old age benefits. As in the case of many developed nations Denmark faces the challenges of an ageing population and the workforce is shrinking6. In the upcoming years the larger generations of the World War ll era will reach retirement age while relatively smaller generations of the 1980’s will gradually begin to enter the labour market.

The future development of the Danish society will therefore depend among other things whether we are capable of securing a successful integration of foreigners. This includes not only the residing foreigners in this nation but also those that are expected to immigrate in the future. 7 As of January1, 2002, there were 415,331 immigrants and descendants in Denmark, which is 7. 7% of the entire Danish population. Immigrants and descendants are statistically considered to be one group however,Foreigners (Dan. Udli?? ndinge)This statistical definition includes all immigrants and descendants regardless of citizenship.

The activity rate of immigrants is lower than that of persons from Danish origin. Immigrants from no-western countries account for the lowest activity of 51. 4%. 8 The majority of the Hotel and accommodation industry expects higher turnover in the years to come. 9The basic wage difference between men and women in the trade, Hotel and Restaurant industry is 27. 6% with men earning 150. 5 DKR per hour as compared to 118 DKR per hour earned by women. 10 The Danish labour market is to a large extent dominated by collective bargaining.