FINAL PROJECT December 28, 2022

VIETNAM NATIONAL UNIVERSITY, HANOI

INTERNATIONAL SCHOOL
----------------------
Business Organization and Management
SUBJECT CODE: INS 2019.04

Lecturer: Ph.D. Phạm Hoàng Điệp

Prepare by Group 7
Student ID Full name
20070330 Nguyễn Phương Thảo
21070790 Đỗ Thanh Vân
21070335 Bùi Thùy Dương
21070419 Lê Huyền Trang
21070891 Nguyễn Bích Diệp
21070572 Nguyễn Thị Lan Anh

1
FINAL PROJECT December 28, 2022

In today's globalised world, people no longer live and work in an isolated marketplace rather
the entire world has now become a “Global Village” where people from different culture,
values, attitudes and beliefs come together and interact with each other. A diverse workforce
is a reflection of a changing world and market place. Organizations work in a national or an
international context often requires full range of workforce from across the nations to satisfy
their customers. For achieving success and maintaining competitive advantage, one of the
important factors that an organisation should attribute is its diverse and talented workforce.
Organisations that promote and achieve a diverse workforce will attract and retain quality
employees, thereby contributing to organisational performance. Diversity management
embraces such dimensions, as a result of which a supportive culture emerges, where all
employees can be effective. Diversity is said to bring substantial potential benefits such as
better decision making and improved problem solving, greater creativity and innovation,
which leads to enhanced product development, and more successful marketing to different
types of customers. Workforce diversity requires intermingling of people towards the
objective of achieving higher growth. This paper is designed to how workforce diversity
affects a company's competitive advantage.

2
FINAL PROJECT December 28, 2022

2
3
4
7
Step 1: Determine the question 7
Step 2: Contextualisation 10
Step 3: External Drivers 10
Step 4: Ranking and Ranging 12
Step 5: Naming and framing 14
Step 6: Logic and narrative 14
Step 7: Distillation and dialogue 15
Step 8: Validation and refinement 17
Step 9: Interpretation and implementation 17
18
19

3
FINAL PROJECT December 28, 2022

1. Structure and scope of the report

The topic of this report is “Employee diversity gives a company a competitive advantage.” In
addition to providing information about the topic, it also brings personal opinions from team
members. The first purpose is that help viewers have a better overview of how a company
with a rich human resource team will give the company a competitive advantage, and how
many benefits. Secondly, it will help you have a specific orientation in the selection of human
resources when opening or operating a company.

2. Scenario planning

2.1 Definition

Making assumptions about what the future will be like and how one's business world will
evolve over time in response to that long term is what scenario planning includes. Scenario
planning is the act of defining a specific set of uncertainties, or multiple "realities," about
what could happen in the company in the future.

It may sound easy, and perhaps not worth the risk or work, but building this set of
assumptions is perhaps the finest thing the firm can ever do to help steer the organization in
the long term. Using this approach, company authorities can anticipate and prevent possible
situations, giving managers a better understanding of the external environment as well as the
current status and future course of the business. Scenario planning may not have such severe
repercussions in the company, but failing to do so risks incurring greater expenses, hazards,
and missed opportunities.

2.2 Framework

○ Step 1: Determining the question

○ Step 2: Contextualisation

○ Step 3: External drivers

4
FINAL PROJECT December 28, 2022

○ Step 4: Ranking and ranging

○ Step 5: Naming and framing

○ Step 6: Logic and narrative

○ Step 7: Distillation and dialogue

○ Step 8: Validation and refinement

○ Step 9: Interpretation and implementation

2.3 Benefits of scenario planning

Systems thinking: Managers can think in terms of systems by using scenario planning. A
manager can use "scenario planning" to deduce alternative scenarios based on a sequence of
logical and scientific facts, using business experience and immediate perception, detecting
trends in the development of things, shape, and the effect of changing market trends in the
organization, before problems arise.

The optimal allocation of resources: Companies can use scenario planning to predict possible
future scenarios, allowing managers to be more aware of the external environment as well as
their company's status and future directions, allowing them to better match internal resources
to the external environment and allocate resources more effectively and rationally.

Risk Reduction: Scenario planning can help us better understand the present by imagining the
future. It can also help enterprises deal with future uncertainty by recognizing "weak signals"
and helping them to better prepare for changing situations in order to keep their operations
afloat.

3. Trend Description

Discussion of human resource diversification was first started in the United States and for
decades the issue of diversity human resource management has become a major theme in
American businesses. Today, not only in the United States but in most countries around the
world, along with the strong globalization process and the development of the transnational
economy, diversity in the workplace has become a priority for many companies. We live in a
5
FINAL PROJECT December 28, 2022

deeply connected and global world so it should come as no surprise that more diverse
companies and institutions are becoming popular. The biggest multinational companies in the
US such as Google, IBM, Xerox, Motorola, Johnson&Johnson, Coca-Cola... all have diverse
human resources.

6
FINAL PROJECT December 28, 2022

Step 1: Determine the question

1. What defines employee diversity?

Diversity, according to Esty, Griffith, and Hirsch (1995), is described as "accepting,

respecting, and valuing people's differences in terms of race, age, class, gender, ethnicity,
handicap, education, sexual orientation, spiritual practice, and more."
In a diverse workplace, competitive advantage is gained not only by recognizing diversity but
also by cultivating an environment of inclusion, in which individuals strive toward a similar
goal while feeling encouraged, resulting in increased productivity and employee
commitment.
The obvious benefit of a varied and inclusive workplace is that it helps employees and
employers to appreciate different people's experiences and opinions. Different viewpoints and
experiences usually lead to better business solutions. Each new perspective on an issue opens
up new possibilities for solving it.
It's crucial to remember that diversity is reflected both within and externally. A varied
workforce is made up of more than just physical, regional, or socioeconomic characteristics.
While these characteristics are often the most evident, they are often extrinsic. Diversity of
ideas, personality, professional experience, and education can all revive a stale business with
fresh insight and perspective.
It's critical to examine each employee's entire past before assigning them to certain roles (not
only when considering them as part of the overall workforce). Regional firms may find it
difficult to break out of a traditional candidate mold, resulting in a staff with a lot of the same
personalities and backgrounds (even if they are outwardly different).

2. How does employee diversity affect competition?

7
FINAL PROJECT December 28, 2022

To properly harness the power of diversity, business owners must first comprehend its
potential and foster the right kind of workplace. Thomson Reuters performed a diversity and
inclusion analysis of over 5,000 global corporations in 2016. A portion of the research
included interviews with senior executives who gave their perspectives on how to make the
most of workplace diversity. Based on their comments, Thomson Reuters determined that
when executives and owners understand the following, workplace diversity is most likely to
provide favorable financial results:
1. Workplace diversity encourages employees to be more creative and innovative.
2. Recruiting a diverse workforce solely for the sake of diversity is ineffective.
3. Diversity isn't only about having a diverse group of people; it's also about treating people
authentically and holistically.
4. Inclusion and diversity are inextricably linked; one cannot exist without the other.
Having a shared awareness of diversity between executives and employing a diverse
workforce can pay off big time. Diverse teams, according to a Business Insider report, are
more likely to:
1. If there is a disagreement or an unexpected result, re-examine the facts. This contrasts with
homogeneous teams, which may place a greater emphasis on personal conflicts or emotional
tensions than on factual disagreements. This concentrates group effort on the most pressing
issues, lowering the risk of error while enhancing productivity.
2. Develop more inventive ideas that will give you a competitive advantage.
3. Build client loyalty by relating to various types of customers and giving exceptional
service.
4. Outperform their opponents financially!

3. How to manage employee diversity to get the best results?

It's worth remembering that managing diversity entails more than simply acknowledging that
individuals differ. It's also about appreciating differences, combating prejudice, and
cultivating an inclusive workplace where employees feel valued, supported, and respected.
Negative impressions and behaviors can sabotage employee relationships, as well as moral
and productivity, in a diverse workplace.
Effective managers have a thorough understanding of discrimination and its consequences,
are conscious of their own biases and prejudices and are willing to modify the organization to
promote diversity and inclusion. They recognize that there is no one-size-fits-all strategy for

8
FINAL PROJECT December 28, 2022

creating an inclusive workplace because each person is unique. They understand that
managing diversity is a long-term effort that necessitates continual training because people's
views and behaviors do not change overnight. Finally, they are committed to providing a safe
environment for employees to express their thoughts and opinions.
4. What if employee diversity gives a company a competitive advantage?

In a diverse workplace, competitive advantage is gained not only by recognizing diversity but
also by cultivating an environment of inclusion, in which individuals strive toward a similar
goal while feeling encouraged, resulting in increased productivity and employee
commitment.
According to Harvard professor Roy Y.J. Chua's research, "the more people from diverse
cultural origins you have in your network, the more creatively inspired you will be by new
ideas and opinions." Importantly, these ideas aren't always generated by network members
who share your cultural background."
When there is a broader variety of inputs to an issue, there are more outputs. As a result,
several groups come up with innovative solutions and ideas.
Leaders in the business have taken note. According to a Forbes survey, 85 percent of
corporate leaders agree that "encouraging varied viewpoints and ideas that fuel innovation"
requires a diverse and inclusive workforce.

5. What would happen without employee diversity?

Businesses will become too outdated to attract young people, or too young for older people. It
is impossible to expand creativity and problem-solving without collisions, new ideas or new
perceptions cannot form to create the best solutions. Because without the diversity that comes
from many different sources and experiences, not being better informed and making more
informed decisions can't improve outcomes for the business. At the same time will reduce the
productivity and profits of the company. Difficulty in interacting, retaining employees, and
being unable to attract new human resources. That will make the company's reputation
inaccessible to new customers, partnerships and new markets.

Scenario 1: The regional diversity of workers has decreased because of the epidemic.
Scenario 2: Employee diversity increased by the borderless workspaces. (WFH)
Scenario 3: AI involved in the recruitment process has increased employee diversity.

9
FINAL PROJECT December 28, 2022

Step 2: Contextualisation

Just because workforces change all the time doesn't mean they change in the same way every
time. Diversity today will look different in five, ten, or twenty years. Recent research strongly
suggests the following shifts in the labor pool in the United States:
According to the US Department of Labor, women now make up about 47% of the workforce
in the United States. In 2020, this percentage is predicted to increase moderately.
According to The National Center for Public Policy and Higher Education (NCPPHE), the
white working-age population is expected to decline from 82 percent to 63 percent between
1980 and 2020.
According to The National Center for Public Policy and Higher Education (NCPPHE),
minority labor force participation will expand from 18 percent to 37 percent between 1980
and 2020, with Hispanic participation rising from 6 percent to 17 percent.
According to Pew Research Center, Millennials became the largest generation in the
American labor force in 2015. According to the US Census Bureau's 2019 report, 44.2
percent of Millennials are members of a minority race or ethnic group.
Many employees and job seekers, for example, prefer to work for a diverse company.
According to a survey conducted by the business research website Glassdoor, 67 percent of
job searchers consider a diverse workplace to be vital, and 57 percent of employees wish their
company was more varied.

Step 3: External Drivers

External Drivers Relevance

Cultural When you hire people from diverse backgrounds, nationalities, and
cultures, you’re bringing a fresh array of perspectives to the table.
This can lead to benefits like better problem-solving and increased
productivity.
The idea of bringing new perspectives into the company can feel
intimidating for some hiring managers. People may fear potential
awkwardness or the introduction of unpopular opinions. But rest
assured: research has shown that diverse teams see a 60%
improvement in decision-making abilities.

10
FINAL PROJECT December 28, 2022

Economic There are many studies that show diverse teams simply perform
better and, as a result, bring in more profits. A report on 366 public
companies found that those in the top quartile for ethnic and racial
diversity in management were 35% more likely to have financial
returns above their industry mean (2015 McKinsey report).
Additionally, those in the top quartile for gender diversity were 15%
more likely to have returns above the industry mean. Another
McKinsey study found that U.S. public companies with diverse
executive boards have a 95% higher return on equity than those with
homogeneous boards. Yet another study by the Boston Consulting
Group found that increasing the diversity of leadership teams leads to
improved financial performance. Clearly, diversity pays off.
Civic Each country in the world has a distinct culture, and each country's
cultural characteristics affect people's thoughts and actions in the
socio-economic life of that country. Therefore, socio-cultural issues
such as lifestyle, human rights, ethnicity, propensity to save and
consume of the population classes, attitudes towards the quality of
life, and the role of women in society... have a certain influence on
the production and business activities of enterprises in general and
human resource management activities in particular.
Political Production and business activities as well as human resource
management in enterprises are directly responsible for legal and
political factors. The legal system forces businesses to pay more and
more attention to the rights of employees and the ecological
environment.
Technological The advancement of science and technology makes businesses have
to invest high capital and spend money on training human resources,
and at the same time, businesses may have to face excess labor.
Environmental As the company's employees come from different ethnic groups and
backgrounds, they have a wide range of life experiences and are
greatly helpful in problem-solving and decision-making. Diversity
helps employees approach things more creatively and from different
perspectives in the workplace.

11
FINAL PROJECT December 28, 2022

An article in the Harvard Business Review states that companies with

"two-way diversity" - those with leadership positions possessing
diverse characteristics and diverse work experiences, will perform
better than the competition.
Ethical Ethical culture in business is the application and implementation of
the community's values, standards, patterns, and ethical symbols in
production and business activities. Business ethics is essentially
professional ethics expressed in a specific field of activity: the
business sector.
In the information-knowledge society, culture is highly valued and
really becomes an important resource that is decisive for the
existence and sustainable development of enterprises. Ethical culture
is not only a source of intangible assets for enterprises but also plays
an important role in creating the business environment of enterprises.
Therefore, many developed countries highly appreciate the ethical
culture in business, considering business ethics as the key to the
development of enterprises.

Step 4: Ranking and Ranging

Driver Relevance Uncertainty

Cultural Having a diverse workforce fosters creativity in the high

workplace because regardless of cultural or regional
differences, everyone is geared toward the same goals
at work. It is even more beneficial when that goal is
objectively formulated, evaluated and revised.
Because the difference is what drives innovation and
creativity through a variety of approaches and unique
perspectives to arrive at the best problem-solving
direction.
According to an article from Forbes: “Research on
creativity and innovation shows that different
individuals, exposed to experiences with multiple

12
FINAL PROJECT December 28, 2022

perspectives and worldviews, create different values.

It is the combination of these unique perspectives that
will lead to the formation of new ideas.”
Environmental Diversity and inclusion in the workplace makes all high
employees feel accepted and valued. This means there
will be no more disregard for personal interests or
discrimination in the workplace. Once employees feel
accepted and valued, they are also happier and give
their best.
Ethical Business ethics, as the most important component of high
business culture, is the fundamental factor that creates
the trust of partners, customers and consumers in the
business. Business ethics is the basis for building trust,
cohesion and loyalty of the staff in the enterprise,
ensuring that from the leader to all employees in the
enterprise they behave in accordance with ethical
standards, thereby constantly improving the image,
reputation and brand of the business. The survival,
development as well as profits of enterprises are
decided by consumers, so if businesses want to
achieve high-profit rates and sustainable success, they
must build a foundation of business ethics. for your
business.
Economic Human resource is a decisive factor to the realization high
of socio-economic goals and it also determines the
process of accelerating industrialization and
modernization of the country in order to quickly
integrate our country's economy with the regional
economy. regionally and internationally, because after
all, it is people who are the most basic and important
factor of the entire productive force.
Civic Companies are seeing the value of civic reponsibility, moderate
especially as more people are paying attention to

13
FINAL PROJECT December 28, 2022

politics and enthusiam around the subject of

democracy is high
Technological According to Forbers, Technology may well be one of low
the most powerful tools business and HR leaders have
in creating diverse, equitable, and inclusive (DE&I)
organizations. The global social justice movement,
increasing regulations, or even people feeling that it is
the ‘right thing’ to do have all made DE&I a top
business priority today.

Political Political views can be so polarizing that they can low

create a level of dicomfort at work and lead to
conflicts.
Political leanings may become more than just an office
annoyance to some, as some managers tend to hire
people of similar ideology, and doing so could create a
hiring bias.

Step 5: Naming and framing

One of the most common and important challenges facing organizations today is managing
workers from different cultures, gender, races, etc. organizations. That is the diversity of
human resources. Diversity in the workplace has been elevated to a priority for many
businesses in recent years.

This diversity includes an increasing number of workers with characteristics different from
what is considered the "norm" that exists in an organization. As such, workplace diversity
doesn’t simply refer to hiring diverse employees - it also means ensuring that all employees
are treated fairly and are equally included in the company’s activities.

Step 6: Logic and narrative

Businesses downsize, restructure, or reorganize in the hopes that having fewer employees
will reduce costs, increase efficiency, and make the company leaner and more manageable.
This is one of the natural responses of businesses to increase their competitiveness. In fact,

14
FINAL PROJECT December 28, 2022

practical experience demonstrates that a company's ability to boost competitiveness with

fewer employees is relatively unaffected by this decision. Conversely, waves of change that
are ineffective and lack a clear purpose frequently cause businesses to gradually lose valuable
potential or skills (competencies).

As a concrete example, a company does not need to maintain specialized functions for
security, transportation, payroll or cleaning, but can "outsource" to specialized companies
providing services. This with lower cost and more guaranteed quality. In doing so, the
company can "streamline" to focus on developing and using a "core" payroll personnel
component. In case of a shortage of personnel according to the project (installation of a new
machine system, temporary management) and "seasonal" (project management, additional
production), the company can recruit personnel " term” (contractual) or “short-term hire”
from other employment service companies.

It should be noted that enterprises need to have a specific human resource policy in order to
effectively use possible human resources in the direction of developing and implementing the
foundation strategy of the enterprise. For example, a company needs to "outsource" and
exploit the solution of "additional human resources" to the fullest extent, but it needs to retain
strategic activities to ensure the sustainability of the company such as managing finance,
research and product development (R & D).

To do this, an enterprise needs long-term development and fostering solutions for “potential”
and “capable” employees to fill appropriate positions/positions. At the same time, it is also
necessary to apply reasonable "screening" measures to maintain and develop an organic core
human forces on the one hand; on the other hand, reduce the composition of "unused" and
"redundant" human resources (redundant or surplus) by using more effective methods of
human resources (temporary or outsourcing).

Step 7: Distillation and dialogue

For every organization, having a diverse workforce is critical.

In order to compete in such a harsh market, organizations must hire an effective and efficient
workforce that can handle such a competitive working environment.
When adopting changes, the main challenge for companies is adapting to the changes and
changing themselves to fit with the changes. Even if it can be tricky to adapt to changes on
your own, leading an entire organization is a much more difficult undertaking. We must first

15
FINAL PROJECT December 28, 2022

examine the many advantages that workforce diversity may bring to an organization before
delving further into the challenges.

Since 2005, there have been numerous studies that demonstrate staff renewal is a necessary
change for every firm. A diverse staff is any organization's most valuable resource because it
is this group that will steer it through the "economic evolution" storm.. (Asmita Jha, 2009)
according to this study's author, a diverse workforce is good at problem-solving because they
bring a variety of fresh perspectives to the table, offering the business a competitive edge.
The author also concentrated on raising employee happiness by thoroughly understanding
each person's expectations and needs. The implementation of this adjustment, however, faces
challenges. The main issue is adjusting and adapting. Employing a skilled and competitive
workforce regardless of gender, religion, color, age, or educational level is known as
workforce diversity.

When workers adjust to a new setting, problems including a lack of mutual understanding
that reduces productivity, different working styles, communication hurdles, and ineffective
supervisors prohibit the company from creating a productive workplace. The employees
themselves can be difficult to adjust to in a new situation. They have a difficult time adjusting
to the new workplace. For instance, it can be challenging for you to communicate your
thoughts with a French-speaking colleague who works in the advertising department because
it could lead to misunderstandings. The difficulty for the business is to find solutions for the
forthcoming issues.

16
FINAL PROJECT December 28, 2022

Step 8: Validation and refinement

The environment is the main factor in the first scenario, in which the epidemic has reduced
the regional diversity of the workforce. The primary factor in the second situation, where
employee diversity has expanded as a result of borderless workspaces, is culture. The trend of
working from home (WFH) has led to an increase in online employment opportunities for
individuals.
The ability to quickly sift through tens of thousands of applications to find and hire the top
candidates gives firms a competitive edge while operations and spending are being
constrained in the third scenario. As a result, workforce diversity has expanded.

Step 9: Interpretation and implementation

WFH culture and the development of technology in HR management for employee diversity.
Although we have a new normal, we can not deny the convenience of WFH and the
involvement of new technology. It's now necessary to accelerate this momentum by involving
the staff in developing a culture that accepts individuals from different cultures and practicing
polite communication.

17
FINAL PROJECT December 28, 2022

This scenario illustrates 9 stages of the diversity of employees creating a lot of beneficial
factors in all aspects of the business, but more specifically the factors in competition.
Diversity of ideas, personality, professional experience, and education can all revive a stale
business with fresh insight and perspective. The diversity of personnel helps businesses to
have many multi-dimensional views and to have constant creativity in the way employees
work.
In the present and in the future, the human factor is always the most important factor creating
the breakthrough of each enterprise. The diversity of human resources has a strong impact on
management. Managers will need to shift their philosophy from treating everyone the same to
recognizing differences and reacting to them to ensure employee retention and productivity
growth at the same time. time without discrimination. If handled well, the diversity of human
resources can increase creativity and innovation in businesses and improve decision-making
efficiency by using different perspectives on the same problem. On the contrary, if
enterprises do not pay attention or pay insufficient attention to the diversity of human
resources in management, it can lead to an increase in the quit rate of employees and conflicts
between individuals on a daily basis. The more complicated, labor productivity and work
efficiency are reduced.

18
FINAL PROJECT December 28, 2022

1. Todd, S. (n.d.). Why Diversity Gives Businesses A Competitive Advantage. [online] Forbes.
Available at: https://www.forbes.com/sites/samanthatodd/2019/05/05/the-business-case-for-
diversity-a-competitive-advantage/?sh=ef57c3a5a1b5 [Accessed 24 Jun. 2022].
2. Yến, M. (2021). Tạo lợi thế cạnh tranh từ đào tạo và phát triển nguồn nhân lực. [online]
TapChiTaiChinh. Available at: https://tapchitaichinh.vn/tai-chinh-kinh-doanh/tao-loi-the-
canh-tranh-tu-dao-tao-va-phat-trien-nguon-nhan-luc-304543.html.
3. Dike, P. (2013). The impact of workplace diversity on organisations. [online] Available at:
https://core.ac.uk/download/pdf/38093915.pdf.
4. Yva.ai (n.d.). Workplace Diversity Policy | Yva.ai. [online] www.yva.ai. Available at:
https://www.yva.ai/workplace-diversity-policy [Accessed 24 Jun. 2022].
5. Questback (2019). Why a Diverse Workforce Gives you a Competitive Edge. [online]
www.questback.com. Available at: https://www.questback.com/blog/why-a-diverse-
workforce-gives-you-a-competitive-edge/.
6. Roberge, M.-É. and Dick (2019). Recognizing the benefits of diversity: When and how does
diversity increase group performance? Human Resource Management Review, [online] 20(4),
pp.295–308. Available at:
https://www.academia.edu/24705534/Recognizing_the_benefits_of_diversity_When_and_ho
w_does_diversity_increase_group_performance [Accessed 14 Nov. 2019].
7. Saxena, A. (2014). Workforce Diversity: A Key to Improve Productivity. Procedia
Economics and Finance, [online] 11(1), pp.76–85. doi:10.1016/s2212-5671(14)00178-6.
8. rakeshkumardbg (2013). Need for Cross Cultural Management. [online]
9. darbhangatower. Available at: https://darbhangatower.wordpress.com/2013/05/08/need-for-
cross-cultural-management/.
10. Naomi Benjamin(2021), How Technology Supports Workplace Diversity, Equity And
Inclusion. [https://www.forbes.com/sites/sap/2021/06/28/how-technology-supports-
workplace-diversity-equity-and-inclusion/?sh=19ca44f928b8]
11. Nick Otto (2019), Are politics decreasing workplace diversity? [https://hrexecutive.com/are-
politics-decreasing-workplace-diversity/]

19
FINAL PROJECT December 28, 2022

MEMBER SECTION
Lê Huyền Trang Executive summary + Contextualization
Nguyễn Phương Thảo Distillation and Dialogue + Validation and refinement
Nguyễn Thị Lan Anh Introduction + External drivers
Đỗ Thanh Vân Naming and framing + Logic and narrative
Bùi Thùy Dương Interpretation and implementation + Conclusion
Nguyễn Bích Diệp Determining the question + Ranking and ranging

20