Core Business Strategies: Benchmarking, Diversity, and Organizational Change

Understanding Benchmarking and Performance Measurement

Benchmarking is a systematic process of measuring the performance of a company’s products, services, or internal processes against those of another business considered to be the best in the industry (the "best practice"). The primary purpose of benchmarking is to identify internal opportunities for improvement and strategic enhancement.

Workplace Diversity: Types and Organizational Impact

Diversity encompasses various dimensions that affect organizational dynamics and market reach. Below are four key types of diversity and their potential impact on a company:

1. Religion: Religious diversity, or lack thereof, can significantly narrow a company's target audience because there are many people with an extreme reaction against religion who purposely go out of their way to avoid it.
2. Sexual Orientation: Some companies have policies that explicitly discriminate against lesbian, gay, and bisexual employees because they believe these individuals “damage” the image of the business. This leads to legal risks and loss of talent.
3. Gender: Some businesses believe that capabilities are dependent on gender, suggesting that one gender may be less able to succeed than the other. This bias limits organizational potential and fosters inequality.
4. Ethnicity: Businesses sometimes incorrectly assume that individuals from different ethnic backgrounds do not possess the same abilities because they were not raised in the same environment. This form of bias leads to missed opportunities for diverse perspectives and innovation.

Responding to Discrimination as a Team Leader

If a team member is being discriminated against, the team leader must take immediate and decisive action. Discrimination is defined as the unfair treatment of a person, racial group, or minority, or a subtle appreciation in matters of taste that leads to bias.

Action Steps for Addressing Discrimination:

• Commitment from Top Management: Ensure that top management is fully committed to fostering diversity and inclusion policies.
• Mentoring Programs: Implement a formal mentoring process whereby an experienced member provides advice and guidance to a less experienced member, aiding integration and development.
• Diversity Skills Training: Conduct mandatory training focused on raising awareness of existing assumptions and developing skills for effective communication and collaboration in a diverse environment.
• Employee Resource Groups (ERGs): Support the formation of ERGs—groups of employees connected by a common dimension of diversity—to provide support, networking, and advocacy.

Eight Forces Driving Organizational Change

Organizational change is driven by both external pressures and internal dynamics:

External Forces

1. Changing consumer needs and wants
2. New governmental laws and regulations
3. Changing technology and digital transformation
4. Economic changes (e.g., recessions, inflation)

Internal Forces

5. New organizational strategy or mission
6. Change in the composition of the workforce (e.g., demographics, skills)
7. New equipment or infrastructure investments
8. Changing employee attitudes and expectations

Fostering Innovation: Key Organizational Measures

To successfully foster innovation, organizations must adjust their structure, culture, and human resources practices:

1. Structural Variables

• Adopt an organic structure (flexible, decentralized).
• Make substantial resources available for research and development.
• Engage in frequent inter-unit communication and collaboration.

2. Cultural Variables

• Accept ambiguity and uncertainty inherent in the innovation process.
• Tolerate the impractical or seemingly non-viable ideas initially.
• Maintain low external controls to encourage autonomy and risk-taking.

3. Human Resources (HR) Variables

• Actively promote training and development programs to keep employees’ skills current and relevant.

Techniques for Reducing Resistance to Change and Managing Stress

Reducing Resistance to Change

Managers can employ several strategies to minimize employee resistance during organizational transitions:

• Education & Communication: Provide clear, timely information to clarify misunderstandings.
• Participation: Increase employee involvement in the change process to foster acceptance and ownership.
• Negotiation: Offer incentives or trade-offs to “buy” commitment from powerful resistance groups.

Managing Workplace Stress

Effective techniques for employees to reduce and manage professional stress include:

• Be Assertive: Utilize clear and effective communication as the key to asserting needs and boundaries professionally.
• Manage Time Effectively: Prioritizing and organizing tasks helps create a less stressful and more predictable work life.
• Creating Boundaries: Establish internal sets of rules (boundaries) regarding work expectations and availability to protect personal well-being.