Diversity Management Strategies for Nike Essay

With the construct of globalisation, the gait of alterations is increasing faster than earlier. Due to the impacts of this construct, organisations are working hard to maintain them selves in front of their rivals to non merely to bask coveted market portion but besides to prolong it. These organisations are besides continuously altering to fulfill the increasing demands of clients sing merchandises and service bringing. Customers are no going inconsistent when it comes to loyalty.

In recent old ages, many giants have non met their marks by neglecting to fulfill client outlooks. Furthermore, globalisation progressively requires employers to engage forces stand foring minorities gifted with certain cultural and linguistic communication accomplishment to cover with clients abroad. Harmonizing to the recent edition of Wall Street Journal, “ As companies do more good public dealingss. It ‘s a concern jussive mood ” . The challenges are non merely from clients but now employees are progressively endeavoring or racial, cultural, and sexual work force equity and good being as a affair of opportunism.

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Under such fortunes the challenge is to be able to react to alterations in such a manner that it will fulfill the alteration every bit good as your public presentation marks. Creativity, invention and flexibleness are the most of import tools to get the better of such unstable quick and drastic alterations. In this facet, Managing Diversity is treated as an chance non merely to better concern public presentation but besides to fulfill the demands of the globalisation. Pull offing diverseness can be a portion of direction scheme and planning which intend the usage of differences among persons.

Diverseness in the work topographic point is going an progressively of import subject in direction scientific discipline surveies. The bombilation of this term starts with the bombilation of globalisation.

Diversity Management

Diversity is a world for organisations today, showing chances every bit good as challenges ( lakshminarayan 2006 ) . In corporate universe the term is really stated as work force diverseness. The term refers to the assortment or multiplicity of demographic characteristics that characterize a company ‘s work force, peculiarly in footings of race, sex, civilization, national beginning, age and faith ( Gary Desler, Human Resource Management ) . It is potentially a dual edged blade due to the fact that it has its ain benefits and can give the organisation immense costs if non managed decently. Diverseness can be categorized into two different types:

Discernible Differences ( like: Nationality, Age )

Underliing Differences ( like: values, sexual orientation )

Diversity direction does non possess any peculiar or important definition. Rather Diversity direction really refers to put o thoughts and patterns defined otherwise by different writers. As the name quotes, diverseness direction is portion of strategic direction. This managerial attack is largely used as top-down. It means maximising diverseness ‘s possible benefits ( for illustration, greater cultural consciousness and broader linguistic communication accomplishments ) while minimising the possible barriers ( like biass and prejudice ) that can sabotage the company ‘s public presentation ( Gary Desler, Human Resource Management ) . The cardinal thought of pull offing diverseness is that this organisational betterment is to be achieved through recognizing, valuing, advancing and utilizing diverseness _ whereby diverseness refers to many, if non all kinds of differences between persons ( Michael Fischer, 2007 ) .

We all should cognize that diverseness makes for a rich tapestry, and we must understand that all the togss of a tapestry are equal in value no affair what is the colour ( Maya Angelou )

Benefits of Diversity

Strategic Benefit:

Good leaders frequently of course understand the advantage of a variegation. As we talk about today ‘s planetary economic system, still many organisations struggle with the thought to develop and implement diverseness rules in a manner that non merely impact the bend over and market portion but besides the overall repute of the organisation.

Greater Adaptability and Flexibility:

when company has a diversified work force, their will be less opportunities of holding a common opposition upon alteration. And the people will be interacting with people from many different believes and thoughts, therefore broadening the vision O persons. This improved vision enables the employees to be easy adaptable to alterations. In this mode the organisation entirely becomes flexible to drastic technological and concern alterations.

Attracting and Retaining the Best Endowment:

Diversification helps in constructing good relation with public by making a good image on minorities. When your repute is increased, people will prefer our company over others. The positive image of company helps in pulling the best endowment in the market topographic point.

Deriving and maintaining greater market portion:

By constructing good images due to diversified endowments and with the aid of employees from assorted groups you can acquire an added benefit for marketing you merchandise in those markets where dominant purchasers are related to these group.

Increased Gross saless and Net incomes:

Surveies prove that, if diverseness is managed decently than we can bask a great trade O hoot in gross revenues. IBM created several minority undertaking forces concentrating on groups such as adult females and native Americans. In the resulting 10 old ages, the undertaking forces have expanded IBM ‘s multicultural markets. For illustration, one decided to concentrate on spread outing IBM ‘s market amongst multicultural and adult females owned concerns. They did this in portion by supplying much needed gross revenues and service support to little and mid size concerns, a niche good populated by female and minority purchasers. As a consequence, this market grew from $ 10 million to more than $ 300 million in grosss in merely 3 yearss.

Increasing organisational effectivity:

Diversity provides organisations with a strategic and competitory advantage by betterments in overall corporate civilization, employee keeping, enlisting and morale of employees. Harmonizing to a survey by the Society for Human Resource Management 40 % of companies concentrating on diverseness guarantee leading development plans accessible to all human resource, 34 % of these organisations increase invention by conveying out the endowment of all backgrounds of employees and 31 % utilize employees from different experiences for particular undertakings and undertakings.

Employee Loyalty and Reduced Costss: Diversification besides helps in making positive relationships with minority communities. There is a batch o importance of this relationship with the community. Community variegation besides relates to developing relationships with distributers and providers every bit good. For illustration, this can take to good will and increase the overall repute as the community ‘s employer of pick. And when there is a sense of proud in employees because o their organisation for its part and connexions to the community, they automatically become more loyal to their company and will besides make really good repute of their company in the populace every bit good. This consequences as lower turnover and less absenteeism which farther increasing the productiveness of the organisation.

Diversity Oriented HRM Policies

Equal Employment Opportunity

Equal Employment Opportunity was foremost coined as jurisprudence in United States to protect the citizens of US merely, but subsequently most of the developed and developing states adopt the jurisprudence on international graduated table. This jurisprudence protects the employees from employment favoritism based upon that employees ‘ ( or applicant ‘s ) race, colour, faith, sex, or national beginning. Communities are made on national and international footing for the execution of the jurisprudence. With the impacts of globalisation, there are few more categories added to this jurisprudence listed as ‘protected categories ‘ .

Affirmative Action

It refers to policies which build quotas on the footing of factors including race, colour, faith, sex or national beginning. These policies are made for the benefit of minorities as a mean to contend against the favoritism.

The international convention on the riddance of all signifiers o racial favoritism stipulates that it is necessary for the states to implement affirmatory action plans that have favoritism history in order to over come it. It states that,

“ Shall in no instance entail as a effects the care of unequal or separate rights for different racial groups after the aims for which they were taken have been achieved. ”

The United Nations Human/Animals Rights Committee provinces,

“ The rule of equality sometimes requires States parties to take affirmatory action in order to decrease or extinguish conditions which cause or help to perpetuate favoritism prohibited by the Covenant. For illustration, in a State where the general conditions of a certain portion of the population prevent or impair their enjoyment of human rights, the State should take specific action to rectify those conditions. Such action may affect allowing for a clip to the portion of the population concerned certain discriminatory intervention in specific affairs as compared with the remainder of the population. However, every bit long as such action is needed to rectify favoritism, in fact, it is a instance of legitimate distinction under the Covenant. ”

General Guidelines for explicating HR Policies

No uncertainty diverseness managed decently is a approval for an organisation. All said, it is a really intimidating exercising to get down with and to go on. Human Resource Department and directors in assorted sections demands to play a really critical function in it. There should be willingness to accept the challenges put frontward due to variegation of organisation. Some of these challenges are:

How to promote the enlisting of employees to diversify an organisation?

Hoe to fix human resource policies which are non giving any peculiar benefit to a group?

How to command the struggles and issues among employees related to assorted groups in work force?

How to advance an environment in the organisation for credence of variegation of employees as a regulation, non as an exclusion?

How to calculate out finding the best schemes for different type of diversenesss?

How you have to travel in front and actuate and stimulate the assorted groups of people?

How to set on topographic point compensation program / motive plans the entreaty to wide assortment in the organisation?

How to avoid trivialization of diverseness issues at direction degrees?

How to develop director to acquire rid of hapless struggle direction, deficiency of values acknowledgment, and perpetuating stereotypes?

General guidelines for directors and human resource sections are:

There should be really distinct policy related to diverseness direction. These policies must be publicized among employees utilizing all available agencies.

Manager should be trained to understand the benefits accrued due to variegation of the organisation and should be ready to understand

the bigger image

Greater position

Broader service scope

More effectual Execution

Deeper idea and consideration

Respect for other civilizations

Improved perceptual experience of ego and others

Better public presentation

Improved morale

Alternatively of believing negatively they should observe diverseness

Manage diverseness through enlisting and public presentation direction

Maintain equality among his staff

Maintain an environment where each member of staff fell himself secure

Promote each and inquire them for showing itself particularly if felt insecure

Promote each other for larning, originative tensenesss, to be direct and to be honest

Directors should be active and empathetic hearer

To promote feeling of inclusion directors should seek inputs with adequate flexibilty and supply wise man for using assorted group

Wagess should be based on public presentation ; nevertheless particular wagess can be provided to promote unanimity

Directors should understand how the favoritism hurts an employee every bit good as the organisation

Promote societal plans designed to include all diverseness group to understand and value other civilizations

Pull offing Diversification At Nike


Nike was founded in 1954 by Bill Bowerman and Phil Knight. Initially it was names as Blue Ribbon Sports. In the start, Phil Knight frequently sold places from the bole of his auto after path and featuring events. Their major inspiration for come ining in this concern was to supply the sportswomans with high quality places. In 1978, Blue Ribbon ended its relation ships with its premier provider Onitsuka Tiger and officially became Nike Inc. In the same twelvemonth the company developed their celebrated ‘swoosh ‘ logo as good.

In 1980 Nike gained 50 % of the market portion. Today, it has become the universe ‘s largest athletic footwear and dress provider. The company has immense planetary presence with its 30,000 employees stand foring many parts o the Earth.

Core Competences

Nike enjoys a large competitory advantage in their effectual selling schemes and their advanced merchandise design. These are the two basic elements which are supplying much of the value, benefits and satisfaction to the consumers ‘ of Nike. Although Nike is non doing its ain places but still they are the leader in selling athletic places and other athleticss goods. Their selling scheme and variegation policy is the major portion of their success. Nike besides indulges in publicity of its merchandises through sponsorship understandings with celebrated athleticss famous persons. Nike ‘s first sponsorship sign language was Rumanian Tennis participant Illie Nastase. Today they have signed many famous person indorsements likes of Tiger Woods, Roger Federer, James Blake, Kobe Bryant, Michael Jordan, Ronaldinho and Christiano Ronaldo. By the terminal of 2008, Nike ‘s sponsorship duties are around $ 3.5 billion.

Global Schemes and Environmental Practices

Nike has a clear vision of their planetary market. They have proved themselves as the leader in association football places and association football merchandises in the FIFA World Cup 2010. This is non merely a push to travel more planetary but besides portion of their current planetary scheme to do it more possible to custom-make and individualise Nike. In association football kingdom Nike has already had a large success over their German Competitors Adidas B subscribing a $ 506 million contract with La Blues French National squad, who had been with Addidas for about last 30 old ages.

Diversity and Inclusion

Nike has clearly understood the importance of employees and their felicity so as to run the concern successfully. Due to immense size of their concern, legion Numberss of shops and many fabrication workss throughout the universe, they have managed to clearly understand the importance of each person and what the value they can lend for the company. That is why Nike does non name its employees, employees, yet, squad members, because each portion of the squad has something to add to the concern. They have besides admitted that they have a really big array of workers and this brings many diverse civilizations and points of positions together. Harmonizing to their HRM policy,

“ At Nike, Diversity and inclusion is what drives creativeness and invention. It takes every one of our over 30000 employees working at the top of their game or Nike to make its highest potency. And we know that outstanding squads are composed of diverse people, backgrounds and skill sets ” .

It is the critical characteristic in Nike ‘s diplomatic negotiations in their many locations. In order to endeavor to make this mission they have put into action these schemes:

Cultivate Diversity and Inclusion to develop universe category, high executing squads.

Ignite alteration and animate critical conversations around diverseness, inclusion and invention

Create locales and environments for unfastened duologue, diverse sentiments and a battalion of positions.

These ends assist them in executing more expeditiously and profit them with more satisfied employees for longer periods of clip.

Degree of Cultural Integration

Surveies show that Nike ‘s initial planetary enlargement really did non work excessively good, and is full of negative media coverage about the hapless on the job conditions in their fabrication workss. After that, Nike brought the American Consumerism selling attack to Asiatic states every bit good that subsequently led critical issues and concerns every bit good. But the most interesting fact is that, they managed to execute globally without having any fabrication workss in Asia.

Nike foremost starts their variegation plan by the thought of mass production system. This led them to travel into international market and they look towards the Asiatic states for inexpensive labour. But due to the built-in cost efficiency Nike was sing in the Asiatic workss, they so decided to set up fabrication workss in Europe and America. But this thought give them a immense los o $ 1million, which confirms it that overall it remained cheaper to bring forth in Asia and so administer it to Europe and America, without sing the foreign duties.

But as old ages passed the cost of places increased continuously and Nike were forced to look into different states for the production of places. Therefore Nike makes contracts with providers at East Asiatic states of Philippines, Thailand, Malaysia and Hong Kong. And once more they saw a large emerging chance in China and spread their web to it every bit good. The success of these workss build an image that Nike was culturally incorporating their company really good into the Asiatic market. Harmonizing to the studies in 1997, the most of the workers working in Asiatic workss are adult females. And they do non know apart the ages as good and give chance to immature people, as the information shows that a big populations working in those workss range from 19-20 old ages. But alternatively of assessment for Nike, they were severely criticized by US media for unethical patterns. Nike adopted the same patterns in the large athleticss market of Pakistan, Sialkot. This market was responsible for supplying best choice athleticss goods to the whole universe. 70 % of all quality association football balls are produced in Sialkot for good recognized athletics companies such as Nike, Reebok and Adidas ( Locke, 1999 ) . But due to the US media ‘s criticization of child labour, Nike has to shut its bungalow industries in Sialkot. The Vise president of Nike, Maria Eitel told that,

“ This represented a critical event for the company in footings of its apprehension of globalisation, international labour criterions and corporate duty. ”

After that Nike besides respect the Atlanta understanding and insists the contractors that if any of them caught using kid workers, there contract will be null. But still Nike continues to pay rewards of kids and their school fees until they reach legal on the job age.

But still there are many jobs in this mega variegation. As told by Goodworks International in their study,

“ One of the mills we visited in Vietnam is owned by a Chinese company, the works director is a Chinese and most of the line directors are Chinese. The deficiency of autochthonal direction is these mills tend to sabotage communicating between director and plant ” .

It ‘s uncommon to hear the negative narratives about Nike any longer. In recent old ages it looks like that they have succeeded what they planned or really as a wholly diversified work force under a individual platform. They have really succeeded efficaciously in accommodating themselves to the civilizations of foreign states. Nike has shown the universe that it is possible for the organisations to go globally diversified in all facets like age, gender, disability, races, faiths etc.

Nike Policies for Diversification and Inclusion

Nike has clearly mentioned their policies on variegation in their Human Resource Chapter.


NIKE, Inc. ‘s tradition is profoundly ingrained in invention and they believe diverseness and inclusion are cardinal characteristics in go oning to drive creativeness and invention. It takes every one of their more than 30,000 employees working at the top of their efficiency and presenting value for NIKE, Inc. to make its highest potency. And the employees know that outstanding squads are composed of people with diverse backgrounds, positions and skill sets.

In 2005, Nike shared thoughts about the development of their promotion to diverseness and inclusion. Since that clip, it ‘s become even clearer that their ability to take in invention is the centre point on their endowment to keep and magnify a civilization in which diverse point of positions are welcomed and leveraged.

To make a clearer understand what diverseness and inclusion agencies to Nike Company and to their employees, they ask them about their attacks towards diverseness. The responses of NIKE, Inc. employees around the universe centered on four subjects that build a strong concern instance for diverseness:

Diversity drives recruitment o the most dynamic people

Diverseness enriches the creativeness and invention that shapes the trade name

Diverseness grows our competitory advantage

Diverseness heightens the stature and belief in the trade name within our culturally diverse consumer base


Their focal point on diverseness becomes clearer with the assignment of their first VP of diverseness in 2006. And in 2008, they created a new construct of planetary diverseness and inclusion focused on three countries:

Prosecuting employees

Supplying concern audience

Developing advanced tools, theoretical accounts and designs

To give more importance to diverseness, they make a large measure in 2009. Now, the VP of diverseness and inclusion straight reports to the CEO of Nike Inc, who once studies to the Nike trade name president. External diverseness professionals have highlighted Nike ‘s attack o diverseness in assorted forums including Global invention conferences, the Medici Summit and Innotown.

The diverseness and inclusion squad at Nike develops their planetary scheme and policy, to be after, buttocks, step, communicate and integrate with other sections to increase diverseness and inclusion and follow it as a competitory advantage. In this facet, Nike supports six cardinal employee webs. Which include:

Asia Pacific Employee and Friends Network

Black Employee and Friends Network

Disabled Employee and Friends Network

Gay, Lesbian, Bisexual Transgender and Friends Network

Latino an Friends Network

Native American and Friends Network

Global Women ‘s Leadership Council

As Nike stated in their vision “ is to make a civilization of unfastened invention ” , their diverseness and inclusion scheme focal point on three major countries:

Focus on the cardinal: they aim to cultivate an inclusive civilization, animating persons and groups to happen surprising connexions and intersections that finally fuel concern solutions and drive new invention.

Embrace a Culture Remix: they consider diverseness and inclusion as the of import characteristic for creativeness and invention. One manner of making this is by making locales atmosphere for easy communicating and exchange of duologues and a battalion of positions.

External Changes: With the aid of variegation, they try to seek and unite unique and surprising mixture, intersections and combinations in the Nike Inc.

Diversity Profile ( 2009 )


Total- 20198

Women- 16337 ( 50 % )

Men- 16463 ( 50 % )

Top Management:

Total- 5059

Womans: 2043 ( 40 % )

Work force: 3016 ( 60 % )


The strategic planning for diverseness and inclusion at Nike make them concentrate in constructing a common platform, so that, employees, spouses and leaders will see the value created through the mixture and connexions to work out the regular concern challenges. From a quantitative position, Nike measures the displacements in relation to approaching cultural appraisal consequences.


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