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Harvard Case - Pak Sweets: Managing a Diverse Workforce

"Pak Sweets: Managing a Diverse Workforce" Harvard business case study is written by Maria Khan, Zunaira Saqib, Nataliya Farrukh, Fatima Tanvir, Kahaf Pasha. It deals with the challenges in the field of Organizational Behavior. The case study is 3 page(s) long and it was first published on : May 30, 2016

At Fern Fort University, we recommend Pak Sweets implement a comprehensive strategy to foster a more inclusive and high-performing workplace. This strategy will address the current challenges of cultural differences, communication barriers, and employee dissatisfaction, while leveraging the unique strengths of its diverse workforce.

2. Background

Pak Sweets is a family-owned business that has experienced significant growth in recent years, leading to a diverse workforce with employees from various cultural backgrounds. This diversity brings valuable perspectives and skills, but it also presents challenges in communication, collaboration, and cultural understanding. The case highlights issues such as:

  • Communication Barriers: Language differences and cultural nuances hinder effective communication and collaboration.
  • Cultural Differences: Different cultural values and expectations create misunderstandings and potential conflicts.
  • Employee Dissatisfaction: Some employees feel marginalized, leading to decreased morale and job satisfaction.
  • Lack of Formal Training: The lack of formal training programs for managing diversity and inclusion exacerbates these challenges.

Main Protagonists:

  • Mr. Khan: The owner and founder of Pak Sweets, deeply committed to the business but struggling to adapt to the changing workforce dynamics.
  • Employees: A diverse group of individuals with varying cultural backgrounds, skills, and experiences.

3. Analysis of the Case Study

This case study can be analyzed through the lens of Organizational Behavior and Human Resource Management, focusing on:

1. Organizational Culture: Pak Sweets' current organizational culture is heavily influenced by the founder's values and experiences. This culture, while strong, needs to evolve to embrace diversity and foster inclusivity.

2. Team Dynamics: The lack of effective communication and cultural understanding creates friction within teams, hindering collaboration and innovation.

3. Leadership Styles: Mr. Khan's leadership style, while effective in the past, needs to adapt to the diverse workforce. He needs to develop a more inclusive and collaborative approach.

4. Motivation Theories: The case highlights the need for a more comprehensive approach to employee motivation that considers the diverse needs and expectations of the workforce.

5. Change Management: Pak Sweets needs a structured approach to managing the change towards a more inclusive and diverse workplace. This requires open communication, employee involvement, and effective leadership.

6. Conflict Resolution: The case highlights the need for effective conflict resolution mechanisms to address cultural misunderstandings and potential conflicts.

7. Diversity and Inclusion: Pak Sweets needs to implement a comprehensive diversity and inclusion strategy that addresses the unique needs and challenges of its diverse workforce.

4. Recommendations

1. Implement a Comprehensive Diversity and Inclusion Strategy:

  • Develop a Diversity & Inclusion Policy: This policy should clearly define Pak Sweets' commitment to diversity and inclusion, outlining the company's goals, values, and expectations.
  • Conduct Cultural Sensitivity Training: Provide training programs for all employees, including management, on cultural awareness, communication skills, and conflict resolution strategies.
  • Create Employee Resource Groups (ERGs): Establish ERGs for different cultural groups to provide a platform for employees to connect, share experiences, and offer support.
  • Develop Inclusive Hiring Practices: Implement a structured hiring process that prioritizes diversity, including blind resume reviews and unconscious bias training for hiring managers.

2. Foster an Inclusive Organizational Culture:

  • Promote Open Communication: Encourage open and respectful communication across all levels of the organization. Implement communication channels that cater to different cultural preferences.
  • Celebrate Diversity: Recognize and celebrate the unique contributions of employees from diverse backgrounds. This could include cultural events, employee recognition programs, and showcasing diverse perspectives in company communications.
  • Promote Leadership Development: Provide leadership training programs that emphasize inclusive leadership styles, cultural sensitivity, and effective communication.

3. Address Employee Concerns and Improve Job Satisfaction:

  • Conduct Employee Surveys: Regularly conduct anonymous employee surveys to gather feedback on workplace culture, diversity, and inclusion.
  • Establish Open Dialogue: Create channels for employees to voice concerns and suggestions. This could include suggestion boxes, open forums, or regular meetings with management.
  • Offer Employee Support: Provide resources and support to employees facing challenges related to cultural differences or workplace discrimination.

4. Leverage Technology and Analytics:

  • Implement Translation Tools: Provide access to translation tools to facilitate communication between employees with different language backgrounds.
  • Utilize Data Analytics: Track diversity metrics and employee engagement data to identify areas for improvement and measure the effectiveness of diversity initiatives.

5. Basis of Recommendations

These recommendations are based on the following considerations:

  • Core Competencies and Consistency with Mission: Promoting diversity and inclusion aligns with Pak Sweets' core values of respect, collaboration, and growth.
  • External Customers and Internal Clients: A more inclusive workplace will attract and retain top talent, improve customer service, and enhance the company's reputation.
  • Competitors: Pak Sweets can gain a competitive advantage by creating a more inclusive and diverse workplace, attracting and retaining top talent.
  • Attractiveness: The proposed initiatives are likely to increase employee engagement, reduce turnover, and improve overall performance, leading to positive financial outcomes.

6. Conclusion

Pak Sweets has a unique opportunity to leverage its diverse workforce to achieve greater success. By implementing a comprehensive diversity and inclusion strategy, fostering an inclusive organizational culture, and addressing employee concerns, Pak Sweets can create a more engaged, productive, and innovative workplace.

7. Discussion

Other Alternatives:

  • Ignoring the Issue: This would likely lead to continued employee dissatisfaction, increased conflict, and potential legal issues.
  • Implementing a 'One-Size-Fits-All' Approach: This would fail to address the unique needs and challenges of different cultural groups.

Risks and Key Assumptions:

  • Resistance to Change: Some employees might resist change, particularly those accustomed to the existing culture.
  • Implementation Challenges: Implementing a comprehensive diversity and inclusion strategy requires commitment from all levels of the organization and may require significant resources.
  • Cultural Differences: Understanding and navigating cultural differences can be complex and require ongoing effort.

8. Next Steps

Timeline:

  • Month 1: Develop a Diversity & Inclusion Policy and conduct initial cultural sensitivity training for management.
  • Month 2: Establish Employee Resource Groups and begin implementing inclusive hiring practices.
  • Month 3: Conduct employee surveys and establish open dialogue channels.
  • Month 4: Implement translation tools and begin tracking diversity metrics.
  • Month 6: Provide leadership development training on inclusive leadership.
  • Ongoing: Continuously monitor the effectiveness of the diversity and inclusion strategy, adapt and improve initiatives based on feedback and data.

Key Milestones:

  • Increased employee engagement and satisfaction scores.
  • Reduced turnover rates.
  • Increased diversity representation at all levels of the organization.
  • Improved communication and collaboration across teams.
  • Enhanced company reputation for diversity and inclusion.

By taking these steps, Pak Sweets can transform its workplace into a truly inclusive and high-performing environment, unlocking the full potential of its diverse workforce.

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Case Description

In 2014, the chief executive officer (CEO) and owner of Pak Sweets was worried about diversity issues in his organization. The sweets-making factory, once a one-room business and now a full-fledged factory in Rawalpindi, Pakistan, was highly dependent on blue-collar workers. Each production process required workers with diverse skills, so the company hired employees from different provinces of Pakistan, representing multiple ethnicities. The ethnicities were fundamentally diverse with different languages, cultures, and codes of conduct. As the company grew, conflicts increased between employees of different ethnicities. This everyday minor problem turned into a major challenge when it caused property damage, financial losses, and a decline in productivity. Pak Sweets was unable to meet demand, and the company's reputation was at stake. The CEO believed that firing the troublemakers was not an option; it would only address the problem temporarily and might result in union strikes and lockouts. The CEO needed a plan to resolve the ethnic-based conflicts in the factory and their negative impact on the company.

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