Table of Contents
I. Executive Summary
III. Theoretical Background
IV. Deutsche Bank: Company Background
V. The Analysis of the Deutsche Bank on the basis of the Strategy Web Model
VI. Summary of Key Findings
I. Executive Summary:
The Purpose of this assignment is to describe the policy of managing diversity in the real business world. The German company “Deutsche Bank” will serve as this example from the practice. Connected to that, I further lay down the importance of the equal opportunities approaches and the EO policy of the Deutsche Bank.
For a better understanding of the theoretical background of MD and equal opportunity I explain occupational segregation, the reasons for its existence and the different approaches how to overcome this social phenomenon.
Hereby, I briefly give an overview of the development of these approaches with the main focus on the concept of managing diversity.
Having done so, I continue by describing the Strategy Web Model and illustrating each of its elements and their significance towards the overall success of MD policies at an enterprise.
Before coming to the practical example of the Deutsche Bank as a company that is intensively using diversity at its processes, I show some basic figures of the company to highlight its position and importance on the market.
Subsequently, I present the methods of the bank referred to diversity issues. I have structured this practical monograph in the form of a comparison to each mentioned array of the Strategy Web Model. At this stage, I point out the outstanding importance of the special diversity teams working for the bank.
Partly judging these single aspects already during the main analysis, I proceed with an enclosing evaluation of the methods used by the Deutsche Bank to advance the application of diversity.
The general situation turns out to be positive and partly even trend-setting. However, there are some aspects that need improvement. In order to bridge that gap between a “perfect” implemented MD strategy and the current situation at the Deutsche Bank, I illustrate some recommendations about how to achieve this task.
These recommendations are concentrating peculiarly on the evaluation process, the role of the diversity teams and the precision of the objectives.
Managing Diversity is a relatively new concept applied in the business world of today.
An increasing number of enterprises are using this concept with several different objectives like increasing their profits or creating a better working environment.
This assignment is meant to explain the MD approach and to test its success by comparing theory and practice.
During the following pages I will describe the theoretical background of the several Equal Opportunity and the Managing Diversity Approaches. Therefore I am going to use the Strategy Web Model and explain and judge each of its elements. The next step will be an analysis of the large German banking enterprise “Deutsche Bank” with regard to their EO and specially MD policies.
Comparing the theoretically described sections of the Strategy Web Model with their counterparts in the practice used by the Deutsche Bank will lead to an evaluation of these measures taken by the bank. This evaluation is going to be based upon the extend in how far the company has implemented MD into their business processes, what they expect from MD and what the Deutsche Bank gained by using MD. At this stage a short summary of my key findings will be given.
Finally, I will give some recommendations about possible improvements in order to let MD become even more successfully used and implemented into the bank’s businesses.
III. Theoretical Background
Occupational segregation has always been a problem due to its discriminatory character.
It generally means that there are coherences between the belonging to a certain social group and the personal income and status.
In the consequence some social groups suffer ever since from lower wages and status compared to the usual workforce. Several approaches try to explain why occupational segregation exists and how to overcome it. (Miller, 2004)
The neoclassical approach supposes the market to function rationally and that inequalities of income are only based on differences in the worker’s human capital (experience, skills, etc.)
Institutional and Labour Market Segmentation Theories ascribe these varieties to the market power of employers and trade union, which eventually is leading to the existence of segregation.
The identity approaches are pointing out the social identities of persons, which are influencing our forming of an opinion with regard to other people. Thus creating stereo-types and clouding our candour with the result of occupational segregation.
In order to fight segregation some approaches have been developed, which differ in their harshness and goals.
The historically seen first approach is the so called liberal approach. It assumes that equal opportunities can be achieved just by leveling the field for all participants.
However, there are two other approaches belonging to the liberal approach.
The principle of positive action wants to give assistance to disadvantaged groups (e.g. special training only for woman at some companies), while the strong positive action approach even gives positive preferences to certain minor groups.
In opposition to the liberal approach the radical one does not believe in sober and realistic acting market participants, but recognizes socially constructed differences between the varying social groups. Discrimination must be repelled by taking positive action measures in order to support disadvantaged groups (e.g. affirmative action in the USA, in Europe mostly illegal). Diverging from the liberal approaches the eventual objective for the radical one is shifted from the focus on equal opportunities towards and equality of outcome.
All these measures have not shown all the desired results, though much progress could be achieved. A new approach was developed during the late 1980s, which tries to look at the matter from a completely different perspective, simply from the view of business needs: “Managing Diversity”.
Managing Diversity is focusing on the individual value of each person. Like antecedent approaches it refers to the problematic of discrimination, but it assumes that general equality already exists. The final goal of MD is to maximize the individual’s potential and eventually increase the profit of the company. The workforce’s differences concerning age, sex or ethnical background should be capitalized by creating an effective working environment in which everyone feels valued. (See Engelbrecht, 1999 & Loden/Rosener, 1991 p.198ff)
As we have seen the MD approach is business-driven and it assumes that equal opportunities already exist. Thus the accuracy and prospects of using the MD approach can be evaluated in connection with a business company at the best possible rate. Therefore it is now time to explain a model consisting of several critical success factors: The Strategy Web Model.
Its elements represent crucial points that are vitally important to the prosperity of a company applying MD. (See Kandola/Fullerton, 1998 p.68ff)
In the first place there has to be an organizational vision clearly pointing out the willingness of the company to follow the guidelines of MD as an important goal of the company. Setting corresponding mission statements and incorporating all stakeholders into MD processes plus communicating that statement steadily to the public are additional elements to this.
Secondly, the top management ought to be trained to deeply believe on MD as a part of the organizational culture, while showing their honest commitment to it by acting as positive role models and reinforcing MD processes actively (e.g. setting the style and pace). (Roberson 2003, p.242ff)
Before any improvements can be achieved there has to be an auditing and assessment of needs. Accurate data collection about actual and future positioning, trends and needs forms the fundamental basis of any further development. (Cox 2001, p.61)
Having collected that data the precise objects have to be laid down in a clearly and straight way. These SMART orientated objectives must be linked to the general goals of the company (stated in the organizational vision), whereas the particular bond between the success of diversity and the company’s success must be specially emphasized.
The next prerequisite for an effective application of diversity is a clear accountability at all levels to avoid gaps at the implementation of MD processes. Thus diversity issues shall be part of performance appraisals and every relevant employee must be certain about his role and responsibility towards diversity.
Effective communication is the sixth array of the Strategy Web Model. Lines of communication aiming to keep everyone in the circle should be installed and feedback has to be gathered at all stages including all stakeholders.
The numerous activities need functioning co-ordination. Hence all planning and execution must be well coordinated on the basis of the predefined objectives.
Eights and likewise last field of our model is the evaluation. Progresses and setbacks must be constantly monitored in order to attain further progress and to avoid earlier made failures in the future. The required feedback has to be collected from all participants therewith optimizing the benefits gained by the ongoing evaluation process. (See Kandola/Fullerton, 1998 p.68ff)