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ACCA Strategic Professional · Strategic Business Leader · Enabling success: talent management

Zentra Retail, a multinational chain, notices that its senior management team is drawn almost entirely from one national and educational background. The board is concerned that strategic decisions are suffering from similar assumptions and a lack of challenge. Which benefit of workforce diversity is most directly relevant to the board's concern?

The relevant benefit is better decision-making. A management team with varied backgrounds brings different perspectives, challenges shared assumptions and reduces groupthink. That addresses the board's worry about uniform thinking, whereas diversity does not guarantee profit, cut recruitment costs or replace appraisal.

  1. AReduced recruitment costs through a smaller applicant pool
  2. BBetter quality decision-making through a wider range of perspectives and reduced groupthinkCorrect
  3. CGuaranteed higher short-term profit in every market
  4. DRemoval of the need for formal performance appraisal

Explanation

The concern is about uniform assumptions and lack of challenge, which is groupthink. A varied management team brings different viewpoints and improves the quality of decisions. Diversity does not guarantee profit or reduce the need for appraisal, and a narrower applicant pool would not be a benefit.

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