Pak Sweets: Managing a Diverse Workforce

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.

This case study was written for undergraduate classes of business and public administration. It can be taught in courses on diversity management, conflict management, and human resource management. The purpose of the case is to familiarize students with real-life diversity issues that prevail in the workplace. The issues in this case are specific to a particular region; however, by analyzing this case, students will gain insight into ethnic issues that exist across different cultures. The case urges students to conduct in-depth research on cultural differences and ethnic clashes.

• Diversity , Pakistan , conflict management , ethnicity