Managing Diversity in Organization - Literature review Example

? Critical Literature Review for Managing Diversity in Organization Introduction The term diversity is much broader than race, gender and ethnicity as many people perceive it Wood, 2012). Many people think of diversity as the difference in race, culture and gender. In broad term, diversity is defined as the various experiences and perspectives which arise from differences in culture, religion, race, physical or mental abilities, heritage, age, gender identity, sexual orientation, among other characteristics (Biloslavo et al, 2013). Diversity therefore means any significant difference that distinguishes an individual from another (Yang & Konrad, 2011). This diversity affects motivation, success, performance and interactions with others within the organizations. In order for an organization to manage diversity to enable its success, the managers and other leaders must have a broader perspective on diversity which will enable them to include a variety of other dimensions (Choi & Rainey, 2010). Diversity in the workplace has been managed by many organizations enabling them to succeed (Cook & Glass, 2009). Workplace diversity management is the process of managerial for developing an environment that is suitable for all the employees. This will enable all staff to feel that they are included and not excluded in the management process (Herring, 2009). The staff will have a good relationship that enables employees to deal with the important issues that may arise later as explained by Yang and Konrad (2011). Implementation of diversity in the workplace involves creation of an inclusive environment that values and welcomes the contributions and talents of other people with different experiences, backgrounds and perspectives (Wood, 2012). Therefore, the paper reviews various literature works on the management diversity in organizations focusing on the following research questions: 1. How has diversity management enabled business organizations to prosper? 2. How managers and human resource directors ensures diversity implementation. The objectives of the study include the following; 1. To enable an individual to understand himself or herself in relationship to the people around them. This involves one’s own place within cultures, demographic subgroups and cultures and how these characteristics affect how they think and act (Hughes, 2012). 2. To understand the people around us including the peers, subordinates, our bosses, customers and other competitors. 3. To understand the process leading to usual reactions to anger, difference, hatred and fear and learn the positive way of responding to them. 4. To understand how management of diversity is related to strategic changes in organizations. 5. To equip one with management skills that improves outcome due to the fact that business environment, organizations and workforce are becoming more diverse. Organizational Frames Hughes (2012) explains that inclusiveness is useful in diversity management. In order to realize its usefulness, managers and human resource directors must identify the motives they have behind their interest in diversity (Visagie et al, 2011). The managers and directors should also identify the specific ways the organizations will benefit from diversity (Choi & Rainey, 2010). The success of diversity will depend whether the organization wants to tolerate, manage, harness, leverage, value or celebrate diversity (Wood, 2012). The outcomes organizations achieve are affected by the initiatives of framing workplace diversity (Visagie et al, 2011). Depending on how an organization defines diversity, the outcomes will be affected greatly (Hughes, 2012). An organization may define diversity as responsibility of only part of the organization, as a focused activity of a community, as a strategic planning outcome, or as a social justice (Hughes, 2012). Klarsfeld (2010) asserts that business organizations are different in both the degree to which they define diversity as useful and they engage in the support of diversity. For an organization to be successful, they need to set parameters for implementation by asking three questions. The questions include the reasons for implementing the diversity, the kind of diversity they want to implement and how much they need to implement (Visagie et al, 2011). The Role of Human Resource in Diversity Management The development of organizational diversity sometimes becomes difficult and Human Resource directors face serious challenges (Klarsfeld, 2010). The changes required are particularly difficult. In order to meet the challenge it requires the commitment of the top management and skilled training (Visagie et al, 2011). The managers should have an understanding that diversity management is not a problem to be solved but is a process that keeps on going and is lengthy. Implementation of diversity in the workplace has become difficult due to the following reasons (Klarsfeld, 2010). Human beings do prefer working in groups which are homogenous. Wood (2012) adds that the organization in which human beings are part of and the human beings themselves in most cases avoid and resist change. In order for the Human Resource managers to successfully implement diversity management, they need to possess skills in leadership, communication, psychology. Visagie et al (2011) add that Human Resource managers should also possess skills in organizational development and change management (Choi & Rainey, 2010). The daily actions taken by stakeholders at all levels of an organization will build up successful diversity (Klarsfeld, 2010). Changing how people act is concerned with the changes made in the organizational policies and processes which will define the way people operates (Watson et al, 2009). Therefore, it is necessary for every firm to develop a broad range of policies and practices that will ensure the workplace favors everyone (Visagie et al, 2011). The Human Resource manager is qualified and can partner with management within the organization at all levels thus enabling them to meet the challenges. Measures taken by Organizations in Managing Diversity Klarsfeld (2010) explains that a range of flexible work options should be developed and introduced by an organization. Visagie et al (2011) confirms that this will take account of the needs of employees to balance work and caring responsibilities for both men and women. The employees may have responsibilities which are different at different stages of their career (Watson et al, 2009). As a result, the number of women returning after maternity leave will increase. The labor turnover cost will also reduce (Wood, 2012). An organization should establish a network of partnership between local stress and disability groups (Klarsfeld, 2010). This will raise awareness of the staff and improve services to the needs of customers who are disabled (Riach, 2009). The sales to people with disability will increase and shopping environment for all customers will improve. Watson et al (2009) explains that an organization should develop different methods of recruitment, programs and induction, and a range of arrangements of working. This will lead to employment of staff members of fifty years of age which help better its customer base as explained by Riach (2009). Employee loyalty and reliability will improve leading top reduction in cost of recruitment and increased sales to older people. An organization should establish network groups for ethnic minorities, women, among others (Riach, 2009). The type of services offered to different sections of the community should be reviewed. Through the use of knowledge and skills, the organization will be able to improve its service delivery, effectively communicate with the largest range of client groups (Visagie et al, 2011). The organization will also be able to reduce waste resulting due to lack of understanding. The following key areas need to be considered in managing diversity; Identify and acknowledge the important types of diversity (Wood, 2012). Work with different stakeholders to understand your own business case. A manager should ensure that employees know what diversity means to them and their work (Wood, 2012). An organization should review the impact their diversity strategy management. Develop policies and practices that reflect and implement your commitment to managing diversity (Riach, 2009). Build the trust and support from people inside and outside the organization. Communicate what is being done to customers, employees, clients, funders, investors among others. Benefits of Managing Diversity Houkamau and Boxall (2011) assert that the creation and management of a diverse organization provides benefits. The strategies of diversity management help in creating a link between the external and internal aspects of the work of an organization (Houkamau & Boxall, 2011). The benefits of diversity management include the following: Reduction of the cost of labor turnover and absenteeism (Wood, 2012). It contributes to flexibility and responsiveness of an employee. Diversity management builds the commitment of employees and discretionary efforts (Visagie et al, 2011). Enhances mutual partnership with other business partners in creating markets for the goods and services (Riach, 2009). The knowledge of how to operate in different cultures is improved. Assists in developing new services, products and marketing strategies (Visagie et al, 2011). Diversity management creates opportunities for the disadvantaged groups and builds social cohesion (Wood, 2012). If an organization has diverse workforce, it means that the institution can provide services that are appropriate to all sections of the community (Riach, 2009). The institution is also able to provide more representative and inclusive advice to government. The initiatives of managing diversity relate to a range of federal and state equal Opportunity Acts with which an institution must comply (Visagie et al, 2011). The acts are formulated to promote equity and fairness in order to eliminate discrimination (Riach, 2009). The acts include. Equal Opportunity Act Watson et al (2009) assert that the equal opportunity Act considers discrimination in employment unlawful. Discrimination of either directly or indirectly on the grounds of sex, age, marital status, sexuality, physical or intellectual impairment, pregnancy and race are considered unlawful (Wood, 2012). The Federal Disability Discrimination Act The Federal Disability Discrimination act broadly defines disability. The act makes it unlawful to discriminate on the basis of disability and requires employers to make adjustments which are reasonable for employees with disabilities (Yang & Konrad, 2011). Public Sector Management Act The act requires agencies to add advantage in their workforces by use of diversity (Riach, 2009). All employees should have equal opportunities in securing promotion. Yang and Konrad (2011) confirms that all employees should be treated fairly to prevent unlawful indirect or direct discrimination against employees who seek employment. The decision of selection must be based on merit (Watson et al, 2009). In conclusion, diversity will lead to positive outcomes for organizations. The difference among employees will not only lead to a large number of qualified workers but also to more productive use of human resources and also to more problems solving skills. Diversity also leads to understanding of markets and competitors in a better way. However, the outcomes of diversity depend on the extent to which people welcome, value and manage diversity effectively. List of References Biloslavo, R., Bagnoli, C., & Figelj, R. R. (2013). Managing dualities for efficiency and effectiveness of organizations. Industrial Management & Data Systems, 113 (3), 423-442. Choi, S., & Rainey, H. G. (2010). Managing diversity in US federal agencies: Effects of diversity and diversity management on employee perceptions of organizational performance. Public Administration Review, 70 (1), 109-121. Cook, A., & Glass, C. (2009). Between a rock and a hard place: managing diversity in a shareholder society. Human Resource Management Journal, 19 (4), 393-412. Herring, C. (2009). Does diversity pay?. Race, gender, and the business case for diversity. American Sociological Review, 74 (2), 208-224. Houkamau, C., & Boxall, P. (2011). The incidence and impacts of diversity management: A survey of New Zealand employees. Asia Pacific Journal of Human Resources, 49 (4), 440-460. Hughes, L. W. (2012). Diversity in the Workplace: Multi-Disciplinary and International Perspectives. Leadership & Organization Development Journal, 33 (6), 609-611. Klarsfeld, A. (2010). International Handbook on Diversity Management at Work: country perspectives on diversity and equal treatment. Camberley, UK: Edward Elgar Publishing. Riach, K. (2009). Managing ‘difference’: Understanding age diversity in practice. Human Resource Management Journal, 19 (3), 319-335. Visagie, J., Linde, H., & Havenga, W. (2011). Leadership Competencies for Managing Diversity. Managing Global Transitions, 9 (3), 225-247. Watson, B., Spoonley, P., & Fitzgerald, E. (2009). Managing diversity: A twenty-first century agenda. New Zealand Journal of Employment Relations, 34 (2), 61-76. Wood, R. C. (2012). Diversity management. International Hospitality Industry, 93. Yang, Y., & Konrad, A. M. (2011). Understanding diversity management practices: Implications of institutional theory and resource-based theory. Group & Organization Management, 36 (1), 6-38. Read More