The Drivers to Diversity and Management in the Workplace - Essay Example

MANAGING DIVERSITY IN THE WORKPLACE ABSTRACT Managing diversity in the workplace has become a major concern for many businesses in the contemporary business world. Due to the current landscape of diverse workforce, organizations see the need to manage workforce in an effective manner that upholds and maintains a positive work environment. Managing diversity puts emphasis on recognizing, valuing the similarities and differences that are inherent in the workforce. A lot of literature on diversity management has put emphasis on the organisational culture and dimensions that pertain to organisational culture. This paper focuses on the potential of workforce diversity, the drivers to diversity and management and measures that can be taken to overcome barriers to workforce diversity. INTRODUCTION The history of diversity management can be traced back in North America (Rosado, 2006). Over the years, diversity management has spread in many countries across the globe. According to Rosado (2006), diverse populations’ pool that is being experienced in the contemporary organisations is not likely to go away, but is expected to increase. In response to globalisation Armstrong, Flood, Guthrie, Liu, MacCurtain, & Mkamwa (2010), the interest in diversity management has increased with companies and organisations responding by instituting programs that are aimed at creating value in the diverse workforce. Managing diversity is a concept that is based on understanding and respect that each individual in an organisation possesses unique characteristics. Bell, Ozbilgin, Beauregard, & Surgevill, (2011) noted that, the individual differences can based on the dimensions of ethnicity, sexual orientation, religious convictions, age or socio-economic status. Ben and Lenier (2010), defined managing diversity as going beyond the individual differences to embrace the rich dimensions that diversity provides. Olsen & Martins (2012), defined diversity management as a planned commitment by an organization to recruit and put in place measures to reward and maintain heterogeneous employees. Strategy Human Resource Management, (SHRM) (2010), in the contemporary business world, there has been an increasing recognition of diversity. Even though SHRM (2010), companies disagree on the ways to achieve diversity, a quantitative survey carried out in North America, Western Europe and Asia Pacific with different organisations found that 55% had policies that strongly promoted diversity while 31% attested to having policies that moderately supported diversity. Only 3% of the organisations surveyed did not support diversity. In the survey, organisations from North America supported diversity management by 59%, while those form Western Europe and Asia pacific recorded 55% strong promotion ondiversity. Organisations from North America and Asia Pacific that moderately promoted diversity were 31%, while in Western Europe were 28% (SHRM, 2010). Gonzales & Densi, (2009), workplace diversity entails differences that exist between people in a given organization, how they perceive themselves based on cultural background, gender, age, cognitive and educational orientation and how these factors influence the perception of the people towards other people in an organization. Management of workplace diversity affects the interaction of the employees. According to Syed & Kramar (2009) managing diversity in organizations is instrumental in the creation of competitive advantage. Afzal, Mahmood, Samreen, Asim, & Sajid, (2013), defined management of diversity in a workplace as a process that is geared at fostering and maintenance of a work environment that is conducive for all employees, diversity management inherent differences and similarities that exist in a workforce. These similarities are aimed at ensuring that, an organization can leverage on the differences and similarities to create a team that can drive strategic goals and objectives of an organization (Joshi & Roh, 2009). LITERATURE REVIEW 1. Diversity Management (DM) According to Chen (2011), diversity refers to organisational actions that are taken voluntarily to ensure that there is inclusiveness of employees from different backgrounds into the organisational structures through programs and policies that have been put in place by the organisation. The current business world has been globalised and there have been many multinational corporations that have come up (Sammartino, O’Flynn & Nicholes, 2002). This implies that, people from diverse background have to work together; therefore, diversity management is not limited to heterogeneity factors in the workplace only, but encompasses the composition of the workforce that comes from different nations. Davidson (2011), diversity management entails dealing with mixture of all workers with mixture of differences, tensions and similarities that are inherent in an ideal pluralistic mixture. Anand & Winters (2008) argues that, true meaning of diversity is based on inclusiveness in which, if the management of an organisation is concerned about gender, it includes both male and female, if the concern is about racism, ensuring that different races are represented in an organisation and if concerned about age, all working age groups are included in the organisation. Diversity management is key in the creation of competitive advantage for organisations in resource acquisition (Mckay, Avery & Morris, 2008). This makes diversity management transcend the domain of affirmative action initiatives that are carried out in human resource as a measure for compliance. Cox (2003) noted that diversion management is based on an the organisations effort to offer service and thrive by leveraging on the inherent values provided by diversity. However, this perspective is not absolute that diversity management will lead to competitive advantage, Mor Borak (2011), in a global research found that diversity management can have negative and positive impacts and or no change on organisational change. 2. Diversity, Inclusiveness and Equal Opportunity An inclusive workplace entails the process of upholding the principle of fairness, equality, dignity and equality to form part of the everyday goal of an organization (Elsaid, 2012). Inclusiveness entails putting in place policies that concern equality and human rights that enhance the working environment, work dignity, fair recruitment practices and welfare of the employees. On the other hand, Buckingham (2011) noted that, equal opportunity entails treating all employees similarly in a manner that all employees are given the chance to develop and progress without bias. Barriers faced by employees from specific groups are identified and action taken to address them in order to create an equal platform for all employees (Kearney & Gebert, 2009). Workplace diversity entails learning from each other in which differences in the work place are brought together to broaden experiences and knowledge. It is through leveraging on diversity that individual potentials are realized and enhanced for the betterment of an organization (Herring, 2009). Diversity is all about learning from each other regardless of the cultural background and bringing those differences into the workplace to broaden experiences and knowledge (Greene & Kirton, 2010). Diversity includes not only race but gender, ethnicity, personality, age, education and background (Holtzman, Kruger & Srock, 2009). Equal opportunity and inclusiveness programs in many organisations are based on equal rights actions. Diversity programs focus on the management at the organisation level to give the company a competitive advantage (Krouse, 2008). Diversity, equal opportunity and inclusiveness can be viewed on a continuum that enhances equal employment opportunity through legislations to discourage discrimination. Inclusiveness can be enhanced through affirmative action that enhance equal opportunities (Mor Borak, 2010). Diversity management is based on proactive strategies that promote co-existence of employees who come from heterogeneous and diverse workforce (Kulik & Roberson, 2008). According to Morgan (2009), many organisations have recognised that programs which enhance diversity can benefit the business. Diversity management is a process that is on-going and it is aimed at unleashing capabilities that employees from different backgrounds bring to an organisation in order to create a wholesome and inclusive working environment that can enhance potential of all workers (Moses & Bahn, 2010). 3. Different Drivers for Diversity Workforce diversity is a concept that has been embraced worldwide. According to SHRM (2010) survey, it was found that 55% of businesses promote diversity. There has been consensus that diversity is beneficial in aiding organisations to achieve their goals. In the quantitative survey that was conducted by SHRM (2010), 55% of organisations had a common consensus that one driver to diversity management is having policies that aim at promoting diversity. Another driver for diversity, according to Groeneveld & van de Walle (2010), are the initiatives the top management puts in place. Elsaid (2012) noted that, diversity originates from top CEO and board of directors in a company. According to Lahiri (2008), HRM plays a key role in driving diversity in an organisation and supporting the diversity programs that the top management initiates and through the various policies that relate to the workforce. Corporate social responsibility (CSR) plays a crucial role in diversity, in relation to diversity; it has been found that CSR considerations are key drivers of diversity in organisations. Despite of the many drivers to diversity, Avery, McKay, Wilson, & Volpone, (2008) pointed that, the head of the human resource management is the crucial person who ensures that diversity programs are implemented in an organisation. All the same, Bezrukova, Jehn, & Spell (2012) says that the reasons behind embracing diversity in different companies differ. Nishii & Meyer (2009) noted that, embracing diversity is important for businesses as it touches on different dimensions of a business. For some organisations, diversity is regarded as a means to ensure that justice and fairness is achieved in organisations. Other reasons for upholding diversity are to comply with legal provisions that relate to inclusion in the workplace (Buckingham, 2011). 4. Strategies for Diversity Management Diverse workforce is key to improvement of productivity and promotion of good work environment. According to Lahiri (2008,) handling workplace diversity can be enhanced by incorporating following strategies. i. Hiring process: the head of the human resource management plays a crucial role in ensuring that diversity programs are implemented in an organisation. Therefore, recruitment selection and hiring should be based on policy of equal representation and inclusion. ii. Education and training: Creation of synergy in workplace environment can be enhanced by training employees; the training should be aimed at leveraging on the diverse experiences of the employees. iii. Policy Review: Long term success of diversity should be hinged on organisational polices. Communication plays a crucial role in ensuring that workforce understand their mandate. Organisations with diverse workforce should thus put in place policies that ensure that more than one language are adopted as means of conveying message. This is an implication to employees that a company values diverse cultures. 5. Indicators for Diversity Management Organizations that the management focus on leveraging diversity to achieve business related outcomes hold diversity as an instrumental value, since diversity is viewed as instrumental in achieving business success Ozbilgin, &Tatli, (2008). In contrast, organisations that consider diverse workforce as an objective without explicitly considering it as a means for achieving business outcomes makes diversity a terminal value (Ozbilgin &Tatli, (2008). This implies that organisations whose diversity management programs are aligned to leveraging abilities of the employees have realised that diversity is an instrument of business success while organisation that do not consider diversity in the workforce as a means that can help to achieve business outcomes it becomes a terminal value (Moses & Bahn, 2010). Therefore, diversity in the organisations is marked by workplace synergy where employees make use of diverse experiences to increase productivity. In developing diversity strategies, there are issues that may act as obstacles in many organisations (EU, 2009). The common issues include differences in natural cultural responses in social groupings. There are also issues that relate to legal restrictions in holding and processing of data that may be termed as sensitive while dealing with diverse cultures. Legal restriction act as external issues that make it difficult to measure demographics in a workplace. Demographics are primary measures of outcome and progress in relation to achieving diverse workforce (EU, 2009). For instance in some countries, legal restrictions can apply in diversity programs that involve gays, lesbians, religious beliefs and people of different ethnic backgrounds. This makes it difficult for a company to change its culture. Some organisation do lack awareness in relation to contents, mechanism, benefits and rationale for diversity management and policies that relate to diversity. These issues are compounded by inherent social attitudes that may limit implementation of workforce diversity policies (EU, 2009) Companies measure the impacts of DM strategies in order to gauge the level of achieving objectives and policy compliance. Measurement of diversity has been found to drive action, it is through measurement that managers learn lessons on what to correct and means for future action. The measurement of impact of diversity focuses on diversity in relation to diversity outcome, benefits to business and program implementation. The measurements of the impact are based on various indicators that include workforce demographics and diverse representation, working environment, cost reductions, policies in the organisation, labour shortages, and access to new markets and accrued employment benefits (EU, 2009). 6. Barriers and overcoming resistance to DM among managers and employees The process of managing diversity is continuous as Ferdman & Sagir (2012) stated that, managers need to analyse their workplace and continually keep on investing in strategies that enhance co-existence in the workplace. According to Ben & Lenier (2010); Dreifus (2008), cultural intolerance and discrimination are the core impediments to diversity management. In support of this perspective, King, Dawson, Kravitz, & Gulick, (2010) noted that, ethnocentrism and prejudice among employees weaken the ties within employees and result to a hostile environment that is not conducive for employees. On the part of the managers, Moss (2010), found that failure by managers to ensure that the various departments within an organisation give priority to diversity and their failure to revamp the organisational performance appraisal in a manner that enhances diversity hinders performance. Overcoming resistance to diversity depends on concept employed by management to affect the drivers of diversity in an organisation (European Commision Directorate-general for Employment- ECDE, 2009). In some organisations, management of diversity is aligned to upholding the principles of equality. For instance, in the European countries’ diversity is driven by policies that stem from state laws that prohibit discrimination (ECDE, 2009). Even though the legal frameworks of the countries differ, in the majority of states in Europe, there exists a gap between prohibition of discrimination and the actual outcomes of traditional disadvantaged groups. Therefore, to overcome resistance to managing diversity, there should be a concerted effort to uphold social rights of all individuals in a workforce based on fairness and morality. 7. Costs and Benefits of DM Programmes According to Niedere, Segal & Vesterlund (2008), one great benefit that arises from diversity programs is the fact that effective management of diversity strengthens the human capital. Nierdere, Segal & Vesterlund (2008) noted that, knowledge capital is an intangible asset that is used by companies to achieve competitive advantage. Nierdere, Segal & Vesterlund (2008), promotion of co-existence among the workforce creates value that is beneficial for companies that need to increase productivity. It is through diversity programs in an organisation that conducive work environment is achieved. Costs relating to establishment of diversity programs include the money incurred by organisations to change internal structures in order to ensure compliance with the laws that pertain to discrimination (ECDE, 2009). For instance, there is a lot of money spend in recruiting diverse workforce, retention, developing of the work force and in the training of the employees to enhance teamwork in a diverse workforce (ECDE, 2009). Noon, (2007), the measurement of the costs and benefits in workforce diversity are carried out by checking at the indicators of cost and benefit in both qualitative and quantitative assessments. The qualitative assessment focuses on outcomes such as changes in attitudes or change in the demographics of the employees. For the quantitative assessment Noon (2007), there is little evidence that points to an outcome that can directly be correlated with cost and benefits. The measurement Noon, (2007) can be achieved by construction of performance framework that has systematic methods of identifying costs, key processes and intermediate outcomes. The following is an example of performance framework that identifies outcomes for diversity management. sources:CSES http://www.cses.co.uk/publications/CostsBenefExSumEN.pdf 8. Theories and Models linking DM Programmes and organisational outcomes Dual assimilation approach Janssens & Zanoni, (2005), researches have established that diversity can result to a positive outcome at workplace. For instance, dual-value assimilation approach views diversity as an instrument that can be used by a business to achieve its objectives. However, this approach is based on organisations integrating diversity in the organisational culture (Janssens & Zanoni, 2005). Businesses that value dual assimilation approach uphold legal responsibility, fair treatment of the workforce that lead to motivated employees. Dual value approach In addition to dual assimilation, another approach to diversity is dual value integration. Organisations that have adopted this approach uphold diversity both for the achievement of organisational goals and the inherent value. Through this model, diversity is encouraged by allowing members the autonomy to express cultural identities (Janssens & Zanoni, 2005). Relational theory According to Janssens & Zanoni, (2005), the guiding assumption of this theory is that relationships and connections with others, in understanding the individual traits of workforce the connections play tremendous role in fostering performance. The theory stipulates that the relational nature between individuals drive individuals to grow in the line of connection. This implies that positive intercultural relationships lead to active participation that translates to mutual development in an organisation. Institutional theory In relations to diversity, this theory relates to processes that organisations implement to guide social behaviour. The theory leverages on structures in an organisation that are put in place to enhance the social behaviours such as schemas, routines , policies and organisational norms that foster integration in the workplace (Scott, 2004). Resource-Based Theory Resource based theory is concerned with the match an organisation puts in place to match internal resources and skills inherent in the workforce. This serves as the basis of gaining competitive advantage in which intangible resources are utilized. According to Grant (2001) in order to turn competitive advantage to long-term competitive advantage, heterogeneous resources play a great role. Example of the resources is the human resource capital in which the management of an organisation can make use of diversity to achieve its goals. 9. Implications Olsen, & Martins, (2012), diversity management entails enabling every employee to perform at the best through the planning and implementation of organization systems to maximize advantages of diversity and at the same time minimise the possible disadvantages of diversity. Diversity management has different implications in an organisation; Patrick (2010) noted that, diversity determines openness to dissimilarity features that are inherent within work groups. This occurs following the understanding of positive communication and elimination of terms used in communication such as ‘alien’ that form basis of stereotyping (Moran, Harris & Moran, 2011). Ozbilgin & Tatli (2008) stated that, diversity enhances performance by broadening the perspective of the workforce. This aspect is supported by Ozbilgin & Tatli (2008) who pointed to existence of a strong correlation between effective diversity management and increased performance of organisation. In summary form, diversity management thus plays a crucial role in the creation and maintenance of good work environment that values the differences and similarities of employees they can be used as drivers to meeting strategic goals and objectives of organisation. Diversity management thus is based on understanding that people from different backgrounds can be source of ideas that an organisation can use to enhance efficiency and, hence better services. Managing diversity successfully will help in promoting creativity and innovations in workplace and broaden the capacity for growth and act as a competitive edge for organisations. I recommend that organisational managers should continuously endeavour to implement factors that create value for diverse workforce. Managers should adapt broad management practices aimed at (a) maintenance of variation in the human capital on given dimensions (b) ensuring that the variations in the dimensions do not act as barriers to organisations achieving objectives and (c) ensuring that variations are used for the benefit of achieving the goals of an organisation. CONCLUSION 9.1 Findings Diversity is expected to keep on increasing in coming years as globalisations continues to take shape and thus organisations need to put in place measures that are aim at managing diversity in the workplace effectively (Ollapally, 2009). It is based on this understanding of the magnitude of diversity that this literature has endeavoured to find the link between diversity management and organisational performance. Objectives of Study In order to find out the correlation, the objectives of the study included: To find the key drivers of diversity in an organisation To examine the frequent barriers those are faced in managing diversity in the workplace. To identify measures that can be taken to overcome barriers to diversity management in workforce. Findings related to each of the objectives The degree to which managers recognise diversity determines the approaches the organisations employ in creating value by effective management of diversity. The key drivers of diversity in any organisation include top managers, board of directors, policies and head of human resource department (Davidson, 2011). The top management organises other organisational factors that are supposed to drive diversity management such as policies in the organisation. The head of human resource plays a pivotal role in driving diversity. The human resource department head is mandated with taking measures that increase the morale of employees by giving employees equal opportunity to work in areas that promote their capabilities (Martin et al, 2008). The most prevalent barrier to diversity management in organisations depends on mangers and the employees perceptions. Ethnocentrism, prejudice and negative stereotyping are common barriers that are found within employees. Failure by mangers to put in place policies and programs that support diversity in workforce acts as a great barrier that hinders performance. The barriers to workplace can be overcome by managers understanding the differences and similarities that are inherent in their employees and putting up measures to promote inclusiveness in the workplace. 9.2 Implications of Findings The findings indicate that diversity is real and it is expected to be experienced in many organisations. Organisations should thus design effective approaches that are supposed to enhance workplace diversity and maximise creation of value from diverse workforce similarities and differences. Prejudices, ethnocentrism are major barriers to diversity management. The implication for these findings is that organizations should implement strategies that promote co-existence. For instance, organisations can minimise the miscommunication that are stereotypical in nature by implementing strategies that promote effective communication and training employees about differences. Such practices will increase awareness about diversity in the workplace and will enable employees realize strengths in each other and work as team to achieve organizational goals. 9.3 Conclusion Diversity management can act as a key driver to organisational achievement of competiveness in the global market. Employees that have diverse pool of employees are in a better position to serve diverse customers due to the better understanding of diverse cultural environments. The literature review has established that amidst diversity, value can be achieved that can propel organisations to higher productivity. The literature found that discriminations at level of employees are main barriers to achieving effective diversity co-existence. Organisations should thus take deliberate measures to manage diversity in workplace and harness the potential of employees in order to increase competitiveness. 9.4 Recommendations There are many researchers that touch on organisational culture and the role of the culture in enhancing diversity. This literature review has greatly explored the various perceptions relating to diversity and the orientation of organisations in ensuring that diversity management serves as an instrument to creating value. The literature has greatly focussed on the positive aspect of the diversity based on fact that doing business has been globalised and many multinationals have to employ people from diverse backgrounds. The literature has also identified the key drivers to diversity, however, it has not pointed to the degree the drivers have helped in fostering positive change in organisations. Therefore, more studies should be carried out to determine the extent to which the drivers of diversity in organisations have been effective based on set indicators in various organisations. References Afzal, F., Mahmood, K., Samreen, F., Asim, M., and Sajid, M. (2013). Comparison of workforce diversity in public and private business organizations. Information and Knowledge Management 3 (2), pp. 110-123. Anand, R., and Winters, M.F. (2008). A retrospective view of corporate diversity training from 1964 to the present. Academy of Management Learning and Education, 7 (1), pp.356-372. 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