Diversity in Business - Assignment Example

Diversity Student Name Tutor Institution Course Date Diversity Introduction In the contemporary era of business globalization, several organizations are striving to attain a diverse workforce. Similarly, globalization has intensified interaction among people from various parts of the world. Therefore, over the years, many organizations have noted the impact of recruiting employees from diverse backgrounds to provide workforce for production of both goods and services to the organizations. Basically, according to Svyantek and Bott (2004), diversity entails embracing and appreciating the different knowledge background, skills and various viewpoints that people bring to their work places irrespective of whether those differences are grounded on social background, ethnicity, gender, age or sexual orientation. Based on the results of the study conducted by Svyantek and Bott (2004), the concept of workplace diversity is constructed on the basis of creating equal work opportunities to engulf essential differences such as gender, race, ethnicity, cultural or linguistic background and intellectual or physical ability. The aim of this paper is to critically examine the concept of workforce diversity as employed in various workplaces. Thereafter, the paper will examine the implication of workforce diversity to the management and workplace practices of ANZ bank both in Australia and overseas. Furthermore, the paper will elaborate the difference between the ideologies of espoused theory and the existence of workforce diversity as embraced indifferent organizations. Analysis of Workforce Diversity Workforce diversity is a multidimensional concept that engulfs various factors that define the current nature of work placement in various organizations. The modern work places are characterized by employees who have different educational standards and different backgrounds which entail religion, culture and ethnicity. Similarly, in the perspective of modern day calls for gender equity, Ali, Metz and Kulik (2007) point out that the gender diversity is a common and inevitable aspect in today’s workplaces. Ali, Metz and Kulik ( 2007) report that United Nations has for several years called on Governments to stimulate the empowerment of women through strengthening their leadership. Similarly, discrimination against women that was common in the preindustrial age has been combated through various agencies such UN Convention on the Elimination of all forms of Discrimination against Women (CEDAW), (Esty, Richard and Marcie 1995). Therefore, recognition of women involvement in non-governmental organizations, public organizations and private sectors have been on the rise thus they are leveled on equal terms with their male counterparts. Esty et al. (1995) report that between 1986 and 2000, thirteen million women from different cultural and ethnic background joined workforce globally. Extensive researches have been conducted to investigate the significance of embracing a gender diverse workforce. Ali, Metz and Kulik (2007) argue that a gender diverse workforce enables organizations to attract capture and retain talented women. This implies that by increasing the number of women in their employees database, many organizations stand chance to benefit from various talents they bring with them. Additionally, the research conducted by Svyantek and Bott (2004) indicates that a gender diverse workforce enables organizations to serve diverse customer base. This means that the organization is capable to serve wide range of customers as some may prefer to be attended to employees of a particular gender. Other than gender diversity, the concept of workforce diversity is also shaped along the lines of cultural diversity (Richard et al 2004). Workforce cultural diversity is majorly viewed as workforce differences that are generated by difference in ethnic background, race and religious background. Richard et al. (2004) observes that today’s workforce comprises of workers from diverse racial and ethnic origins and they generate different levels of motivation and priorities to their work. Additionally, acknowledging diverse motivations and priorities that culturally diverse workforce bring to organizations is fundamental in establishing strategies for gaining and retaining organizational talents. A study conducted by Rogelberg and Rumery (1996) reveals that worker from culturally diverse groups value opportunities for improvement, gaining news skills and working organization for organizations with good education and training privileges (Richard et al 2004) Although each organization is unique and need for a diverse workforce may differ from one organization to another, the factors that influence adoption of diverse workforce are homogenous across all organizations. For instance, organizational culture determines its need to adopt workforce diversity. According to Dike (2013), organizational culture refers to the shared values in an organization that which are the interpretation of activities of the company. It encompasses various aspects such as employees, visions, values and history of the organization. Therefore, this implies that adoption of workforce diversity is largely determined by the norms and beliefs of an organization. Secondly, the need for a diverse workforce is sometimes influenced the nature of an organization. Various organizations vary in terms of size and operations, companies have different rules that govern the kind of the workforce they recruit. Ultimately, company location also impacts significantly on the need for a diverse workforce. Organizations that operate internationally are often compelled to assimilate people from diverse cultures in the areas they operate in, unlike organizations that operate in areas with people from unilateral cultural background (Dike, 2013) . The implication of workforce management and workplace practices in ANZ in Australia, and offshore Workforce diversity management refers to the methods of planning, organizing and channeling all managerial concepts with objective of creating an organizational environment made of diverse workers. The basic factor raised is that diversity management includes measures that evaluate value and monitor diverse employees effectively regardless of their similarities and differences. Managing workforce diversity is a very critical to organizations since it has various implications to the performance of an organization. In regard to ANZ bank, the management of the institution has devised strategic approaches that make it possible for them attract and assimilate people from different backgrounds into their workforce. This has since generated significant implications in its service delivery. Adoption of diverse workforce has enabled the bank to attract, engage and retain talents that are essential for it to capitalize its performance. From the study of the Human Resource Management framework of the organization, it is evident that the bank is greatly benefiting from the initiatives that enable it to capture the talents in the diverse job market. The company achieves this through various measures such as recruitment and retention of employees. Secondly, the bank ensures inclusion of its works by engaging them in strategizing service delivery methods. Similarly, it enhances employee motivation remuneration and offering benefits and incentives. These strategic recruitment and retention measures enable the bank to generate creativity and innovation through talent attraction. According to Rogelberg and Rummery (1996), diversity tools that are basically designed as tools for recruiting and retaining employees help organizations to construct employment brand. Furthermore, through harnessing various talents, the organization has built a strong competitive advantage in the market place. Relating to various people from diverse culture also enables the creation of a satisfied customer base that is diverse. For instance, the organization is capable of relating well with several customers through its diverse employee base. Through HR and Corporate Social Responsibility frameworks, ANZ bank has implemented strategies hat value diversity and encourages ‘culture of respect and inclusion’. The report indicates that the bank enhanced diversity and inclusion it employees are from 200 different cultural backgrounds. Furthermore, the company has ensured that the composition of its employees in any location include workers that represent the local community. This initiative has enabled the organization to strong connection with the local communities hence improving customer experience through provision of products and services that are relevant to those communities. Similarly, the bank has built a financial inclusion tool that has elevated the progress of both individuals and communities. Therefore, inclusion tools such as education programs have been employed to strengthen customer relationships and encourage delivery of products and service to low-income groups that are excluded in various countries that the bank operates in. By adopting principles of diversity and inclusion, the bank has set avenue for effective communication among its management, employees and customers. For example, by ensuring the inclusion of the people from the local community, bank sets a highway through which such the people from the said community can communicate with the bank. Through these capabilities the bank is able to understand and meet the demands and preferences of the local communities in which it operates. Better understanding of customer needs through effective communication also makes it possible for the organization to make well informed decision. However, the adoption of diversity and inclusion tools bears some level of negative impacts as well. For instance, the bank has incurred various compulsory training programs that are very costly. As noted, the bank operates globally. Therefore, the cost of training the huge employee base to effectively manage diversity is evidently very large. Difference between the espoused theory and the reality of the practice of workforce diversity According to Argyris and Schon (1974), theories of action are ideologies that both individuals and organizations develop and maintain about themselves. Furthermore, they argue that theories of action basically encompass both an espoused theory of action and a theory- in-use. Espoused theory of action is the ideology that individuals and organization give allegiance which they communicate to others upon request. However, the actions of such individuals are controlled by their theories-in-use which may essentially differ from their espoused theory. On that note, it is argued that theory in action always has significant level of defensive routines engrossed both within individual and organization as well (Argyris 1985 p.5). The models of elaborating the process of constructing the theories-in-use, as developed by Argyris and Schon (1974) encompasses three aspects which include governing variable, the action strategy and the outcome or consequences of different action. Governing variables refers to the set values that organizational members try to maintain to a given extent. For instance, ANZ has developed and set strategies that will help them embrace value diversity and enhance that culture of respect and inclusion. Furthermore, they have developed strategies to attain their need to attract and retain talents from people of diverse cultural backgrounds. On the other hand, action strategies entail the methods employed by organizational members to maintain the governing variables within a given acceptable range. For example, in the case of ANZ, the bank designed strategies that will help them to keep the set values at any given circumstance. For instance, to attract and retain the best talents from the diverse communities in which they operate, the bank devised measures or policies which include recruitment and retention measures, remuneration and offering benefits, employee engagement and monitoring the action of employees through performance management. Similarly, the bank strategized approaches of attaining diversity and promoting culture of respect and inclusion via aligning its actions in consideration to human right policies. On the contrary, the relationship between espoused values and the outcomes of action-in-use may differ significantly. This implies that action strategies may generate unintended consequences in reality. For instance, the need to adopt a diverse workforce may in turn certain unintended negative outcomes. For instance, after recruiting employees from different cultural back ground, organizations may eventual realize that the employee are forming small groups composed of members of one’s ethnic background. As a result, if not well monitored the creation of grouping in the organization may ultimately generate the rise of more negative consequences such as discrimination. This means that employees from the same ethnic and cultural background who have formed groups in the organization may discriminate or be discriminated against by other employee or managers and supervisors. Following this further, it is easy to observe that according to Argyris and Schon (1974), the governing variables are that organizational values that form part of espoused action whereas the action strategies are the real action explained by the theory of action-in-use. The espoused values are simply the intentions of an individual or organization while action strategies, action-in-use, are actually performed to meet the governing values. Conclusion This paper has critically examined the concept of workforce diversity. It has shown light in various areas where the concept of workforce diversity revolve, such cultural and gender diversity in workplaces. It has also highlighted some of the underlying factors that influence adoption of workplace diversity. Therefore, location, the type and the culture of the organization were unearthed as some of those factors. Furthermore, the paper critically examined the impact of managing workforce diversity in regard to ANZ bank. Finally, the difference between espoused theory and theory-in-use were examined. List of Reference Ali, M, Metz, I & Kulik C. T 2007, Workforce gender diversity: Is it a source of competitive advantage? Paper presented at the 21st ANZAM conference, Sydney, Australia. Retrieved from < http://eprints.qut.edu.au/40898/1/40898.pdf> [October 7th, 2014]. Argyris, C, & Schon, D 1974, Theory in Practice: Increasing Professional Effectiveness, Jossey-Bass, San Francisco, US. Argyris, C 1985, Strategy, Change, and Defensive Routines, Pitman Publishers, Boston. Dike, P 2013, The impact of workplace diversity on organizations, Retrieved from [October 7th, 2014] Esty, K, Richard G, & Marcie SH, 1995, Workplace diversity: A manager’s guide to solving problems and turning diversity into a competitive advantage,: Adams Media Corporation, Avon, MA. Richard O. C, Barnett T, Dwyer S & Chadwick K 2004, “Cultural diversity in management, firm performance, and the moderating role of entrepreneurial orientation dimensions”, Academy of Management Journal 47, pp 255-266. Rogelberg SG & Rumery S. M 1996, “Gender diversity, team decision quality, time on task, and interpersonal cohesion”, Small Group Research 27 pp 79-90. Svyantek DJ & Bott J 2004, “Received wisdom and the relationship between diversity and organizational performance”, Organizational Analysis 12(3) pp.295-317. Read More