Managing Diversity at Cityside Financial Services - Essay Example

? Managing Diversity at side Financial Services Explain how diversity generally impacts human capital management and development in an organization. Then, describe two or three (2 or 3) specific issues or challenges that diversity can pose for hiring, management, development, and/or retention practices, and explain how each might be addressed. In the context of the modern market, the involvement of diversity as a factor influencing the human capital management policies can be characterized as a common phenomenon. In fact, in organizations of all industrial sectors diversity is likely to influence the human capital management and development policies – either in the short or the long term. It should be noted that the impact of diversity on human capital management and development is multi-dimensional, i.e. it has different forms and characteristics, being aligned with the environment and the culture of each organization. The above trend is verified in the literature published in the particular field. In accordance with Stalcup (2008) the promotion of diversity across an organization could be secured through a series of different plans; the introduction of succession policies that ensure diversity at all (or certain) levels of the organizational hierarchy would be a potential plan of such kind (Stalcup 2008, p.14). In other words, diversity could affect the human capital management of an organization by setting the criteria on which the succession policies of the specific organization will be based. At a next level, diversity sets the term under which the hiring process of an organization will be developed; this fact is highlighted in the study of Sistare et al. (2008, p.16) where emphasis is given on the importance of diversity for the specific part of an organization’s human capital management, i.e. the hiring process. Moreover, it is explained that diversity, as a criterion used for hiring staff, does not threaten the integration of the organization. Rather, it makes sure that equality and fairness are promoted across the organization – a fact that also positively influences the organization’s external environment, meaning all the firm’s stakeholders. From the same point of view, diversity needs to be used when developing an organization’s retention and HR development policies (for instance, the training programs provided to employees of a particular organizational development); the rewarding policies of an organization should also take into consideration the needs for increased diversity in the workplace (Mathis et al. 2008, p.48) Apart from the issues discussed above, another fact should be made clear: diversity could also affect the organizational development in general, i.e. not just the human capital management processes. This issue is explained in the study of Vallabhaneni (2008); in the above study, reference is made to the need for restructuring of the organizational environment in order to promote diversity across a particular organization; in other words, organizations that strongly support diversity have often to update/ restructure their environment in order ‘to respond to the needs of diverse groups of employees’ (Vallabhaneni 2008, p.238). In this way, diversity is get involved in an organization’s development, setting the rules for distributing tasks and organizing activities across the particular organization. The direct involvement of diversity in organizational development is made clear through the following fact: diversity in the workplace has been among the key trends of the human capital management of the 21st century (Lewis et al. 2006, p.20); HR managers who are most capable of responding to the needs of diversity in the workplace are most likely to succeed in organizations of various industrial sectors (Lewis et al. 2006, p.20). In this way, diversity becomes one of the criteria for evaluation of the capability of HR managers to face the challenges of modern market; it is expected that their decisions will be also aligned with the need for increased diversity in the workplace, as a common trend in organizations worldwide. The role of diversity in modern organizations could be understood by referring to the challenges that diversity can set for each part of the human capital management policy of an organization – referring to the hiring, management, development and retention practices introduced in organizations which strongly support diversity in all organizational activities. Measures that could potentially help to the limitation of these challenges can be proposed – taking into consideration the fact that these measures are likely to perform differently in organizations with different cultural and operational characteristics. In the context of hiring process, diversity would require that employees of different backgrounds and demographic characteristics have access to the workplace; however, under certain terms, such target may not be achievable. Reference is made to the case that a particular organizational department requires employees of specific characteristics; for instance, in the production unit of a specific organization young employees would be preferred as being more capable of responding to the demands of the relevant position (for example, the team of workers being involved in drilling projects). From a similar point of view, the employees working as trainers of individuals in extreme sports would preferably be healthy being able to assist the trainees in case of emergency – the lack of physical inability would be a requirement for these individuals as, otherwise, their own health but also of the others (trainees) would be under risk. In the above two cases, diversity should be secured in the following way: the restrictions in regard to the relevant job positions would involve only a specific requirement (for instance, age in the first example and physical ability in the second) avoiding the establishment of barriers for candidates of specific race or gender. In regard to the human capital management processes, diversity could set the following challenges: the requirement of a specific language as the only language permitted in the workplace would be considered as discrimination (Mathis et al. 2008, p.50); the establishment of different criteria for foreign – born workers in regard to their promotion within the organization would be another discriminatory practice (Walker 2003, p.12). These challenges could be faced as follows: existing organizational strategies should be revised eliminating discriminations in regard to the issues discussed above. The rewarding of those managers who promote plans that secure diversity and eliminate the discriminatory practices across the organization would be another measure ensuring that such discriminatory plans – like the two policies mentioned above – will not appear in the future (Carsen 2005, p.172). Moreover, in regard to the human capital development processes, discrimination could have the following forms: certain training programs could be available only to native workers; from another point of view, the families of natives may not have the same support as the families of expatriates – meaning that under certain terms expatriates are given more incentives and motives to work in a particular firm only because of their cultural/ ethnicity background – similar to that of the place where the firm is established. The above problems could be resolved as follows: the participation of employees in training programs could be decided only regarding their position (needs of the position) – no other requirements would be set in order to avoid discrimination in the support provided to employees for improving their skills/ capabilities. Furthermore, the cultural and ethnicity characteristics of employees would not be a criterion for differentiation of their rewards/ benefits (Jackson et al. 2008, p.305). Describe one ethical and one legal issue specific to strategic talent management and development and related to the case study, ‘Managing diversity at Cityside Financial Services.’ Promoting diversity across an organization can be a challenging task; the talent management policies used within a particular organization can fail to secure fairness and equality in the organization, a fact made clear in the case of Cityside Financial Services. The strategic talent management processes of the above organization has caused certain ethical and legal problems; at a first level, black employees in the specific organization are not offered the chance to participate in key organizational decisions; as revealed through the discussion of Wilkins with one of the firm’s black employees, when this employee tried to state his view on a particular organizational problem – during a meeting – he faced a strong criticism; as a result the above employee noted that, in the future, he will avoid stating his view in meetings aiming to set the organization’s strategic priorities. Moreover, it is noted that this phenomenon is common for the specific organization – where white employees have the right to argue but black employees cannot have such right. At the next level, the talent management practices used in the specific organization are opposed with the existing legal rules referring to discrimination; of particular importance is the Race Relations Act of 1976 (Kirton et al. 2004, p.148); in the context of the above law, racial discrimination can exist independently from the intention of employer to develop such practice, i.e. it is not important whether ‘the discrimination is in purpose or not’ (Direct Gov, Racial discrimination, 2011). In accordance with Bohlander et al. (2009, p.369) the alignment of HR policies with the law should be a priority for HR managers. In the case under examination, the existence of strict borders between the two departments, i.e. the Retail Operations and the External Deposits, prohibits the potential of employees of Retail Operations to be promoted to a well-paid position – referring to the External Deposits department. Instead, employees in Retail Operations are expected to continue working in the specific department – even if they are promoted – remaining within a specific limit of rewarding. As revealed through the research developed by Wilkins across the organization, even when an employee in the Retail Operations meets the criteria for being promoted to a position in the External Deposits – where salaries and benefits are high – still, he is expected to face barriers; in fact, it was made clear to Wilkins that in such case the promotion of an employee from the Retail Operations to the External Deposits was denied without particular explanations – the above employee was promoted finally within the Retail Operations department. The limitations of the prospects of employees in Retail Operations in regard to their position in the organization and the potential improvement of their remuneration indicate the lack of equality in the specific firm and reveal a significant legal problem for the specific organization. In fact, a problem of direct discrimination in terms of the race of employees is established in the above organization. This practice is clearly opposed with the law and should be appropriately addressed as it could cause severe implications for the organization – referring to the consequences of the law for the businesses that promote such behaviours. Explain how, as an HR professional, you would address each of the issues you described. In your explanation, note whether you would refer the issue to an expert and discuss why or why not. In accordance with the issues discussed above, diversity in Cityside Financial Services is not actually promoted. In fact, it seems that diversity policies have been used – up to a point – in order for developing the organization’s operations; however, it seems that diversity in the specific organization has been considered as an element of the organizational strategy; it has not become integrated with the organizational operations. In other words, diversity in Cityside Financial Services should be actually promoted only if the specific framework had become part of the everyday business activities having influenced the organizational culture (Ingham 2007, p.197). This ‘false’ status of diversity within the organization is also made clear to the external organizational environment – referring to the firm’s customers in Retail Operations who feel that they are not offered the same quality of services like the customers of the External Deposits department – who are white. From this point of view, in order to face the ethical and legal problem highlighted above, it would be necessary to re-define diversity within the organization. Diversity should be used for changing organizational culture and aims, not just in order to make the organizational structure more effective. It should be also noted that the effective management of diversity could result to a series of benefits for the organization – including the increase of its profitability but also the limitation of its costs (Pride et al. 2011, p.253). At the same time, the productivity of employees would be effectively supported leading to the stabilization of the firm’s performance both in the short and the long term (Finn 1999, p.1). In terms of the equal opportunities of employees regarding their participation in the decisions involving in various organizational activities, the following measures should be taken: employees should be offered appropriately training in order to understand the needs of the organization and its aims/ culture; in this way, they will be able to suggest the appropriate solutions if they are asked to. At the next level, it would be made sure that employees are given equal chances to state their view on various organizational issues; this problem should be resolved only by ensuring that all employees are treated fairly no matter their race or cultural background. The introduction of diversity programs (Cumming 2004, p.29) could help to resolve this problem; employees of both departments will participate in these programs, which would aim to reduce inequalities across the organization. In each of these programs equal number of black and white employees will participate – aiming to promote cooperation and collaboration among employees of the Retail Operations and the External Deposits. At the same time, an exchange of employees between the two departments needs to take place; white and black employees should be equally represented in the firm’s departments – making clear to the public/ customers that the firm’s services are of equal quality, in all its departments. A similar approach should be used in the entire firm’s human capital management processes, i.e. including the hiring, retention and succession plans; i.e. diversity should be integrated in the organization not just promoted through specific initiatives, since then there would be a high risk for failure (Wilkinson et al. 2009, p.240); i.e. diversity in the specific firm should not address the interests or the needs of specific groups (Klarsfeld 2010, p.190) but it should become part of the organizational culture. The case of Xerox, which made radical changes in its HR strategies integrating diversity in the organizational culture, proves the necessity of the specific strategy (Jackson 1992, p.282). The measures suggested above could also help to face the legal problem developed in the particular organization – the lack of access of employees to all organizational departments, i.e. the limitation of their potentials for improving their position in the organization. As noted above, the specific problems refers especially to the employees of the Retail Operations department; in the specific department the hiring of black employees has been decided in order to serve better people in the local community; however, in the long term, this decision led to severe organizational problems and resulted to the opposition of the firm with existing law on discrimination – referring especially to the Race Relations Act of 1976. In its current structure, the organization cannot effectively face discrimination; employees in each of the two organizational departments are given specific perspectives in terms of their race with no chance to improve their position – referring to the black employees of Retail Operations who cannot access the External Deposits department – where only white employees are hired. It is made clear that the elimination of discrimination in the specific organization would require the termination of this practice; White and black employees should be given equal access to the firm’s departments. However, this transformation of the organization should be gradual – i.e. a radical top-down restructuring should be avoided, aiming to let the customers of its department to get used to the new organizational strategy. References Baron, A., Armstrong, M. (2007). Human capital management: achieving added value through people. London: Kogan Page Publishers Bohlander, G., Snell, S. (2009). Managing Human Resources. Belmont: Cengage Learning Breul, J., Gardner, N. (2004). Human capital 2004. Oxford: Rowman & Littlefield Carsen, J. (2005). HR How to: Employee Retention. Chicago: CCH Incorporated Cummings, T., Worley, C. (2009). Organization development & change. Cengage Learning Cumming, S. (2004). HR networking: retention. Chicago: CCH Incorporated Deb, T. (2006). 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