Managing Diversity and Equal Opportunity - Essay Example

Managing Diversity and Equal Opportunity Introduction In relation to the growing pace of globalisation, managing diversity and providing equal opportunity to each individual has been witnessed to be widely practiced by the organisations to obtain competitive position. According to the contemporary trend in the global business industries, organisations are significantly focused on expanding their business locations beyond their national boundaries based on the changes and development of worldwide demographic environments. This trend of expanding business locations has been observed due to the increasing pace of internationalisation which compels the global marketers to be highly focused on managing demographic variances of the workforce (Groschl, 2011). However, the rapid pace of internationalisation in the contemporary business environment has also been witnessed to carry different challenges for the organisations to efficiently perform their business operations. In this regard, cultural diversity can be considered as one of the major factors, which considerably creates an impact on the organisational performances. The global marketers are confronted with the growing issue of dealing with culturally diversified workforce. In addition to the increasing challenges of cultural diversity, the dramatic changes and demographic developments can be witnessed to facilitate in building labour intensive business industries by enforcing the issues of managing diversity within the organisations (Groschl, 2011). Therefore, the report tends to critically analyse the ways whereby the present demographic trends tend to escalate workforce diversity. The report also focuses on identifying and evaluating a few major national demographic trends that enforce the global organisations to effectively manage diversity and provide equal opportunity. Moreover, the discussion of this report would also reflect on identifying the amount of workers who meet obstacles in relation to developing their career that have been labelled ‘glass ceiling’ and ‘glass cliff’ within the United Kingdom (UK) business organisations. In order to provide relevant examples relating to the present demographic trends, the report would also render instances of real cases of the UK companies regarding their practice of managing diversity and equal opportunity within the organisation. Part 1: Ways in Which Current Demographic Trends Influence to Increase Workforce Diversity The incessant growth and development of demographic trends has been identified to enforce numerous challenges for the global organisations to manage diversity along with promoting equal opportunities. According to the concept of demographic trends, the notion has been identified to increase since the period of 1950s within the UK population. In this regard, the major ways in relation to the current global demographic trends which augment workforce diversity can be characterised into different categories (Department for Business Innovation and Skills, 2013). A few of the major ways of demographic trends have been briefly highlighted in the following discussion. Internationalisation The rising pace of internationalisation has been viewed as one of the major factors, which influences the development of the current demographic trends within the UK. In relation to the present globalisation driven era, the rising internationalisation trends rapidly influence the organisations to focus on managing diversity and rendering equal opportunity to the workforce. The incessant development of the global business organisations has resulted in compelling these corporations to extend business locations across the geographical boundaries (CIPD, 2013). Therefore, the organisations are not fully aware of the potential advantages and at times overlook the required competencies and knowledge to successfully obtain the foreign opportunities. In this regard, the diverse culture, language and racial differences often discourage the UK companies from accomplishing their overseas opportunities (Centre for Strategy and Evaluation Services, 2003). Socio-Economic Trend The socio-economic trend can be determined to encompass the income level as well as daily lifestyle of the population which can also create certain diversity related issues for the organisations. In relation to the present global economy, the organisations have been witnessed to face workforce diversity related issues due to the significant differences of the income level and social status of the population. According to the UK business law, the organisations are liable to hire members from different social status as well as income levels within their commercial activities. The anti-discrimination legislation and provisions underneath the labour law emphasise equal opportunity for each individual to act as a part of the commercial institutions. Therefore, the socio-economic factor can also increase workforce diversity related issues for the UK companies to efficiently perform their business operations (Centre for Strategy and Evaluation Services, 2003). Racial and Cultural Backgrounds Racial background of the population can be considered as one of the major factors, which leads to increase workforce diversity. In relation to the present statistics of UK populations, the involvement of diversified population has been witnessed to create significant difficulties for the UK marketers to manage diversity within the organisations. In relation to the labour and employment legislation of the UK, the incorporation of equal provisions for the immigrants has been introduced that ensure to protect the population from different racial backgrounds. However, the integration of workers from different racial backgrounds tends to enforce various workforce diversity related issues. Therefore, the organisations are highly inclined to take adequate measures to manage the diversity and equality of each individual within their range of commercial operations (CIPD, 2013). Relevant Case Example Case Study of Rabobank Group, Netherlands Rabobank Group can be considered as one of the major and leading financial institutions in Dutch market and it has also built its sustainable position in the global financial services industry during the recent decades. The organisation highly complies with an effective and highly beneficial diversity management policy that promotes equality among the employees during its range of financial service operations. The primary purpose of the diversity management policy of Robobank Group is to promote effective environment through which the organisation can implore wider knowledge and ensure adequate compliance with the relevant codes and practices. In this context, the organisation is highly committed to equally treat all applicants and workers irrespective of their age, nationality, gender, religious beliefs and physical disability among other aspects (Subeliani & Tsogas, 2005). In accordance with the primary legislations of Robobank Group, numerous provisions in order to protect each employee from any types of discriminations within the workplace are prevalent. In this context, ‘Intercultureel Management’ which can be referred as one of the major policies of the organisation to manage workforce diversity within its diversely located banking units is also practiced by the company. Moreover, the diversity policy of Robobank also ensures to integrate adequate provisions to protect its applicants and workers from various discrimination acts. In this regard, a few of the major provisions include Employment Act, Disability Discrimination Act, Equal Disbursement Act and Employment Equality Act among others (Subeliani & Tsogas, 2005). Identification and Evaluation of National Demographic Trends The national demographic trend of the UK can be regarded as a blend of multiple aspects which are generally critical for the organisations to effectively manage its workforce. The fundamental demographic trends of the region can be differentiated into various factors including age, gender, religion and belief along with physical disability. Therefore, managing diversity and equal opportunity of the workforce can be stated as amid the major practices for the UK organisations to successfully accomplish their business objectives in the present complex business periphery. Age The age of the workers can be stated as one of the primary factors which can significantly enforce an organisation to manage diversity within the workplace. In relation to the present employment practices of the marketers, growing discrimination can also be identified where the employers are highly inclined to employ young employees for emphasising continuous innovation and creativity. Moreover, the employment of young generation can also enable the organisations to obtain competitive advantages through higher productivity as well as quality of their offered products/services (CIPD, 2013). Therefore, it can be evaluated from the current employment practices that the organisations should maintain adequate equality in terms of employing workers for commercial activities. In this regard, the employers within the UK business industries should equally prioritise upon the execution of ageing populations along with bestowing opportunities for the young generations. In this context, the process can enable the marketers to obtain significant opportunities of gaining competency associated with manufacturing and marketing their cutting-edge products/services. Relevant Case Example Barclays Plc. In relation to the effective measures of age related issues, the diversity management initiatives and policies of Barclays Plc. provide adequate information regarding the practice of addressing age related issues in its employments activities. The company tends effectively balance the employment practices through integrating individuals from different age backgrounds. The diversity management policy concerning the age factor has been recognised as one of the imperative drivers of the business. The primary purpose of developing age diversity management practice enables the organisation to retain knowledge of the ageing workers and obtain significant opportunity in the growing UK financial market (Hutchings, 2006). In order to make efficient utilisation of the ageing employees, the diversity management initiatives tend to facilitate effective training and development process that ensures to bring competitive advantage in the respective industry. The experience of the senior workers further enables the company to efficiently assess the needs and the expectations of the customers along with facilitating to implement appropriate business strategies (Hutchings, 2006). Gender In relation to the modern employment practices of the UK organisations, a significant change can be observed where both male and female workers are employed in different commercial and public activities. In relation to the recent statistics, it has been identified that there are 53.7% male workers who are currently employed in various commercial and public occupational fields. However, 46.3% of female are provided various types of commercial and public service activities (Hutchings, 2006). Therefore, it can be stated that there is a moderate level of gender discrimination within the present UK employment sector. The organisations in this regard should equally prioritise upon the execution of male and female employments within the different public and commercial roles (Catalyst Inc, 2012). Religion and Belief The organisations in the present UK business industries have also been witnessed to raise discriminative issues in terms of employing employees as per their religious backgrounds and beliefs. In relation to the current employment statistics of the organisations, the religion and its existing beliefs often create significant issues in the UK. In relation to the present employment structure of the UK marketers, the notion of equality of each employee is highly prioritised within the workplace. Moreover, the organisations also tend to practice equality in terms of providing job roles, remunerations along with other facilities to all employees within the organisation (Groschl, 2011). Physical Disability The integration of physically disabled individuals within the organisations has also been observed as a growing consideration for the UK marketers. In relation to the present day context, the organisations seek to provide equal opportunity as well as facilities to the employees irrespective of their physical status. Moreover, the physically disabled individuals are also provided additional monetary and non-monetary incentives which further ensure the organisations to maintain adequate workforce diversity within their business activities. Additionally, the notion of equally prioritising physically disabled individuals within the business process also enables the organisations to leverage competency that helps to address different discriminative issues (Groschl, 2011). Relevant Case Example Tesco Plc. The need for ensuring adequate compliance with the issues of managing diversity and equal opportunity has been becoming an increasing notion for the UK organisations. In this context, the diversity management practices of Tesco incorporate a wide range of principles and policies that encompass equal opportunity for its global workforce. The diversity management process of Tesco incorporates adequate provisions that ensure to protect employees from different demographic issues including age, gender, religion, physical disability and cultural beliefs. The employees of the organisation are equally considered in terms of providing employment, monetary benefits and other beneficial assistance provided by the organisation in its diverse geographical locations. The diversity management functions of Tesco also tend to equally promote its culturally and linguistically diversified employees, which further help the organisation to address various potential issues associated with workforce diversity (The Times 100, n.d.). Part 2: Evidence of Glass Ceiling and Glass Cliff in the UK Organisation The term, ‘glass ceiling’ is a metaphor for inspecting gender disparities between men and women that tends to exist within a workplace. Lack of women holding leadership positions within the domain of business organisation is not new to the global business segment. The glass ceiling refers to the obscure, but prevalent obstacles that limit the progression of women within a workplace. There have been numerous evidences of barriers that are encountered by women while striving to acquire concrete position within a workplace. These evidences suggest that women are typically confronted with obstacles that prevent them to grow into leadership ranks. These evidences reveal that the performance of women attaining leadership roles is often placed under a firm scrutiny by the management system that are again criticised to be male dominated. Furthermore, it has also been observed at often instances, especially in male dominated societies that workers usually prefer male supervisors over females at their workplaces. It can be argued in this regard that the root of glass ceiling is predominately associated with the gender biased leadership practices and the consequent barriers. Another vital prototype for the glass ceiling, which hampers the progression of women, is ingrained with the rudiments of corporate culture (Patterson, 2007). It has been ascertained that when compared to pay of women employees with that of men employees in the 11 European countries including UK, it has been observed that there persists a significant differences amid the women and the men employees in the labour market. It has been further ascertained that on average, women employees were paid less than men in the 11 selected European countries (Arulampalam & et. al., 2005). Nonetheless, the lowest differences were observed in the UK accompanied with Ireland. At the same time, it has been observed that women make a paramount contribution to economic development of the UK and are crucial component in the labour market. Yet it has been identified that women have been consistently acting as the subordinates to men and are often excluded from the corporate boardroom in leadership positions. Evidently, it has been observed that in 2006, only 17% of total Directors and Chief Executives in the UK were women. This can be illustrated as an apparent example representing gender discrimination to be still prevalent in developed countries including the UK. The financial recession confronted by the Eurozone in the recent years has also widely contributed towards widening of the gender gap in the country (Patterson, 2007). The case study of Tesco further revealed that 16% of gender pay gap was prevalent within the organisation when compared to an average salary of store manager in the organisation based on the gender. The differences in the salary of male and female managers were predominately due to the experience factor wherein, it was identified that an average service age of male managers were 20 years, while that of the female managers were 5 years only. The case study also postulated the progression in eliminating the position and pay gap, wherein it was ascertained that during the 1997, Tesco had only 31 female managers in the UK, which augmented to 160 in the year 2011. The case study also propagated that during the 2008, there were only 17% of women in its senior management positions, which has grown to 40% during the year 2011. This however shows a positive development in anti-discriminatory policies practiced by Tesco on the grounds of gender (Crown, n.d.). Similarly, the case study of City of Edinburgh Council v Wilkinson, related to the legal provision of equal pay, postulates that female local authoritative employees were able to seek justice for equal pay battle against the City of Edinburgh Council. The case represented the complexities associated with equal pay laws and the issue whether female employees are liable to seek equal pay, irrespective of their gender. However, the case study fails to determine the ground under which, female employees are eligible to acquire equal pay (Gordon Publishing Ltd, 2011). The term, ‘glass cliff’ is identified as a phenomenon wherein women are more likely to be appointed to leadership positions, which are primarily associated with increased risks of failure and criticism, as these positions largely involve management of the organisations that are in crisis situations. The case study based on performance evaluation of FTSE 100 companies, clearly depicts the phenomenon of glass cliff in the UK. According to the investigation related with the appointment of the directors in the UK’s companies in 2003, it was revealed that such changes in corporate governance system had significant impacts on the share price performance of FTSE 100 companies, immediately after and before the appointment of male and female members in the board construction. The most striking data that was observed after the appointment of male and female members, was attributed to the differences in the performances of the companies based their distinct leadership abilities, being influenced by their genders to a substantial extent. To be precise, it was ascertained thereupon that the performance of the companies widely varied depending on the appointee’s gender. Arguably, it was observed that companies appointing the men as the member of the board of directors revealed relatively stable performance of the share price; while on the other hand, the companies that had appointed female appointees as the members of board of directors largely experienced consistent demise in performance in terms of the share price. Nonetheless, it was observed that the appointment of the women as members in the board of directors resulted in varying circumstances as compared to the appointment of the male members. It was further ascertained that those companies having poor financial performances were primarily involved in the appointment of female professionals as the member of board of directors. In fact, it can be rationalized that the female leadership position were quite risky and precarious as their appointment was made into those companies, which were already facing crisis situations. It can be thus inferred that women in the UK organisations have to currently encounter new and subtle forms of discrimination in the workplace (Haslam & Ryan, 2008). Despite the gender gap prevalent in the UK and the other parts of the world, it has been observed as closing of shrinking gradually. Women are currently equipped with educational training and experiences to aspire leadership designations in the UK and worldwide organisations. The proactive participation of women in the labour market has also contributed towards allocating higher value to women empowerment. Contextually, both society and government are now actively engaged in promoting women empowerment in many socio-economical areas. The government has further enacted numerous laws and regulations in order to abridge the gender gap persisting within the workplace (Wirth, 2001). The Equality Act 2010, enacted by the UK government, is an initiative towards strengthening and unifying various laws that governs and protects individuals from gender discrimination. This Act makes it mandatory for the employers and the companies, both public and private, to promote gender equality and diversity within the workplace (Reed, 2011). Additionally, the Equal Pay Act 1970, enacted by the government of the UK, ensures that every individual, irrespective of their gender are entitle to claim equal remuneration. This Act ensures that any act of pay discrimination made on the grounds of gender variant is unlawful. Similarly, the Sex Discrimination Act of 1975 and 1986 advocates that any type of discrimination based on sex, when executing recruitment and promotion activities within a workplace, would be subjected to legal jurisdiction. This Act intends to protect an individual, primarily women, from both direct and indirect discrimination (The Association of Graduate Careers Advisory Services, n.d.). Conclusion The process of globalization has laid down wider platform for organisations to expand their business globally and reap the benefits arising thereon. However, the globalization process has been accompanied with numerous challenges that have deterred the performance of many organisations around the world. In this regard, the global demographic trend has increased the workforce diversity to a considerable extent. Additionally, there have been a number of instances where gender based discrimination have been identified. Correspondingly, it has been ascertained that women in the global business segment are often subjected to discriminatory practices, encountering lesser opportunities than the men employees. It has also been observed that stereotype attitude of employers and the companies have limited the progression opportunities for women globally. Age is identified to be another major demographic factor that has widely influenced discrimination in the modern day workplace environment. Accordingly, the age factor within the workplace in the UK has significantly influenced companies approach towards executing a fair recruiting, promoting, retaining and remuneration process. Discrimination based on religion and beliefs have been quite common in the current scenario, having an adverse effect on the workplace environment. Correspondingly, the globalization process has facilitated companies to operate in the different parts of the world, giving them a scope to inculcate religious diversity and diversity in terms of beliefs in their working environment. Currently, organisations operating in any business environment have employees belonging to different religious backgrounds and beliefs. However, these differences in the religions and beliefs have led to the arousal of workplace conflicts. Similarly, the attitude of supervisors and co-workers has firmly acted as barriers for employment and advancement of individuals with disability. With respect to glass ceiling and glass cliff in the UK organisations, it has been identified that there exists significant pay and position gaps amid the male and the female employees. Nonetheless, the many organisations along with government are striving to eliminate and abridge these prevalent gaps. References Arulampalam, W. & et. al., 2005. 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