Human Resource Managment - Essay Example

Human Resources Management - Diversity Executive Summary Promoting diversity in organizations has become a matter of expediency, given the multinational and multicultural exposure that organizations face in the wake of large scale globalization. Building a multicultural workforce requires conscious efforts that start with the process of Human Resources planning and recruitment. To ensure harmonious working among various groups in the organization, training programs to bring about proper awareness of the benefits of multicultural working, and to bring about attitudinal changes, where required, need to be conducted. Employees should be oriented towards achieving the goals of the company and targets set to them in order to make these the focus that will override the cultural differences and prejudices. Team working needs to be encouraged. Resource groups that promote the identity and specific aspirations of particular groups, and advisory councils that help in coordinating the diversity initiatives will help organizations implement these more easily. A number of steps such as these can help organizations build successful multicultural teams and benefit from their diverse background and varied experience of a committed team of employees in meeting the demands and expectations of a diverse customer base. This will ultimately help the company achieve its goals, and excel in its operations. Introduction With increasing realization of the benefits of globalization and the opportunities that are opening up in the world markets, few organizations can afford to ignore or avoid it. Globalization necessarily involves the building of a multinational multicultural team for success. The objectives of the current study are to investigate into the issue of building a multi-cultural international team. Background The dictionary meaning of the word diversity is “quality, state, fact, or instance of being diverse; difference; and variety.” Workplace diversity refers to variety or difference among those employed in the workplace (YourDictionary.com). Certain industries such as the hospitality and travel industries are more exposed to diversity than others. In these cases diversity implies the meeting of diverse demands from a multi-cultural marketplace. A more important dimension to diversity in these as well as other industries is the management of a multicultural workforce. With such a workforce, often spread across the globe, the challenge becomes one of communicating within the organization. Diversity is important to an organization for reasons other than globalization also. Statutory requirements in the USA and many other countries make it mandatory to employ diversity in the workplace, and to avoid discrimination based on race, religion, gender and disability. Airlines Industry While diversity is important for almost every industry and country, there are certain industries that are oriented to a much greater degree to diversity than others. The travel industry, and in particular the airlines industry is one such, and is admirably suited for a study on the subject. Diversity in the airlines industry is important for many reasons. The airlines industry is a high technology service industry that is highly competitive, and has very high standards of safety and quality Communication is very important in this industry as proper understanding of messages communicated can literally be of life and death importance. Major airlines operate the world over and have to cater to a variety of cultures and backgrounds. This has significance for workplace diversity also, because a diverse workforce will have to be trained not to meet one set of expectations but a variety of them. The airline industry thus offers a very good testing ground to examine the processes involved in developing and maintaining a multicultural, international workforce. Current Status Many leading organizations in the airline industry are keenly aware of this fact, and have taken active steps to promote diversity in their organizations and support an inclusive policy. The example of American Airlines provides a clue to the importance that the industry is giving to this aspect of their working. American Airlines has a special section devoted to Diversity and Inclusion in its website. American Airline also has a Diversity Advisory Council that includes members from various interest groups to provide advice on special target groups such as women and LGBY and minorities. (Reuters) Continental Airlines presents another instance of diversity being promoted in the airline industry. Continental Airlines follows an aggressive policy of promoting diversity, resulting in 23 percent of its managers and 37 percent employees coming from minorities. Making company’s goals the focus of working, and rewarding team achievements have helped in promoting diversity in the organization. In fact, the success of the turnaround efforts of the organization is attributed to its commitment to diversity. (Certo, 115) These two examples indicate the trend in the airlines industry, and many other organizations also are promoting diversity in a big way. Analysis Literature Review A review of the existing literature on diversity shows that diversity is more than an altruistic or moral consideration that aims only to uplift the neglected sections of society. Diversity is more than a concern for the less fortunate, and involves practical business sense. There is evidence to show that organizations practice diversity for the business benefits that it provides. This is particularly true in the travel and hospitality industries. The impact of diversity on the business of an organization is a closely related and important aspect of diversity. These considerations make it necessary for organizations to have a strategy for diversity. The theoretical position in these and related matters are discussed in the following sections. Diversity as a strategic tool Contrary to popular belief, diversity is more a matter of business expediency than of social concern. This is not to say that organizations do not have social concern or base their actions only on business expediency. In many cases social awareness itself gives an organization a business advantage. That apart, organizations do benefit from a policy of diversity in many ways. As Bajawa & Woodall (p.46) observe, diversity puts to effective use the tremendous advantages that are born out of leveraging “individual differences to ensure effective outcomes for the organisation” A consideration of employment of women in industry will serve to highlight this point. Employment of women of all racial-ethnic groups is much higher today than it was a century ago. One of the reasons that prevented women from being employed in higher numbers was the biased view that women are suitable to be homemakers rather than breadwinners. In fact the concept of paid employment itself was considered below the dignity of the average white American at one point of time. However, even at that time African American and immigrant women were employed in large numbers. The induction of women into the labor force was the result of a number of perceived and actual advantages that included the following. With the rapid growth of industries, the demand for labor increased far beyond the supply, forcing employers to look into non-conventional sources, and in the process consider women and other groups for employment Women were found to be more efficient in certain types of jobs The wages paid to women were lower than that paid to men (Figart, Mutari & Power, 2002, p. 23) The employment of women also got a fillip from the increased pressure to maintain better standards of living, and by the availability of new labor saving devices that took the laborious work out of the household chores and freed women to do other work. It is worth noting in this context that organizations by employing more women also indirectly increased the demand for these labor saving devices. From the above it can be seen that the rise in women’s employment has been more than a concern to promote gender equality, and has been based on several other sound business and economic considerations. Promotion of diversity at all levels has also been the result of demands by various marginalized groups resulting in the elimination or reduction of discrimination on the basis of gender, race, ethnicity and sexual orientation. (Colgan and Ledwith 3) By becoming more vocal, these groups have forced legislative measures to ensure greater representation in the work force. More importantly, the corporate image of the organization began to be projected more favorably with a policy of diversity and inclusion. According to Sims (16), increased diversity is an opportunity for an organization, and organizations that utilize this opportunity are more likely to survive and prosper. Diversity as a business strategy has gained currency with increasing globalization. Although globalization has been one of the engines that has fired the move towards greater diversity, it is not only the organizations that are globalized that are affected. Every organization stands to gain from promoting diversity. “Diversity management, while based on cultural change, is a pragmatic business strategy that focuses on maximizing the productivity, creativity, and commitment of the workforce, while meeting the needs of diverse consumer groups.” ("Managing a Multicultural Workforce," p. 120). Diversity has consequently gained many enthusiastic protagonists because of the significant benefits it can bring to the business. Some of these benefits include Better capability to service a diverse customer base A more enabling atmosphere to promote innovation and creativity Higher productivity and improved decision making Savings in litigation and other costs that could arise in many countries as a result of legislation To sum up, diversity is promoted by organizations for various benefits and advantages that they derive, and not merely for being a more socially responsible employer. As Green et al observe, “Maximizing and capitalizing on workplace diversity has become an important issue for management today." Building a multi-cultural international workforce becomes a matter of expediency and business compulsion that no organization can escape if it wants to survive and grow in a competitive and global environment. This is especially true in the case of industries such as travel, tourism, hotel, and entertainment. Impact of diversity Promoting diversity can have a great impact on the running of the organization’s business. This may not always be positive, and often may throw challenges that would need to be overcome. Building a multicultural workforce could thus be a task that needs attention and care in order to derive the benefits that could flow from having such a team. The impact of diversity on an organization’s performance has not been found to be positive in every case. Research has thrown conflicting results. Some studies show a positive correlation between diversity and performance, while other studies show no change in performance. In some other cases, studies have shown even negative correlation between performance and diversity (Pitts, 2006, p.249). Although nothing can be said with certainty, this is at least partly likely to be the result of the way organizations perceive and handle diversity. What these studies mean is that the mere existence of diversity is no guarantee of better performance. It becomes important therefore, to understand the impact of diversity and the challenges that may need to be overcome by organizations while building a multicultural team. Impact of diversity on quality and safety Proper communication is at the heart of quality work when a number of persons are involved. Similarly, safety depends on understanding each other properly and acting accordingly. Such communication is not restricted to the language aspect alone, but extends to better understanding and cooperation. In the airlines industry, poor communication, lack of motivation, poor quality of management and low levels of motivation can lead to serious safety hazards (Applebaum & Fewster, p.66). As Henderson observes, communication cannot be separated from culture. (p. 151) Barriers to communication arise due to several reasons in a multicultural workforce. These include Language differences – the way in which words are spoken and understood Non verbal communications – different cultural groups interpret non verbal communication in different ways. Sounds, body language and facial expressions may have different meanings to different cultural groups. (Henderson, 152-153) Bias – there is a tendency to interpret the message that is communicated based on the background of the person sending the communication. Differences in professional culture – These could arise from differences in power distance, collectivism and uncertainty avoidance (Applebaum & Fewster, pp.2-3). From these it is evident that building a multicultural international team involves not only in putting together such a team but also in educating and training such a team to work together as a cohesive group, appreciating and respecting cultural differences, understanding and correctly interpreting various signals, and overcoming differences in professional culture and approach to work. This calls for conscious effort in training, creating awareness, and promoting team work and a focus on goals. Manifestations of diversity Although diversity is understood by most people to include various groups, in practice there is a tendency to confuse diversity with one or two parameters. The most commonly understood meaning of diversity is the representation of minorities. Most people fail to realize that diversity means more than having more representation for minorities. One of the major problems arising out of efforts to promote greater diversity is the prejudices of people in accepting less represented groups. Diversity actually means having more people from various discriminated groups that could be based on gender, age, sexual preference, being differently-abled (or “disabled”), nationality, and so on. When realization that each of these groups is actually contributing to diversity is not there, discrimination against these groups may continue, even though the workforce is sold on the concept of diversity as such. This means that building diversity implies educating the workforce on what constitutes diversity. It might also mean that the organization trying to build such a team should itself be aware of this fact. A second problem is a tendency among most people to group minorities (of any type) together. For example, all racial or ethnic minorities may represent the same thing to most people who may tend to bracket them together. However, in reality each of these groups has their own preferences and biases. In fact studies have shown that resentment amongst different groups of minorities is as strong as their common resentment against whites in the US. This means that building a diverse workforce should understand and allow for differences among minorities themselves. Approach to promoting diversity The task of building a diverse workforce with a multicultural background starts at the recruitment stage. A conscious effort needs to be made to build such a workforce by seizing the opportunity to recruit as diverse a team as possible. A look at the patterns of employment over the past, and the prevailing trends, can be very revealing (Bond, p.169). Segregation within the organization has also to be examined periodically and minimized. Henderson (19) points out that it is behavior and not attitude that matters in managing diversity. It is not possible for people to get rid of their deep rooted views, and no person is totally free of prejudices and bias. The task of the management and the supervisors is not to attempt to eliminate bias altogether but to ensure that people are enlightened enough not to let these affect their behavior through an appreciation of the fact that differences do exist in the world, and diversity can be a tool to tap the opportunities provided by such differences. One of the matters on which employees can be educated is the fact that differences among individuals within a group is as great as, or even greater than, differences between groups (Henderson, 20). Such awareness would help people look at individual differences as precisely that – individual differences – and not as a difference arising out of race, religion, or gender. As Goodman observes, a variety of strategies can be used for bringing about a change in the attitude of the people, particularly the “privileged group”. These could include Cognitive strategies: Providing new information and analysis Behavioral strategies: Interpersonal contact and promotion of new experiences Emotional strategies: Promote empathy and understanding. However, the change has to come from the individual, since his or her attitudes and outlook is the product of many variables such as previous experiences, personality structure and psychological state. (Goodman, p.37) Resistance is one of the reasons that prevent changes in attitudes and behavior. Resistance is born out of fear and discomfort with the changes suggested. It is important to understand the nature of resistance and address it. Resistance is not the same as prejudice, which may or may not exist in a particular case. Resistance is unwillingness to participate. (p.63) Resistance can be overcome by creating a safe and supportive environment that respects the individual and his or her beliefs and values. (p.82) It is also important for the organization to consciously promote a culture of inclusiveness, and encourage feedback and two way communication particularly from the less privileged groups that are usually discriminated against. Bond (70) cites a number of examples in organizations in which family traditions and background as well as historical community relationship played a part in embedding prejudices, and caused people to be resigned to the situation. This means that it is important to recognize these forces and counter them by encouraging an open atmosphere. Process Building a multicultural international team involves a number of initiatives and positive steps. The first among these is the recognition of the fact that building such a team gives competitive advantage to the firm, and results in major benefits to the organization and the individuals working in it over a period of time. The next step is to actually construct such a team by reviewing the diversity pattern within the company and taking steps to increase it to the desired levels over a period of time through positive recruitment action. Another important initiative that needs to be taken is to educate the existing members of the organization as well as newcomers about the desirability of diversity and provide adequate training to enable them to work as a harmonious group with respect and understanding to each other and their respective cultures. A brief analysis of these positions and how they could be applied practically in any endeavor to build a multicultural international team would be appropriate at this stage. Recruitment and Selection Legal safeguards to prevent unfair practices in employment and to ensure equal opportunities to every person, irrespective of his or her background are already in existence and take care of the basic issues. However, compliance with the legal provisions, and avoiding violation of the law, will not automatically promote diversity in the organization. Diversity can come only through adequate representation to every group, which in turn can happen only through positive and conscious recruitment action. At the same time, this should not degenerate into a ritual that seeks to fulfill “quotas”. In trying to promote diversity, the stress should not be on quantity but on quality. What in effect this means is that organizations should ensure that other things being equal this consideration should be part of the final decision making process. It only means that the recruiters should be alive to the importance of building diversity, and make use of any opportunity that presents itself to promote this cause. Secondly, recruitment should take care to bring in people who would support diversity in the organization. This does not mean that only people who are free of prejudices should be recruited. As pointed out by Henderson, it is impossible for people to be free of prejudices. What is important is that people should have an attitude that allows them to accept the differences and work with diverse groups of people with a focus on goals. Even if such an attitude is not pre-existing in an individual, the recruiter should assess a potential for building such an attitude in him or her. People who do not appear to be amenable to such transformation should not be recruited. In other words, one of the criteria for suitability of the individual for employment in the organization should be such a disposition. Impact of diversity The impact of diversity on the safety and quality of the work were seen in some of the foregoing sections. Building a multicultural team involves taking care of the work aspects as much as ensuring cooperation and harmonious working. From this perspective, the steps that need to be taken to ensure safety and quality within a multicultural team need to be assessed and initiated while building such a team. This might be to some extent industry, or even organization, specific. It could include special training in language usage in some cases. In other cases it might mean training in the use of specialized equipment, and carrying out mock exercises to ensure that different groups are able to handle the equipment and tasks in a coordinated manner. Whatever form the actual initiatives take, the objective should be to ensure that quality of wok and safety are adequately taken care of. Manifestations of diversity Several writers have stated that the stereotypical view of diversity is limited to one of racial-ethnic diversity. This fact needs to be considered while building a multicultural team. The implementers of policy may view diversity in this fashion, or the organization itself might restrict its definition to such a narrow understanding. However, it should be recognized that diversity is a much wider term. Why is this important to an organization? The answer to this question will be apparent on a closer examination of the motivation to build diversity into the organization. From the discussion in an earlier section on the strategic importance of diversity, it is evident that organizations stand to gain from promoting diversity in more ways than one, and that this is not restricted to contributing to a social cause. If organizations are to realize the full commercial advantage advantage of promoting diversity, they should have a wider understanding of the term, and more importantly, should examine what kind of diversity would help their organization most. Building a multicultural organization Finally, the question of ensuring smooth working of a multicultural organization should engage the attention of the company managers on a continuing basis. As was discussed earlier, it is clear that the key to achieving this object consists in the following: Educating the members of the organization about the advantages of diversity Changing attitudes and perceptions through the employment of various approaches such as cognitive, emotional, and behavioral Recognizing the existence of resistance, and understanding its nature, to provide inputs in an appropriate manner aimed at overcoming resistance. Providing an enabling atmosphere in the organization that helps overcome resistance Promoting free two way communication that allows less privileged members of the organization to express their perceived or real problems, and seek redress. Recognizing the dynamic nature of the problem and constantly reviewing it American Airline – A Case Study American Airlines is widely cited as an example of the practice of diversity. American’s commitment to promoting diversity has been explicitly stated by its senior executives as well as published on its official website. American Airlines is among a very few organizations that give priority to diversity and inclusion, and has included an entire section in its website tot this subject. American has a diverse team of professionals, who are talented and motivated. The company provides an enabling atmosphere that strives to make the most of the experience and different perspectives of its diverse employee base. American promotes collaborative and inclusive work practices. American Airlines has 15 Employee Resource Groups (ERG) that are used to highlight identity and provide advocacy. More importantly, these groups provide bridges to the respective communities enabling the furtherance of company objectives and mission. A Diversity Advisory Council formed from members of the ERGs helps bring clarity to cross-cultural issues affecting employees as well as customers. The Employee Resource Groups provide much needed support and valuable information that helps the Airline to cater to a variety of cultures. The American Airline experience is very insightful for many reasons. AA has a diversity and inclusion policy that has no direct relation to its business. It strives to be a good employer. In the process, it has built a team that is committed, and helps it to face a multicultural customer base, understanding the peculiar requirements of each and helping to provide them. In the process the business of the organization is greatly benefited. Thus, the theoretical position that diversity is a good business strategy is borne out by the experience of American Airlines. Secondly, recognizing the differences between cultures and the barriers to communication that they erect, American has introduced both Resource Groups to address issues pertaining to each group, and to sort out inter-cultural issues through the Diversity Advisory Council. The theoretical positions highlighted by Henderson and Applebaum & Fewster , discussed under the section ‘Impact of Diversity on Safety and Quality’ can easily be connected to American Airlines’ policies and practices. American Airlines has also leveraged all the benefits listed under the section ‘Diversity as s strategic tool” American’s actions are in line with the position highlighted by Sims, and Bajawa & Woodall. The existence of 15 different ERGs representing 15 groups within the organization also shows that American has a high degree of awareness about diversity and has not restricted its efforts to a few areas such as race-ethnicity. American’s ERGs include groups based on age, religion, nationality, gender, sexual orientation and race. (American Airlines) Conclusion In the context of large scale globalization, building a multicultural international team is not a luxury or a remote ideal but one that has become absolutely necessary. Diversity and Inclusion are policies that commercial organizations pursue not merely as a social responsibility, but as a sound commercial strategy that leads to cost saving, better quality and productivity, and better customer servicing. In building such a team the organization needs to show awareness to a number of factors. The organization should appreciate the fact that inherent prejudices that cannot be wiped out but can be overcome to allow smooth operation of the company. Training is one of the major inputs that will have to be employed for this purpose. The organization should also foster a conducive atmosphere that promotes mutual respect and accommodation among various groups. The experience of American Airlines in promoting a multicultural team was briefly reviewed to understand how this organization has achieved a good measure of success in this area. Apart from American’s commitment to the concept, its actions such as the promotion of Employee Resource Groups and Diversity Advisory Council have helped it to leverage the benefits arising from a multicultural team to provide better customer orientation, and help achieve business objectives more effectively. It is clear from this example, as well as the discussions on theory, that a multicultural team, if properly built and nurtured, can bring substantial benefits to the organization, in addition to serving a highly desirable social cause. Recommendations In order to build an effective multicultural workforce, the following are some of the guidelines that may be followed: Include as many groups as possible. These groups should have relevance to the place(s) where the organization has, or proposes to have, operations, and to the organization’s customers. Have a conscious policy and regular review of the diversity profile Recruit persons who are amenable to the company’s diversity policy Provide training to bring about awareness and attitudinal changes wherever necessary. Set up Resource Groups and Diversity councils to ensure continued proper working. Works Cited 1. American Airlines. Employee Resource Groups, n.d. 19 April 2009. < http://www.aa.com/aa/i18nForward.do?p=/aboutUs/diversityInclusion/employeeResourceGrps.jsp> 2. Applebaum, S H and Fewster, B M. Safety and Customer Service: Contemporary Practice in Diversity, Organizational Development and Training and Development in the Global Civil Aviation Industry. Management Research News. Vol. 27, No, 10. (2004): pp 1-26. 3. Bajawa, A and Woodall, J. Equal Opportunity and Diversity Meet Downsizing: A case in the UK airline industry. Employee Relations Vol.28 No.1. (2006): pp.46-61. 4. Bond, M A. Workplace Chemistry: Promoting Diversity through Organizational Change. Lebanon, PA: UPNE (United Press of New England), 2007. 5. Certo, S. Supervision: Concepts and Skill Building: Fifth Edition. New York: McGraw-Hill Professional, 2005 6. Colgan, F and Sue L, eds. Gender, Diversity, and Trade Unions: International Perspectives. London: Routledge, 2002. 7. Figart, D M., Mutari E, and Power M. Living Wages, Equal Wages: Gender and Labor Market Policies in the United States. New York: Routledge, 2002. 8. Goodman, D J, Promoting Diversity and Social Justice: Educating people from Privileged Groups. London: Sage, 2001. 9. Green A. K, López , M, Wysocki, A, and Kepner, K . Diversity in the Workplace: Benefits, Challenges, and the Required Management Tools. University of Florida: IFAS Extension. (July 2002). April 18, 2009 10. Henderson, G. Issues and Strategies Issues and Strategies. Westport, CT: Praeger, 1994.. 11. "Managing a Multicultural Workforce." Black Enterprise July 2001: 120 12. Pitts, D W Modeling the Impact of diversity Management. Review of Public Personnel Administration, Vol.26, No.3. . (2006): pp.245-268. 13. Reuters, American Airlines Expands AA.Com Diversity and Inclusion Information. 22 April 2008. 18 April 2009 < http://www.reuters.com/article/pressRelease/idUS183760+22-Apr-2008+PRN20080422 > 14. Sims, R. R. Organizational Success through Effective Human Resources Management. Westport, CT: Quorum Books, 2002. 15. YourDictionary.com Diversity. 2009,17 April 2009 Read More