The Role Of HRM In Managing Workforce Diversity - Essay Example

The Role of HRM in Managing Workforce Diversity Total Word Count: 1684 (Introduction to Conclusion) The objective of this essay is to proffer the role that human resources management play in internationally located companies focusing on managing workforce diversity. The discourse would outline strengths and weaknesses related to diversity in the workplace. Finally, the priorities in managing such international staffing groups well would also be determined, as required. Introduction Management of human resources has become the greatest challenge today for they have become enlightened and vigilant of the rights of their workforce. In view of developments in the field of business, organizations have made expansions in terms of adding more branches either domestically or internationally. The concepts underlying the management of human resources of international corporations are evaluated in relation to a multitude of factors, including workforce diversity which incorporates culture, race, religion, gender, and sexual orientations, that affect their success and existence. Managing diversity should incorporate variables which are critical in operating on an international scale. In designing the organizational structure for international operations, the human resources structure should meet both the strategies of the home office and the requirements of the local market. The most critical and relevant variable in the design of the organizational structure is its people or human resources since they are the ones directly involved in the company’s day-to-day operations. In this regard, the objective of this essay is to proffer the role that human resources management play in internationally located companies focusing on managing workforce diversity. The discourse would outline strengths and weaknesses related to diversity in the workplace. Finally, the priorities in managing such international staffing groups well would also be determined, as required. Definition of Terms The Business Dictionary defines workforce diversity as “similarities and differences among employees in terms of age, cultural background, physical abilities and disabilities, race, religion, sex, and sexual orientation” (2010, par. 1). Business organizations exist for a particular purpose. The distinguishing characteristic that differentiates one from the other is the market where each operates. Lee Iwan, a professional with extensive cultural and international experiences international business stipulated that international organizations are considered either importers or exporters of products and services with absolutely no financial investment across borders (Iwan, 2007, 1). One of the most critical aspects in diversity is culture. Martires & Fule (2008, 571) defined organizational culture as the atmosphere existing within an organization resulting from its various components like mission, goals, structures, resources, technology, relationships and clientele. Managing corporate culture is a skill which every international organization should learn since culture change is a complex and long process involving coordinated efforts by the head office which is very visible to host branches. While many practitioners and academicians aver that management theories and principles are similar throughout the world, their application varies from one country to another due to varied cultural systems. Others observe that cultural differences make it inappropriate to take management theories and practices from the cultures in which they were developed and apply them to another culture. Strengths of a Diverse Workforce In international organizations, hiring of human resources from local or host countries would aid in the development of skills. With a diverse workforce employed by the home organization, training for responsibilities which should comply with the standards expected from international organizations would be easier. The home organization’s diverse workforce would have qualified personnel who are aware of the host countries’ cultural orientations. The skills acquired through training would subsequently be shared to others down the line. These advancement increases efficiency and production which fuels profits in the economy. A concept of purpose and a sense of direction strengthen an organization’s ability to survive in changing circumstances and environment. In organizations, large numbers of people congregate under one roof in a joint pursuit of purpose. The organization then sets itself up to harness the creativity of the people for maximum effectiveness. A primary business objective is being profitable, and managers must explain and justify business performance and decisions in light of this objective (Toulmin, Rieke, & Janik, 1984). In this regard, there have been several studies which support that managing diversity in organizations contribute to profitability. According to DiTomaso (1999), “knowing how to successfully manage in diverse business situations will undoubtedly have effects on both the corporate bottom line and on one’s own career prospects”. DiTomaso (1999) revealed that there are several factors which influence diversity in organizations, to wit: “(a) the changing demographic structure of the U.S., (b) the increased importance of globalization to profits and long-term survival in many companies, and (c) changes in the structure of how work gets done”. Through diversity, individual workers are given the opportunity to learn from experiences of various cultures. They are exposed to diverse sources of creativity in problem solving. Further, challenges posed by diversity create positive environments for individual competition in terms of improving one’s skills and advancing competencies. These values enhance the accomplishment of organizational goals. According to Davis & Bryant (2008), “diverse environments also yield more effective collaboration and teamwork than homogenous teams. There are a variety of ways to solve a problem; leveraging the input of a diverse staff population helps organizations arrive at better decisions. You can’t underestimate the value of the creativity and ingenuity elicited from a team of varying experience, knowledge, and background.” In addition, by encouraging diversity, organizations were found to attract and retain top talents since it promotes training and development of diverse potentials to contribute to a unified goal. Kirby and Harter (2003) proffered that “the dominant metaphor of managing diversity, with its emphasis on competitive advantage and a quick-fix orientation, has the potential to emphasize the concerns, values, and perspective of management while marginalizing the perspectives and uniqueness of diverse employees”. In this regard, its direct contribution to increased productivity and profitability is hereby validated. Weaknesses of a Diverse Workforce Different literatures provide inconclusive findings on workforce diversity depending on the factors and cooperation through teams. A study conducted by Aparna Joshi & Susan E. Jackson which was published in the International Handbook of Organizational Teamwork and Cooperative Working (2003) indicated that factors such as age, gender, race and ethnicity, and even tenure and educational background influence work performance. Studies on diversity in gender results in higher levels of conflict and lower levels of friendliness, among others (Alagna, Reddy & Collins, 2002). With regards to age differences, findings of studies revealed inconsistencies. Those with age disparities among top management teams reveal higher levels of interpersonal conflict (Jackson, et.al., Wiersema & Bird, 2003). However, in work groups, the greater the disparity in age, the lesser the emotional conflict with the rationale being that individuals of the same age range are more likely to form rivalries competing on positions and promotions (Pelled, Eisenhardt, & Xin, 1999). Race and ethnicity differences also proffer consistent findings as indicated by Joshi & Jackson. Accordingly, some studies aver that increasing racial diversity in predominantly white communities or organizations, increase tendencies for racial conflict (Blalock, 1997; Reed, 2002). When student groups were used as samples, increasing racial diversity also exhibited lower cooperation as compared to homogeneous groups (Watson, Kumar & Michaelson, 2003). Finally, another significant factor of diversity in the workforce is educational background. In a study conducted by Jehn, Chadwick & Thatcher (1997), the authors averred that diversity in educational background in teams produced greater conflicts in the group. This finding was corroborated by Knight, et.al. (1999), whose findings revealed that diversity in educational background of top management teams have a direct relationship with lower levels of strategic consensus in decision making processes. Priorities in Managing a Diverse Group An international organization, being composed of different people taking into account the following diversity attributes: race, ethnicity, gender, class, sexual orientation, physical abilities, age and generation, region, industry, occupation, function, department, project, educational background, work experience, dominant/non-dominant culture and religion, should ensure that they have proper resources to support and manage the diverse group. A human resources department supporting a diverse workforce must be capable to manage it. Training, development and performance evaluation methods should work with diverse programs and audiences. A motivational system based on incentives and rewards should be placed to acknowledge personnel who provide affective educational programs for diverse audiences. Mentoring programs should be installed and implemented to orient current staff of supporting a diverse culture (Maurice, n.d., 1). The policies and procedures should emphasize the value of diversity and pluralism. By pluralism, it is defined as “an organizational culture that incorporates mutual respect, acceptance, teamwork, and productivity among people who are diverse in the dimensions of human diversity” (Maurice, n.d., 1). In this regard, all functions and resources must conform to supporting a diverse workforce. Conclusion Contemporary practices in human resources management, especially in international organizations need to seriously evaluate the effect of diversity in their organization’s workforce. As indicated in the discourse, there are strengths and weaknesses of incorporating workforce diversity in the organization’s human resources policies. Several studies support the contention that managing diversity contributes to the organization’s profitability. According teams with opportunities for exposure in different cultures enhance their creativity in solving problems. Further, organizations that support a diverse workforce attract more talent and maintain a balanced pool of human resources whose talents can be tapped in a variety of situations and challenges. On the other hand, managing a diverse workforce also has a set of weaknesses depending on the elements of age, race and ethnicity, gender, and educational background, among others. Various scholars who delved into the subject revealed findings that a diverse workforce create more tension and conflict, lower cooperation, and an inability to arrive at strategic consensus in required decision-making processes. Likewise, international organizations must be equipped with the necessary resources in terms of personnel, facilities, and programs to support and manage the diverse team. Human resources practitioners must be qualified and competent in recruiting diverse people with exemplary skills required to undertake responsibilitities in an international environment. Training and development programs should incorporate cultural orientations and integrating the unique talents and qualifications of each member to ensure an effective collaboration and harmonious participation to address the mentioned weaknesses. The challenges of managing a diverse workforce continue to pervade international organizations due to the nature and complexity of diversity factors. The critical aspect to consider is that human resources remain to be the most important resource of the organization. Management must ensure that all perspectives in recruiting, placing, training, and developing them are adapted to the demands of the times. References Alagna, S., Reddy, D., & Collins, D. (1982). Perceptions of functioning in mixed-sex and male medical training groups. Journal of Medical Education, 57, 801 – 810. Blalock, H.M. (2002). Toward a Theory of Minority Group Relations. New York: Wiley. Business Dictionary.com. (2010). Workforce Diversity. Retrieved 22 April 2010. < http://www.businessdictionary.com/definition/workforce-diversity.html> Davis, A. & Bryant, and P. (2008). Thrive Through Diversity: Diverse Teams Outperform Homogenous Teams — Every Time. Retrieved 21 April 2010. DiTomaso, N. (1999). Managing Diversity in Organizations. Retrieved 22 April 2010. f Iwan, L. (2007). Difference between a global, transnational, international and national company. Retrieved 21 April 2010. Jackson, S.E., Brett, J.F., Sessa, V.I., Cooper, D.M., Julin, J.A., & Peyronnin, K. (2001). Some Differences make a difference: individual dissimilarity and group heterogeneity as correlates of recruitment, promotions, and turnover. Journal of Applied Psychology. 76, 675 – 689. Jehn, K.A., Chadwick, C. & Thatcher, S. (1997). To agree or not to agree: diversity, conflict, And group outcomes. International Journal of Conflict Management, 8, 287 – 306. Joshi, A. & Jackson, S.E. (2003). International Handbook of Organizational Teamwork and Cooperative Working. John Wiley & Sons, Ltd. Kirby, E.L. & Harter, L.M. (2003). Speaking the language of the bottom-line: the metaphor of "managing diversity”. Retrieved 22 April 2010. Knight, D., Pearce, C.L., Smith, K.G., Olian, J.D., Sims, H.P., Smith, K.A. & Flood, P. (1999). Top management team diversity, group process, and strategic consensus. Strategic Management Journal, 20, 445 – 465. Martires, C.R. & Fule, G.S. (2008). Management of Human Behavior in Organizations. National Bookstore. Maurice, V. (n.d.) How to Recruit and Hire a Diverse Workforce. Retrieved 20 April 2010. < http://www.docstoc.com/docs/2567788/How-to-Recruit--Hire-a--Diverse-Workforce> Pelled, L.H., Eisenhardt, K.M. & Xin, K.R. (1999). Exploring the black box: an analysis of work group diversity, conflict and performance. Administrative Science Quarterly, 44, 1 – 28. Reed, J. (2002). Percent black and lynching: a test of Blalock’s theory. 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