Workforce Diversity - Case Study Example

PERSONAL MANAGEMENT Table of Contents Table of Contents 2 Introduction 3 Workforce Diversity 3 Reasons behind Increasing Diversity in Workforce 4 A Diverse Workforce 5 Advantages of Workforce Diversity 7 Increased Adaptability 7 Creating Competitive Advantage in the Market 7 Increased Talent Retention 8 Disadvantages of Workforce Diversity 8 Increased Cost of Training 8 Conflicts 8 Communication Problems 9 Recommendations 9 Conclusion 10 References 11 Introduction Workforce diversity is an important issue for any organization in today’s globalized world. Workplace diversity can help in increasing the productivity of an organization in a significant way (Black Enterprise, 2001). This study entails about different characteristics of diversity in workforce of an organization. The growing impact of workforce diversity on the different business concerns in this modern era has been discussed in this study. The reasons behind the increasing diversity at workplace and the various advantages and disadvantages associated with it have also been discussed in this study. Some recommendations have also been suggested for organizations about how they can implement workforce diversity in an effective and efficient manner. Workforce Diversity Diversity can be defined as understanding, acknowledging, valuing, celebrating and accepting differences that exist amongst people in relation to various factors like age, ethnicity, class, gender, mental ability, physical ability, sexual orientation, race, status of public assistance and spiritual practice (Esty, Griffin, & Hirsh, 1995). Not only gender and race but there are many differential factors which explain the term diversity. If we talk of a workplace, diversity is manifested through different forms like gender, age, physical attributes, ethnicity, educational background, sexual orientation, marital status, income, spiritual practice, geographical location, work experience, parental status, etc. Workplace diversity is becoming more and more pronounced because of the advent of globalization. The success of a business organization and its rate of growth can be determined through its ability to manage diversity in different aspects of the company in an efficient and effective manner. The organization can think of growth and development only if it is ready to accept people coming from various beliefs and background in its company so as to develop an organizational culture which would allow everyone to work together in the form of a team. One of the primary ways to achieve this objective by an organization is by valuing diversity and working for it. Reasons behind Increasing Diversity in Workforce As days are passing diversity is becoming an important issue for an organization because the employees of the companies are becoming more and more heterogeneous in nature. Organizations have realized the importance of workforce diversity and how it can increase productivity and lead the company towards growth and development in the future. The trend of increasing diversity is observable in a significant way amongst the workforce of United States. This fact can be explained through the figure given below (Fig - 1): Fig – 1 Source: (NCPPHE, 2005, p. 2) As depicted in the figure above the US workforce is experiencing significant changes in the demographic constituents. The working population consisting of whites is showing a declining trend since the year 1980. At the same time, the minority population of the US workforce is showing an increasing trend. Furthermore, the population of Hispanics or Latinos is increasing at a much higher rate than the minority population of the US workforce. This type of demographic shift in the US workforce can be attributed towards the fact that a significant portion of the white workers of US are nearing their retirement age. In addition to this larger portion of the Americans who are of younger age belong to ethnic minority groups. Hence the greater portion of the young population of the US workforce is the minority people. Apart from the reasons mentioned above, there can be various other factors which can lead to workforce diversity within an organization. It has been observed that a large number of women are becoming interested to get employed and join the workforce of different organizations. This is leading to the increase in proportion of females in a company’s workforce. Globalization has resulted in the need of employees who belong to different regions of the world and who are culturally different. This would ensure that the company has the proper knowledge of the culture prevalent in the regions in which it is operating its business. The culturally diverse workforce works in favor of the organizations in this way. A Diverse Workforce Diversity can be imparted in an organization through various means like, gender, age, nationality, education, disability, etc. A particular organization needs to implement its workforce diversification strategy in an effective and efficient way through the utilization of proper means and procedures. The workforce or the employees working for an organization thus can be diverse in many ways depending upon various factors which have been discussed below: Gender: Gender is an important consideration for creating workforce diversity in an organization. It has been observed that most of the top officials of an organization are male members. Thus workforce diversity can be achieved through equal proportions of males and females in an organization. This helps in the empowerment of women significantly and adds to the profitability of the company. Age: Age can also be an important consideration while creating or implementing diversity in an organization. People from different generations can help in creation of diverse knowledge base in the organization through the varied levels of potentials, skills and experiences possessed by the employees who belongs to different age groups or from different generations. The companies thus have a wide knowledge base which can be utilized by them to increase their productivity and profitability in a significant way. Race and Ethnicity: This is also vital for a company to create diverse workforce. Often companies are found to discriminate between employees on the basis of their race and ethnicity. This can have an adverse impact on company’s performance because it might be losing out in opportunities to utilize the skills and abilities of certain individuals who have not been included in its workforce. Thus race and ethnicity forms an important constituent for the creation of diversity in the workforce of an organization. Moreover, it helps to increase the moral of the employees and increase their working efficiency which ultimately leads to the growth and development of the organizations. Advantages of Workforce Diversity Workforce diversity has numerous advantages and benefits for any business organization. As for example, with the increase in diversity in the workforce of a company it helps in expanding the breadth of ideas and perspectives available to the business concern while making any kinds of decisions. Workforce diversity is a resource of a company and it has the potential of improving the decision making process of an organization it used effectively. Competitive advantage is created for a company through the management of diversity. Various potential benefits associated with workforce diversity include higher innovation and creativity, helping in making better decisions, increased adaptability, knowledge creation, etc (Green, López, Wysocki, & Kepner, 2002, p. 2). Some of these advantages of workforce diversity have been discussed below: Increased Adaptability Business concerns which employs diversity in its workforce has the ability to provide greater varieties of solutions to the problems faced by them in service, resource allocation, and sourcing. Individual experiences and talents are brought together by the employees of the organization who are from diverse backgrounds to help in suggesting ideas that are characterized of being flexible in nature in adapting to different kinds of fluctuating customer and market demands. Companies are able to provide services on a global basis to its customers with the help of diverse collection of experiences and skills (Greenberg, n.d.). Creating Competitive Advantage in the Market Workforce diversity can lead to competitive advantage for an organization because people having different viewpoints can help in facilitating different approaches towards problem solving which are creative and unique in nature. This helps in increasing innovation and creativity and ultimately leads to increase in the performance of the organization. Increased Talent Retention Workforce diversity helps in attracting and retaining talents in an organization which adds to the competitive advantage of the company. The feeling of belongingness and loyalty is increased among the employees because of workforce diversity in the company. The pool of language skills is enhanced and helps in driving an organization towards increasing its diverse customer base and thereby increasing its growth and expansion. Disadvantages of Workforce Diversity Workforce diversity can prove to be beneficial for an organization but it has its demerits as well. Some of those disadvantages of workforce diversity have been discussed below: Increased Cost of Training The training costs of a company increases due to workforce diversity. These increased costs are a result of expenses incurred by the company to organize programs, lectures and seminars for promoting diversity in the organization. Employees are taught how to accept thoughts or ideas and personalities of others. Conflicts Conflicts can arise between two individuals when there is a difference in opinions presented by them. In the context of diversity, ignorance is the root cause of creation of conflicts. Lack of acceptance is caused due to derogatory comments or prejudice feelings of the employees. One of the most common type of conflict arises from because the feelings of superiority amongst different employees. Ignorance of such conflicts can have a negative impact on the company’s performance.. Communication Problems Diversity programs can become a failure for a company if different types of cultural, language and perceptual barriers are not overcome by the organizations in an effective way. Low morale, lack of team work and confusion are a result of ineffective communication of the important objectives of a company. Recommendations As evident from the discussions made in this study so far workforce diversity has become an important issue for the organizations and it can help to increase productivity and performances in a significant manner. Some of the suggestions to ensure effective handling of workforce diversity in a company have been discussed below: i. Diversity Awareness Contest: The employees can be made to explore diversity within an organization in a proactive manner through the implementation of diversity knowledge contest where the employees would be involved in the activities of exploring different aspects of diversity and how it can be beneficial for the company. This would help towards achieving the objectives of the company in a more effective way. ii. Diversity Training: Diversity training programs within an organization which is scheduled to be held on an ongoing basis can help to impart diversity within the company in an effective way. The training programs can include various activities like online training, classroom seminars, etc. iii. Disability Education: Another type of diversity activity which is suited to a particular workplace to promote workforce diversity is through the organization of contests that would help the workgroup members in identifying the employees who have disabilities. Conclusion Workforce diversity is an important aspect for any organization carrying on their business activities successfully in this 21st century. The importance of workforce diversity in a company has been discussed in this study. Diversity can come in different forms like age, sex, marital status, ethnicity, and so on. An increasing trend of diversity in workforce is observable in the US workforce. It is mainly contributed towards the aging of whites and increasing younger minority groups. Globalization has also led to the prominence of workforce diversity in this modern era. There are many advantages associated with the implementation of workforce diversity as mentioned. However, it comes with certain disadvantages for the companies as well. The companies are benefited through increased creativity and innovation in the business procedures because of diversity in workforce. The productivity of the companies also gets enhanced as a result of implementation of workforce diversity. However, it leads to increased training costs and communication problems may also arise within the organization. Various recommendations like diversity training programs, disability education contests, etc. have also been suggested in this study which if implemented by the organizations can help them to impart workforce diversity in a more effective and efficient way. References Black Enterprise. (2001). Managing a Multicultural Workforce. Black Enterprise, 31(12). Retrieved from http://black-enterprise.vlex.com/vid/managing-multicultural-workforce-52853963. Esty, K., Griffin, R., & Hirsh, M. S. (1995). Workplace Diversity. A Managers Guide to Solving Problems and Turning Diversity into a Competitive Advantage. Massachusetts: Adams Media Corporation. Green, K. A., López, M., Wysocki, A., & Kepner, K. (2002). Diversity in the Workplace: Benefits, Challenges, and the Required Managerial Tools. Retrieved from http://edis.ifas.ufl.edu/pdffiles/HR/HR02200.pdf. Greenberg, J. (no date). Diversity in the Workplace: Benefits, Challenges and Solutions. Retrieved from http://diversity.sdce.edu/content/diversity-workplace-benefits-challenges-and-solutions. NCPPHE. (2005). Income of U.S. Workforce Projected to Decline if Education doesn’t Improve. Policy Alert. Retrieved from http://www.highereducation.org/reports/pa_decline/pa_decline.pdf. Read More