Managing Diversity Implication for Organization - Research Paper Example

 1. Introduction Workforce diversity has become a business issue which is of vital importance. Undoubtedly, the 21st century will witness an increase in workforce diversity, and because companies are always on the move and looking for opportunities to expand throughout the globe, it’s evident that the diversity of employees will only increase. The days when organizations used to have a workforce which was characterized by monoculture and homogeneity are virtually over. The workforce in large corporations now comprise of an assorted mix of employees coming from various socio-cultural backgrounds. Hence, the representation of employees from diverse group affiliations within the organization is what defines workforce diversity of today. Workforce diversity is related to the policies and corporate strategies which attempt to include the section of the workforce who is somewhat different from the existing workforce in a particular constituency. The HR managers therefore need to pay attention to a few important points while seeking to harmonize a mosaic of workforces within an organization. 2. Discussion Section 2.1. Workforce Diversity at Thailand & France Workforce diversity is a key subject for the Human Resource department in most major companies around the world. And since the success of companies depends on the talent and productivity of their employees, they cannot afford to encourage partisan HR policies. Rather, they need to attract the best employees and try to retain them as much as possible. In this present global economic scenario, multi national corporations have to abide by certain policies of the countries where they’ve opened their offices. France and Thailand are two countries which may be thousands of miles apart; they however have to tackle identical issue-Workforce Diversity. Whereas in Thailand, the key areas of concern are cultural and religious diversity among the employees, in France, managing and properly harmonizing the migrant employees with their own employees have been a great challenge for Human Resource teams of French corporations. 2.1.1. Workforce Diversity in Thailand For Thailand, one of the biggest challenges in building a globally competitive organization has been in creating a top class workforce, which integrates employees from diverse cultures, ethnic backgrounds and religions. Thailand is being regarded by many as one of the best knowledge based nations in Asia, Thailand seeks to improve employee productivity, employee contribution and employee knowledge. It’s also important to harmonize the workforce in a manner which facilitates in a higher work output. It’s been noticed that the amount of commitment among the multi-cultural Thai workforce is higher in the public sector than in private sector enterprises. More and more companies are now realizing the benefits of having a multi cultural workforce in a global economy where the customer base of the company encompasses several cultural, national and religious groups. The outdated policies and corporate culture practiced by some Thai companies has benefited certain sections of the Thai workforce, while the needs and aspirations of the minorities have been ignored. This has caused the rise of a group of disengaged Thai workers, whose lower productivity has cost the Thai economy about a billion US dollars each year. However, this has made the government sit up and take notice. And presently, numerous Thai organizations have integrated equal opportunity employment policies. The company’s managers play a crucial role in ensuring that employee diversity is encouraged and promoted. 2.1.2. Workforce Diversity in France As for France, the group HR policy of the AXA Group, France attempts to maximize employee performance and stimulation and also meet corporate challenges worldwide. To maximize employee performance of a workforce which comprises of people from diverse ethnic, religious and cultural backgrounds, AXA integrates the workforce seamlessly by enforcing strict work ethics. Each employee is expected to respect and recognize individual differences arising out of various ethnic backgrounds. The company also seeks to recognize and utilize the employee’s unique contribution, knowledge and ability for the greater good of the company. All in all, AXA strives to build a corporate culture wherein the approach to workforce diversity is both practical and sustainable. The group’s management practices guarantee equal opportunity based on merit and ability and tries to promote the benefits of work diversity within the organization. It’ demonstrates it’s commitment to work diversity by encouraging executive level involvement and a comprehensive communication campaign. The teams are allowed to integrate diversity themes and even in recruitment planning, diversity issues are incorporated. There’s a specific policy called the AXA Global Diversity and Integration Policy which tries to ensure that all AXA companies choose and reward employees according to merit and ability. Furthermore, the progress of the group towards workforce diversity management and integration is checked through the annual review by the chairman of AXA, the Steering Committee and the senior HR managers. The results of the review are then submitted to the Sustainable Development Governance Committee. AXA France is comparatively more committed to the equal opportunities commitment than its branches in other countries. They have added a number of proactive actions to the group policy. Employees working in AXA France are allowed to continue their education and professional training programs, irrespective of the employee’s background. Regarding the gender equality issue, AXA France has been highly praised as well. That’s why they have been awarded the Equality Label by AFNOR. The HR policy and actions aimed towards promoting the minorities and AXA’s monumental step of accepting anonymous resumes for the post of sales executives received a lot of appreciation also. In 2004, around 20,000 anonymous resumes were accepted by the company, which went to show the company’s non-discriminatory stance towards its employees. AXA France has also special arrangement for the hiring people with disabilities. It had signed a four year agreement in 20003 with trade unions which allowed people with disabilities to join AXA. The group aims to have about 5% of the workforce comprising of people with disabilities. Besides initiating young trainees with disabilities, AXA also attempts to have job adaptation training and continuous support for the employees with disabilities. For doing so, workstations and work schedules are reorganized to suit the employees with disabilities and moreover, improvement on site accessibility is also made. The other vital steps taken by AXA France to promote workforce diversity include equal access to training and development, deployment of Diversity Contact Officers for integrating the disabled with the mainstream workforce, promoting the women in technological areas more, organizing of Diversity Networking Events to help employees in the awareness of the company’s diversity initiatives and supporting of organizations like The Equal Employment Opportunity Network. 2.1.3. Diversity Implication for Organization To manage for change, employees in a number of Bangkok corporations are being given incentives according to performance and efficiency. The top management is making certain that employees from all the cultural groups including Thai (Comprising 36% of the population), Northern Thai (8%), Thai-Lao (32%) and Southern Thai (8%) have equal say in corporate matters and are passionately devoted to furthering their company’s progress. The Thai organizational model has always embraced the top-down approach, wherein the managers have used the employees just as cogs in a wheel. However, as Thailand shifts to knowledge based economy, the importance of a diverse workforce which needs frequent interaction and encouragement from the managerial level has been acknowledged. 2.2. Managing Diversity The managers in Bangkok today try to involve the diverse Thai workforce in decision making, planning and implementation of company policies. Regarding the workforce, it’s also been revealed that the majority of workforce in the country’s commercial cities of Bangkok, Chiang Mai and Nakhon Ratchasima come from the Bangkok metropolitan area, who comprise of the most important workforce of the country. However, this section of the workforce is comparatively less productive than their counterparts, probably owing to a lack of job fulfillment. This is an issue which the Thai corporate mangers are trying to address as well. As regards to gender, the female employees are more engaged in work than the male are, average-wise. Married employees on the other hand have more productivity than the unmarried ones. What’s more, the Thai company workforce working under male managers are more productive than the female counterparts. The age demographics also show that the employees over 45 are more in numbers, whereas the number of young employees in the workforce s comparatively less. Therefore, the Thai corporate milieu is encouraging the younger Thai talents with innovative ideas to join the public and private sector companies of Thailand. And this is how Thailand is seeking to maximize the potential of the workforce. 2.2.1. Organization Reasons to Be Diversity First of all, workforce diversity practices which address problems of the disadvantaged workgroups are considered to be a positive step in corporate responsibility. By diversifying the workforce, the HR is helping the minority groups of a particular country to realize their dreams and earn a living. Secondly, workforce diversity is a form of economic payback as well. The employees, who’ve been refused on grounds of cultural, religious or racial background, may start relying on social service programs which are tax supported. Hence, employing them would transform these tax users into payers of tax. Thirdly, workforce diversity is imperative for utilizing the best human resources. The French companies have realized that discriminatory preferences and preferential benefits for the white groups will ultimately lead to a dip in the employee talent pool, whereas including talent from the large array of backgrounds would definitely make the workforce more efficient. Next, many of the Thai and French companies are bound by the non-discriminatory employment practices of their respective governments. Equal Opportunities Employment is becoming mandatory for many companies, and non-compliance to this legislation might result in fines or loss of government contracts for the companies. Next, workforce diversity has become an important asset for companies which have a wide base of customers. There are number of companies (Such as CAT Telecom and Distar of Thailand, and Saint-Gobain of France) which sell products and services to people from all walks of life, races, genders, sexual orientations, and ethnicities. 2.2.2. Equal Employment Opportunity The French global insurance company group AXA is one of the most highly regarded equal opportunities employer in France. Besides following equal opportunities in gender and hiring the disabled, AXA group of France has also obtained the ‘Equality Label’ and has made a significant contribution of fighting harassment and discrimination in the French corporate environment. The working methods in the company promote diversity and equal opportunity. 2.2.3. Program or Systems of Organization in Diversity Hiring people from all walks of life helps the company in getting valuable inputs from the multi-ethnic and multi-cultural workforce on the specific tastes and preferences of a particular segment of its customers. Therefore, the workforce makeup should reflect the makeup of the customers too, which would eventually help the company to make more profit. Also, a diverse workforce aids in communication strategy. Several companies in Thailand and France have crossed borders and are seeking to establish themselves in foreign countries. And that’s why French companies like AXA and Thai corporate houses such as CAT Telecom have chosen not to retain homogeneous workforces in foreign countries, since that would have rendered their external communications and interactions ineffective. Lastly, an increasing number of companies in France and Thailand are utilizing a diverse workforce as a Capacity Building Strategy. Employees from diverse backgrounds are proving to be an advantage because they are bringing their unique perspectives and values to the table, which is resulting in an increase of the company’s total insight, knowledge and experience. 2.2.4. Organizational Evaluation & Obstacles in Diversity Workforce diversity is an extremely powerful as well as emotional subject that the Human Resource managers have to deal with in the 21st century. Issues such as inspiration, preferential treatment, racism, tolerance and justice, oppression of minority groups and unfair compensation are all attached with this sensitive subject, which is Workforce Diversity. And as economies continue to develop as a response to globalization, the importance of introducing new conceptual frameworks in managing and promoting workforce diversity is at the top of the list for human resource managers in not only countries like USA, France, Thailand or the UK, but in most countries throughout the world. 3. Summary The dynamic and ever-changing employee environment is being properly aligned by the company policies and organizational structures in France and Thailand. And it is this change in HR policies which eventually will help the companies in these countries to attract and retain the diverse base of customers as well as employees. References Chandler AD Jr, 1986. Evolution of Modern Global Competition. In ME Porter (ed) Global industries. 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