The Effect of Workforce Diversity on Management Practices in ANZ in Australia and Abroad - Case Study Example

1.0 Introduction This report has been prepared in a synchronised and comprehensive manner to critically examine the concept of workforce diversity and its implications on current management and workplace practices in ANZ in Australia and offshore. Furthermore the report looks to identify the differences between espoused theory and the reality of practice of workforce diversity in ANZ in Australia and offshore where an attempt has been made to discuss and compare upon the current ANZ’s workforce diversity policies and practices with what actually happens in terms of public relations with media, reports etc along with a discussion on what the theory recommends should happen. The report initially looks to explain the concept of workforce diversity and its importance in workplace places in the current global scenario and then looks to explain the workforce diversity within ANZ in Australia and offshore along with its implications on current management and workplace practices in ANZ. Policies and practices of ANZ in context to workplace diversity has been explained in detail to figure out the current steps taken by the organization to ensure a better workplace for all its members along with recommendations and suggestions for improvement of the same in future encounters. The report also makes a comparison of the espoused theory and the reality of practices in ANZ so as to state where the organization has been lagging behind and means to ensure better workplace diversity in future. Finally a conclusion is provided to ensure that the readers are equipped with both theoretical and practical understanding of the entire topic under study. 2.0 Brief on ANZ ANZ is the name trusted and recommended by over 8 million customers on a global basis for its unique services and excellent workforce diversity. ANZ began as the Bank of Australasia with its first office being situated in Sydney, Australia in 1885. The organization very swiftly made a deep impact in the Australian Banking System and was successful in locating its head office in Melbourne, Australia in 1838. Currently the organization is rated as Australia’s biggest and largest publicly listed companies and has made a huge global coverage by operating in over 32 countries in Australia, Asia, Europe, Pacific and America. The current asset value for ANZ is over $600 million with a workforce of over 50000 employees from diverse culture and countries making the organization one of the largest workforce diverse organizations on a global basis. 3.0 Understanding Workforce Diversity A diverse workforce is one which recognizes and embraces the diverse skills, attitudes and perspectives of different individuals which bring to the organization through their specific factors such as origin, gender, culture, ethnicity, disability, sexual orientation, age and religious beliefs (Gable & Martin, 2005). Diversity also encompasses that many individuals vary in terms of their life experience, education imparted, job function, work experience, location, personality, marital status and carer orientation and responsibilities. Workplace diversity relates to the presence of varied differences among different members of a workforce. By creating a diverse workforce in an organization, the organization is able to benefits in terms of new ideas, creativity and potential inherent in a diverse workforce. Diversity in workforce includes various factors such as culture, age, gender, physical abilities, social class, socio-economic status and religious beliefs. These individual characteristics or factors help in shaping an individual perception about their working environment and how they communicate within the workplace. Valuing diversity allows an organization to focus on the benefits created as a result of differences, therefore developing or shaping an environment where individuals from diverse range are accepted and valued. It allows employees attitudes positively however resistance can be witnessed and experienced due to a fear of change and individual discomfort with differences (Findler, Wind & Mor, 2008). Finally managing diversity workforce is when organizations build specific skills and create policies which obtain the best values of each individual employee and create new ways of working together. It provides an organization with an opportunity to manage a workforce which focuses on both individual and organizational performance, whilst still acknowledging the individual specific needs and wants. ANZ tries to understand that the wide array of perspectives resulting from such diversity helps in promoting innovation and achieve higher standards with larger business success. Managing diversity in ANZ helps the organization to be more creative, responsive, productive and competitive with equal focus upon creating values for all its customers and shareholders. To further better understand the workforce diversity let us have a look at how workforce diversity is inculcated and practices in ANZ in Australia and offshore. 4.0 Workforce Diversity at ANZ in Australia and Offshore Consistent with the organizational values which includes broader views of respecting people and communities, ANZ approach to human rights and strategic goals, ANZ’s diversity agenda focuses on differing agendas like gender, ethnicity, culture, disability, flexibility as key drivers being linked to maintain and building of high performance and sustainable organization (Slawomir, 2010). In valuing and managing workforce diversity, ANZ applies the following guideline and self-decided principles to meet compliance, talent management and corporate citizenship objectives as well as focus on delivering value to its customers, employees and shareholders. Facilitate an environment of workplace with equal employment opportunities based on relative ability, performance and potential of individual employee constituting the larger workforce of ANZ (Choi & Dickson, 2009) Building and maintaining a safe workplace environment where immediate actions are taken against any inappropriate workplace and business behaviour which includes discrimination on basis of caste, colour, gender, sex etc, harassment, bullying, victimisation and vilification (Choi & Dickson, 2009) Constant efforts are directed to provide and ensure a flexible work practices to meet the differing needs and wants of individual employees at different stages of their life cycle in context of their business requirements. Attract and retain a skilled and diverse workforce as the basis need of the hour and further ensure them as employer of choice. Focus on making a continuous effort to contribute to the economic, social and educational well-being of the communities which ANZ serve not in Australia but on a global basis Improving upon the quality of decision making, productivity and ensuring a workplace of team work and team efforts (Choi & Dickson, 2009) Maintain a workforce and strictly comply to local legislation along with aligning its policies and practices with the world’s leading practices to ensure the creation of an inclusive workplace culture (Choi & Dickson, 2009) The way such principles are brought to life is a joint effort and combination of efforts being directed through the following factors. Diversity targets. Leadership and cultural programs on a constant basis to ensure better workplace ethics. Employee network building. Human resource policies, systems and processes which are changed on continuous basis to meet with the dynamic requirement of business. Entering into new sponsorships and events. Internal communications and awareness campaigns on a global basis to meet world-class standards. Apart from the aforesaid, ANZ in Australia and offshore have successfully established a Diversity Council and a Diversity Committee, which is led by the Chief Executive Officer and enables the business to outperform by promoting diversity as an important and significant strategic asset to achieve the organizational and business objectives along with performing a governance role to achieve effective diversity management (Kundu, 2003). 5.0 Policies of ANZ and Comparison with Espoused Theory ANZ Bank has successfully responded to the common trends of the Australian workforce with establishment of new programs and policies to retain a diverse environment that reflects its customer base. The organization is focused on creating an inclusive culture which allow its diverse employee workforce to contribute as they belief that diversity and inclusion are essential criteria and elements for high business performance. By managing diversity within its workforce, ANZ is provided with a pool of best talents and a wide variety of experience to achieve success and set international standards within a global workforce. ANZ has made efforts to create a diverse working environment through concentrating on varying HRM policies. For example, HRM within ANZ at Australia and Offshore created the “My Difference” survey which surveyed over 13500 employees of ANZ. The major attempt of survey helped ANZ to figure out the current demographic picture of the organization and its workforce diversity and helped to gather feedback on how their employees perceive diversity and inclusion within the organization. However, on comparison of the same with espoused theory of other companies the survey lacked support and feedback from the higher management employees who acts as the referees to the game, thus making the survey sallow in its own endeavour (Kahnweiler, 2006). Attempt should be rather conducting the survey through outsourcing agency and include the top officials to gain better results. Furthermore, ANZ has founded the Diversity Council which introduces polices and sponsor events to create a more inclusive culture within the diversified workforce. Diversity has also resulted in the discrimination of people based on caste and creed. It is seen that men are preferred upon women which shows discrimination based on sex. This has thereby impacted the manner in which organization works and has resulted in dividing people. In addition to it occupational segregation is common as mostly men are preferred at high level of jobs and women are preferred at lower levels. This has created differences among the working individuals and has made it difficult for people to come together and ensure that they work in a manner through which workforce has not been able to come together. HR in ANZ has implemented a wide range of human resource strategies like disability awareness, plans in the organization outlining strategies to increase support and inclusion for customers and staffs of the company which include premises being wheelchair accessible. Besides the aforesaid mentioned plans, in order to promote age balance, mature aged employees in the organization are provided with the benefits of flexible working hours to suit their changing life styles (Nishi & Ozbilgin, 2007). Again making a comparison with espoused theory, such efforts are unique however the same is a deeper cause of resentment from other age group staffs in the diverse workforce who are denied or not privileged to have the benefit of flexibility working hours suited as per their life-styles. Culturally, the bank has planned to help indigenous Australians improve their wellbeing and money management skills as ANZ celebrates cultural diversity by holding “Annual Cultural Week”. ANZ Bank at Australia and Offshore has also put into operation a “Career Extension Program”, which enables its mature age employees who are aging and thinking of retiring as an alternative other than retirement. This initiative makes its flexible for its group of mature age employees who can reflect upon their retirement plans and stay with the company ahead of their retirement age. In the words of one of the ANZ employee, Offshore, “Age diversity allows all employees to gain an insight into different values and views on many issues and problems and should be encouraged with all class and age groups rather than just concentrating on the mature aged group of employees” thus on making a comparison with espoused theory it clearly suggest that the policies are vibrant and extensive however more concentrated to specific groups which needs to be changed (Kim, 2008). The bank also has a few more alternative for its mature age employees to reconsider their careers by giving them an opportunity for part-time jobs, mentoring and coaching the new recruited staffs through their experience and learning or even working from home. Recently the organization has also stepped into an alumni program where the retired employees or those whose who are enjoying the break from their work with ANZ can renter into their work position in ANZ (Wright & Pandey, 2010). Management of diversity involves equal employment opportunity for all however, effective diversity goes beyond the basic requirements of an equal opportunity workplace. It is important for the HR of ANZ to determine and formulate upon an effective diversity management plan and policies keeping in mind the espoused theory of other companies and the desired effects and results of such espoused theory. The most important job for senior human resource managers is to consider how diversity in workforce shall benefit the organization and how to define its specific role in context to the organization (Shen, Chanda, Netto & Monga, 2009). An organizations diverse policy should aim towards establishment of a heterogeneous workforce which is able to work to its core capacity in an environment where no member of the team have a superior advantage or disadvantage based on their individual differences. 6.0 Ethical and Moral Implications of Diverse Workforce and Sustainability Concept The rebalance program created by ANZ at Australia and Offshore helps the mature workers redefine their work which suits to their lifestyle. The program considers flexible options such as job sharing, telecommunicating work from home, along with new career initiative programs which has certainly helped the group of mature employees an added advantage in the workforce diversity and can be criticised in terms of comparison with espoused theory of equal opportunities for all (Ellis, 2001). Furthermore, it can lead to resentment among the youth class of employees within the organization who had been denied such superior diversity facilities. ANZ attempts to remove the qualification based career advancement barriers. Research shows that in ANZ, the mature age workers are more likely to have a tertiary qualification than the younger counterparts. Hence, ANZ has changed its tertiary qualification policies and the organization aspires to improve the educational attainment level of its employees in respect of their feedback so revised its policy. On a media approach and comparison with the espoused theory ANZ has changed its way of recruiting advertising which clearly highlights that the organization needs to adjust the language of its advertising in recruitment as a part of its commitment to provide a diverse workplace. The slogan “Age is no barrier” needs to be settled on all ANZ job advertisements. Thus we see ethical and moral implications of diverse workforce of ANZ at Australia and offshore have its own benefits for a group of workforce whereas on comparison of the same with espoused theory of other global companies constant efforts need to be directed for a better diversified workplace. Let us have a look at how sustainability can be applied by ANZ in its diversity workforce policies. Turning into the key success factors of anti-aging discrimination which has been constantly highlighted in the entire report, ANZ in order to ensure sustainable concept of diversified workforce needs to encourage six critical tactics which are included by public policy, management commitment and competencies, the climatic relations of industry, the process of implementation, flexibility and responsiveness, devolution of full-fledged responsibility to deal with globalization, innovation, competition and sustainability. Firstly, ANZ should look towards producing the public policy for age management. A detailed policy statement should be part of both mission statement and annual report. The public policy should further provide vision and coherence to support anti-discrimination. Secondly, senior management supporting the core of successful initiatives should be a part of management commitment and competence. For example, for all job descriptions person specifications and competency frameworks must have an age proof so as to enable the organization being aware of both direct and indirect discrimination (Wild, Wild & Han, 2010). Thirdly it is important to clearly identify the main internal drivers of age management in HR departments and its associated policies. Lastly focus should be on achieving long term sustainability of its workforce diversity policies than upon short-term success. 7.0 Conclusion Thus we see this reports make a deliberative attempt to enable the readers with the concept of workforce diversity and then critically examines the concept of workforce diversity along with its implications on the current management and workplace practices in ANZ in Australia and offshore. Furthermore there has been a comparison made with the espoused theory of other companies to identify the reality of practices in workforce diversity of ANZ and also makes an attempt to discuss what the theory say should happen. 8.0 References Choi, Y. & Dickson, D. 2009. A Case Study into the Benefits of Management Training Programs: Impacts on Hotel Employee Turnover and Satisfaction Level. Journal of Human Resource in Hospitality & Tourism, 9 (1), 103-116 Ellis, V. 2001. Enterprise or exploitation: Can global business be a force for good The New Statesman. 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