Diversity and Selection Methods in Human Resource Management - Case Study Example

Human Resource Management Exam Name Institution Course Date Human Resource Management 1. Diversity and Human Resource Management Managing diversity is closely connected with HRM technique used to address the issues concerning equal opportunity (Beardwell and Claydon, 2010). Managing diversity came into existence in the 1980s as a result of demographic changes and the development of business case designed for equal opportunities. The emergence of managing diversity came in a period when the employers doubted the effectiveness of equal opportunity approach. Business case for diversity over the years has grown dramatically (Beardwell and Claydon, 2010). Managing diversity and equal opportunity approach are two different entities. This essay will describe the differences between managing diversity and equal opportunity approach and will highlight the meaning of business case for diversity. One difference between managing diversity and equal opportunity approach is the fact equal opportunity approach is driven externally to address inequality through the use of legislation while managing diversity is internally driven by the business needs (Beardwell and Claydon, 2010). Another difference between these two entities is in their purpose. Equal opportunities is focussed on reducing discrimination while managing diversity is aimed at utilizing employee potential in boosting competitive advantage (Beardwell and Claydon, 2010). According to social identity theory, managing diversity may increase employee satisfaction while at the same time decrease emotional conflict (Beardwell and Claydon, 2010). Also, equal opportunity is thought as an issue involving women and minority groups while managing diversity is said to embrace a large percentage of people and no one is excluded (Beardwell and Claydon, 2010). Equal opportunity approach is aimed at changing systems and practises while managing diversity is aimed at changing the cultures. The goal of equal opportunities is to offer social justice and human right while managing diversity is aimed at treating employees as individuals with unique and different needs who require different assistance to succeed (Beardwell and Claydon, 2010). The business case for diversity is considered intuitive. It can be termed as the business benefits and advantages that are accrued (Beardwell and Claydon, 2010). The concept is basically connected to the standard of human resource management. Effective and efficient management of diversity has been seen to improve organisational performance and profitability (Beardwell and Claydon, 2010). For instance, studies conducted in Australia have found that organisations with a large number of women directors delivered improved financial performance. In addition, in the United States, a study has shown that racial diversity in companies is linked to higher sales revenue and greater relative profits (Beardwell and Claydon, 2010). Business case for diversity can also be termed as the link between diversity, insertion as well as organisational performance. For instance, companies such as Sainsbury’s, McDonald’s and BT have been pushing for the implementation of inclusion and diversity initiatives. Another research done by Deloitte in 2012 concluded that diversity and inclusion bring about 80 per cent improvement of employee performance and profitability. To sum up, managing diversity came into existence due to demographic changes. Equal opportunity is driven externally and is focussed on reducing discrimination. It is also aimed at changing systems and practises. On the other hand, managing diversity is driven internally and is aimed at utilizing employee potential in boosting competitive advantage. In addition, it treats employees as individuals and increases employee satisfaction. Business case for diversity can be termed as the link between diversity, insertion as well as organisational performance. Companies such as McDonald and BT have pushed for the institution of inclusion and diversity initiatives. Studies suggest that diversity in the workplace enhances organisational performance. 2. Selection Methods Selection process is very important as it assists in the development of a positive psychological contract that leads to organisational motivation (Beardwell and Claydon, 2010). There are different selection techniques that reflect a firm’s people management strategy. Selection process can be termed as the application of relevant methods required for appointing and inducting appropriate candidate a given position (Beardwell and Claydon, 2010). Practicality, sensitivity, validity and reliability are factors to be considered when choosing a selection technique (Beardwell and Claydon, 2010). The three major selection techniques include psychometric tests, interviewing and assessment centres. This paper will discuss the validity of the statement, “It could be argued that selection methods are chosen, because they are practical rather than valid or reliable.” The selection techniques are chosen with regard to practicability, validity, sensitivity and reliability (Beardwell and Claydon, 2010). Practicality can said to be the ease of use in terms of cost and time while reliability entails the ability of the selection method to be consistent. Validity on the other hand entails the degree of measure between the selection method and the future job performance (Beardwell and Claydon, 2010). Selection methods that are unreliable and invalid should be avoided but reliability of the method is not enough. A selection method needs to be valid and reliable. Advanced selection methods include interviewing, assessment centres and psychometric. Interview is said to be having a poor reliability and low validity even though it is the most used technique (Beardwell and Claydon, 2010). On the other hand, psychometric testing involves the measurement of cognitive abilities and traits and is said to having a varied validity. Assessment centres use a variety of assessment techniques and is considered to having high validity and low practicality (Beardwell and Claydon, 2010). As seen earlier, the most common and widely used method of selection is interview though it has low validity and reliability. The reason for its wide uses its high practicality. Other methods such as assessments centre and psychometric are good substitutes of interview but are rarely used. Selection technique must be chosen in terms of their validity and reliability rather than practicality (Beardwell and Claydon, 2010). For instance, Amazon Company makes use of the interview as the main method of selecting the best candidates regardless of its low reliability. Other companies that use interview method include McDonald’s, Coca-Cola Company, and Tesla among others. In conclusion, selection method is very important in the selection of the best candidate for a vacancy position in the workplace. The major selection techniques used in many organisations include interview, psychometric method and assessment centre. Interview is known for its high practicality, low validity and low reliability. Assessment centres and psychometric methods have low practicality but high reliability and validity. Selection method that has high validity and reliability is considered effective. However, many organisations, selection methods are chosen for their practicality rather than their reliability and validity. References Beardwell, J & Claydon, T 2010, Human Resource Management A Contemporary Approach, 6th edition. 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