Improvements in Diversity Management - Essay Example

?MANAGEMENT: MANAGING DIVERSITY Diversity management has attracted not only a lot of interest but also debates all over the world. Many countries are now making improvements in their diversity management strategies in order to accommodate the increasingly diverse labour market (Subeliani and Tsogas 2005, p.833). My paper seeks to give an introduction to the topic diversity, giving a clear definition of what it really is. My main region of focus will be European countries, but with exception to the UK. The paper will explore the various types of diversity management policies which are currently being introduced in organisations in European countries. In addition, it will try to look at the main underlying factors that driving the formulation of these policies. Finally, it will address some of the challenges the organisations in these countries face while implementing these diversity management policies. Diversity management entails various actions by organisations aimed at maximising the inclusion of workers from a diverse background. These employees are recruited into not only formal but also the informal structures of the various organisations by use of deliberate policies. The recruitment may also be done through deliberate programs, specifically designed for promoting diversity management (Egan and Bendick 2003, p.235). As a way of countering the increasingly diverse working population all over the world, many organisations have put in place particular measures aimed at appropriate recruitment of employees, their inclusion, as well as the retention of these employees. Focus has been put on those employees from underprivileged or minority groups within various societies. Various organisations in Europe have instituted laws that promote equal right, as well as policies aimed at enhancing affirmative action, so as to assist the less privileged groups to get jobs in both familiar and unfamiliar labour territories. It has been discovered that the exclusion of such workers from influential positions has seriously contributed to their limited contribution to the well being of their respective organisations. This has in turn given them very little chances to gain from these organisations maximally (Subeliani and Tsogas 2005, p. 838). The various policies and initiatives for diversity management have been proven to have created conducive working environment in these organisations, especially to the underprivileged groups. It has indeed worked positively in recruiting individuals who are getting jobs for the first time, and those that are occupying higher positions for the first time too (Mathis and Jackson 2010, p.200). The emergence of a global economy and that of multinational organisations has taken diversity management considerations beyond just the dynamic nature of labour market in a specific nation, but that across nations. The management of diversity of labour force in a national context is known as “intra-national diversity management. On the other hand, managing labour in an organisation with citizens from different nations is referred to as cross-national diversity management. In this sense, a company may be operating in different countries and as such, needs policies and programs, for diversity management, to be applied not only in its headquarters but also in its branches in the various countries. Moreover, cross-national diversity management policies work better when organisations put into consideration laws and culture of the countries in which they operate (Arredondo and Arredondo 1996, p. 178). According to Thomas (2005), diversity management goes beyond the simple consideration of the less privileged groups. It also considers differences and similarities within a workforce. He argues that diversity management entails handling the employee dynamics within the whole workforce, and not just a particular section of the workforce (Klarsfeld 2010, p.325). The European Union has shown its almost unrivalled commitment to promote equality in its labour market through various policies. This has seen the emergence of a trend, across Europe, to increase the scope of those legislations aimed at reducing inequalities amongst people from diverse ethnic, religious, cultural and gender backgrounds. This was boosted by EU’s adoption of ‘EU Directive 2000/43/EC Art 13,’ in 2004, by its Council of Ministers (Wrench 2007, p.63). However, the European countries do not have a common level of implementation when it comes to policies and initiatives aimed at promoting diversity management. For instance, not all the EU member countries have complied with the requirements of affirmative action as well as positive action initiatives. As such, organisations in various countries have a choice whether or not to adopt diversity management programs and policies. Those with the policies and programs also implement them at varying levels depending on the organisations’ commitment. For instance, following a few comparative studies carried out by the International Labour Organisation to ascertain diversity-training programs in Europe, it was found out that, by the time of the study, Spain had no antidiscrimination policies to protect immigrant workers (Wrench 2007, p.65). Moreover, very few people were aware of the dangers posed by both not only ethnic but also racial discrimination. However, it was found out that there were various labour initiatives from some organisations and trade unions. But these were just aimed at limiting discrimination and not diversity management (Sparrow, 2009, p.204). It is important to note that the main requirement in diversity management is to the institution of a diverse labour force. Recruiting a diverse workforce is may be an aim for diversity management, but this is just to the extent that there is diversity within an organisation. The absence of this diversity may require that the organization revises its recruitment strategies, instead of concentrating on its management of diversity. Netherlands can be used as a good example when referring to this. In Netherlands there is a relatively diverse workforce. However, it is unfortunate that there is still a lot of segregation within the workforce. The Dutch have invested a lot of their business diversity strategies in attracting customers rather than in recruiting employees (Subeliani and Tsogas 2005, p. 833). Despite her doing badly in the field of diversity management, Netherlands has actually put in place a number of initiatives to lower inequalities when it comes to the representation of ethnically underprivileged groups, especially in employment circles. This, she has done through influencing policies and a number of practices within various organisations. For instance, the Dutch government has placed some kind of targets, numerical in nature for all governmental organisations across the nation. It has also initiated positive action initiatives within all agencies of the government. In addition, covenants have been made with not only employers in the public sector but also with those in the private sector. These covenants have seen the employers in the two sectors putting into place measures for diversity management. One of such measures is the standardisation of targets, numerical to be precise, on the number of people to be employed from within the minority societies. These strategies are popularly referred to as “equal opportunity” or EO policies. They also include the affirmative action policies also known as AA policies (Groeveld 2010.pdf, p.4). The Dutch have also seen a number of policy shifts in the recent past. In 2007, the New Working Conditions Act was officially put into practice. This Act obliges the employers and employees to carry out extensive consultation with each other before instituting agreements. This is aimed at promoting friendly working relationships between the employers and their employees. This Act finds its basis in other equal treatment Acts. It also derives its strength from other non-discrimination Acts instituted before it. In a move to make this Act more effective, the Labour Inspectorate in Netherlands has resolved to these agreements between the employers and their employees. In addition, the inspectorate has the powers to take stern actions against those who abuse or do not obey, or those who simply breach the agreements. A more positive step in promoting diversity management in Netherlands is the nation’s intention to assemble all her provisions on equal treatment to form one umbrella Act of integration known as the “Equal Treatment Commission, 2005.” This Commission is to cater for all the dynamics of the country’s demography. The dynamics include, among other things, gender, ethnicity, and homosexuality (European Agency for Safety and Health at Work, 2010). The idea of forming one commission to handle all diversity management issues in Netherlands is very appropriate since this will limit duplication of activities as well as bringing harmony amongst the various diversity management programs and initiatives. Spain, on its part, has also played a crucial role in promoting diversity management in Europe. She has put into place a forum aimed at addressing the integration of immigrants. The forum has since expanded its scope, more specifically on its consultative as well as participatory ability. The forums functions by emphasising not only studies but also initiatives and programs that may aide the integration of immigrants, at least socially. There was also the introduction of the “Citizenship and Immigration Plan,” between 2005 and 2007, by the Catalan government. The Plan has necessitated the development of a number of reception initiatives aimed at enhancing equal treatment amongst all citizens. The Plan also is also aimed at giving equal opportunities to all citizens, with an emphasis on immigrant workers. The Act, for instance, helps in making it possible for immigrant workers to efficiently learn and speak the country’s official languages. These languages include Spanish and Catalan. The Act has also seen the introduction of a number of courses on the country. The courses also extend to the country’s labour market as well as her legislations that protect the workers’ rights (Diversity at Work: Diversity management principle). Literature also shows various diversity management initiatives that have been development not only at national levels within EU countries but also at the European Union level. For instance in Belgium, in 2005, there was a charter signed by almost 50 employers. The charter was known as the “Charter for Diversity.” These employees represented approximately 150,000 workers. The employers had been among those who were active in the “Brussels Capital Region.” In the same year, a new instrument was put into place to reduce inequalities within the labour market. The instrument had been developed by the “Inter-Ministerial Conference on Integration and Employment.” This was known as the “Diversity Trademark.” The instrument was to inspire various Belgian companies to embrace diversity management initiatives. Therefore, those companies that clearly showed that they had ways of promoting diversity were awarded with the “Charter for Diversity.” To qualify for the award a company had to prove that the initiatives were effective both within them as well as outside their organisation. A similar award was also introduced in Denmark in 2003. The awarded is called as the MIA prize. The award is still in existence to date and is currently being presented on a yearly basis. The institution entrusted with the responsibility of awarding it is the “Danish Institute for Human Rights.” (Wrench 2007, p.63). This award has, no doubt, promoted the institutionalisation of diversity management measures within many companies in Denmark. I say this simply because I believe that the award is a motivation enough for all companies to uphold the diversity management initiatives as not only a way to win the coveted award but also to enhance their public relations in a competitive business environment. Again, in 2005, Belgium introduced another instrument for diversity management. This instrument came to be known as the “Unit colourful enterprising.” The instrument was introduced by the Belgium Federal Administration. Its duties were to not only prevail on employers and directors of various companies, but also to give them guidelines on the best ways to establish diversity management programs in the companies (Wrench, 2007, p. 64). In Ireland, there was the establishment of “Project DAWN,” the “Diversity at Work Network.” The main aim of this network was to aid the various business organisations in Ireland in their attempt to have an environment that was healthy for intercultural association. Its main target was the workplace with workers from minority ethnic groups. However, the ultimate goal was to help them develop some kind of wholesome diversity management policies. According to the “Centre for Diversity and Business,” there was an establishment of a project known as “Diversity Management.” This project had been established by an Italian management training institute, and partially funded by the European Union. The project was specifically instituted to encourage diversity management programs in Italy, so as to help in finding solutions to Italian cultural diversity challenges. Going to the European Union level, the union has established a campaign in all its member states. The campaign is known as “For Diversity-Against Discrimination,” and aims at sensitising people on diversity management issues as well as holding debates on the same. In Austria there is the tradition of social partnership, also aimed at promoting diversity all citizens, and especially their association with the minority groups (Wrench 2007, p.64). There are various forces behind the implementation of the diversity management policies in European countries. At the surface, we can realise that the policies are being implemented to reduce inequalities available in this diverse population. However, some organisations have just sheltered under this objective but they have other motives in promoting diversity management within them. For instance, there are some organisations which see diversity management as an ample opportunity to advance their business endeavours. They believe that by employing a diverse workforce they stand a chance of creating new business opportunities. This workforce tends to attract more customers, thereby improving the performance of the organisations (Klarsfeld 2010, p.325). Some organisations also find it as a good way of recruiting and retaining diverse resources within the market (Ng and Burke, 2005, p.6). It is also appealing to many organisations since it helps them in maximising their human resource. It is a clear way of recognising the efforts of individual employees, and as such helps in developing them career wise (Pollitt 2006, p.32). The implementation of the diversity management policies seems to counter a lot of challenges. Some writers argue that there exists limited awareness within the middle management across Europe. There is also constant criticism from various scholars and organisations in Europe, who claim that diversity management promotes ‘ethnisisation,’ and as such policies should not be put in place to encourage it. There is also a constant fear among the critiques that this form of multiculturalism may lead to ethnic separatism, which is a great threat to the societal cohesiveness. Various critiques have made such observations, and they include Paul Scheffer of Netherlands, Giovanni Sartori of Italy, and Bob Rowhorne and David Goodhart of the UK. They claimed that too much of diversity breaks down national identity, destroys societal cohesion, interferes with common values, and discourages the participation of the welfare state (Stockdale and Crosby 2004, p.168). Various societies in France and Germany have experienced moral panic especially concerning the ‘second generation.’ There has been tension across ethnic groups as well as violence due to the implementation of the diversity management policies. There is also a fear that those well intentioned policies which were made in 1980s have the ability to harm minority groups since they have worked to promote fierce competition for opportunities between the minorities. They are also feared to have the ability to put various ethnic minority groups into some kind of disintegrated regions like the endangered species (Mathis and Jackson, 2010, p.465). Subeliani and Tsogas have also cited an increase in conflicts and stereotyping within various populations due to the attempts to diversify the labour market in Europe (Subeliani and Tsogas, 2005, p.838). The implementation of the policies has also met opposition from a number of radical unionists in Europe. These unionists see the attempt as an emerging way of carrying out exploitation of the workforce (Klarsfeld, 2010, p.325). It is also argued that some societies have diverted their attention from important issues surrounding inequalities such as sexism and class. These societies, in their attempt to promote diversity, have implemented policies which only give too much attention to cultural identity (Klarsfeld, 2010, p.325).Some other people have opposed diversity management policies in Europe since it is seen as acting as a hindrance to reaping from the efforts made in programs that promote equal opportunity. Trade unions have seen it as an attempt by employers to ignore issues of racial and gender equality, and have just decided to merely recognised diversity management as a way of reducing problems they face in the management field (Wrench, 2007, p.64). Diversity management in European countries has helped a great deal in minimising inequalities within the labour market, therefore, giving opportunity to various organisations to reap from the benefits of having a diverse workforce. Despite the challenges facing the implementation of the diversity management policies, it is very obvious that these policies have made the labour market in Europe better. Since Europe has a diverse workforce, it is only those organisations that have recognised the importance of promoting diversity within them that are set to perform better than those which have not. A good example of such organisations is Rabobank, which has used the diverse nature of its workforce to its own advantage. This has seen it making higher incomes and maintaining good working relations within the organisation, a factor that has not only enhanced employee satisfaction, but it has also functioned to boost motivation among the employees (Subeliani and Tsogas 2005, p.833). Bibliography Arredondo, P., and Patricia, A. (1996) Successful diversity management initiatives: a blueprint for planning and implementation. Thousand Oaks, California: SAGE, p.178. Egan, M., and M, Bendick (2003) Workforce diversity initiatives of US multinational corporations in Europe. Thunderbird International Business Review, 45(6), p.235. Ely, R.J., and Thomas, D.A. (2001) Cultural diversity at work: The effects of diversity at work perspective on work group processes and outcomes. Administrative Science Quarterly.46, p.229. European Agency for Safety and Health at Work: the new Dutch Working Conditions Act. Available from: http://nl.osha.europa.eu/legislation/?language=en. [Accessed 6 January 2012]. 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(2004) The psychology and management of workplace diversity. Hoboken, New Jersey: Wiley-Blackwell, p.168. Subeliani, D., and G. Tsogas (2005) Managing diversity in Netherlands: a case study of Rabobank. International Journal of Human Resource Management 16(5), pp.833, 838. Wrench, J. (2007) Diversity management and discrimination: Immigrants and ethnic minorities in the EU, Aldershot: Ashgate, pp. 63-64. Read More