The Conceptualization of Diversity Management - Article Example

The Conceptualization of Diversity Management 1.0 Introduction Managing diversity encompasses the treatment of people as individual persons. The individual may represent employees, customers or clients as the individual can act in any of these capacities. “Factors such as sex, age, background, race and disability are taken into account to create a productive environment in which organisational goals are met efficiently and effectively by making the best use of everyone’s talents and potential” (CIPD) Diversity and its management is becoming a policy concept choice of UK organizations across the public and private sectors. (European Commission 2005) According to Kandola and Fullerton (1998) managing diversity though has been considered as a strong reaction against the promotion of ideas of social justice based on minority group advantage, is explicitly based on the ‘business case’ and emphasises multiple, individual difference, potentially applicable to all employees. However diversity management is viewed more as an organizational imperative. Though the objective of diversity management is also the utilization of all available talents it is said that there is a shift in the orientation of this policy from the concept of equal opportunities. Nevertheless the concept diversity management as an emerging aspect of Human Resources Management (HRM) is occupying a central place in the recent periods. In this context this paper presents an overview of the conceptualization of diversity management, the issues connected therewith and presents an evaluation of some of the ways in which the present day organizations can improve upon their policies on managing diversity to make it more effective. 2.0 Concepts of Diversity Management – An Overview “Managing diversity effectively follows on from, and expands on equal opportunities”(NCVO) Equal opportunities is about keeping within the law and the decisions about the payment of wages, recruitment and promotional policies are to be framed on the basis of the capabilities of the individuals to perform their functions effectively. This requires a systematic policy approach to all facets of personnel management and such policies are framed by a pre-empting discrimination. “Diversity is a more wide-reaching approach to equal opportunities work. It incorporates the principle that all workers should receive equal rights but, rather than ignoring the differences between people in terms of their gender and race, this diversity should be recognised and respected.” (NCVO) Diversity management works on the basis of a valuation of the varying aptitudes and skills that different workers bring along with them to be utilized by the organizations. Under this concept the managers arrive at a working environment where all the workers are valued on the basis of their individual skills and expertise and also such skills and expertise are utilized to the fullest extent. The idea of ‘diversity management’ is not a new one and has been found in existence even from late 1980s. All the three concepts of Diversity Management, Human Resources Management, and Total Quality Management are having the central idea of improving the business efficiency and make it result to produce more economic gain in the form of enhanced profits. But the concept of diversity management has been found to be deviating in orientation from that of equal opportunities, as observed by Thompson (1997) “The concept of ‘managing diversity’ is one that has grown out of Human Resources management and is also a movement away from traditional equal opportunities policies and practices. It is premised on recognition of diversity and differences as positive attributes of an organisation, rather than as problems to be solved.” However the phenomenon of diversity management finds itself conceptually similar to that of HRM as evidenced by the work of Storey (1995) “A distinctive approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce, using an array of cultural, structural and personnel techniques" One of the key issues about the prominence of diversity concept is that whether it contains any material improvement over the traditional concept of ‘equal opportunity’ As observed by Thompson (1997) managing diversity is a move that can be identified to have policies and practices slightly away from the concept of equal opportunities. 3.0 Managing Diversity – Challenging Stereotypes “Challenging stereotypes is what managing diversity is all about” (CIPD). There are innumerable ways in which the personal backgrounds and individual characteristics of the people affect the way the decisions are made about providing job opportunities and also the opportunities for training to those who are already in employment. The unpublished results of the 1995 research conducted by the CIPD has shown that different kinds of ‘personal and social category characteristics’ can result in unfair advantage or in gross disadvantage to the people concerned. The following are some of the areas in which discrimination may arise for providing employment opportunities. These areas were identified the people involved in the recruitment industry. Accent: Accent communicates the background, education and birth place of the people which makes some people desirable while others are rejected Sexual Orientation: There are occasions in which people who are overtly or idiotically gay are rejected Size: The people who are fat sometimes do not get a fair chance as the organizations always expect to have people of normal built Gender: There are quite a number of debates on ‘women in employment’ with employers finding various reasons for discouraging the women reaching top positions Age: Age is an important determinant of the suitability for job openings. Many a times older men are considered not adaptable to react to new ideas and younger men are considered irresponsible and inexperienced. Disability: The considerations here are “Being disabled means being a wheelchair user, less capable than an able-bodied person, will have high sickness absence and will cost more to employ” (CIPD) Apart from the above there are various other considerations based on race, ethnicity, religion, and even locality that act detrimental to the provision of equal opportunities to those who are otherwise well equipped to handle the work for which they can be recruited. Mostly it is the individual managers’ perception about these varying aspects than the organizational policies that come in the way of managing the diversity efficiently. 4.0 Business Case for Diversity Management Managing Diversity is found to have a multi-dimensional business case in terms of its implementation in the organizations by progressive self interest. The concept offers both indirect and direct enhancements to competitiveness. The indirect enhancement is by achieving cost saving measures. The indirect advantages are: Reduction in Worker Turnover: When the organization is practicing diversity, the people working with it become happier. This makes them to stay with the company for longer periods. When the workers stay for longer years the organization is saved of the cost of repeated employee recruitment and training them for various jobs. This cost is really enormous and the organization can save on this cost. (Bartz, D.E. et al 1990) Reduced Absenteeism: By entering into contracts with employees that takes care of the specific needs of the employees the firms are enable to derive maximum output. This particular aspect has been witnessed to ensure a reduction in the absenteeism. (Biznet) Less Legal Expenses: The legal costs to be incurred by any company for defending cases of discrimination are extremely high. Moreover the negative publicity occurring to the company increases the costs to the company. (Echiejile, L. 1995) Direct advantages include: Availability of Best Talents: The firms are able to not only attract the best available talents but also able to retain them. This is very crucial in the current day business environment of war for talents. Improvement in productivity and performance: Managing diversity presents a very dynamic and strategic approach to flexibility and thereby it ensures enhancement in the performance of the organization concerned. (Hall, D. and Parker, V. 1993) Best employer: Under the present conditions of war for talents the skill shortages can easily be managed by efficient diversity initiatives within the organizations. With a commitment to the policies and practices of diversity and equality the organization can become the best employer both from the profitability and from the society’s point of view. In terms of improvement in the public profile the following distinct advantages accrue to a firm practicing diversity management and equal opportunities: Ethical Behaviour: By behaving ethically and respectfully towards the community the firm is able to distinguish itself from other firms. “Moreover investors and customers are increasingly making choices subject to corporate ethics, and the company's image as an employer.” (Commission for Racial Equality. 1995) Being a Role Model: “Equality and quality are increasingly seen as indivisible in the market place” (Adaji, A) Becoming a role model enhances the public profile of the company in the eyes of the stakeholders, investors, customers and employees of the organization. Possibility of International Associations: The practice of diversity management by any organization makes powerful with respect to addressing the business improvement issues. The essence of diversity lies in the fact that the different skill levels and experience of the people because of their orientation to various cultures really make the organisation work effectively and this adds to the success of the business. (Biznet) 5.0 Barriers to Diversity Though recognized as beneficial to the organizations the introduction of diversity has some barriers which hinder the successful practice of diversity management within an organization. Some of the barriers are: Organizational culture and inertia – in the case of certain organizations with a successful accomplishment of their missions may not recognize the need for diversity Lack of Involvement from the top management – without the involvement of the Board of directors and other senior management, the introduction of diversity management may be found difficult Dependence on consultants – excessive dependence on external consultants for recruitments and a poor fit between the style of the consultant and the organizational culture would go against the practice of diversity management Involvement of staff – when the work load is heavy and demanding on the time the workers have it may be difficult to get their cooperation on diversity moves within the organization Resistance – there may be internal resistance from the individuals in the organisation feeling that their power or privileges are in jeopardy due to the promotion of diversity management. It is often difficult to identify the areas of resistance and mitigate the issues connected with the resistance Labor turnover – any labor turnover will have its effect on the diversity initiatives as the management and the staff will be left with the tedious task of familiarizing the diversity efforts and getting the commitment of the new members would also be difficult Oppression Model – when diversity initiatives take the form of an oppression model depending solely on addressing the oppression of one group over the other, such initiatives may not produce the desired results Apart from the above the presence of unions, language, and cultural differences within the organization, lack of proper budgetary allocations and organizational complexity also affect the practice of diversity management (TSNE). 5.1 Legal Implications There are several legislations that have been enforced in the UK covering the sex, race and disability discrimination in the UK. The liability of the employers has been defined clearly under these legislations so that the diversity could be legally protected. According to the present legal situation in the UK the employers can be held liable for the acts of discrimination committed by the employees during the course of employment. The liability of the employer continues irrespective of the fact that whether the employer had knowledge of such acts or not and whether the employer approved the acts or not. However it is not possible to hold employers liable for the acts which can be construed as discrimination, and which are committed out side the work place. But the employer will still be held liable in case where the nature of the act has a direct link to the work. The liability of the employer also extends in cases of discrimination by third parties under situations where the employer could reasonably foresee the commission of the acts and did nothing to prevent such acts. The employer will be absolved of his responsibility by taking reasonable steps to prevent the occurring of discrimination at the work place. Training the workers on equality is one of the steps recognized in this connection. 6.0 Conclusion Thus managing diversity can be regarded as working on the concept of recognizing the values of the people as each individual is different one and this value must be recognized for reason relating to both the business reasons and for a moral and social justice reason. The diversity management takes into account the fact that people originating from different backgrounds and culture can bring new ideas and perceptions which can contribute to the production of goods and services in an efficient manner. Managing diversity efficiently would enable the organization to have wide scope for inculcating creativity and innovation in the organizational operations. It also enables the organization to tap the hidden talents and expertise for achieving higher growth and attain an increased competitive advantage. “The management of diversity requires action to ensure organisations have an open workplace culture based on trust and mutual respect. In such a culture people value each other and treat each other with dignity”(CIPD) It is also vitally important that differences in personal backgrounds and individual characteristics do not play any role in making decisions about selecting the individuals for providing employment opportunities or training and development while in employment. References Adaji, A. As quoted in Equal Opportunities Review, 1995. p. 30 Bartz, D.E. et al. (1990) ‘A model for managing workforce diversity’ Management Education and Development V 21 part 5 Biznet ‘Managing Diversity’ http://www.biznet.org.uk/businesscase-managediversity.htm CIPD ‘Managing Diversity: People Make the Difference At Work – But Everyone is Different’ http://www.cipd.co.uk/NR/rdonlyres/493588D2-1BB3-43A8-9D34-3916C5FC868C/0/mandivers0305.pdf Commission for Racial Equality (1995) ‘Racial Equality Means Business - A Standard for Racial Equality for employers’ Caxton House Press. London.) Echiejile, L (1995) ‘The Business Case for Equal Opportunities’ Professional Manager European Commission (2005) ‘The Business Case for Diversity - Good Practices in the Workplace’ Luxembourg: Office for Official Publications of the European Communities Hall, D. and Parker V (1993) ‘The role of workplace flexibility in managing diversity’ Orgnanisational Dynamics. 22.1) Kandola, R. and Fullerton, J. (1998) ‘Diversity in Action: Managing the Mosaic’ (2nd Edition) London: Institute of Personnel and Development . NCVO ‘Managing Diversity’ http://www.ncvo-vol.org.uk/askncvo/index.asp?id=178 Thompson, Neil (1997) ‘Anti Discriminatory Practice’ Macmillan Press TSNE ‘Enablers and Barriers to Diversity’ http://www.tsne.org/atf/cf/%7BD1930FAD-18A8-4D53-BBA2-A2971E3DEE1A%7D/Brch_Enablers_and_Barriers.pdf. Read More