Work Force Diversity - Essay Example

Work Force Diversity Table of Contents Introduction 3 Work Force Diversity 4 Importance in 21st Century 4 Diversity Management 4 Important Facts 5 Reasons for Workplace Diversity 7 7 A Diverse Workforce 8 Advantages of Workforce Diversity 9 Disadvantages of Workforce Diversity 10 Recommendation 11 Conclusion 12 References 13 Introduction According to VR Hayles ‘Diversity is all the ways in which we differ’. The modern workplace of 21st century can be referred to as the mosaic of diverse opinions, ideas and beliefs and if taken together develops an environment of diversity. Organizations that embrace diversity not only increase regulatory acquiescence but also succeed in reducing workplace conflicts. The report will shed light on the importance of workforce diversity in an organization. However before that brief insights about the concept of workforce diversity will be presented. The study will also discuss the advantages and disadvantages of having a diverse workforce. Few recommendations on how to maintain and handle a diverse workforce will be also presented. Finally the report will conclude stating whether diversity in workforce is important or not. Work Force Diversity Workforce diversity can be defined as the workforce of an organization that is made up of people from different cultural and demographical backgrounds. Diversity can be also on the basis of human qualities. However from the perspective of an individual diversity can be in terms of ethnicity, race, gender, age, or anything related to physical abilities (Daft, 2008, p.333). Although diversity acts as a key competitive advantage to the organizations, sometimes it can act as a concern. For example diversity in the form of working generation is a matter of concern for many organizations. There are four generations that work side by side in an organization, and each group has some different expectations and diversified mindset. Therefore to create an environment where all the groups get fitted is certainly a challenge for the organizations. Importance in 21st Century As human being enters the 21st century, diversity in workforce has become crucial in a business venture. In this age of information technology, the most valuable asset of the organization is its workforce. The increasing globalization has made people to interact more among themselves as well as from the people of different beliefs, locations and cultural backgrounds. People are no longer working in an inward-looking market, but they work in a global market place. There are competitions from almost every part of the world. Hence for this principal reason organizations need diversity in their workforce. It has also become a way to be more innovative and also open to amendments. Issues pertaining to diversity have got importance like never before. Also scholars predict that its importance will further increase in the future due to increase in the global population. Therefore every organization must strive to incorporate diversity in their workforce and look after the ways by which it can become an inclusive organization. Moreover diversity also holds the potential to offer competitive advantage and higher productivity. In this context according to Stephen G. Butler of Business Higher education forum, highlighted that diversity is a precious asset and thus America cannot neglect it. Hence from an overall standpoint valuing and managing diversity is essential for the purpose of effective human resource management. Furthermore it contributes hugely towards the increase of workplace productivity (Green, López Wysocki & Kepner, 2002, p.1-2). Diversity Management With the economy becoming increasingly globalized, workforce is also becoming more and more diversified. Therefore the competitiveness and success of an organization is highly dependent upon the management of diversity. Nonetheless, it also a fact that managing diversity in the workplace is more challenging than managing uniformity in an organization. It is demanding, stressful, time consuming as well as prone to failures. On the other hand managing uniformity requires mere authoritarian management and stringent enforcement pertaining to performance standards and procedures. Diversity in the workplace is not only about how individuals perceives about themselves, but it is also about they perceive or see others. Such perceptions have impacts on the overall communication and interactions. Therefore in simple words management of diversity is about valuing different viewpoints of the workforce in an organization. Also in order to maintain a wide variety in the workforce and for the organization to function efficiently in the market place, human resource department has to deal proficiently with issues pertaining to change, communication and adaptability (Jackson, 2003, p.215). Important Facts Some of the interesting facts about diversity in the form of gender are that in Europe women accounts 55% of the total graduates. However there employment rate is only 21% than males. There is almost 15% difference in the remuneration of females. Also there is high percentage of women working per time (Mckinsey, 2007). However the scenario is changing organizations are increasingly trying to make a balance between the male and female employees. Some useful data is also presented below: - Figure 1 (Source: Mckinsey, 2007) Figure 2 (Source: Lockwood, 2005) Reasons for Workplace Diversity Diversity can be referred to as a broader category and takes into account various factors such as age, gender, nationality, sexual orientation, and religion among others. In simple words diversity is about differences. From the last few decades diversity in workplace has gained much acceptance. Some of the important reasons for increasing diversity are as follows:- 1. Better Decision Making – With a diverse workforce organizations can make better decision. In this context professor of Kellogg School of Management, Katherine Phillips found that conducted an experiment with a diverse team members and homogenous team member. Both the teams were given a problem and he found that the diverse team member had done better. 2. Enhances effectiveness of Groups – The effectiveness of a group gets highly enhanced. Again in this context Philips highlighted that social uniqueness sometimes acts as a valuable factor in improving the productivity. 3. Group Diversity – There is a perception that homogenous groups are remains comfortable with each other and therefore performs better. To a certain extent the statement is true enough but at times homogenous groups do not offers expected result irrespective of their greater understanding. This is mostly evident during complex issues, where diverse group are more efficient and offers better results (Blackman, 2009). A Diverse Workforce Diversity in the workplace can be based on various differences amongst employees of an organization. It sounds simple but diversity embraces ethnic group, gender, personality, age, cognitive style, organizational function, tenure, education, religion, cultural background, disability and nationality among many other forms. The diversification of employees can be also on the basis of working experience. However it depends upon the organizations on what basis they maintains diversity. Also organizations have different intentions for having a diverse workforce. For example IBM has a diverse workforce and their primary intention towards encompassing is customer satisfaction. Nevertheless among many forms of diversity some of the common and important forms are discussed below:- 1. Age: - In an organizational perspective diversity on the basis of age is simply portrayed as containing employees from various age groups. The demographics of workforce are undergoing transformations. Studies also reveal that this form of diversity will further increase in future. In present days some organizations encompasses four generations of employees. They are traditionalists, baby boomers, generation-Xers and millennial group. 2. Gender: - Diversity in the form of gender is about having proportionate males and females. Since women have made their presence felt in every part of business, having females in the workforce became important. Furthermore studies also reveal that organizations with higher women proportion in management positions may depict better performance. 3. Nationality: - Diversity based on nationality is about having diversity in the form of employees from different nations. This type of diversity is mostly found in multinational companies where they have staffs from various countries of the world. Advantages of Workforce Diversity A diverse workforce is extremely vital for a strong and robust economic growth. In this turbulent and competitive market, diversity is tremendously important for the purpose of developing the bottom line. Hence it has become obligatory for the organizations to develop such work force to get success in the market place. Apart from its necessities it also offers a number of advantages to the firm. For example in USA there are large numbers of women entering the labor market, also other groups such as transgender people and gay are making imperative contributions in the economy. Some of the advantages of workforce diversity are as follows:- 1. Innovation – Diversity fosters more innovative and creative workforce. Also bringing together employees from various cultural backgrounds, qualification and experiences will helps companies to solve critical problems. It also brings huge amount of creativity and innovation within the organization. 2. Greater markets Share – With varied workforce organizations are able to tap more markets. Also with a diversified group of employees, organizations will be able cater to large number of customer group. In simple words it can effectively cater to different ethnic and racial backgrounds. Furthermore companies can also cater to the transgender and gay people, if they have some in their workforce. 3. Economic Growth – Studies reveal that having a diverse force foster economic growth. A Country witnessed substantial human capital growth as more number of ethnic and racial minorities, women, transgender and gay people. According to a report by Mckinsey, these groups has accounted for about 40% of the national GDP. Disadvantages of Workforce Diversity Business communities have a high regard for the companies that endeavor to enhance diversity in the workforce. Nevertheless a company that moves with their intention of developing a diverse workforce faces a number of challenges. These challenges are mainly in the form of training and development. Furthermore there are challenges in the form of management difficulties, conflicts and misunderstandings among others. Again these challenges that organizations have to face in turn become a disadvantage to them. Some of the disadvantages of having a diverse workforce in an organization are as follows:- 1. Difficulties in management: - Increased diversity in the workforce often leads to difficulties in management. Since the work force is made up of people from various backgrounds and nations, their thought, beliefs and ideas largely differs. In this context it becomes difficult for the managers and supervisors to handle them effectively. In situations these employees are also given mandatory training sessions regarding customer interactions. Therefore this session forces an employee to undergo training. This can create unintended consequences for the organization. 2. Conflicts and misunderstandings: - Having a diverse workforce signifies that there are people who have different min set, perception, value and attitude. This creates a huge chance of conflict among the group members (Griffin, 2006, p.209). Also due to communication gap between the members there can be misunderstandings that can impact in the overall performance of the company and also the employees. 3. Resistance to Change: - In a diverse group there is always a question of self interest. Hence when there will be any form of change in the organization, the individuals who will get benefitted by that will accept it and other member will offer resistance to the change. On the other hand implementation of change is a simple process when working with a homogenous workforce. Recommendation The suggestions are provided about how workforce diversity can be effectively handled by an organization. 1. Training Programs – Training is a good method to manage diversity effectively in an organization. Through training programs issues related with communications gaps and misunderstandings can be minimized. 2. Management by Commitment – Management by commitment is an effective method by which organizations can effectively manage its diverse workforce. In this context ‘conversation for action’ takes place, where the managers and employees make explicit agreements about the delivery of a definite outcome. This will also help to increase the focus of the employees and they will also endeavor to reach the goal. 3. Fair and Same treatment – Fairness is about treating everyone equally. Therefore if the management of an organization treats all the employees similarly, the employees will feel valued and work better. It also reduces the chances of conflict. Conclusion The report was about the importance of having a diverse workforce in an organization. In the 21st century the importance of diversity has further increased. In this context it has been found that workforce diversity indeed offers large number of advantages to the organization. Organizations feel that having diversity in their workforce will allow them to cater to a large number of customer segments. Also there are advantages in the form of increased innovation and creativity in the company. In addition diverse group offers better results when solving critical problems than a homogenous group. Nonetheless it also creates some disadvantages such as difficulties in management, creates conflicts and misunderstanding among the group members. Hence from an overall outlook it can be concluded that, if effectively handled and managed diverse workforce offers a competitive advantage to the firm. References Blackman, S. (2009). Three Reasons to Create Diverse Workplace Teams. Retrieved from http://www.cbsnews.com/8301-505125_162-31040600/three-reasons-to-create-diverse-workplace-teams/. Daft, R. L. (2008). The Leadership Experience (4th ed.). Connecticut: Cengage Learning. Green, K. A., López, M., Wysocki, A., & Kepner, K. (2002). Diversity in the Workplace: Benefits, Challenges, and the Required Managerial Tools. Retrieved from http://edis.ifas.ufl.edu/pdffiles/HR/HR02200.pdf. Griffin, R. W. (2006). Principles of Management. Connecticut: Cengage Learning. Jackson, R. L. (2003). African American Communication & Identities: Essential Readings. California: SAGE. Lockwood, N. R. (2005). 2005 Research Quarterly - Workplace Diversity: Leveraging the Power of Difference for Competitive Advantage. Retrieved from http://www.shrm.org/Research/Articles/Articles/Pages/0605RQuart_essay.aspx. Mckinsey. (2007). Woman Matter: Gender Diversity, a Corporate Performance Driver. Retrieved from http://www.mckinsey.com/locations/swiss/news_publications/pdf/women_matter_english.pdf. Read More