Personal Managerial Effectiveness - Essay Example

Business Case for Workforce Diversity Introduction: “A companys performance is always linked to its ability to recruit the right people. People want to work for companies that demonstrate that diversity matters. There needs to be a sustained culture assault down the supply chain that business must encourage” - Sir Digby Jones, Director General, CBI Historically workplaces worldwide have been exclusively male dominated spaces. However there has been a drastic change in the demographic profile of U.K., ushering in an era that is socially and culturally diverse as never before. Furthermore various other factors such as advent in technology, blurring of boundaries between nations, immigration reforms and the likes, there is a sudden influx of socio-culturally diverse population in the UK, resulting in a highly diverse workplace (Allard, 2002). These changes in the demographic profile of the country have played a key role in the increased significance of workplace diversity and the need for reforms in workplace related laws. Globalization has opened the gates for firms to compete on a global scale. Organizations today are, hence, not only competing on a local or national level but on a much wider global platform. The markets and the demography of a typical consumer have also changed simultaneously. Hence it is imperative for organizations to ensure increased awareness about the need and significance of workplace diversity (Deborah & Smith, 2003). Positive work environment is one of the most coveted aspects of a workplace that promises to foster harmonious working relationships among the employees and greater individual dignity. Considering the benefits offered by a positive and diverse workplace, organisations today are embracing the concept and reaping the benefits offered by a skilled workforce, hired purely on the basis of talent and skills rather than socio-cultural factors. This report on workplace diversity aims to discuss, analyse and explore the concept of workplace diversity, its application, benefits and implications within workplaces in the UK, and the recommendations for improving workplace diversity. Workplace diversity: Meaning & Definitions: The term diversity with regard to workplace refers to differences among employees with regard to a range of factors including age, gender, race, ethnicity, sexual orientation, and /or disability. It is also used with regard to acceptance and respect for the individual differences (Hankin, 2005: p. 67). Figure: Workplace diversity Source: Esty, (1995): p. 3 Daft (2007) defines workplace diversity as "a workforce made of people with different human qualities or who belong to various cultural groups". It is also defined as "differences among people in terms of age, ethnicity, gender, race, or other dimensions"(p. 333). Workplace diversity: Laws and Regulations Changes in demographic trends in the composition of UK population has resulted in increased diversity in the country. Such rise in workplace diversity compelled the UK government to introduce special laws for protection of the new diverse workforce. Since majority of the workplaces were dominated by white men, most of the initial phase of laws were targeted at women, ensuring their protection and equality not only within the corporate sector but within the society as well (). However with further change in socio-economic trends due to relaxed international trade policies, and removal of barriers the UK saw an influx of migrants from across the globe resulting in a culturally diverse workforce. Such changes further emphasised the need for laws prohibiting discrimination across all sectors including age, religion, beliefs etc. It is imperative for firms today to take into consideration the diversity in population - both of employees as well as their consumers and offer culturally diverse diversity friendly approaches for people across the board, including the LGBT community, gender, people of colour as well as those with disabilities (Stonewall, 2004). Various laws have been introduced over the years to ensure equal opportunity for workers regardless of their socio-cultural background, race, or sexual orientation. For instance, the Employment Equality (Sexual Orientation) Regulations introduced in the year 2003 aimed at ensuring equal rights for all workers regardless of their sexual orientation. The law essentially made it illegal for companies to discriminate against employees belonging to the LGBT community, thus ensuring greater protection and assurance of right to work for the minorities (Stonewall, 2004). Following the law, various companies such as Procter & Gamble, British Telecom, Lloyds TSB, and Ford in the UK have embraced the concept of workplace diversity in the form of voluntary initiatives towards the LGBT community in the country. These initiatives include product advertisement, reaching out the LGBT networks, as well as supporting these communities through media events (Stonewall, 2007). In 2010 a new law called The Equality Act was introduced replacing all the existing equality laws (HSE, 2014). The concept of diversity in the workplace affects various segments of the workforce and factors such as race, gender, age, health and sexual orientation are known to affect health and well-being of the employees due to discrimination based on the employees social background. Hence it is highly crucial to ensure that the concept of diversity in the workplace is clearly understood by the employers in order to mitigate the likely damages caused due to unfair treatment at work and reap the benefits of an effective diversity clause (HSE, 2014). Strategic benefits of effective diversity management “Diversity: The art of thinking independently, together” Diversity at the workplace is known to offer immense benefits in the form of development of a positive and harmonious environment; improved employee motivation; improved employee productivity; encouraging and fostering creativity and innovation as well as an overall rise in organisational revenues and hence profitability. Since diversity entails recruitment of employees regardless of their background, it helps in recruiting a pool of skilled employees who excel in their jobs and hence improve the overall performance of the firm. It is also observed that organisations who defy such industry norms and continue to hire and recruit white able-bodied males for the positions offered, are likely to face serious negative consequences in the form of loss of opportunity to capitalise on skills afforded by a diverse workforce and the potential that they bring to the table (Shoobridge, 2006). According to Kirton & Greene (2005) there is a significant difference between social and moral perspective of workplace diversity and business case perspective towards the phenomenon. From the social / moral perspective of diversity, the employers are obliged to ensure greater diversity in the workplaces in order to prevent discrimination toward those from diverse backgrounds. The business case perspective on the other hand focuses on the manner in which workforce diversity is used to achieve organisational goals and its role in ensuring overall organisational success. Workforce diversity ensures greater profitability for firms and offers long-term sustainability (Kirton & Greene, 2005). Ozbilgin et al., (2008) suggest that organisations can better achieve their goals and objectives by introducing novel training programs and intervention measures that enable their diverse workforce to perform better. Diversity in organisations entails increased cooperation and synergy among the employees, improved communication, and increased motivation (Knouse & Dansby, 1999). The business case for diversity also helps in realising the benefits afforded by diverse workforce such ad capitalising on the diverse perspectives and experiences of the employees, and exploiting such diversity for achieving key organisational objectives and goals (Weiner, 1997). Embracing diversity entails immense benefits for organisations which include attracting a skilled and talented workforce from diverse backgrounds, thus enabling the firms to access a larger talent pool as opposed to those firms that abstain from encouraging and implementing diversity in their workplaces (Tsui & Gutek, 1999). Furthermore, diversity ensures attracting more skilled workers with greater intellectual abilities. This is mainly because their diversity cultural or otherwise enables them to think differently and hence out of the box, thus benefiting the organisation through constant innovations and creativity at the workplace (Tsui & Gutek, 1999). The organisations that gladly welcome diversity at the workplace and introduce policies that aim to protect the minority employees, help in developing a diverse organisational culture that is open to novel ideas, capable of catering to a wider audience, and reduces employee turnover (Strandberg, 2009). In a study carried out by Strandberg (2009) on the impact of diversity and the benefits accrued from a diverse workforce it was observed that the companies that are traditional in their approach and avoid expanding the composition of their workforce are more likely to experience increased employee absenteeism and employee turnover. The study further suggested that the average cost of replacing a worker cost the company approximately $ 50,000 due to heavy losses suffered as a result of the absence of the employees or their inability to retain employees (Strandberg, 2009). Recommendations: In order to achieve the benefits of a diverse workforce and achieve organisation wide diversity it is imperative to implement certain well-defined strategies developed based on the overall organisational objective (Wilson, 1997). Such initiatives, in order to be effective and successful need to be planned for long-term purposes (Davidson, 1999). According to Davidson (1999) "conceiving of diversity change initiatives merely as tools to repair or pre-empt an episodic crisis fails to capitalise on the impact that diversity change efforts have on the broader organisation and the way business is conducted" (p. 164). The following steps are recommended in order to achieve workforce diversity in the long run: - Initiate change: The organisations must ensure that the hiring and recruitment process adopted and implemented is inclusive in nature and enables skilled employees regardless of their backgrounds, to apply for and have an equal and fair opportunity to be hired in the company. Such clear hiring and recruitment practices can pave way for establishing a diverse workforce. Furthermore it must be ensured that the existing practices, if discriminatory in nature be changed with immediate effect with a view to accommodate more open and transparent policy that embraces rather than rejects diversity. - Ascertain organisational needs: In order to ensure effective workplace diversity it is imperative for organisations to ensure that the plans, policies, or strategies proposed to be implemented are done after taking into consideration the basic needs and wants of the organisation with regard to its long term vision and mission and business goals among others. - Training and awareness: Organisational diversity can be ensured through systematic training workshops. Such efforts can help in spreading more awareness regarding the issue and help the management in taking positive steps towards eliminating any existing workplace bias or prejudicial treatment meted out to its employees from diverse backgrounds. Effective communication: Effective communication within organisations can help in ensuring a diverse workforce. Timely and properly designed communication channels between the managers and the subordinates within the organisation can help in ensuring that the employees have access to the top management or their immediate superiors at all times and address their grievances with regard to any existing workplace prejudices against them, if any and ensure speedy redressal. Conclusion: The above discussions help in highlighting the key issues and concerns that all organisations are likely to face during their lifetime. The significance and need for diversity discussed as a part of the study make a compelling case in favour of workplace diversity. References: Allard, J., (2002). Theoretical underpinnings of diversity In: Harvey, C. P., and Allard, J., Understanding and managing diversity: Cases and exercises. Prentice HALL Publication, p. 3 - 25 Daft, R., (2007). The leadership experience. Thousand Oaks, CA: Cengage Learning Publication. Deborah, Y. A., Smith, I. G., (2002). Globalisation, employment and the workplace: Diverse impacts. London, England: Routledge Publications. Esty, K. C., (1995). Workplace diversity. Adams Media Publication. Hankin, H., (2005). The new workforce: Five sweeping trends that will shape your companys future. AMACOM UK Publications. Kirton, G., Greene, A., (2005). The dynamics of managing diversity: A critical approach. Burlington, MA: Elseiver Butterworth-Heinemann Publishing. Ozbilgin, M. F., Mullholland, G., Tatli, A., Worman, D., (2008). Managing diversity and the business case. London: Chartered Institute of Personnel Development. Shakhray, I., (2009). Managing diversity in the workplace. London, England: Blackwell Publication. Shoobridge, G. E., (2006). Multi-ethnic workforce and business performance: Review and synthesis of the empirical literature. Human Resource Development Review, Vol.5 (1): p. 92 - 137 Tsui, A. S., Gutek, B. 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