Diversity Programs in Organizations - Book Report/Review Example

Diversity Programs in Organizations TABLE OF CONTENTS Executive Summary………………………………………………………………3 Introduction……………………………………………………………………….4 Diversity Programs……………………………………………………………….5 Why Organizations Introduce Diversity Programs……………………………….6, 7 What is Included in a Diversity Program…………………………………………7, 8 Implementation of Diversity Programs………………………………………….8, 10 Monitoring………………………………………………………………………10, 11 Indicators of an Organization that values Diversity…………………………….11, 12 Benefits of Diversity Programs…………………………………………………12, 13 Benefits to the Employees……………………………………………12 Benefits to the Organization…………………………………………..12, 13 Challenges Faced in Diversity Programs……………………………………….13, 14 Recommendations………………………………………………………………14, 15 Conclusion………………………………………………………………………15 References……………………………………………………………………….16, 17 Executive Summary The purpose of this report is to provide benchmark information on diversity programs for organizations that can be used in guiding and planning decisions about their diversity efforts. It attempts to ascertain the success of diversity in the organization workforce in an equitable manner and providing an environment that is conducive for all employees. According to Lakshminarayanan (2006), diversity is a reality for organizations today that presents opportunities as well as challenges. This report begins with the definition of diversity as documented by Smith (1998). This paper addresses the issue of diversity in organizations citing reasons why it is important to incorporate diversity programs in organizations and how well to implement the diversity programs. There are also the benefits and challenges associated with implementation of diversity programs that are highlighted in this report. Finally, the report makes recommendations on implementation strategies of diversity programs. As for data collection, the report is based on secondary data and it reviews existing literature on diversity programs. This goes hand in hand with reviewing organizations that have already incorporated diversity programs and how well they have incorporated them. In this case, the companies of choice are IBM (Workforce Diversity, 2008), Good year tire and Rubber Company, the Coca-Cola Company (Diversity, 2006) and HSBC Bank USA. These are companies that have successfully incorporated diversity programs and have leapt great benefits from the same. On a final note, the findings show that in the current market diversity is an aspect that should be incorporated and is beneficial to organizations. The findings clearly demonstrate that the market is a welcoming and caring environment that accepts and respects diversity. Introduction One of the most striking characteristics of the discourse of diversity and its programs is its tendency to evade definition as recorded by Simmons (2000). According to Smith (1998), diversity is defined as the quality of being different and unique at an individual or group level. Diversity has also been broadly defined as the systematic and planned commitment undertaken by organizations in recruiting, rewarding, promoting and retaining a heterogeneous mix of employees. The capacity of an organization to manage and incorporate diversity in the workforce is a key skill in the now connected global world. Theories and techniques of diversity management have been developed and enthusiastically supported by a growing number of chief executives, training specialists, diversity consultants and academics. Diversity programs came about as a means to further the availability of equal opportunities to all in the workforce. This philosophy aims at ensuring that organizations make the most out of the differences from a diverse workforce rather than losing talent that might be useful to the organization. The aim of this paper is to critically examine the issue of diversity programs in a bid to establish why organizations introduce diversity programs and what is included in a diversity program. It shall also make reference to companies that have incorporated the programs and how well they have done it as well as establishing the benefits and challenges faced by the organizations. Diversity Programs As much as organizations cannot ignore disadvantages experienced in the past and currently, the diversity approach seeks fresh appraisal of the enormous range of talent, skills and perspectives available. Emphasis on diversity programs encourages organizations to be more thorough and thoughtful in addressing the needs of employees. Traditional equal employment opportunities tended to ignore the diverse nature of the workforce and focused on disadvantages experienced by members of the equal employment opportunities group. Diversity programs guide an organization in fully utilizing the diverse skills, perspectives, backgrounds and talents of its entire workforce. Accordingly, managers should recognize, promote and value the different competencies and skills of individual employees through flexible employment practices. They should tap these differences and use them to enhance the performance of their organization. A well managed diversity program can promote high performance to improve the effectiveness, efficiency and relevance of service delivery as well as equip the organization to meet future challenges in an innovative and competent manner. Many organizations are seeking to adopt a more inclusive and strategic approach to the management of their people resource as they are learning to recognize the value of the differences and similarities of their workforce profile. Too many similarities in the workforce can pose difficulties in the organization’s ability to adapt to change or respond to the changing needs and expectations of its consumers. Diversity programs help an organization in responding to new environmental demands and they are critical for selecting, attracting, developing, motivating and retaining a diverse and highly skilled workforce. Why Organizations Introduce Diversity Programs Diversity programs affect both business and non-profit organizations differently even though they are both impacted by changes in demographics. Many organizations have a very simple answer to the question of diversity which is that the population and the work force is rapidly changing. The work force has been reported to include growing numbers of racial and ethnic minorities, women, and disabled persons. Organizations that continue to ignore the current and future market demographics lose out on very significant profit sources. Recognition of these changes is vital for attraction and retaining the brightest and best talent and also to have an opportunity for competing in the global market. Many organizations have recognized the need of having a multicultural perspective to compete abroad. Diversity is now therefore a major priority for organizations following globalization. The acquisitions, overseas relocation and mergers by corporations have led to the issue of diversity being embraced closely. Diverse employee structures present organizations with cultural competencies such as cross-cultural expertise and language skills thereby gaining competitive advantage. Diversity is very good for business and if a business can master serving diverse groups of clients in their own backyard then it is most likely that they have what it takes to be successful globally. In addition to globalization and increasing diversity of the local markets, there has been lot of emphasis globally on protection of the rights of the diverse minority groups in terms of employment opportunities. It is therefore evident that the primary reasons that drive organizations to engage in diversity initiatives are to improve working relationships between different groups of employees, improve employee productivity, to gain and retain competitive business advantage, to conform with legislation laws that advocate for equal employment opportunities and finally because it is considered to be a socially responsible activity. A successful diversity program has a number of benefits which include improved recruitment outcomes as potential employees view the organization as an employer of choice. There is also a higher retention rate of employees as well as a reduction in training costs due to low staff turnover. Diversity programs strengthen the relationship between the organization and its clients and stakeholders. Finally, it leads to reduced stress levels and conflicts in the workplace, improved work attendance and a greater sense of unity in the organization. What is included in a Diversity Program? Diversity programs encompass and go beyond the traditional concept of equal employment opportunities. They take into consideration in a broader sense the family structures, differing skills, ages, educational levels, social and cultural backgrounds in addition to the current interpretation of the equal employment opportunities. According to Kellough & Naff (2004), diversity programs identify seven core components to be considered which include ensuring management accountability, paying attention to representation, development of mentoring programs, emphasizing shared values among stakeholders, providing diversity training, promoting internal advocacy groups and examining organizational structure, culture and management systems. An effective diversity program complies with government and parliamentary guidelines which includes incorporation of diversity principles, values and code of conduct into the program for all employees new and existing. It also includes making adjustments to accommodate the varied needs of employees as well as having an appropriate avenue for reporting diversity data for example complaints on sexual harassment. A diversity program requires recognition of the differences of each individual employee and is a management process that focuses on the managers. The program is integrated into the corporate philosophy of the organization and creates a culture that values differences and encourages cross-cultural awareness across the board. This includes recognition and respect of one’s cultural individuality and recognition of the cultural diversity of different ethnic groups and race. Finally, it is focused on achievement and productivity and is built upon existing workplace principles. Implementation of Diversity Programs Strategies should be developed to help an organization achieve the identified diversity outcomes. They should reflect the business of an organization as well as the human resource needs. This can be achieved through consultations with all the involved parties which help gain commitment throughout the organization and ensure that the implementation strategies are relevant. Each organization must determine its appropriate strategies to tackle its differences because each organization is unique with different stakeholders, strategic goals and individual needs. The intermediate step in implementation is valuing diversity which entails programs that encourage the employees to value diversity. Examples of common practices include having diversity family days, workshops, team building and diversity literature on bulletin boards and newsletter with an aim of sensitizing the employees about each other and encourage them to value their differences. This helps the organization tap the differences and use them to its advantage. The implementation strategies need to be measurable and realistic. They could be incorporated into existing accountability processes such as staff survey and performance management. The strategies should be documented and should set out a statement of legislative policy objectives for the diversity program and how diversity will support the business objectives of the organization. Expected benefits should be identified as well as the projects and actions to be implemented as part of the diversity strategy. This goes hand in hand with developing performance indicators for the diversity program which are best easy to measure and simple with a transparent monitoring process. Finally, a sound implementation strategy should have a realistic time frame over the planning cycle and identify resources. Responsibilities and accountabilities should be clearly assigned and constant consultation should be upheld between the managers and members of the corporate executive on successful introduction and management of diversity programs. IBM is one of the companies that have a fully functional diversity strategy. At IBM, their aim is to enhance awareness, open-mindedness, knowledge, tolerance, and respect for other cultures in the workforce and in the market in order to build a stronger IBM team and continue to foster innovation (Workforce Diversity 2008). Another company is Goodyear tire and Rubber Company which is committed to continued growth and maintaining its position as a world leader in the tire industry. The company has embraced diversity throughout the organization from its headquarters in Akron, Ohio to all the other branches. A diverse workforce has strategic advantage in conducting business successfully in a multi-cultural marketplace globally and Goodyear’s diversity program has enabled it to respond to change more quickly than its competitors. The Coca-Cola Company recognizes that it is crucial to understand, embrace and operate in a multi-cultural world. The company defines diversity as comprising of respecting individuals, valuing differences and representation of their consumers and markets in the workforce where they do business (Diversity 2006). The diversity strategy they use is focused on driving consumption, fostering commitment, promoting effective communication and building a culture that values diverse perspectives. HSBC Bank in the United States of America acknowledges that workforce diversity makes them a more balanced organization and adaptable to new situations. Their definition of diversity does not only include gender, ethnicity, age or disability but is also bent on open-mindedness, creation of balanced teams and embracing conformity as well as respect for individuals to inspire loyalty in employees and customers. Monitoring Many doubts have been raised on the ability of measuring diversity results in a meaningful way. However, performance indicators are the surest way of monitoring the success of diversity programs. Quantitative measures such as representation rates are necessary but not sufficient. A mixture of quantitative, qualitative and process measures is recommended. These could include conducting staff surveys, number of complaints reported and absenteeism rate as they relate directly to diversity. Measurement is a comparative process that requires both baseline data of the current conditions with which to measure change and the setting of clear and realistic objectives of what an agency seeks to achieve. The managers developing the management plan should do a ‘gap analysis’ to establish what data is already available and what may need to be sought to support the evaluation phase of the planning process. Measurement could also include the changes that occur to the employee profile specifically employment status, training and working arrangements, recruitment and retention patterns among others. Below is an in-depth look into performance indicators. Indicators of an Organization that values Diversity There are a number of indicators that can be used to identify whether an organization truly values diversity. The first one is whether diversity has been tied to the organization’s key business strategies, mission or mandate. There is need to view diversity as essential and it should be included in the strategic plan or mission statement of the organization. Importance of diversity should be declared publicly by the organization. The second one is demonstration of commitment to diversity in organization policies, practices and procedures. Organization policies should be in accordance with the existing legislation on equal employment opportunities. There also should be a clearly laid out plan for tackling cases of harassment or discrimination. The employees need to know that they will be treated with fairness and respect. The staff in an organization should reflect the customers or community being served at all levels of the workforce. This cuts across decision makers all the way to the service deliverers who should reflect the general characteristics, culture and ethnicity of the community they serve. Most of the organizations are nowadays conversant with the advantages of employing staff of the same culture as that of their customers. Other indicators include review of the number of grievances and complaints in the workplace, satisfaction of the management with the outcome of the diversity program, feedback on results of specific initiatives undertaken and degree of participation of staff members in development and achievement of work plans. Finally, there is the degree of change in the profile of employees regarding demographic and ethnic composition and also availability of relevant documentation to tackle incidents that arise in the workplace. Benefits of Diversity Programs a) Benefits to Employees Diversity programs present a number of advantages to the employees. First, the programs allow for individual expression meaning that the employees can express themselves freely without being discriminated upon. Second, open communication is encouraged regardless of status in the organization. For example, an employee is free to approach a manager for direction or even a complaint without victimization. Another advantage is that it increases the employees’ opportunities for personal development and finally, diversity programs enhance involvement of employees in workplace planning. b) Benefits to the Organization Diversity programs present a number of advantages to an organization which include creation of a competitive advantage over its competitors. Other benefits include improved decision making as the whole organization including employees is involved in the process as well as higher creativity and innovation due to motivation of employees. The organization also achieves greater success in marketing their products to foreign and domestic ethnic minority communities due to the fact that the workforce recognizes them and the programs lead to better distribution of economic opportunities. According to Watson (1993), culturally diverse groups relative tend to be more effective both in the interaction process and job performance as compared to the homogenous groups. Through diversity an organization can fully utilize the human resources available. More employee effort is directed at accomplishing tasks other than managing conflicts thereby improving productivity. There are also enhanced work relationships that are based on respect and increased knowledge of multicultural issues. Organizations with a diverse workforce can provide superior services because they can better understand customers’ needs as well as the market composition (Wentling and Palma-Rivas, 2000) Challenges Faced in Diversity Programs As much as diversity programs have benefits, there are few disadvantages linked to them as some people feel threatened to work with diverse people. One of the disadvantages is an increase in the cost of training that arises from initiatives undertaken by the organization for example seminars and lectures for promoting diversity in the organization. Another disadvantage is increase in labor turnover and absenteeism. This is especially where more attention is given to the minority and the others feel left out and opt out in search of a more supportive work environment. There is also the issue of mismanaged diversity which can have long-reaching effects on productivity and employee satisfaction leading to lower job performance. Mismanagement can occur in the form of denied access or unfavorable treatment. Therefore, when an organization ignores the existence and importance of diversity in the workforce, it cannot realize its full potential and neither do the employees. For the organizations that do not implement diversity programs, there is lagging productivity due to inter-group conflicts that hinder the employees from working together and serving diverse consumers. They also experience lots of complaints relating to human rights violations and harassment filed by employees as well as low morale among the employees leading to limited innovation. Finally, there is the inability to recruit the best and brightest new talent as the reputation in the employment marketplace limits this. Recommendations Diversity has become an important component in organizations therefore large resources should be devoted to formulation and implementation of diversity programs. Management should also strive to understand how diversity management programs operate as there is very little empirical research that has been undertaken about what works and doesn’t in diversity management. More research should also be undertaken to understand more about the nature of diversity in the workforce and what it means to manage it. It has been indicated that larger firms are more likely to undertake a strategic approach to diversity than smaller firms. The larger firms are more likely to include diversity in their mission statement and are also more likely to have a clear understanding of the link between diversity and bottom-line performance of the organization. The larger organizations also have the executives and management participating in diversity workshops and link diversity to their business strategy as compared to the small organizations. There is therefore the need to sensitize diversity to the lowest levels of retailing. At the same time there is still a lot of work that needs to be done in meeting the challenges of working in a diverse environment. There is need for paying closer attention to the range of diversity and the impact it has on services by employees as well as on the organization at large. This goes hand in hand with improving interactions in organizations through continuous provision of diversity training and development among employees. Conclusion An organization’s approach to managing diversity is defined by the extent to which its managers recognize diversity and its potential advantages and disadvantages. In this world of globalization, there is no organization that can survive without embracing diversity. It is therefore important for the management to put in place diversity programs in their organizations to support workforce diversity and critically evaluate how diversity programs will be beneficial to the organization. It has been noted that with diversity of the workforce an organization is bound to be internally and externally competitive. In today's fast-paced work environment a successful organization is one where diversity is the norm and not the exception (Lawrence, 2001). Finally, it is the approach to diversity that determines actual positive or negative outcomes and not diversity itself. References Diversity (2006). Cultural Diversity in the Workplace: The Coca-Cola Company. Available from: [20th May 2009]  Kellough, J.E.; Naff, K.C. (2004). Responding to a Wake-up Call: An Examination of Federal Agency Diversity Management Programs. Administration & Society, 36 (1), pp. 62-90 Lakshminarayanan, Sambhavi (2006).  A Social Marketing Based Strategy For Planning Diversity Events. Journal of Diversity Management. Vol. 1, Number 1, pp 39–47. Lawrence, P. (2001). “Diversity in action news”, Available from: www.tc.faa.gov/employee-prg/ diversity/20.htm [20th May 2009] Simmons-Welburn, Janice. (2000). Rating Library & Institutional Priorities in Managing Diversity:  Results of a Preliminary Study. Available from: http://www.arl.org/diversity/leading/issue13/simwel.html. [20th May 2009] Smith, D. (1998). The business case for diversity, Monash Mt Eliza Business Review, 1(3), pp. 72-81 Watson WE, Kumar K, Michaelsen L (1993). "Cultural diversity’s impact on interaction process and performance: comparing homogeneous and diverse task groups", Academy of Management Journal, 36 (3). pp. 590-602 Wentling RM, Palma-Rivas N (2000). "Current status of diversity initiatives in selected multinational corporations", Human Resource Development Quarterly, 11 (1). pp.35-60. Workforce Diversity (2008). Available from: [20th May 2009] Read More