Characteristics And Implications Of Diversity Management - Research Paper Example

Characteristics And Implications Of Diversity Management CIPD research shows that the majority of organisations just fulfil their minimum legal obligations in terms of diversity management with only a small minority of organisations embedding diversity into their business strategy. Evaluate how diversity management could have more impact within organisations? 1. Introduction The development of organizational activities worldwide has led to the increase of the risks related with the application of fundamental commercial principles in firms operating in various industrial activities; in fact, violation of employees’ rights has become a common phenomenon in modern organizations. The improvement of legal framework that focuses on these rights did not have the effects expected; many organizations around the world keep on ignoring the legal rules referring to the human resources management; diversity management is included in the sectors that are not treated with the appropriate respect by employers in firms of various sizes. The application of the rules of diversity management on modern organizations is the main issue in current study; the reasons that led to this phenomenon will be examined while suggestions will be made regarding the potential increase of the impact of diversity management on modern organizations. It is proved that diversity management is a sector quite underestimated by managers in firms operating in different industrial sectors; however, measures are available which, if are taken, could lead to the increase of impact of the specific sector within organizations. At a next level, it is made clear that leaders in modern organizations have a crucial role on the performance of various organizational plans – including those referring the management of the firm’s HR or the development of diversity in the workplace; however, quite often, leaders in modern organizations are not capable of handling demanding projects – diversity plans, even if appropriately designed, may fail to respond to the organizational needs because of the lack of sufficient support by the organizations’ leaders. 2. Diversity management – characteristics and implications In order to understand the important of diversity management for modern firms it would be necessary to refer primarily to the employee relations as developed within organizations of various types in the modern market. In accordance with Sias (2005, 375) ‘workplace relationships are unique interpersonal relationships with important implications for the individuals in those relationships and the organizations in which the relationships exist and develop’. The framework of employees’ relationship – as described above – can have many different aspects in firms of various types. Managers in modern organizations need to be able to understand the conditions in the workplace and propose appropriate measures ensuring that quality and fairness is developed across all organizational departments. At a next level, different descriptions have given to diversity management in accordance with the organizational activities and values to which the specific concept is related; towards this context, the management of diversity has been described as ‘dissolving differences’ (Millmore et al., 2007, 482) or even ‘valuing differences’ (Millmore et al., 2007, 482); from a similar point of view it is noted by Jackson et al. (2008) that ‘diversity management initiatives are policies and practices that the organization adopts voluntarily (not because of legal requirements) for the purpose of ensuring that all members of a diverse workforce feel they are treated fairly’ (Jackson et al., 2008, 235). The above view refers to diversity management initiatives as voluntary measures aiming to help towards the limitation of inequality within a organization; no reference is made to the obligatory part of the specific concept – the application of which can be enforced by relevant legal rules. A similar approach has been adopted by Moran et al. (2007); the above researchers noted that ‘diversity can different meanings and applications’ (Moran et al., 2007, 195) in accordance with the location of the organization. The overall assumption from the above two views is that diversity management is a multidimensional organizational activity the content of which cannot be standardized in advance; rather, it can have different forms depending on the organizational environment – both the internal and the external. The most severe problem regarding the promotion of diversity management plans in modern firms is the fact that these plans are often considered as being of lower importance – compared to other HR policies. The above view is highlighted in the study of Walker (1994); the above researcher identified the key priorities of HR managers in modern markets: ‘recruiting, selection, assignment, and other staffing actions are crucial in matching available resources with required staffing levels and mix of capabilities’ (Walker, 1994, 59). In the above context, diversity management plans can be underestimated – especially if other HR policies – that are considered as being more important for the development of organizational performance – face difficulties either on their implementation or their monitoring. In this case, diversity management policies are likely to be left inactive – emphasis is given on the implementation of other HR policies – like hiring and evaluation of staff. 3. Methods for increasing the effectiveness of diversity management plans in modern organizations The increase of effectiveness of diversity plans in modern organizations would be achieved through different methods; because diversity plans adopted in firms worldwide are not similar – in the context explained in the previous section – the measures taken for the support of diversity in modern organizations should be based on specific criteria: a) the diversity policies would be achievable – in terms of the resources required and the conditions in the workplace, b) they would not lead to resistance in the workplace – they would rather aim to protect the interests of the high majority of employees – under the terms of equality and fairness – and not be used for the support of employees that work at specific levels of the organizational hierarchy, c) they should be reviewed periodically in terms of their performance; if major faults would be identified to exist changes would be made in order to ensure the effectiveness of the particular measures either in the short or the long term. The above suggestions could be applied on firms internationally – after being appropriately customized in accordance with the conditions in the internal and external organizational environment. An overview of the existing literature – with reference to examples – would be necessary in order to identify all potential methods of improvement of a firm’s diversity management plans. Theorists around the world have developed different views regarding the characteristics of diversity management; these characteristics have been further used as a basis for the evaluation of the effectiveness of diversity management initiatives in firms operating in different industrial areas. In accordance with Dubrin (2008) there are three methods that if used appropriately could help towards the increase of the impact of diversity management within an organization. These methods are: ‘a) corporate policies about diversity, b) the establishment of employee network groups and c) diversity training’ (Dubrin, 2008, 62). From a different point of view Hubbard (2004) notes that the identification of the most effective diversity management policy could be achieved by using the diversity scorecard – a concept similar to the balanced scorecard used for the evaluation of organizational performance. In accordance with the above concept, effective diversity management plans would require the close monitoring of the workplace; the specific task should be developed by diversity officers – as supporters to the firm’s leader regarding the particular initiative (Hubbard, 2004, 184). The study of Schuler et al. (1998) could be also used in order to identify the reasons for which the implementation of diversity management plans would become a priority in modern organizations. In accordance with the above study HR plans in modern firms have to be depended on the following factors: ‘a) the business structure, b) the legislative and employment relationship context, c) the patterns of HRM competence and decision-making and d) the national culture’ (Schuler et al., 1998, 159). These criteria would be also used when the design or the implementation of diversity plans is attempted. At this point there is another issue that needs to be mentioned and analysed: the existence in a firm of different interests. Within modern organizations the interests of stakeholders may be in opposition; this means that the plans that aim to serve the needs of one part may affect negatively the interests of the other parts. At this point a firm’s managers have to choose the hierarchy of interests within the organization – taking into consideration the role of each part to the development of organizational performance. In accordance with Levine (1995, 83) ‘in certain occasions, the employee involvement could lead to significant problems for the company’s profile towards its stakeholders’; in the above context, diversity plans may be implemented in modern organizations but there application is likely to be checked in advance – for its effects on shareholders’ interests; it is clear in the above view that the interests of shareholders are in the top of the organizational priorities. This view could lead to the limitation of the value of diversity plans; the latter could be introduced only if they are not opposite with the interests of a firm’s shareholders. On the other hand, it could be supported that organizational activities are based mainly on employees. In this context, the interests of employees are likely to be a priority for a firm’s managers; in any case, the relevant decision would be an issue of the firm’s leader to decide. It is clear that in organizations the control of which belong to the state the interest of employees are more likely to set as a priority – compared to the firms of the private sector which are based on the funding of their shareholders for the realization of their projects; normally, it would be expected that in organizations of this type the interests of shareholders are the basis for the development of all organizational policies. Other methods could be also used by a firm’s leaders - or its HR managers – in order to increase diversity in the workplace; the chances for success of these plans would be increased if the conditions of the organizational environment would be taken into consideration; in fact, the alignment of these plans with the firm’s existing culture and principles would increase the chances for success of the specific plans – referring to the plans used for the increase of diversity in the workplace. The above assumption is in accordance with the view of Wright (1998) who suggested the use of a particular method for the increase of effectiveness of HR plans applied on modern organizations – diversity plans are considered as included in HR plans; this is the theory of ‘fit’ which is based on the principle that ‘the effectiveness of any HR practice or set of practices for impacting firm performance depends upon the firm's strategy (or conversely, the effectiveness of any strategy depends upon having the right HR practices)’ (Wright, 1998, 56); in accordance with this theory only those HR plans that have been aligned with the organizational culture and ethics are likely to perform well; those that are developed independently – i.e. there is no reference to the organizational culture and principles – are likely to fail. 3.1 Diversity management in practice The application of diversity management plans in practice proved that these plans can have many weaknesses – they should be therefore carefully reviewed in order to avoid any major damage – referring especially to the case that funds are invested for the realization of diversity management plans that are proved inadequate – regarding the needs of a particular organization. An indicative example regarding the potential influence of diversity management plans on the performance of employees is given through the study of Jannsens et al. (2005); in the above study data from four organizations have been gathered – reference is made particularly to the services sector; it has been proved that ‘organization-specific understandings of diversity are based on the way employees’ sociodemographic differences affect the organization of work, either contributing to it or hampering it’ (Jannsens et al., 2005, 311). In other words, the effectiveness of diversity management plans depends on the perceptions of employees on these plans; if employees in a specific organization refuse to participate actively in the development of these plans then the relevant effort is expected to fail – it needs to be noted – once more – that these plans would aim to develop the equality in the workplace and not to protect the interests of a specific part of the workforce. The effectiveness of diversity plans implemented in educational sites was measured through a survey among 390 students; through the survey it was proved that ‘students were disadvantaged in their grade performance and other outcomes depending on the type of group to which they were assigned and their particular position within the group’ (Shaw, 2004, 139); in other words, diversity plans can affect the performance of people who participate in the development of a particular project. In the same context, diversity plans are expected to influence the performance of employees who work in various organizational departments – in fact, no difference would exist – using the above view – among employees – referring to their position in the organization – who have to complete a particular task. 4. Conclusion Diversity plans serve a particular need: the need for the increase of equality in the workplace – as this fact could affect the performance of employees in all organizational departments. Diversity plans could be considered as similar to the plans aiming to increase employees’ motivation; the latter lead to the increase of employees’ performance in the same context with the diversity plans. Towards this direction it is noted that ‘an organization could increase productivity simply by increasing the happiness and satisfaction of its employees, and both organizations and employees would benefit’ (Landy, 1989, R. Wright, 2000 in Barrick et al., 2003, 30). As in the case of all HR plans, diversity policies would be appropriately designed and implemented; in any case it would be necessary that a firm’s leader is able to identify the key issues related to diversity within his organization and use appropriate plans to address these issues – always taking into consideration the resources available. In accordance with Gelade et al. (2003, 383) ‘few organizations can evaluate their performance accurately by averaging the performance of their employees’; it is further noted by the above researchers that the performance of specific organizational departments, named ‘decision – making units’ are used in order to evaluate the effectiveness of strategic business plans. Through a similar study it is mentioned that ‘employers are looking for applicants who possess a range of social, interpersonal and team working skills in addition to technical ability (Marchington et al., 2005, 72); the demands of employers have been changed under the influence of the market trends and the global competition; these changes have led to the differentiation of firms’ strategic priorities – policies that can directly support a firm’s profitability are preferred from measures that can guarantee a positive organizational performance within a specific period of time- short terms results are preferred from long – term benefits. The specific method of thinking seems to be used also when measures on a firm’s diversity plans have to be taken. Even if the chances for success of these plans are high other strategic policies can be applied instead – if they can guarantee a fact improvement of the firm’s profitability. References Barrick, M., Ryan, A. (2003). Personality and Work: Reconsidering the Role of Personality in Organizations. Jossey-Bass. San Francisco DuBrin, A. (2008) Essentials of Management. Cengage Learning Hubbard, E. (2004) The diversity scorecard: evaluating the impact of diversity on organizational performance. Butterworth-Heinemann Jackson, S, Schuler, R. (2008) Managing Human Resources. Cengage Learning Jannsens, M., Zanoni, P. (2005) Many diversities for many services: Theorizing diversity (management) in service companies. Human Relations, Vol. 58, No. 3, 311-340 Levine, D. (1995). Reinventing the Workplace: How Business and Employees Can Both Win. Brookings Institution. Washington, DC Millmore, M., Saunders, M., Lewis, P. (2007) Strategic human resource management: contemporary issues. Pearson Education Moran, R., Harris, P., Moran, S. (2007) Managing cultural differences: global leadership strategies for the 21st century. Butterworth-Heinemann Schuller, R., Rogovsky, N. (1998). ‘Understanding compensation practices across firms: the impact of national culture’. Journal of International Business Studies, 29(1): 159-172 Shaw, J. (2004) A Fair Go for All? The Impact Of Intragroup Diversity and Diversity-Management Skills on Student Experiences and Outcomes in Team-Based Class Projects. Journal of Management Education, Vol. 28, No. 2, 139-169 Sias, P. (2005) Workplace Relationship Quality and Employee Information Experiences. Communication Studies, 56(4): 375-392 Walker, J. (1994). Integrating the Human Resource Function with the Business. Human Resource Planning, 17(2): 59-71 Wright, P.M., (1998). Strategy - HR Fit: Does It Really Matter? 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