Managing Workforce Diversity - Case Study Example

Name : xxxxxxxxxxx Institution : xxxxxxxxxxx Title : Managing workforce diversity Tutor : xxxxxxxxxxx Course : xxxxxxxxxxx @2010 Executive summary This report analyzes the concept of workplace diversity as an aspect that involves the differences exhibited by employees of an organization. The analysis further highlights some the significant benefits of diversity to organizations and the limitations of having a diversified workforce. Basing on the fact that diversity is an element that is unavoidable in human beings; the report proposes that it essential for managers to adopt strategies of managing workforce diversity. Through the analysis of two companies; Telstra and Macdonald, the Report has been able to show practical applications of how organizations can manage workforce diversity Table of Contents Executive summary 2 This report analyzes the concept of workplace diversity as an aspect that involves the differences exhibited by employees of an organization. The analysis further highlights some the significant benefits of diversity to organizations and the limitations of having a diversified workforce. Basing on the fact that diversity is an element that is unavoidable in human beings; the report proposes that it essential for managers to adopt strategies of managing workforce diversity. Through the analysis of two companies; Telstra and Macdonald, the Report has been able to show practical applications of how organizations can manage workforce diversity 2 Table of Contents 3 1.0 Introduction Workforce diversity is an aspect that is inevitable in any organization. This is essentially because Companies usually employ workforce who posses a wide range of variations. This include aspects such people of different genders, ethnic groups, racial diversity, age and level education. As a result as O’Leary and Weathington, (2006), argue diversity is actually a reality in the running of organizations as a result the main issues is how manage it. The aspect of managing workforce diversity is evidently a popular issue in contemporary management. The major forces driving this focus on diversity management include increases in management literature exploring the advantages of managing diversity, ethical imperatives for equal opportunity, and legal requirements related to affirmative action and discrimination. This particular report seeks to evaluate the notion of managing workforce diversity through providing contextual case studies of organizations that have taken initiatives to manage diversity of the workforce. The scope of the analysis will be grounded on analyzing the concept of workforce diversity, and also highlighting the advantages and disadvantages of the practice. Furthermore, the scope of the report will cover the evaluation of two companies; Telstra and Macdonald Company, one of the Multinational Companies in Australia. Out of the information presented by the report; the conclusive result of the research is that it essential for managers to continuously implement initiatives of managing workforce diversity. 2.0 Description of Workforce diversity According to Walck (1995), diversity can be described as a variety of perspectives and experiences which arise from differences in culture, race, religion gender, gender, heritage, age and sexual orientation. In a broader perspective diversity can be described as the attributes used by people in order to describe themselves as different from others (O’Reilly and Williams 1997). The basic meaning behind the concept of workforce diversity is the presence of individuals with many unique attributes within the organization. Although many managers may perceive diversity as an obstacle towards attainment of organizational goals, O’Leary and Weathington, (2006), argue that it is actually a double edged sword that works towards raising opportunities for creativity; on the other hand it could also result to dissatisfaction among members. With the advent extensive research on the area of diversity the aspect of diversity is moving from a problematic context to a concept that is unitary. As a result researchers have proposed that organizations should work towards initiatives of managing workforce diversity in order to make diversity an aspect that enhances uniformity and profitability to the organization (Glenda etal, 2009). According to Caleb (2006), managing workforce diversity is a process that is ongoing, which involves the unleashing of the various capabilities and talents exhibit by diverse populations within an organization in order to develop a working environment that is wholesome. An environment that maximizes the full potential of every individual, enhances the celebration of diversity, an environment free from differences and where every person benefits. Cascio (2006) on the other hand defines managing workforce diversity as the process of aiming to create a 'heterogeneous workforce' that is able to reach its potential in a just, fair and non –discriminatory environment. From the definitions of the two scholars, we can deduce some of the common elements involving the practice of managing workforce diversity. This involves development of a working environment that accommodates diversity of the workforce by implementing affirmative strategies that facilitate uniformity in the treatment and relations of all employees. 2.1 .Advantages of Diversity for Today’s Organizations One of the benefits of diversity for today’s organizations is that it can enhance the company’s competitive advantage. Marco (2007, 21) highlights that; companies today have come to a realization that having a diverse workforce can actually be a competitive advantage. There are a variety of aspects that a company can utilize in order to affirm its competitive advantage through the utilization of workforce diversity. One of the aspects is cost; for instance if minorities are treated well, they will become motivated and satisfied as a result they will become more effective to the organization thus reducing the higher costs linked to law suites and payment of fines. The organization can also acquire human resource that can facilitate unique achievements for instance if the organizations hires individuals from diverse cultures coming from different origins. Furthermore, the organization can also become a brand for job seekers as a result; the company will always have good workers who can improve the brand image of the company. Workforce diversity can also facilitate the increase of profits attained by a company. The differences that exist among employee may sometimes result to conflict however if the situation is well managed, synergetic unity can be established with further results to increased efficiency of the workforce and consequently higher profitability for the company (Cope & Kalantzis1997). For instance if a company initiated strategies of enhancing cooperation such as team building, the effectiveness of people working together can be termed as useful as opposed to people working independently. In addition when employees come from diverse backgrounds they bring their experiences and talents with them which may work towards improving the overall growth of the organization. Another advantage is that embracing of diversity among employees helps in the understanding the requirements and needs of customers. Various view points can be integrated to enhance customer satisfaction which is a crucial element in the running of any particular organization. By having employees with different cultural view points and skills, it becomes easy to understand the requirements and needs of customers even at a global scale (Cox & Blake, 1991). Diversity of the workforce also contributes towards adding a unique type of richness to the working environment. People have a special challenge that drives them towards putting extra effort in order to overcome differences that exist among them. Therefore the workforce may put extra efforts in order to deal with individual differences which may further result the betterment of an organization (Cox & Blake, 1991). For instance employees may strive to improve their performance and talents in order to get promotion; this may also benefit the organization. 2.2Disadvantages of Diversity for Today’s organizations One of the limitations of diversity for contemporary organizations is based on the fact that the organization incurs an increase in training costs. These particular costs are linked to training costs such as organizing lectures and seminars that are offered to staff members of all levels in order to improve diversity awareness in the organization. Although such programs may be termed as beneficial because they teach the workforce on how to deal with conflict, accepting different personalities and eliminating prejudice. The costs linked to such activities are costly to organizations (Caleb 2006). Another disadvantage is that the organization may experience an increase in absenteeism and labour turnover, due to having a diversified type of workforce. For instance a recent study conducted on American companies indicated that the turnover rate for women was greater than that of men. In addition women were more prone to absenteeism as opposed to men. The explanation given for this particular scenario is that women faced the challenge of their gender role in society such as home care and child bearing. The effects of absenteeism and labour turnover to the organization include increasing costs associated to new recruitment. Also the process of maintaining employee diversity is driven back by the departure of certain employees (Carr-Ruffino 1996). Diversity in the workplace also leads to increased interpersonal conflicts among employees. O’Leary and Weathington, (2006), highlight that many studies indicate that having employees with different attributes results to a working environment of less interpersonal communication, low commitment levels and reduced cohesiveness. Conflicts that arise due to diversity are majorly as a result of prejudice, ignorance and lack of acceptance. These situations can lead to negative dynamics such as cultural clashes, stereotyping and ethnocentrism. 3.0 Organization One; Telstra Cooperation Telstra Cooperation is one of the leading telecommunication companies in Australia. The company was initiated in 1992 after the overseas telecommunication commission was amalgamated with the Australian Telecommunication Company. The company has continued to expand its services and operations over the years which has influenced its current standing in both the Australian and international markets. Telstra offers a wide range of telecommunication services all over Australia including basic access services to many households and businesses, local as well as long-distance telephone call services, internet and mobile services. Telstra Corporation also provides telecommunication networks, distribution channels as well as integrated portfolio of assets such as Bigpond, Foxtel and Sensis (Telstra Corporation report, 2000). Basing on the fact that Telstra offers a wide range of services and products; the company has employed a large numbers of diversified employees. Telstra has also adopted various approaches of managing workforce diversity. In a seminar held by the Australian Network of disability in Melbourne 2007, Telstra was among the few companies in Australia that have worked towards making reasonable adjustments of the workplace in order to ensure that employees with disability can actually work to their full potentials. Telstra’s senior diversity specialist Mark Morley in his speech during the seminar highlighted that Telstra was committed to raising awareness concerning individuals with all abilities and exploring the barriers that employees with disability experience in the working environment. The company formulated reasonable adjustments that aimed at assisting individual within disability. This include providing specific software that individual with vision impairments can use, changing the office layout in order to facilitate easy movement of people with disability and the implementation of flexible work hours(Australian network on disability 2010). Fox (2010) also brings to light the fact that Telstra recently won a gender equity award. Telstra initiated ©afr.com a women research firm which has facilitated dealing with diversity, essentially genders diversity. ©afr.com was commended for expansion of careers essentially for women. The initiative has also integrated more women in diverse men oriented fields such as engineering. In general Telstra has adopted a variety of initiatives which have enhanced gender equality. For instance Telstra ensures that women are also part of high management ranks. This aspect has greatly motivated many women working in the organization to strive for higher ranks. Telstra has also made initiatives of creating a workplace environment that is friendly for all employees. Telstra developed mentoring programs for employees which include initiatives such as counseling, coaching and sponsoring of new workforce who do not have experience of what goes on in the organization. Mentoring assists employees to gain confidence in terms of relating with other members of the organization and performing their skills (Montiel 2003). It is essential to take note of the fact that managing workforce diversity goes beyond the practice of affirmative action and equal employment opportunities. O’Leary and Weathington, (2006) bring to light the fact that managing workforce diversity has in recent years shifted its emphasis from the aspect of developing a just and non- discriminatory environment as outlined by civil rights Acts, to more inclusive strategies within the workplace environment such as improving cooperation among employees, increased innovation and enhancing achievement of mixed results through team building and training of employees. Telstra has undertaken various to initiatives to indicate its adoption of transformative initiatives of managing workforce diversity. Telstra has devised employee development opportunities that are aimed at developing well rounded employees who can handle various business practices also known as multi-tasking. The organization has aimed at devising a workforce that is well connected, employees who are able to show enthusiasm towards their work. For instance employees are now allowed to move vertically within their areas of specialization or even to the general section if they decide to or also from the specialized level to corporate roles (Grace 2005). The organizations management also ensures that the working environment is safe enough for the employee. In addition, employees are also given a chance to regularly express their views through regular engagement with the top management. Also, the organization has programs put in place to recognize the efforts and performance of employees. In general, Telstra’s management philosophy can be described employee development oriented (Glenda etal 2009). Telstra has also implemented the Team building strategy. The practice of increasing the utilization of team work structures is aimed at improving performance and also to adapting to the rapidly changing technologies. The outcome of team building is to accommodate commitment into group work and sharing of knowledge to improve the performance of the organization .The subject of group work utilization is actually an essential aspect of management of workforce diversity. The identity theory proposes that the transformation of individual attitudes and activities into aligned achievement based on collective objectives is essential in the attainment of organizations goals and also promotion of social ties within the organization (Grace 2005). 3. 1 Advantages/disadvantages experienced by Telstra One of the advantages of managing workforce diversity for Telstra is that the image of the company has greatly been improved by the various initiatives adopted in order to manage workforce diversity (Grace 2005). The company has also been able to improve its performance essentially due to initiatives such as team work strategies among diverse employee. Furthermore, the adoption of training and development initiatives for the workforce has facilitated increased innovation by employees. For instance Telstra recently invented seamless integration through the development of an integration Lab. The lab was established purposefully for acting as a compliment to the deployment of network solutions (Grace 2005). The main disadvantage of managing workforce diversity for Telstra is based on the costs associated to the practice. For instance initiatives such as continuous training for employees are costly. 4.0 Organization Two; McDonald Company in Australia McDonald is the largest food service firm in the globe. The firm has roughly 10,000 locations including the standard sit-in restaurants, drive through windows and satellite sites. As at 2009 July Macdonald Australia had employed over 85,000 in the Australian business market. The company can be described as one of the largest trainers and employers in Australia. Managing workforce diversity for multinational companies on the other hand is quite different, this is because there are various issues to be evaluated, essentially the aspects of cultural and social diversity. Carr-Ruffino, (1996) highlights that; a global organization should value diversity due to the fact that it has the strategic advantage of working with people from different social backgrounds, culture and norms. Macdonald has undertaken various initiatives to manage workforce diversity. The mission of the organization is recognized as an ‘Employer of Opportunity’. This implies that the organization is working continuously to provide employment opportunities for Australian people. Although the company has its origin in United States, expatriate workers are not acquired from the parent country; many Australian citizens form a major part of the human resource of the organization. MacDonald also considers the practice of internal recruitment within the organization as important. Internal recruitment is the most favorite supply of candidates in the steady and developed organization. . The internal recruitment puts forward the possibility for employees to change their job location and titles thus moving their career upwards (Macdonald Australia Report 2009) MacDonald has also managed to enhance management of workforce diversity through bridging the gap of age in the employment sector. According to the organizations literature, almost 12% of all teens working in the U.S at the moment work for McDonald's. Turnover at the crew-level workers are youths. The rest are the seniors, working mothers, and "transitional" employees in the 20-25 age range (Montiel, 2003). In the context of Australia employment market, MacDonald is a chief employer of young people in the country. The organization ensures that the youths have a balance between employment and schooling. For instance the organization has established policy referred to as the Responsible Student Policy which works towards supporting young people’s academic commitments and fostering work and study activities to be more flexible (Macdonald Australia Report 2009)   Macdonald also enhances management of workforce diversity through constantly adhering to the 1975 Australian Racial Discrimination Act. It is essential that Multinational companies should adopt the regulations of their country of operation, the bottom-line mentality according to O’Leary and Weathington, (2006), is that valuing diversity is an attribute that is beneficial essential in terms of acknowledging the need to conform the basic societal rules that are embodied in the laws and ethical customs of the society. MacDonald Australia is renowned as an employer for women whereby women form a large part of the workforce taking up roles such as Restaurant Managers; the current Managing Director is also a woman Catriona Noble. MacDonald also offers employment and equal training for indigenous communities in Australia (Macdonald Australia Report 2009). Macdonald Australia is also committed develop a fair workplace environment where every employee can have expectations to be treated fairly. The management ensures that employee working environment is enjoyable, free from bullying and harassment. As a result the employees of the organization have a feeling that they are treated with respect and dignity (Montiel 2003). 4.1Advantages/disadvantages experienced by Macdonald Australia Managing workforce diversity for Macdonald Australia can be termed as beneficial this is because the company has been able to diversify its business opportunities. The managing executive of the company acknowledges the fact the company has expanded its business opportunities in Australia in a respectful manner, because they have been able to maintain demography of diverse staff who have effectively served customers (Macdonald Australia Report 2009). The challenge facing the company in its endeavor of managing workforce diversity is that conducting a serious of educational seminars to promote workforce diversity and address the various changes that occur in the organization are costly and also take a lot of time. Conclusion and Recommendations The analysis above has provided an evaluation of the concept of workforce diversity and the aspect of managing workforce diversity. The case studies of the two organizations, Telstra and MacDonald Australia have illustrated practical applications of the practice of managing workforce diversity. As a result a good manager should be able to recognize that specialized skills are required in order to effectively manage the diversity of the workforce. Consequently managers should be ready to implement changes within the organization that can result to creating of a culture of inclusion and diversity. Managing workforce diversity is an activity that is holistic whereby the differences that exist among people are dealt with in order to enhance the productive well being of employee which further results to expansion of the organizations goals. References Australian network on disability 2010,Melbourne Seminar - Reasonable Adjustments - 1st r Retrieved December 19. Caleb R, 2006,’’What Do We Mean By “Managing Diversity”? Workforce Diversity, Vol. 3: Concepts and Cases, ICAFAI University, Cascio, P, 2006, Managing Human Resource: Productivity, Quality of Work life, Profits, McGraw Hill. Cox, T & Blake, S , 1991, . 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