Concept of Diversity Management - Coursework Example

Diversity Management Name Institution Diversity Management Diversity management can be termed as the gaining of relevant knowledge and skills to manage diversity differences effectively and easily (Day, 2007). Due to the ever changing nature of business environment, diversity issue has hot organisations across the world. Issues such as post-colonialism and modernity in firms has added to the complexity of managing diverse workforce. Diversity is perceived differently by different scholars and researchers. To some, diversity involves issues such as racism, sexism and classism (Aronson, 2002). Others argue that diversity deals with broader scope of understanding and valuing age, gender, race as well as ethnicity. With regard to organisations, some scholars have argued that diversity involves recruitment, retaining and maintaining workplace relationship between people from different backgrounds (Day, 2007). This essay is aimed at providing critical analysis of diversity management in organisations. It will explore existing theories and studies in issues regarding to diversity management. In addition, it will examine different diversity issues in order to determine the significance of diversity management, factors contributing to diversity management and challenges pertaining to the same. The development of diversity management varies from country to country (Herring and Henderson, 2011). In Australia, the first attempts to address discrimination and enhance equality and fairness came in form of polices including Affirmative Action as well as Employment Opportunity. Such polices were meant to benefit minority groups in organisations and promote equal opportunities (Herring and Henderson, 2011). Nevertheless, many firms perceived these policies to be ambiguous and indefinite when trying to conform to them. The Affirmative Action was ineffective in promoting diverse workforce. Due to a widespread criticism of Affirmative Action and Employment Opportunity, Diversity Management was developed in the 1990s. Diversity Management was easier for firms to implement (Herring and Henderson, 2011). According to (Allen et al., 2004), diversity can be in form of differences that exist among people Diversity can take different dimensions such as gender, race, age etc. Diversity problems in the workplace revolve around these core issues and can also exist in terms of communication style, relationship status, physical appearance, religion to name a few. These dimensions of diversity can generally be termed as cultural diversity (Kreitz, 2008). Many organisations across the globe have been reported to have a diverse workforce. The widespread of globalisation affecting the strategic planning of companies together with more immigrants’ workers making their way in in Australia has contributed to multicultural challenges. Diversity in Australia has developed due to the increase of immigrant population in the country. In many companies in Australia, the management and the staff have different national and cultural backgrounds (Martin and Woldring, 2001). Due to this, companies have come across a number of serious questions of how to enhance fairness of the employees regardless of their cultural backgrounds; how to motivate contribution of the employees in a diverse team; and how to improve the working relationship between the diverse workforces (Ruggless, 2003). The answers to these questions lie on companies making efforts to addressing the existing diversity issues. Therefore, managers have the responsible of managing diversity by minimizing the drawbacks and maximizing the benefits of diversity in the workplace in order to enhance social cohesion and organisational effectiveness (Ruggless, 2003). However, successful management of the cultural diversity issue is a challenge in many companies. The rapid changing demographic in Australia has been reported to be the major reason for increasing diversity (Pitts, 2006). And as such, there has been a growing concern for diversity management. Many companies seek to enjoy the benefits of diverse workforce such as rich cultured skilful manpower but managing it becomes a huge challenge to managers. Diversity in the workforce also ensures better potential of attracting best pool of talent from different backgrounds which ultimately promotes creativity and innovation in the organisations (Lorbiecki and Jack, 2000). It is a challenge for managers to ensure fair treatment of every employee by managing their differences in order to boost competitive advantage. In addition, managing diversity is also faced with the challenge of investing in resources required in training employees on the issues of diversity (Lorbiecki and Jack, 2000). Gender diversity and cultural diversity are the two issues that play a fundamental role in diversity management (Chesterman, Ross-Smith and Peters, 2005). Gender is a prominent diversity challenge that brings about conflict in the workplace and promotes high turnover rates. Women tend to have different views from men and therefore exhibit better flexibility in dealing with uncertainty and make better managers than men (Dwyer, Richard and Chadwick, 2001). This often raises concern with regard to male employees such as job insecurity, negative competition and work depression among others considering that women today are offered equal opportunities as men. And in order to eliminate the challenges of gender diversity, many organisations have implemented gender diversity management programs (Dwyer, Richard and Chadwick, 2001). Managing gender diversity is possible since gender diversity issues affects organisational performance, company’s reputation and image and operations efficiency. Cultural diversity has been a challenge to many companies especially multinational corporations (Rosenblatt, 2011). Culture is a learned phenomenon that assists people in their struggles to interact with each other in a community or society. When incorporated in culture where either the beliefs or values are deferring, a good number of people face difficulties adjusting. The existence of culture characterizes people and distinguishes a group of people from another (Day, 2007). It integrates how a group of people live and behave towards each other. When individuals join a business organisation, all their values and beliefs tag along. Their individual cultures cannot help the success of the organisation and thereby are required to learn the existing culture of the organisation and adapt accordingly (Roberson, Kulik and Pepper, 2003). Therefore, it is very essential for Australian companies to effectively manage cultural diversity and assist employees overcome cultural barriers (Shaw and Elain, 2008). As a result of cultural diverse workforce, companies will be required to become more refined in solving cultural differences by implementing diversity management programs. Many companies in Australia have adopted diversity programs (Bennington and Wein, 2000). For instance, Hilton launched diversity program called Elevator General Manager Program to yield a group of diverse and talented managers. The program has helped in managing cultural diversity issue in the workplace (DiverstiyInc, 2012). Still, many companies in Australia encounter challenges in managing cultural diversity issue. Increasing discrimination in the workforce is still witnessed among employees and even managers from different cultural backgrounds (Subeliani and Tsogas, 2005). Diversity management has a huge impact on an organisation. According to Bennington and Wien (2000), organisational performance is a measurement of the impact of diversity management program. Diversity management enhances employee commitment and engagement. Employee commitment and participation refer to employee’s willingness to assist in achieving company’s goals and objectives by offering unrestricted effort on a sustainable basis (Martin and Woldring, 2001). Employees’ commitment and participation are very important and brings about positive results. According to research, employees’ commitment can bring about successful business performance. It affects employees’ attitudes, absence and productivity level thereby leading to lower employee turnover, increased shareholders’ return and increased financial performance (Shaw and Elain, 2008). Therefore, for organisations to yield these benefits, managers need to focus their attention more on diversity management (Herring and Henderson, 2011). There are many suggestions offered by researchers on how managers can implement best diversity practices. For instance, according to Lorbiecki and Jack (2000), managers should first evaluate the results of all diversity issues which would allow them to make fair decisions concerning diversity management. Subeliani and Tsogas (2005) offered some measures to minimize the damages offered by out-dated diversity management practices. They came up with Diversity Competency Model as a guide for managers to solve diversity issues. This model is thought to be successful in minimizing dysfunctional behaviour at work (Subeliani and Tsogas, 2005). The model has three stages which ensure the managers are aware of the diversity issues, acquire knowledge on the concept of diversity and put the leaning into action (Subeliani and Tsogas, 2005). Diversity management may involve different ideas such as employee relationship management, diversity training, and eradication of stereotyping and increasing fairness. Relationship management is able to enhance employee relationships and communication while diversity training ensures employees learn about different cultures and relate well with each other (Robertson, Kulik and Pepper, 2003). In conclusion, Due to the ever changing nature of business environment, diversity issue has become a concept studied by many scholars. Diversity in the workplace has a number of benefits to organisations, but also companies may face a challenge of managing diverse workplaces. Therefore, a number of management programs should be put in place to solve the diversity issues in companies in Australia. Diversity management has a huge impact on an organisation. It affects employees’ attitudes, absence and productivity level thereby leading to lower employee turnover, increased shareholders’ return and increased financial performance. It is therefore important for manages to ensure that they manage diversity by minimizing the drawbacks and maximizing the benefits of diversity in the workplace. References Allen, R.S., Dawson, G.A., Wheatley, K.K., and White, C.S. (2004). Diversity Practices: Learning Responses for Modern Organizations. Development and Learning in Organizations, 18(6): 13–15. Aronson, D. (2002). Managing the Diversity Revolution: Best Practices for 21st Century Business. Civil Rights Journal, 6: 46-66. Bennington, L., and Wein, R. (2000). Anti-Discrimination Legislation in Australia – Fair, Effective, Efficient or Irrelevant?. International Journal of Manpower, 21(1): 21–33. Chesterman, C., Ross-Smith, A. & Peters, M. (2005). The Gendered Impact on Organisations of a Critical Mass of Women in Senior Management. 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Subeliani, D., and Tsogas, G. (2005). Managing Diversity in the Netherlands: A Case Study of Raboank. International Journal of Human Resource Management, 16(5): 831–851. Read More