The Benefits and Problems with Having a Diverse Workforce - Essay Example

The benefits/ problems with having a diverse workforce of different cultures. Justify (using the research literature) how to achieve mutual benefits for the organisation and the employees 1. Introduction Diversity in workplace has been a common issue for enterprises around the world. In most cases, diversity is claimed to exist, however it has been proved that diversity in the workplace is not easily achievable. It needs a series of appropriate methodologies applied throughout the HR functions of an organization. In such a framework, diversity is expected to be developed gradually with the active participation of employers and employees. In this context, it is noticed by Rowden (1999, 22) that ‘the traditional HR functions of staffing, recruiting, compensation and benefits are losing ground to a new generation of value-added core HR functions that include career planning, executive development, training, succession planning and organization development’. All the above parts of the HR planning are indicative examples of the policies that would be helpful towards the achievement of a high rate of diversity on the workplace. However, there could be cases where diversity would not be achieved, even if all the appropriate measures are taken by the HR practitioners. It would be then an issue of inappropriate HR design which should be formulated in accordance with the social and cultural trends of the society involved taking into account the culture and the mission of the firm under examination. Current paper examines the benefits and the disadvantages of the application on a particular firm of a strategy that will promote the diversity among employees that have different cultures. Possible effects on both employees and employers are also examined taking into account the needs of the firm but also the consequences for the employees participated in the specific workplace. 2. Diversity in workplace – description and characteristics, elements of cultural diversity In order to understand the role of diversity in the workplace, it would be necessary to refer primarily to its characteristics. In accordance with a definition presented by the Public Sector Workforce office of the New South Wales Government ‘The concept of diversity is based on individual acceptance and respect. It is an understanding that individuals are unique and different. Diversity includes race, ethnicity, gender, sexual orientation, socio-economic status, culture, age, physical ability and religious, political and other beliefs’ (New South Wales Government (Public Sector Workforce Office), 2007 [1]). The above definition refers to diversity as it can be observed in public sector’s workplaces. However, it could be equally applied in the private sector (the above definition refers to issues that they are common for all workplaces no matter of their involvement in the public sector). Towards the same direction, in the case of the Civil Service in UK, it is noticed that an appropriate diversity strategy should have the following characteristics: ‘there must be no unfair discrimination on the basis of age, disability, gender, marital status, sexual orientation, religion or belief, race, colour, nationality, ethnic or national origin, or (in Northern Ireland) community background, working pattern, employment status, gender identity (transgender), caring responsibility, trade union membership’ (Civil Service, UK. 2007, [2]). Both the definitions presented above highlight the importance of equality in workplace. This equality should refer to all aspects of personal characteristics (background, race, gender and so on). On the other hand, it should be noticed that discrimination in workplace can have many aspect. Regarding this issue it is noticed by Collela et al. (2005, 2) that the formal procedures used not only in selection, appraisal, compensation, placement, promotion, training, and working conditions but also in the more informal and subtle forms of discrimination, such as social exclusion’. In accordance with the issues stated above, diversity in workplace should be achieved only if all personal characteristics and attitudes of employees (as explained above) are protected through appropriate HR policies. Race 96% Gender 88% Ethnicity 85% Age 65% Disability 64% Sexual Orientation 67% Religion 54% Language 38% Other 11% Figure 1 – Percentage of firms promoting diversity, USA, 2002 (source: Grensing-Pophal, 2002) In accordance with a survey of Fortune presented by Grensing- Pophal (2002) a significant number of firms adopt specific policies for the promotion of diversity in the workplace (see Figure 1 above). However, this research involves in the USA market. Within the international market is possible that these figures are differentiated. On the other hand, there is no reference to the effectiveness of the measures taken. It is just highlighted that specific initiatives have been made by the firms participated in the survey towards the promotion of diversity. Culture often can cause differentiations among employees in a specific workplace. These differentiations can then lead to inequality especially regarding the employees that have a different culture from the one of the majority. Moreover, even if the appropriate measures are being taken, culture can still cause inequalities within a specific workplace. In fact, Karp et al. (2000, 451) supported that ‘the strategy is to create changes that will have a long term positive impact on the organizational culture, with the objective of creating a safer and more productive working environment for all organizational members’. In other words, diversity regarding culture within a particular organization should be supported primarily by the organization’s leaders. Any involvement of the HR department - as explained below – towards the promotion of diversity regarding the culture will be also helpful (but of secondary importance). 3. Proposals for the promotion of diversity in the workplace – Benefits and disadvantages for the organization In order to ensure the elimination of discrimination and the promotion of diversity in the workplace, each firm has to proceed to specific initiatives. Regarding this issue, it is noticed by Kadane et al. (2004, 182) that ‘the common method for measuring discrimination involves a comparison of some aggregate statistic for protected and non-protected individuals; this approach is open to question when employment decisions are made over an extended time period’. In other words, before proposing the appropriate policies for the promotion of diversity, a firm needs primarily to accurately measure the level of discrimination in its workplace. A significant issue that should be mentioned here is the fact the control of diversity within a workplace can have many aspects. In this context, ‘managing diversity’ is differentiated from ‘valuing diversity’. In fact, ‘managing diversity’ refers to a variety of organizational interventions designed to overcome the potential costs of workforce differences, so that they become a source of strength or asset for the company; in contrast, ‘valuing diversity’ typically refers to a set of activities or programs designed to enhance sensitivity and acceptance of cultural differences among employees’ (De Meuse et al., 2007, 39). The above two terms present the obligations of a firm that operates within the global market. More specifically, any firm around the world that aims to promote diversity in its workplace should take all the appropriate measures in order to secure the application of equality and fairness in the specific area. Towards this direction, any initiative taken by employers should be customized to the employees’ needs and their potential to be adapted to the proposed scheme. In other words, proposed measures and plans should be achievable and effective in accordance with the general characteristics (gender, race, age and so on) of the specific workforce taking also into account the corporate culture. There have been many proposals regarding the appropriate methods of promoting diversity in the workplace. Leadership has been considered to be a significant issue when dealing with diversity. On the other hand, it is noticed that ‘the current processes for managing diversity continue to be necessary but are not sufficient to result in effective outcomes in 21st century organizational environments; diversity training remains the primary method used to facilitate behavior change; however, existing diversity training is perceived to have failed, calling for a new diversity leadership focus to improve diversity performance’ (Combs, 2002, 1). In other words, diversity can be mostly promoted through the appropriate leadership practices (included training). However, in practice this target is proved too difficult to be achieved mostly because personal criteria influence the choice of training strategies applied. As a result, the relevant effort is led to a failure. From another point of view, it is suggested that ‘more attention must be paid to some common dilemmas of diversity, such as the backlash against any commitment to multiculturalism, the continuing anger and disappointment of women and minorities, and the systematic institutional resistance within organizations to difference’ (Allison, 1999, 78). In accordance with this view, diversity in the workplace is achieved only if equality is applied regarding the employees with particular characteristics (gender, race, age, physical abilities). At a next stage the application of appropriate training would be proved a significant help towards the promotion of diversity in the workplace. An issue that should be taken into consideration in this case is the fact that ‘most of these diversity programs are value driven, rather than skill driven, so that there is a clear message being sent out as to how things "should be"; the nature of the value doesnt really matter much; what does matter is that the moment that one person tells others how they should think or feel, a certain amount of resistance is automatically created’ (Karp et al., 2000, 451). However, it would be necessary that appropriate management strategies (regarding the equality among employees) should be primarily applied – the provision of training regarding equality and diversity in the workplace could follow. Benefits and disadvantages for the organization The promotion of diversity within a particular organization is quite important. In fact the study of De Meuse et al. (2007) led to the conclusion that ‘organizations that managed diversity well: 1. Gained an edge in recruiting talented white women and minorities; 2. Enhanced the potential for creative problem solving and innovation; 3. Reduced turnover; 4. Increased successful marketing efforts to underexploited subpopulations; 5. Improved their ability to adapt to changing market conditions; and 6. Generally increased organizational productivity’ (De Meuse et al., 2007, 40). The above list of benefits for organizations that promote diversity is just an indicative one. In fact many other benefits could result for the firms that are involved actively in the promotion of equality and diversity within their workplace. Potential benefits would be depended each time on the firm’s culture, the attitudes of employees and their behaviour towards proposed changes and the resistance developed in the workplace regarding the promotion of diversity. On the other hand, the application of policies that promote diversity, especially cultural diversity, in the workplace may lead to turbulences within the organizational environment. More specifically, it is very likely that – in case that such policy is applied – certain employees that do not wish to cooperate with people of different culture can react negatively considering this initiative as a promotion of employees with cultural differences against their colleagues. On the other hand, it would be difficult to formulate in advance an accurate assumption regarding the potential reaction of employees regarding the application on the workplace of measures that promote cultural diversity. Of course, conflicts should be expected but they should be limited. Otherwise, the whole effort will create more problems than those expected to resolve. Moreover, the particular workplace may be not ready for such policies in terms of the distribution of tasks and the role of each employee. In other words, in accordance with the existing organizational structure, people of different culture already have been delegated specific tasks in a particular sector. It would be difficult for these employees to be transferred in other departments in order to apply an equal distribution of roles in all organizational sectors. Finally, the cost involved in the relevant effort would be prohibitive for the development of this plan, at least for a while. Training and other support offered to employees in order to help their understanding in the importance of cultural diversity in the workplace, is usually related with a significant cost. For this reason, it would be necessary for the firm to include these programs in the annual expenses and make provisions for the appropriate funding of the relevant policy. 5. Diversity and HRM The role of HRM in the development of diversity in a workplace is crucial. More specifically, it has been supported by Sims (2000, 3) that ‘human resources involve HRM programs aimed at developing HRM strategies for the total organization with an eye toward clarifying an organization’s current and potential problems and developing solutions for them; they are oriented toward action, the individual, the global marketplace, and the future’. In other words, HR is related with the design and application of all policies related with employees of a particular organization. The evaluation of these policies is also a task delegated to HR department; however quite often CEO can intervene and propose amendments on a specific HR policy if this is considered to be partially inappropriate for the specific organization. The role of HR department in the development of equality and diversity in the workplace is also highlighted by Lawler et al. (2003, 12) who noticed that ‘the greatest benefits occur when HR is a strategic business partner that fully participates in both the development and implementation of strategy’. However, in order for HR to be actually effective, a constant and close monitoring of all its initiative is necessary in combination with the control over the performance of employees in accordance with the guidelines given by the HR. Towards this direction Ramlall (2003, 60) stated that ‘it is only through performance measuring that one can really articulate the benefits of HR strategies in achieving the organizations business strategy and in the process enhance the credibility of the HR profession’. In other words, the application of diversity policies within an organization should be arranged by the HR department that has the responsibility for the design and the application of all policies related with the workplace within the specific organization; however the effectiveness of the HR policies on the promotion of cultural diversity in the workplace should not be regarded as expected; rather a continuous monitoring of all these policies is required by the organization’s leaders in order to ensure the quality and the feasibility of the measures taken towards the limitation of discrimination in the workplace as a result of the cultural differences among employees. 6. Conclusion Generally, it should be stated that the use of appropriate policies for the promotion of diversity has to be arranged – as explained above – by the firm’s HR department. In fact, the role of HRM has been proved to be significant. However, this role is changing through the years in order to meet the needs of employees as they are differentiated under the influence of social and cultural trends and the financial pressures observed in each particular market. Towards this direction, Gubman (2004, 14) noticed that ‘human resource strategy and planning has changed and grown significantly during the last 25 years while we can track these developments from functional strategies in the 1980s to capabilities strategies in the 1990s to results strategies today’. In any case, the application of diversity in a particular workplace should be promoted primarily by the relevant organization which should offer all necessary support to the plans prepared and applied by its HR department. Moreover, culture has been proved to be a decisive criterion for the development of inequalities within the workplace. For this reason, it is necessary that employees around the world to be offered the appropriate training in order to cooperate in equal terms with their colleagues that have a different culture. Organizations should be also ensure the promotion of equality and diversity in the workplace by applying all appropriate policies as suggested by their HR department – the incorporation within the firm’s mission statement that culture is recognized as having a special value within the workplace is not sufficient for the effective handling of the issue. An issue that should be highlighted is the fact than any HR policy applied on a particular organization should be effective and feasible. For this reason, Harris et al. (2004, 156) noticed that ‘the particular set of HR practices that an organization adopts must fit with other organizational factors in order for it to be effective’. If the above practices are going to introduce changes within the workplace – as in case of the promotion of cultural diversity – resistance should be expected by employees. For this reason, appropriate provisions should be made by the particular firm not only to apply effective policies but also to take all necessary measures in order to prevent the turbulences as a result of the change attempted. References Allisson, M. (1999) Organizational Barriers to Diversity in the Workplace. Journal of Leisure Research, 31(1): 78-95 Civil Service, UK. 2007, [Online], available at http://www.civilservice.gov.uk/diversity/ [2] Combs, G. (2002) Meeting the Leadership Challenge of a Diverse and Pluralistic Workplace: Implications of Self-Efficacy for Diversity Training. Journal of Leadership Studies, 8(4): 1-12 De Meuse, K., Hostage, T., Eau, C., O’Neill, K. (2007) A Longitudinal Evaluation of Senior Managers Perceptions and Attitudes of a Workplace Diversity Training Program. Human Resource Planning, 30(2): 38-59 Gilbert, J., Ivancevich, J. (1999) Organizational Diplomacy: The Bridge for Managing Diversity. Human Resource Planning, 22(3): 29-39 Gubman, E. (2004). HR Strategy and Planning: From Birth to Business Results. Human Resource Planning, 27(1): 13-22 Grensing-Pophal, L. (2002) Reaching for diversity - Diversity - diversity efforts in the workplace - Polling Data. HR Magazine, available at http://findarticles.com/p/articles/mi_m3495/is_5_47/ai_86053652/pg_3 Harris, H., Sparrow, P. (2004) Globalizing Human Resource Management. New York: Routledge Karp, H., Sammour, H. (2000) Workforce Diversity: Choices in Diversity Training Programs & Dealing with Resistance to Diversity. College Student Journal, 34(3): 451-457 Lawler, E.E., Mohrman, S.A. (2003). HR as a Strategic Partner: What Does It Take to Make It Happen? Human Resource Planning, 26(3): 15-31 New South Wales Government (Public Sector Workforce Office). 2007, [Online], available at http://www.eeo.nsw.gov.au/diversity/whatis.htm [1] Ramlall, S.J. (2003). Measuring Human Resource Managements Effectiveness in Improving Performance. Human Resource Planning, 26(1):51-64 Rowden, R.W. (1999) Potential Roles of the Human Resource Management Professional in the Strategic Planning Process. SAM Advanced Management Journal, 64(3): 22-29 Sims, R. R. (2002). Organizational Success through Effective Human Resources Management.Quorum Books. Westport, CT Read More