Role of Management in Valuing Cultural Diversity - Essay Example

Introduction, Assignment Plane and Thesis ment HRM is a study of people’s policies, behaviours and attitudes and creation of practices and systems to plan, recruit, train and improve performance. The growing number of cross-national and inter-cultural businesses has made theorists and practitioners try to evolve HRM best practices from the perspective of diversity. Culturally diverse organizations are more innovative, creative, talented and hold more marketing potential and talent, (Cox and Blake, 1991 cited in Kossek, Lobel and Brown, Thomas and Ely, 2001), greater cooperation (Cox and Blake cited at Kossek et.al), suggesting a positive correlation between formalized HR and diversity (Kossek et.al). Perspective is the belief and practices of management carried out with realisation of importance of diversity to a company (Ely and Thomas, 2001). With this view, Ely and Thomas (2001) developed three diversity perspectives, the discrimination-and-fairness perspective, access-and-legitimacy perspective and integration-and-learning perspective. According to Peters (2008), perspectives try to achieve the dual purpose of performance enhancement and social role of unity in diversity. However, the learning-and-effectiveness perspective wields greater importance in times of emergence of global business with diverse workforces. Learning-and-effectiveness perspective intends to achieve individual and organizational goals through creativity and learning of an individual employee in a flexible atmosphere (Thomas and Ely, 2001). As the ‘emerging paradigm of diversity’ it taps the true benefits of diversity (Thomas and Ely, 2001) in the long and short run (Dass and Parker, 1999 cited at Peters, 2008). Overview of Diversity The real awakening into the contemporary aspects of human resource management made a beginning with Hawthorne experiments (Trompenaaars and Hampden-Turner, 2004). Further studies like the Scanlon Plan, Mayo’s analysis, and the Managerial Grid Seminars of Robert Blake stressed the team-based or group nature of HRM (Trompenaaars and Hampden-Turner, 2004). Ely and Thomas (2001) through development of three perspectives provided the landmark rationale for diversity management in HR systems of organizations. Diversity has gained in importance in organisational life as companies become more diverse in terms of gender, race, ethnicity, age, and nationality (Shaw, Barret-Power cited in D’Netto and Sohal, 1999). Diversity is presence of differences in a social group. (Jackson, et.al, 1992 cited in D’Netto and Sohal, 1999). A diverse workforce shares difference in attitudes, desires, needs and work behaviour (Deluca and McDowell cited in D’Netto and Sohal, 1999). Diversity involves ending of hierarchy and subjugation and goes beyond affirmative action and equal opportunity employment (Kossek et.al, 2003). From the organization’s viewpoint, diversity is a ‘business necessity’ (Cox and Blake, 1991, cited at Peters, 2008), effects a change in the company’s power structure (Litvin, 2006) and instils the ability to resolve conflict, take risks, and act differently in the individual employee (Thomas Ely quoted in Litvin, 2006). Managing diversity is to maximize the ability of an organization towards fulfilment by actively recruiting, retaining and facilitating working relationships between individuals from diverse backgrounds (Thomas, 1991 cited at Miller, Rowney, 1999). Diversity, as understood by some practitioners is not just about balancing the demography of an organization horizontally but is also to ensure it across functional units. However, Konrad and Leinnehann (1995), for example, find no relationship between formalized HRM structures and between diversity in higher management (Konrad and Leinnehann, 1995, as cited in Kossek et.al). Rynes and Rosen, 1995 as cited in Kossek, et.al found the notion that diversity training correlates with top management diversity could not be supported. As a solution, Thomas and Gabarro (1999) as cited at Kossek, et.al suggest dismantling racial barriers at each carrier stage. Cox (2001) as cited in cited at Kossek, et.al. recommends directed intervention to increase representation of women and minorities in underrepresented units. Managing diversity is to raise the ability of an organization to meet its goals through skill enhancement, and creates an atmosphere to get the best from every employee ( D’Netto and Sohal, 1999). It is a ‘business necessity’ unlike affirmative action that is a social and legal imperative (Berkley.edu). It provides the human resources to learn from one another and develop a global perspective on different issues while strengthening one’s own cultural diversity (Thomas and Ely, 2001). Thus they can work to enhance company’s ability towards pursuing its strategic goals by improving its work practices while making individual growth. On the other hand cultural diversity presents a much bigger challenge to HRM. Culture is an integrated framework of knowledge, beliefs, and morals acquired by a member of society (Taylor, 1871). Hofestede defines cultures as a programming that distinguishes one human group from another. These assumptions, framework of knowledge, morals and beliefs and individualized programming when weaved into diversity fabric makes the mosaic of cultural diversity. Culture makes a profound impact on how employees behave with colleagues, seniors and subordinates in day to day functioning. The study of culture and cultural diversity in human resource management gains prominence in view of fading boundaries and growth in the number of multinational businesses. Discrimination and fairness perspective Simply stated discrimination-and-fairness perspective is the measure of values that drives its diversity management practices, for example, focusing on ensuring fair treatment, and ending discriminatory practices (Stahl, Bjorkman, and Ott, 2005). Discrimination-and- fairness perspective provides guidance for achieving sustained benefits from diversity (Jain, Sloane and Horwitz, 2003), treats workplace discrimination and rewarding employees based on gender, race and class as illegal and unethical (Thomas and Ely, 2001), and holds fair treatment to all as a morally justified. Recruiting a culturally diverse workforce is evidence enough of diversity and fairness perspective at work. Discrimination-and-fairness perspective serves the cause of assimilation by educating majority about minority resulting in higher recruitment and retention rate of minorities (Roberson, 2004). Limitations The perspective can entail various approaches depending upon the organizations and its cultural contexts (Stahl, et.al). It is found to breed racialism (Orelemans, Peteers, and Schaufeli., 2008) and going right past wrong (Roberson, 2008). It can lead to creation of a psychological contract among employers and employees to mirror each other’s image (Roberson), and is a defensive strategy to ensure level playing field (Parks, Quaterman, Thibault, 2007). It acts as impediment to cohesiveness in an organization. Diversity and fairness perspective is a handy tool to encourage cooperation and penalize prejudicial bias. (Schuler and Jackson, 2004). However, amongst the most cited drawbacks of diversity- and-fairness perspective is the tendency of the employees to carry their cultural differences rather to the workplace. Access and Legitimacy Perspective Access-and-legitimacy perspective in theory and practice enables an organization to use the potential of diverse workforce to maximize profits. A culturally diverse workforce is instrumental for a company to leverage access and marketing over culturally diverse environments. (Thomas and Ely, 2001). Diversity in human resource is yet another profit enhancing tool for the management. The more the culturally diverse workforce, the more is its appeal and influence in international markets (Thomas and Ely, 2001, Cox and Blake cited in Kossek, et.al. This simplistic business model provides initial gains to access-and- legitimacy in gaining initial foothold in a market. But soon competition troops in using the more culturally akin workforce to sell its wares in the same market. The access-and-legitimacy perspective provides the right fit of the diverse workforce in working in multicultural environments to leverage the maximum potential of the market. Limitations Access-and-legitimacy perspective enables an organization to use the potential of diverse workforce horizontally to maximize profits. Diversity in human resource is yet another profit enhancing tool for the management. Organizations practicing access-and- legitimacy perspective pander to consumerist culture. Employees work in the constant fear that their special departments could be the first to go in downsizing (Thomas and Ely, 2001). Often it gets reflected in form of employee resentment and anger. In other words, access- and-legitimacy is reminiscent of the administrative and personnel management theories of Taylor. Learning and effectiveness perspective Learning-and-effectiveness perspective of diversity provides the workforce with an opportunity to learn from each other, strike commonalities, and work for promotion of organizational goals (Litvin, 2006). Cultural differences are a source of insight, ingenuity, and skills that become embedded in the organizational culture. Learning-and-effectiveness perspective recognizes culture impacts of decision-making. It is only through learning-and-effectiveness perspective that true benefits of diversity management can be tapped (Thomas and Ely, 2001 cited by Peters, 2008). Learning-and-effectiveness perspective recognizes the need for workplace cultural diversity and uses it to enhance organizational capabilities for strategic achievements of its goals. Integration-and-learning perspective is a rational choice in face of increasing globalization of business activities. Only learning-and-effectiveness perspective provides the rationale for achieving sustained benefits from diversity. Learning-and-effectiveness perspective amalgamates innovative HR practices in the cultural diversity paradigm by promoting sharing of insights, knowledge and skills between culturally disparate groups (Jain, Sloane, and Horwitz, 2003). Thus it fits in the wider perspective of human resource management. It is only through integration-and learning perspective that true benefits of integration-and-learning perspective can be tapped (Thomas Ely cited by Peters, 2008), and employees develop greater respect and consciousness for their own culture as well as that of others (Thomas and Ely, 2001). Limitations Amongst all the perspectives, the integration-and-learning perspective has the least limitations. However, it is felt that the perspective is lacking on its own components as it fails to state how unity approach can be attained in culturally diverse groups. Crocker and Major (1989) state that working together of heterogeneous groups leads to conflicts, strife and tensions. The minorities are not comfortable in a heterogeneous environment as their decision making is limited. The Roles of HRM The days of monolithic companies consisting of single ethnic, national or cultural workforce are over. Due to spiralling growth in trade and industry companies have to ‘work in’ and ‘work with’ cultural diversity cross-nationally and intra-nationally. (Thomas and Tung, 2003). Workers, in their normal functioning interact with very dissimilar co-workers (Thomas and Tung, 2003). Contemporary HRM approach is not aimed at just conflict resolution, forging alliances and encouraging dialogue amongst the workforce but also aims to work for their seamless integration that helps in application of common yardsticks, metrics for performance measurement and uniformity in demographical profile of business units at all hierarchical levels. HRM holds decision making powers over the functional lines, and can work, suggest and make changes at all levels of the hierarchy. The monitoring appraisal, training and evaluation are carried out through dynamic feedback loops. Through specially developed HR techniques and practices the company integrates these disparities into its own cosmopolitan culture. HR Structures and Policies HR professionals increasingly rely on ‘competency models’ to refocus and revitalize the workforce. It is essential that HR be patterned around new models of decision making and leadership. Thomas and Ely (1991) suggest development of a non-bureaucratic organisational structure based around resolute leadership with legislation to sharing of ideas with a well articulated mission and commitment to promote learning. Such informal and formal groups as quality circles, work groups, brain-storming groups, and employee forums strengthen the backbone of an organisation. A dynamic HR system consists of the internal and external environment, organisational strategies, competencies, acted upon by HR polices reflected in recruitment, development, job design and reward to produce outputs like skills enhancement, work performance and change. These yield tangible outcomes like increased botomlines, higher level of job satisfaction and efficient utilisation of resources (Thomson, 2002). This cycle of relationships can also be viewed as a system model of human aspects of organization (Thomson, 2002). Contemporary Human Resource structures and policies need not only be reflective of strong work ethos but should create an alignment of recruitment, training and promotion with diversity. 200 Recruitment A sound recruitment policy means to recruit the best people for the job regardless of ethnicity, age, gender or other considerations (Cornelius, 1999 cited D’Netto and Sohal, 1999). In the pre-recruitment process the HR managers help to design a job against five core jobs dimensions of skill variety, task identity, task significance, autonomy and feedback. (Hackman and Oldham, 1976). HRM expertise in recruitment and selection spearheads the strategic development of customer-centric, learner-oriented workforce (Appelbaum, Fewster). An elemental approach to promote diversity is to make a ‘culturally diverse’ recruitment and selection panel at every critical point of the organisation. (D’Netto and Sohal, 1999). The recruitment process is guided by meritocracy and the worth of a candidate is analyzed over the roles and obligations he/she has to fulfil in the course of duties. The qualifications and work experience of the candidate are measured against the job requirement. Metrics are introduced to measure the interview performance of one candidate against another. Wherever it is required, the HR department conducts psychometric and psychological testing. The decision of recruitment, resting on unanimity of recruitment panellists, is also subject to revision by the management to create a check for cultural bias. The recruitment approach in some countries can be guided by its policies and laws of affirmative action. 200 Training Training an employee as per the workplace requirements and meeting organisational goals is a key human resource activity. Adequate training helps in increasing the retention rate of the employees and eliminates cultural differences (D’Netto and Sohal, 1999). Training can be of two kinds; employee development programmes for promotion (D’Netto and Sohal, 1999) and induction training for assimilation of recruits into the culture of the company. Training is a must in culturally diverse environment for assimilation of new employees into the organization. Training programmes are also structured to promote employee to employee communication and interpersonal skills. The induction training needs are set up in the selection process itself. Usually, a newly recruited employee is placed under the mentor training of an employee. Training best practices includes carrying out audits to know training needs of the employees. On job training fulfils the deficiencies, increases the competence level of the employees. Some organizations have special training cells looked after by the HR department. Yet others also believe in interdepartmental training of the employees to give so that the employee gets a broader picture of organizational activities in light of external environment. 200 Recommendation and Conclusion It is recommended that merit be given priority to put the right man to work at the right place in an organisation by practising learning and effectiveness principle. Setting up of informal groups, encouraging employee to employee communication, a dynamic atmosphere of growth and learning builds team spirit and boosts morale. Group activities also identify and ameliorate causes of conflict and promote healthy employee relations. However, blindly practicing ‘equality in approach’ through learning-and-effectiveness perspective can result in women and minorities to be sidelined thus beating the purpose of diversity management. Companies should keep the option of practicing diversity and fairness perspective Globalization, crashing of cultural and national boundaries is an irreversible phenomenon. Cultural diversity is fast becoming intrinsic to any company, business enterprise and office. Rather than look for ways to just dismantle communication and cultural barriers, companies try to assimilate the knowledge, acumen and experience of culturally disparate individuals. Integration-and-learning perspective provides the right approach that help companies use cultural diversity for competitive advantage. 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