Ethical and Legal Issues in the Workplace - Research Paper Example

Ethical and Legal Issues in the Workplace Introduction Within the workplace, various challenges are faced by managers. These managers are challenged by the personal as well as the behavioural elements of the work force. In the spirit of equal rights and non-discrimination in the workplace, there are major accommodations which organizations have to make in order to protect the application of ethical and legal issues in the workplace. This essay shall discuss four questions which relate to these ethical and legal issues. The first question will explain how diversity generally affects human resource management and development in an organization. The second part with describe two or three specific issues or challenges which diversity poses in the hiring, management, development and/or retention practices, and how each challenge may be addressed. The third part will describe an ethical and a legal issue specific to strategic talent management and development related to the case study “Managing diversity at Cityside Financial Services.” The last part of the paper will explain how, as a HR professional, I would address each of the issues described. In my explanation, I would likely note whether I would refer the issue to an expert or not. These questions will seek to establish an improved understanding of diversity and human resource management. Body Diversity generally affects human resource management and development in organizations. Human resource management and development in organizations takes a more encompassing tone as it accommodates diversity among its employees and the members of the organization (Jackson, 1992). In the current context, most individuals and organizations have accepted that prejudice against women and minorities is unacceptable. These organizations and individuals now understand that the managers of the organization mostly adhere to these beliefs and often consider discrimination to be an outdated issue (Jackson, 1992). The so-called modern racists however are very much in existence and most of them believe that women as well as other minorities are utilising unfair methods to secure workplace advantages which are not founded on merit (Brief and Barsky, 2000). In terms of workplace conditions, modern racism does not lead to hate against women and other minorities; however, they cause discomfort and avoidance from members of the majority (Cornelius, 2002). Where the workplace or organization has some groups which represent minority populations, they usually create a crucial group of people who can also protect these members from unfavourable stereotypes (Cornelius, 2002). In some instances, the increased number of women in the upper rungs of management is linked with a decreased tendency towards stereotyping. Authors discuss the significance of indicating threshold points where there is a sufficient number of minorities in groups in securing diversity change techniques (Kosek, et.al., 2003). Tsui and Gutek (1999) also point out consistent indications which express more similarities among supervisors and subordinates in terms of age, ethnicity, and gender correlations with human resource outcomes performing better and having less role ambiguity and conflict. Leck, et.al., (1995) discuss that some organizations which are more diverse (i.e higher female population), also manifest with lesser wage gaps. In general, workforce diversity is strongly associated with improved attitudes in terms of diversity and performance ratings as well as wages. Among groups, studies indicate that there are varying results and outcomes from diverse setups. Analysis by McLeod and colleagues (1996) indicate that more diverse groups were likely to engage in improved quality solutions in terms of brainstorming, mostly in relation to homogenous groups; they also displayed more coordination and cooperation. However, a greater review of various studies (Milliken and Martins, 1996, Tsui and Gutek, 1999) indicates that with more diversity for groups, there is decreased social cohesion. Members who belong to minorities or who are basically different from others were more likely to leave the organization (Elvira and Cohen, 2001). Women were also more inclined to turn over when there were not very many women in the upper management levels. Webber and Donahue (2001) did not see any correlation between diversity and the kind of team on the work performance. Authors acknowledge the significance of assessing the term and status of members within the team; with members getting more acquainted with each other, the negative impact of diversity is likely to even out (Watson, et.al., 1993). Aside from demographic differences, other elements including the coherence of values are very much significant (Harrison, et.al., 1998). More studies are however needed in order to evaluate the relationship of diversity and group outcomes. In terms of diversity and organizational outcomes, strong links are also apparent. Diverse workforces may manifest with stronger demands for other products and services (Richard, et.al., 2002). Strategic theories indicate that organizations with more diversity would likely represent the diverse market and display more diverse social tools (Richard, 2000). Based on federal reports, percentages of representation among women managers in the major US firms during the 1990s were related to favourable organization performance (Cordeiro and Stites-Doe, 1997). The impact was consistent even when the use of resources was controlled. The relationship between gender diversity among top management and business outcomes among major companies in the US was assessed by Catalyst (2004). The study indicates that organizations with greater gender diversity within the management rungs, also manifested with higher returns in equity and greater returns among shareholders. Studies also persistently indicate that the relationship of diversity and organizational performance does not always reflect a direct or negative correlation. In fact, the relationship may relate to the kind of strategy applied. The study by Richard, et.al. (2002) covering 500 banks has established that among organizations with greater racial diversity, higher returns in equity were seen. In general, based on the above points, diversity has impacted significantly on organizations’ individual, group, and organizational performance outcomes. Mostly, heterogeneous organizations which focused on diversity were more likely to place an optimum on improvements in decision making, gaining creativity and more flexibility within the organization (Hayes and Ninemeier, 2008). These goals can be established through organizational adjustments and interventions. Interventions relating to improved selection processes, conflict management and management focus were more likely to contribute to the impact of diversity on organizational efficacy (Hayes and Ninemeier, 2008). Measures focus not only on formal overall results, including productivity, but also on temporary outcomes, including cultural experiences, teamwork, cooperation, as well as individual commitment to organizational goals. Issues relating to diversity Issues or challenges relating to diversity are varied. In terms of hiring, diversity may compromise the dignity of minority employees and cause tension among the employees. Communication may also be compromised due to the fact that the first language of some employees may not be English (Konrad and Pringle, 2006). Other employees may also opt to leave the organization if their personal prejudices do not allow for favourable working relations with other employees from other ethnic backgrounds (Konrad and Pringle, 2006). Moreover, the assessment of employee complaints in terms of negative attitudes may take up much time on the part of management. Issues in hiring a diverse work force can be resolved through the conduct of trainings among employees. These trainings can teach the employees how to be more gender sensitive and culture sensitive. The activities can also help these employees bond and socialize with each other (Paludi, 2012). The trainings would help these employees understand why they are different from each other, and how unique they are from each other. In understanding distinct qualities, these employees would understand and appreciate their differences (Paludi, 2012). Knowledge about each other helps these employees feel less threatened and feel less removed from their colleagues in the organization. Too much diversity within the work force is also considered dysfunctional. Diversity rises with more ambiguous, complexity, and confusion in organizations (Rise, 2010). Diverse organizations may also find it hard to secure meanings and they may find it hard to secure single agreements. In most organizations, diversity can support negative conditions including ethnocentrism and cultural clashes (Rise, 2010). Such unfavourable conditions can sometimes merge with unstable power structures to secure unfavourable work conditions among women and minorities. For traditional organizations, cultural disparities cause barrier in terms of full participation among minorities. Tsui, et.al., (1992) discuss workgroups and consider increased diversity as associated to decreased levels of psychological loyalty among members. For leaders therefore who are not giving much credence to diversity, this may bring attention away from performance. Negative work results include affective outcomes which negatively affect organization measures like absenteeism and turnover (Grano, 1999). Homogeneous groups sometimes perform better than diverse groups, especially in terms of communication (Groschl, 2012). Heterogeneous teams usually do not perform well in relation to homogeneous groups because the homogenous groups do not give members specific and special contributions to the work. Cross-cultural training is essential in guaranteeing that culturally diverse groups resolve their potential communication barriers (Groschl, 2012). Diversity movements seem to allow for the polarization of social groups. It also seems to increase intergroup conflicts, decreasing productivity (Chatman, et.al., 2004). The lack of knowledge of cultural disparities is a source of inefficacy in work conditions among diverse work teams. Also, knowledge of cultural disparities among diverse groups must secure better work relations and work efficacy. Improved turnover and absenteeism are issues which hound diverse organizations. Turnover for blacks for example for the US is 40% than for whites (Outtz, 2010). Although multiculturalism can bring about major benefits for the company, some of the employees may feel threatened in working with other employees with age, genders, or cultures different from them (Outtz, 2010). The cost of training may also be higher within this diverse environment with costs incurred in terms of seminars and trainings seeking to support diversity within the corporation. Such training activities is usually administered to all staff members in the organization (Outtz, 2010) and these trainings train employees how to work with the varying personalities, ideas, and viewpoints of other employees. As was mentioned earlier, these trainings also aim to teach all employees how to manage conflicts and differences in opinions. Another disadvantage which diverse companies may discover is reverse discrimination (Pollitt, 2006). This stems from the feeling arising from affirmative action standards. Reverse discrimination is an argument mostly made by whites, expressing how they are being discriminated against just because they belong to the majority population. Clear and specific qualifications must therefore be indicated for each position in order to help reduce issues on the hiring of employees (Pollitt, 2006). The qualifications must be based on merit, not on any ethnic or demographic considerations. Securing a diverse work environment can be achieved within organizations without intentionally hiring a diverse set of employees (D’Almeida, 2007). Where the qualifications of the applicants reveal them to be the most qualified, the workplace can be protected from any lawsuits or accusations of reverse discrimination. The status of each employee within the organization can also be protected and defended through meritorious qualifications, not demographic considerations. Cityside Financial Services A legal issue which can be seen from the Cityside Financial Services case stems from the fact that some clients were not offered the same investment opportunities as other wealthy clients because they were considered ‘local.’ Investment opportunities should not have been denied these clients especially as these clients had the means and resources to also invest in the services offered by the bank. Labelling them as ‘local,’ negates the legal provisions for equal opportunity in investments protected by the law. The Equality Framework in the UK in accordance with the Equality Act of 2010 indicates equal treatment in employment and occupation. These provisions also negate differences in treatment based on gender, partnership, race, religion, and any other demographic qualities. Although the case does not refer to employment considerations, the fact that these ‘locals’ were not given the same treatment and opportunities as others qualifies their case under discrimination. Ethically, the fact that there was a distinction between what type of workers could work at External Deposits and Retail indicates discriminatory work practices (Thomas, 2006). There is a decreased possibility for cross-over for these workers as the work practice has already firmly entrenched the habit of employing white workers in External Deposits and black workers in Retail. The discrimination here applies to both sets of workers being assessed based on ethnic qualities, not so much on merit (Thomas, 2006). Although the workers seem to apply themselves well to their work, the opportunity to apply themselves in the other department is curtailed by the existing ethnic qualities required in working for the two units. Managing diversity In managing the legal and ethical issues described above, it is important as an HR professional to be familiar and fully informed about the minimum legal requirements which protect workers (Ocon, 2006). The issues of communication, dysfunctionalism, increased turnover, absenteeism, and the lack of coherence and unity within the workplace are issues relating to diversity which has already been described above. As a human resources officer, managing diversity would involve the application of skills and training which specifically would take into consideration the legal and ethical standards of the work place (Ocon, 2006). Knowledge of the laws against workplace discrimination is crucial to the management of diversity. Moreover, specific knowledge about the different qualities of the employees, including their ethnic, cultural, and demographic identity would help ensure the application of non-discriminatory decisions. Cultural diversity has been in existence in the workplace for a long time now, but most people are unaware of it or have not realized its existence (Barak, 2010). With the interaction of countries with each other, most areas feature varying cultural qualities. As HR manager, it is important to secure equal opportunities for the staff, as individuals and as a group and to consider the issues which refer to ethnic, racial, or cultural considerations, while also managing the sensitivities of the employees (Barak, 2010). Opportunities for staff which seek to assess values and viewpoints from the different groups should also be provided by the HR. The unwritten rules of the organization must also be made clear to the employees. Informing them of these unwritten rules would help provide frameworks within the organization which would eventually prevent the unconscionable violation of worker’s rights (O’Flynn, et.al., 2007). One of the solutions to diversity issues has already been mentioned above and would be emphasized again as a function of HR. This solution refers to trainings and seminars relating to diversity and discrimination (O’Flynn, et.al., 2007). This training seeks to protect and inform employees, as well as the managers about diversity and workplace discrimination. In some ways, such training can also be considered a mentoring program which can help guide the employees and the other members of the organization about gender and culture sensitivity. The mentoring processes and training can work well for the minority workers who can learn the language, including colloquialisms which can help them understand the majority culture better (Larson, et.al., 2007). It would also help them adjust better to their environment, and ease their transition into the workplace. As they fit better into the workplace, employee turnovers and absenteeism would likely be reduced. As an HR officer, part of my task is to carry out personnel audit in order to determine the level of diversity in the workplace and the distribution of employees within the workplace (O’Flynn, et.al., 2007). Culture audits can help manage dysfunctionalism, especially as the specific qualities and distribution of the workers in the organization are identified. The audit would assess the organizational processes as well as the HR practices and it would assess the formal and the informal cultures (O’Flynn, et.al., 2007). It would then assess formal procedures, including informal applications which sometimes may not be specifically assessed or sanctioned. The training, education and awareness of the workers can provide support for individual as well as organizational outcomes. Such trainings can be tailored fit to the functions and needs of individuals within the organization, most especially managers who would be tasked with the protection and management of workplace diversity (Hernandez, 2009). The training in general would also serve as threshold standards for the managers which would eventually help them make effective decisions for the organization and for the diverse set of employees. The importance of diversity must therefore always be recognized by the HR managers, especially as they are also serving the functions of personnel management (Hernandez, 2009). I may refer to an expert to assist in the management of the issue in order to help me understand the elements involved, including the options I can consider to effectively and fairly resolve the issue. Another strategy which can be applied in managing diversity is on strategic goal setting. It is important for me with the assistance of the organizational managers to set goals in the diversity practices and policies (O’Flynn, et.al., 2007). These goals must be based on the strategic aims of the organization. Such goals may seek to target turnover rates and absenteeism or on expanding the number of employees for each specific group (Roberge and Van Dick, 2010). This process would therefore help support inclusion and would support the message about firms being highly concerned about managing diversity. Social integration and cohesion would also assist in improving communication among the workers. These are effective tools in protecting and preserving group cohesion (O’Flynn, et.al., 2007). Diversity primarily supports interpersonal conflicts and communication issues. When unmanaged, this may lead to more unmanageable issues. Firms can support knowledge assimilated through the culture audit to indicate existing cohesion challenges (O’Flynn, et.al., 2007). As the problems would be identified, organizations can then indicate the areas where the HRM strategies can be applied in order to support integration in the work force. References Barak, M. (2010). Managing diversity: Toward a globally inclusive Workplace. London: SAGE. Catalyst (2004). The bottom line: Connecting corporate performance and diversity. New York: Catalyst. Retrieved from http://www.catalystwomen.org/2004fin_perf.htm Cordeiro, J., & Stites-Doe, S. (1997). The impact of women managers on firm performance: Evidence from large U.S. firms. International Review of Women and Leadership, 3 (1): 1–20. Cornelius, N. 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