Concept of Managing Diversity

Discuss about the Workforce Diversity Management for Organizational Dynamics.

In the modern world, managing diversity has developed into a strategic business problem (Wilson & Iles, 1999). Efforts put in to manage diversity originate from the nature of change that takes place in the work that is being performed Along with this; the change in base of the customers and the change in workforce of the modern world contribute for managing diversity (Capowski, 1996). Apart from this, various empirical studies can be linked with organisational diversity so that improvements can be made in organisational innovativeness, strategic decision-making and performance of an organisation (Jackson, Joshi, & Erhardt, 2003; Webber & Donahue, 2001). It is for this reason that organisations spend over million dollars to increase workplace diversity with different initiatives (Dover, Kaiser, & Major, 2016). Despite this, studies have indicated the fact that success cannot be determined based solely on the varied workforce and benefits cannot be obtained automatically (Jayne & Diboye, 2004; Jackson & Joshi, 2004). In most cases, it has been seen that diversity in an organisation may affect the effectiveness of an organisation by reducing the social cohesion. This can be done by increasing the level of conflict and rate of turnover (Jackson, Joshi & Erhardt, 2003; Jackson and Joshi, 2004). The paper explores the theories and research related to the management of workforce so that benefit for the organisations can be obtained. At the beginning, the paper will highlight the concept of managing diversity in the workplace and follow it up with the benefits that can be obtained by maintaining a well-managed and diverse workforce. At the same time, viewpoints of certain people are analysed to understand the effectiveness of workforce diversity. The positive and negative influence of the workforce diversity is explored in the paper. Finally, the paper explores the various manners, which can be adopted to manage diversity at the workplace and provide recommendations to manage it.

Managing diversity was given direction by various factors that promote equity. These factors include the legislation and the environment of a particular workplace related to the USA (Kramar, 2012). Hence, keeping this in mind, a proposal has made that organisations need to move past positive actions so that competitive advantage can be gained in the market (Thomas, 1990). According to Riccò (2012), managing diversity is a unique organisational approach aimed at gaining positive results for an organisation. This can be done by creating a workplace that is positive and the varied needs of the people such as their age, gender and religion are managed in a manner that defines the level of diversity, efficiency, effectiveness and equitableness. However, to understand the concept of diversity three models can be considered that can help in evaluating the diversity and describe the process involved. The first group manage to characterise management of diversity that can be applied to make changes in the external conditions of an organisation (Cox, 1994; Golembiewski, 1995; Thomas, 1996). Consideration of this approach is defined as an emergent as well as formal process that assist an organisation to achieve its goals (Quinn, 1978), at the same time, a situation can be formed that allow organisations to excel the average performance of the industry and try to gain a competitive advantage for the market (Porter, 1985). This approach can be linked with the resource-based view of human resource management (Barney, 1991). The second group emphasises on the models related to change management (Allen & Montgomery, 2001; Cox, 2001). These models display a learning curve that provides several dimensions about decision-making and managing the culture of an organisation (Kramar, 2012). Scholars also suggest that certain steps are crucial that help in the management of diversity so that effective designing processes, practises and policies can be used to foster changes in an organisational culture. The idea of these changes can help in developing a change in culture in organisations (Kramar, 2012). The third model aims to make diversity a part of the corporate social responsibility that is undertaken by organisations (Kramar, 2011). This model is of the view that the organisational culture and environment concedes to several outcomes such as influencing the internal as well as external stakeholders of a company (Thomsen & Lauring, 2008). Therefore, diversity in management requires spreading the awareness of responsibility in the community and contributes to the decisions of the internal and external stakeholders (Thomsen & Lauring, 2008). Therefore, it can be said that the models reflect an active approach towards managing diversity in an organisation at an early stage. However, a more pro-active approach can be applied at the later stage (Kramar, 2012).

Benefits of Managing Workforce Diversity

Managing diversity formulates both organisation as well as cost (Riccò & Guerci, 2014). Diversity in the work force provides a competitive advantage to most organisations (Cox & Blake, 1991). Studies have shown that arguments can be made based on the cognitive resource diversity so that a positive impact may befall on the organisations in terms of performance mainly due to the impact of the cognitive resources (Cox & Blake, 1991; Hambrick, Cho & Chen, 1996). Therefore, elaboration can be made by considering a varied group of employees, which can be used to address problems and critically analyse decision-making groups (Cox, 1993).  In this case, studies undertaken by Nemeth (1986) provides confirmation to the rationale that the study adopted by taking into consideration the varied groups, includes members belonging to the minority class display more creativity while solving complex problems. Therefore, informed decisions are generated that help in developing alternative ideas. The study made by Simon, Pelled, and Smith’s (1999) showed that “member diversity in education and company tenure influenced the quality of debates and thus, positively impacted the decision-making process in a team of top managers” (as cited in Prieto, Phipps & Osiri 2009, p.16). In addition, it can be said that gender diversity is seen to have a positive impact on the performance of an organisation. This is mainly because women comprise of half the workforce in an organisation in the modern day (Frink, Robinson, Reithel, Arthur, Ammeter, Ferris, Kaplan and Morrisette, 2003). The prediction made in this case was examined and further confirmation was made with the number of representatives of the females increasing by a maximum of 50%. This resulted in enhancing the performance and profitability of an organisation (Frink, et al., 2003). at the same time, talented candidates can be attracted as “talent has become scarcer and pricier in emerging as well as developed markets, and the competition to recruit and retain talented employees has consequently intensified. Diversity in recruitment can help an organisation secure access to more sources of talent, gain a competitive recruitment advantage and improve its global relevance” (Hunt, Layton, & Prince, 2015, p.9). Finally, it can be said that a properly managed diversity in an organisation helps in motivating employees, retain them and decrease the rate of turnover (Riccò & Guerci, 2014). It can also help in developing relationship with the customers thereby; enhancing the image and reputation of the organisations and helping in the growth of the shareholders (Armstrong, Flood, Guthrie, Liu, MacCurtain & Mkamwa, 2010). Therefore, the cost of diversity management includes the increase in conflict that is mainly caused by overcoming the resistance to changes, lost opportunities and a decrease in the cohesion among team members to find new solutions (Slater, Weigand, & Zwirlein, 2008). Therefore, consequences of poor management can be considered for organisations that tend to underestimate the costs of mismanaging the difference between the people. For example, in the Home Depot case, organisations had to pay US$925,000 to ensure that a class action is settled to mitigate the disability discrimination suit against deaf workers (Riccò & Guerci, 2014).

Viewpoints on Workforce Diversity

The fact that a diverse workforce may have a positive impact on the bottom-line of organisations may lead to the believe that diversity is the source of positive outcomes. However, the organisations do not seem to realise the fact that difference in race, religion, gender, ethnicity and so on may have a negative impact on the organisations. For example, Thomas (2012) highlights the manner in which changes can impede the efforts of maintaining organisational diversity. The causes of resistance to change includes loss of control, status, influence or power, uncertainty, fear and are reflected in the emotions of an employee thereby contributing to negative relations at work (French & Bell, 1999). With such experiences, employees may develop negative emotions like anxiety or anger, which may cause them to resist any initiatives directed at diversifying the efforts of the employers in managing and implementing changes. At the same time, the belief that diversity is important for its value may lead to positive outcomes in an organisation (Kirton & Greene, 2015). Various articles and magazines have promoted the case for diversity and have led organisations to believe that a simple workforce can help in gaining the full potential of the employees. However, in reality, there is little support for such a predicament (Kirton & Greene, 2015). Rights based equality agenda can be formed for fundamental criticism. The sceptics that favour the notion of maintaining equality in an organisation have expressed concern. This may have an impact on the experience and motivation of the employees due to the explicit focus on the need for business (Jones, 2004; Litvin, 2006). For example, in the early years of large-scale integration, the organisations use to hire minority, blacks and Asians as the work could be done by paying them low wages (Noon, 2007). A second example can be provided that concern the case of Walmart. It claims to be the largest diverse organisation in the US that gains competitive advantage due to its diverse workforce (Wal-Mart, 2013). Therefore, organisations use the power of the magazines to promote diversification at the workplace (Kirton & Greene, 2015). Walmart consist of an Office of Diversity, which is led by the Chief Diversity Officer, several employee resource groups for different diversity dimensions and numerous diversity programs. Despite this Wal-Mart has faced numerous discrimination claims on the grounds of race, sex and disability. These cases provide an idea about the manner in which diversity may result in the disrespectful treatment of the employees (Kirton, 2008). Therefore, business case for diversity can lead organisations to maintain its focus on satisfying the objectives of the business thereby, intending to create a positive result in diversity management (Jones, 2004; Litvin, 2006).

Positive and Negative Influence of Workforce Diversity

The management process of diversity determines the positive and negative results that can be determined. Various type of descriptions have been developed that highlight the type of group processes required to maintain changes in an organisation so that value for organisational diversity can be developed. Holvino, Ferdman, & Merrill- Sands (2004); Cox (1991), for instance, provided a difference between the plural, multicultural and mono-cultural organisations. The description of the multi-cultural organisations was stated as that “seek and value all differences and develop the systems and work practices that support members of every group to succeed and fully contribute” (Holvino et al., 2004, p. 248). Further, Thomas (1990) highlighted the importance of the maintaining a work environment where no people can gain advantage or disadvantage. At the same time, Ely and Thomas (2001) argue that, in the modern day, two perspectives have influenced the diversity initiatives that include the .the discrimination-and-fairness paradigm and the access-and-legitimacy paradigm. Another new approach has also been introduced that is the learning-and-effectiveness paradigm that is a combination of the initial two paradigms. It also goes beyond providing link to diversity with workplace. A description of the learning-and-effectiveness paradigm is stated by considering a method that requires treating and viewing the differences as an advantage for an organisation. It can help an organisation and learn from the mistakes without adopting any prevention or avoidance method.

It has been seen that social psychology and behavioural economics assist in explaining the reason behind the management of diversity. Researchers have indicated that the human body is shaped by various responses namely the instinctive, subconscious and emotional responses. Any type of rational and deliberate thinking does not influence it (Kahneman, 2011). Therefore, a range of decisions affects the attitudes and decisions at a work place. Stereotypes are referred to as the most relevant workplace diversity issues in an organisation (Nosek, Banaji & Greenwald, 2002), along with in-group favouritism, and out-group homogeneity bias (Plous, 2003). Implicit stereotyping is maintaining close associates with a certain group of people (Nosek, et al., 2002). At the same time out group, homogeneity bias is the intensity to believe in the fact that a group of people are diverse and are superior to one another than other heterogeneous groups (Plous, 2003). In-group favouritism is being biased to the people similar to one another (Plous, 2003). The similarity-attraction paradigm display that similarity is considered as a frequent occurrence based on the demographic characteristics that lead to the attraction among different team members (Montoya, Horton & Kirchner, 2008). This influence has been credited to the cognitive biasness and proper maintenance of self-esteem of an individual. Apart from these factors such as satisfaction of the reflectance motive, balance theory, false consensus bias, need to be comparable that gets people to believe that certain people are similar to one another (Levinger & Breedlove, 1966; Ross, Greene & House, 1977; Heider, 1958; Newcomb, 1968; Morry, 2005, 2007; Rosch, 1975). As per this particular paradigm, the heterogeneous groups have low team cohesion mainly due to the tension and conflict that exists among the group members. At the same time, these teams are less productivity after competing it with any homogeneous groups (Horwitz, 2005). Homan, van Knippenberg, Van Kleef, & De Dreu (2007) state that the combination of different diversity produces a correlated variation that produces diversity fault line. These can be further categorised into “us-them” distinction (Homan, et al., 2007). This helps in obstructing the group process and shows that group members are not trustworthy and are less committed to the jobs. (Homan, et al., 2007). Therefore, these biases affect the decision-making abilities and pose a huge barrier to the people. Hence, maintaining stereotypes can affect the thought process of people that may lead to the result of prejudice against some groups of people leading to interpersonal conflict. 

Manners to Manage Diversity at the Workplace

Researchers have proposed various methods for managing diversity in the workplace. The benefits to diversity need to be harnessed in a proper manner (Thomas & Ely, 1996). This is mainly because of the fact that organisations differ from various levels like goals, strategy and culture, determining the effective combination may be a burden for the managers. It can be considered as a type of challenge (Canas & Sondak, 2013). Hence, an analysis can be made to ensure that the climate of an organisation can be assessed and determined based on the diversity initiative and training (Prieto, Phipps & Osiri, 2009). However, most organisations have firmly believed that a number of intervention techniques can be used to manage the diversity. This can provide employees with a way to challenge the managers in case of failure to maintain diversity (Dobbin & Kalev, 2016). Studies have even showed that these types of interventions can activate the biasness even more instead of reducing it completely. For example, according to Dobbin and Kalev’s research on this matter (2016), mangers need to be given five years of compulsory training so that the managing of diversity can be taught to them. Despite this, there was no improvement in the condition of the black men and other cultural men in the organisations. It was seen that the number of black people and Asian people decreased by 9% and 5% respectively. At the same time, voluntary training can be if the participants choose to remain pro-diversify the results in a positive manner by increasing the rate of involvement of the black men and other social class men. It also need to be seen that decline in the rates of the participants are not entertained (Dobbin & Kalev, 2016). Therefore, individual respond with being prejudiced, anger and resist any type of complication in that may result in decreasing the job biasness. An alternate approach can help to manage the diversity by analysing seven components. Canas and Sondak’s (2013) integrated this approach based on the argument that it must be incorporated in the organisations as an essential strategy for success. The first of the components include the authentic leadership commitment. Authentic leadership can mean creation of a diversity council and a board of directors that are diverse. It helps followers to understand and provide the encouragement required for enhancing the work process (Boekhorst, 2015). The personal commitment of the top management and its involvement in the aid in diversity can enhance the legitimacy of the diverse factors (Canas & Sondak, 2013). The second component includes clarity in the organisational communication. Each organisation need to ensure that a unique definition is provided that help in diversifying and making the solutions easily available. Therefore, it can be seen that diversity is an overall business strategy of an organisation. The third component is the recruitment practices. Kulik and Roberson (2008) proposed three strategies to ensure a proper recruitment practise. These include “the use of recruiting photos and text for advertising that highlight the diversity of the organisation’s workforce, the inclusion of statements that communicate the organisation’s equal employment opportunity or diversity management policies in recruiting materials, and the use of female and racial minority recruiters” (as cited in Canas & Sondak 2013, p.51). The fourth component is long-term retention strategies. Strategies such as training, mentoring and flexible working hours can help in motivating and yield more job satisfaction. This is critical in maintaining professional workplace diversity. (Canas & Sondak, 2013). The fifth component is the incorporation of diversity in an organisation. It can be achieved by creating and developing the working groups of the employees by having men and women make decisions at an equal level. This can be done by encouraging creativity and developing resource groups of employees. Employee resource groups help employees in gaining exposure through various networks and mentoring methods. Therefore, it can help in reducing the decision-making and policy-making roles in an organisation (Holvino et al., 2004). The sixth component is diversity management metrics. This helps in evaluating the impact that diversity have on the management and determines the effectiveness of the initiative of the diverse policies and the various programs related to the future of diversity management initiatives (Hubbard, 2004). Finally, the last component is expansive external relationships. This denotes engagement of the organisations with the diverse suppliers. This helps in creating relationships with the community and help in developing a costly relationship with the community. Therefore, the diversity can be expanded both within the organisation and outside of it (Canas & Sondak, 2013). Studies have shown that other diversified elements such as recruitment and performance rating have managed to create varied challenges; positive outcomes have endured as its biggest weakness. Therefore, the integrated approach towards diversity management has created high chances of success that have addressed all the three levels of an organisation such as the behaviour, cultural and structural. The significance of these changes is that they represent the organisational framework that helps in managing diversity in the workplaces. Therefore, the importance of the integrated approach helps in the development of a workplace inclusion and together with the integration-and-learning perspective emphasises the requirement of incorporating systems and processes (Thomas & Ely, 1996).

Models of Managing Diversity

In conclusion, the results of the findings are that diversity needs to be applied at the workplace to gain its positive as well as its negative outcome. Diversity may produce more negative result than a positive result and therefore, proper care needs to be taken by the organisations in maintaining the factors that affect diversity (Williams & O’Reilly, 1998). Possessing a diverse workforce does not guarantee better decisions for an organisation. It is necessary that before implementing any diverse initiatives, organisations audit the climate in which they work and provide training for such management courses. Other initiatives can be taken that ensure positivity at the workplace and ensure that the three levels of diversity factors are applied properly so that organisations can benefit from the changes and the maintaining of diversity. Hence, these changes can help organisations to overcome any negative effect that may be the cause of the overall production of an organisation.

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