IOSR Journal of Business and Management (IOSRJBM)
ISSN: 2278-487X Volume 3, Issue 3 (Sep-Oct. 2012), PP 44-50
www.iosrjournals.org
www.iosrjournals.org 44 | Page
Diversity Management Time for a new approach in an
organization
Parimi Sai Vashanti,
Lecturer, Management Studies, DESMS, Durgapur
Abstract: There are now more new faces and diversity among the workforce than ever before and this trend is
expected to continue into the 21st century. Managers in public and private organizations are searching for and
experimenting with various approaches to more effectively deal with increasing workforce diversity.
HR managers are learning that positive synergy is not automatic. Bringing together different
backgrounds, perspectives and functions is an arduous process. Specifically, there will be more women,
minority group members, and older workers, suggesting a more heterogeneous workforce, which is a significant
departure from the largely homogeneous workforces of the past .Whereas the notion of diversity brings with it
opportunities for organizations, it poses serious challenges as well.
Through a careful examination of the diversity concept and human resources systems, certain steps are
to be taken to circumvent the problems inherent in contemporary human resources systems, and thereby allow
organizations to obtain maximum utilization of their available talent. In the global economy of today,
organizations cannot afford to waste resources. Indeed, organizations can achieve competitive advantage
through the most effective utilization of their entire workforce's competencies and talents.
For companies to be successful and move ahead of their competition they need to know how to create
environments where all people can be accepted, respected and utilized for the differences they bring to the
workplace. Knowing how to do that can enhance productivity and increase profit.
Keywords: HRM, Diversity, Performance, Management, Employees.
I. Introduction
With ever-increasing complexity of business, it has become important to have employees from
different backgrounds and cultures. Some of the studies carried out on Diversity in Fortune 500 companies have
clearly shown that Diversity has a positive effect on bottom-line and shareholder value. Enhanced business
performance has been seen on various aspects like Higher Profitability, Return on Equity, and Return on
Investment etc. Thus, Diversity is linked to enhanced business performance & though various studies (like
Catalyst Research report on Diversity, DiversityInc.
While Diversity is perceived differently by different people; having a diverse work force includes
employees with different regions (countries, states etc), gender, educational background, varied industry
experience, socio-economic status, et al. Diversity at the work place not only means above-mentioned
characteristics but also (and most importantly) allowing for diverse opinions as well. After all, no organization
wants employees who think alike! Having team members from different economic backgrounds even help in
understanding the consumers better. A manager with a „middle class‟ background, for example, would be able to
better articulate the aspirations and consumer needs of his class.
Organizations which are successful are those who are able to create a culture in the organization where
differences of individuals are recognized and accepted. These are the organizations which bank on the different
skills and abilities which a diverse workforce brings with it and where their strengths are leveraged upon.
Having a large number of women at work helps as they have a sobering effect on the environment and is
considered to be emotionally stronger than men. For instance, women are good at multi-tasking. They are
empathetic, consensus builders, compassionate and these qualities need to be leveraged upon.
II. What does diversity means?
Diversity initiatives need to begin with an assessment of the organization, no matter how big or small,
to identify how employees perceive things. It‟s more than just race, and gender, but includes differences like
Diversity Management Time for a new approach in an organisation
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age, ethnic background, work function, education, sexual orientation and religion. The concept of diversity
encompasses acceptance and respect. It means understanding that each individual is unique, and recognizing our
individual differences. These can be along the dimensions of race, ethnicity, gender, sexual orientation, socio-
economic status, age, physical abilities, religious beliefs, political beliefs, or other ideologies. It is the
exploration of these differences in a safe, positive, and nurturing environment. It is about understanding each
other and moving beyond simple tolerance to embracing and celebrating the rich dimensions of diversity
contained within each individual.
2.1. The Importance of Diversity
2.1. Global integration and interconnectedness makes diversity critical.
2.2. It allows insights into the consumer mind and appeals to a diverse market place.
2.3. Diversity supports cross fertilization of ideas and brings in different perspectives.
2.4. Women bring unique insights and impact the work place in a positive manner.
2.5. It enables best practices from different industries to be implemented.
2.6. Makes progress inclusive by carrying employees from different economic strata and religions.
2.7. Regional diversity brings different perspectives to work.
2.8. Functional diversity brings a different approach to finding solutions.
III. Diversity Management
Diversity management is ensuring that factors are in place to provide for and encourage the continued
development of a diverse workforce by melding these actual and perceived differences among workers to
achieve maximum productivity. Diversity management involves creating a supportive culture where all
employees can be effective. In creating this culture it is important that top management strongly support
workplace diversity as a company goal and include diversity initiatives in their companies' business strategies. It
has grown out of the need for organization to recognize the changing workforce and other social pressures that
often result. Diversity is more than being politically correct; it is about fostering a culture that values individuals
and their wide array of needs and contributions.
Diversity Management is related to solve the problems of the employees. Human resource management
is linked with employee substances. The core aspires to create this for the employee since they are not
compelled to do something which he is not responsible to. This cause is apt to create a particular kind of
management which works only for the issues and problem connecting towards the employee and employer. Lot
of conflicts takes place in the company between employer and employee, it related to solve the problems
according to the rules of the company. The HR department averts mutually and make easy both from the
result.Diversity management is one of the managements to solve the employee‟s problems in a company.
Diversity management means to manage the different types of matters and workforces in the organization. There
are lot of problems in the company concerning the payment or salary and also the requirements of the company.
3.1. Essence of Diversity Mangement
Employees of organizations are becoming increasingly heterogeneous. With the passing of days,
diversity is going to be an important issue for the HR manager for the following reasons:
3.1.1. The term diversity management refers to the systematic and planned commitment by organizations to
recruit, retain, reward, and promote a heterogeneous mix of employees. It drives employee engagement across
all groups, regardless of race/ethnicity, gender, age, sexual orientation, disability and religion. Engagement
fosters productivity and innovation, which are crucial to sustainability.
3.1.2. Promoting recognition and acceptance of diversity among the employees can convert a hostile workplace
environment into a welcoming environment where people freely communicate and support one another with any
tasks associated with the job. In doing so, the implementation of a diversity management approach often makes
it possible for productivity levels to increase dramatically.
3.1.3. It tends to encourage the development of latent skills and talents among employees. Individuals who may
have felt unable to move forward in the company due to factors such as race, gender or sexual orientation find
that these attributes are no longer issues. When this happens, employees begin to feel valued and are more
willing to step outside their comfort zones and enhance their skill sets for the benefit of the departmental team,
the company as a whole and for the individual.
3.1.4. The underlying principle of diversity management has to do with acceptance. While individuals retain
their own sense of values and ethics, diversity management encourages people to recognize that not everyone is
alike. Rather than being intimidated or prejudiced by those differences, employees are encouraged to accept the
fact that there are diverse interests, diverse values, and diverse physical and emotional characteristics present
within the office environment.
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3.2. Other reasons
3.2.1. A large number of women are joining the work-force.
3.2.2. Work-force mobility is increasing.
3.2.3. Young workers in the work-force are increasing.
3.2.4. Ethnic minorities' proportion constantly in the total work-force is increasing.
3.2.5. International careers and expatriates are becoming common.
3.2.6. Necessity of international experience is felt for career progression to many top-level managerial positions.
3.3. How the organization is getting benefitted from the new approach?
An organization‟s success and competitiveness depends upon its ability to embrace diversity and
realize the benefits. When organizations actively assess their handling of workplace diversity issues, develop
and implement diversity plans, multiple benefits are reported such as:
3.3.1. Increased adaptability
Organizations employing a diverse workforce can supply a greater variety of solutions to problems in
service, sourcing, and allocation of resources. Employees from diverse backgrounds bring individual talents and
experiences in suggesting ideas that are flexible in adapting to fluctuating markets and customer demands.
3.3.2. Broader service range
A diverse collection of skills and experiences (e.g. languages, cultural understanding) allows a company to
provide service to customers on a global basis.
3.3.3. Variety of viewpoints
A diverse workforce that feels comfortable communicating varying points of view provides a larger
pool of ideas and experiences. The organization can draw from that pool to meet business strategy needs and the
needs of customers more effectively.
3.3.4. More effective execution
Companies that encourage diversity in the workplace inspire all of their employees to perform to their
highest ability. Company-wide strategies can then be executed; resulting in higher productivity, profit, and
return on investment.
3.4. Diversity management-Measures and Initiatives
Organisation
perspective
Measures
Initiatives
Workforce
Demographi
cs
Diversity in
recruitment
Equal mix of
different ethnic
groups
Ratio of men and
women in the
organization
Diversity Mix of the
top 10% of the
company executives.
The Value of Mentoring
Without regard to race,
gender, religion, national
origin
Inconvenience yourself to
show someone else the way
Unleash someone else‟s
potential
Recruitment Alternatives
Entry level – Upward
Mobility Positions
Bridge Positions
Special Appointing
Authorities
o Schedule A for
severe disabilities
o Veterans
Readjustment
Appointment
o Outstanding Scholar
Professional Development
Identify training and
development needs for all
employees
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Utilize Individual
Development Plans
Rotational & Developmental
Assignments
Rotate “acting” supervisor
Organisation
perspective
Measures
Initiatives
Leadership
Development
Mentoring Program
Analysis Reduces
Diversity Gap
Leadership skills &
experience to handle
the diversity
scenarios
Nondiscrimination
based on Gender
Mentoring programs
Trainings to make leaders
aware of the significance of
diversity management and
various implementation
strategies
Feedbacks and
measurements to improve the
approach of the leader to
handle diversity aspects.
Managing
Diverse
Workplace
Culture/Clim
ate
Ethnicity aspects in
an organization
Equal opportunity
employer
Requirement strategy
and culture
Gender Mix
Employee
recognition programs
Language barrier
aspects
Annual Get together
Offshore programs
Developing
Learning
and Growth
Strategies
The feasibility of
Training Programs
Parameter on which
performance
evaluation is done.
Leadership Programs
Managing Trainee Mentor
Program
Mentoring for new Hires
Job improvement
Seminars and conferences
Handling
Diverse
Customer/Co
mmunity
Proper company
vision and policy to
handle customers
Workforce to cater
customer of diverse
background
Strategies for the
proper market
analysis
Feedback from the
market
Establish the company policy
for customer handling
Train the people to cater
customers of diverse
background
Analysis of the similar
products and companies in
the same domain and their
growth.
Implementation of a proper
methodology to get feedback
on the products or services
provided.
IV. Diversity Management-Emerging Challenges
Workplace diversity can either disrupt the workplace or add dramatically to its creativity and
productivity. Tension is bound to occur if your company does not have a plan or program in place to manage
diversity and the questions or concerns that arise in a diverse workplace Diversity involves more than just race,
culture and gender. It encompasses each person's uniqueness, experience and personalities that are different but
have to be dealt with in the workplace. Diversity affects performance, so it is important to manage any issues
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that may result from personality conflicts. Diversity also determines how an employee interacts with other
employees and the type of motivation involved in the job performance.
Some of those challenges are:
4.1. Communication - Perceptual, cultural and language barriers need to be overcome for diversity programs to
succeed. Ineffective communication of key objectives results in confusion, lack of teamwork, and low morale.
4.2. Resistance to change - There are always employees who will refuse to accept the fact that the social and
cultural makeup of their workplace is changing. The “we‟ve always done it this way” mentality silences new
ideas and inhibits progress.
4.3. Implementation of diversity in the workplace policies - This can be the overriding challenge to all diversity
advocates. Armed with the results of employee assessments and research data, they must build and implement a
customized strategy to maximize the effects of diversity in the workplace for their particular organization.
4.4. Successful Management of Diversity in the Workplace - Diversity training alone is not sufficient for your
organization‟s diversity management plan. A strategy must be created and implemented to create a culture of
diversity that permeates every department and function of the organization.
V. Guidelines for Diversity Management
The following are some important guidelines to manage diversity effectively:
5.1. To consider female employee needs, such as child care and job sharing, to prevent their turnover.
5.2. Commitment from top management towards value diversity is a pre-requisite.
5.3. To arrange mentoring programme by senior managers to identify promising women and minority
employees and play an important role in nurturing their career progress.
5.4. To arrange diversity training programmes to bring diversity awareness and educate employees on cultural
and sex differences and how to respond to these in the workplace.
5.5. There should be an apprenticeship programme to trained promising prospective employees properly before
they are actually hired on a permanent basis.
5.6. Employer should set up a support group to provide a nurturing climate for employees who would otherwise
feel isolated or alienated.
5.7. To conduct diversity audit to review the effectiveness of an organization's diversity management
programmes.
5.8. There should be a proper communication which includes speeches by senior executives, inclusion of
diversity in corporate vision statements, the publication of diversity brochure and inclusion of diversity as a
topic in new employee orientation.
5.9. Managers need to be sensitive to the needs of working parents
VI. How Well Do You Manage Diversity in Your Unit?
6.1.Do you test your assumptions before acting on them?
6.2.Do you believe there is only one right way of doing things, or that there are a number of valid ways that
accomplish the same goal? Do you convey that to staff?
6.3.Do you have honest relationships with each staff member you supervise? Are you comfortable with each of
them? Do you know what motivates them, what their goals are, how they like to be recognized?
6.4. Are you able to give negative feedback to someone who is culturally different from you?
6.5. When you have open positions, do you insist on a diverse screening committee and make additional
outreach efforts to ensure that a diverse pool of candidates has applied?
6.6. When you hire a new employee, do you not only explain job responsibilities and expectations clearly, but
orient the person to the campus and department culture and unwritten rules?
6.7. Do you rigorously examine your unit's existing policies, practices, and procedures to ensure that they do not
differentially impact different groups? When they do, do you change them?
6.8. Are you willing to listen to constructive feedback from your staff about ways to improve the work
environment? Do you implement staff suggestions and acknowledge their contribution?
6.9.Do you take immediate action with people you supervise when they behave in ways that show disrespect for
others in the workplace, such as ethnic jokes and offensive terms?
6.10. Do you make good faith efforts to meet your affirmative action goals?
6.11. Do you have a good understanding of institutional isms such as racism and sexism and how they manifest
themselves in the workplace?
6.12. Do you ensure that assignments and opportunities for advancement are accessible to everyone?
If you were able to answer yes to more than half the questions, you are on the right track to managing diversity
well.