Chapter 10 - Summary Managing Diversity PDF

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BUS364 Chapter 10 Diversity Management -

Defining Diversity Management  Diversity management policies and programs are designed to level the playing field and create a welcoming organizational environment and opportunity for these groups that have not had access to employment and more lucrative jobs in the past  Diversity Management: refers to the voluntary organizational actions designed to create through deliberate policies and programs of greater inclusion of employees from various backgrounds into the formal and informal org structures o Deals with the collective mixture of all workers, not just recent additions to the organizational workforce  Characteristics and Limitations o Characteristics  It is voluntary; initiated by the companies themselves  It uses a broad definition of diversity to make diversity programs inclusive and reduce potential objection from members of the majority group  Strives to provide tangible benefits to the company by tapping into the full potential of all employees o Limitations  May not survive during difficult economic times since it is voluntary  Most vulnerable groups in society may not receive the protection they deserve due to the broad definitions of diversity and resources being spread across many groups  Once diversity mgmt. is no longer perceived as beneficial to companies, it will disappear  Five trends encouraging diversity management: o Vocal and public support for diversity efforts from CEOs o Linking diversity and inclusion to innovation o Expanding diversity definitions to include “diversity of thought” o The business case for diversity (engagement, retention, promoting a company’s diversity philosophy and products) o Development of diversity technology that helps HR managers implement diversity mgmt. policies in a more targeted way  Global Diversity Management (GDM): a management approach that seeks to leverage diversity in organizations with international, multinational, global, and transnational workforces and operations o Management practice concerned with valuing people as key human resources  Seven common types of diversity management practices: o Having a corporate diversity council o Implementing diversity training programs

BUS364 Chapter 10 Diversity Management

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o Ensuring supplier diversity o Having employee networking and mentoring programs o Providing cultural awareness programs o Demonstrating support for women o Offering programs for LGBT employees and providing same-sex benefits  Intranational Diversity Management: managing a diverse workforce of citizens/immigrants within a single national organizational context  Cross-national Diversity Management: managing a workforce composed of citizens and immigrants in different countries o Requires employers to take into consideration the legislative and cultural context in other countries From Equal Rights Laws, to Affirmative/Positive Action, to Diversity Management  Equal Employment Opportunity (EEO) legislation = against the law to discriminate  Affirmative action programs = companies need to take positive steps to ensure equal opportunities  Diversity management = proactive and aimed at promoting a diverse and heterogeneous workforce o Prerequisite = having a diverse workforce; equal rights legislation and affirmative/positive action policies – create a social, legal and organizational environment in which DM initiatives can be based Diversity Management Paradigms  The HR Paradigm in DM o HR practices tend to produce and perpetuate homogeneity in the workforce as a result of the ASA cycle  Individuals Attracted to orgs that appear to have members with values similar to theirs, orgs Select new members similar to existing ones because their hiring makes everyone comfortable, and employees who end up not fitting in are fired/leave, creating a selective Attrition process that supports and maintains a homogenous workforce o Four approaches to DM:  Diversity enlargement – increasing representation of individuals of different ethnic and cultural backgrounds o Assumption = new hires will change the culture by their mere presence – no need for additional intervention  Diversity sensitivity – attempts to overcome difficulties introduced when bringing individuals from diverse backgrounds through diversity training aimed at sensitizing employees to stereotyping and discrimination o Assumption = increased sensitivity affects performance

BUS364 Chapter 10 Diversity Management

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 Cultural audit – identifying obstacles that limit progress of diverse employees and that block collaboration among groups in the org o Assumption = dominant group causes problems in the org. so change must come from that group  Strategy for achieving organizational outcomes – identify the link between diversity mgmt. objectives and desired individual and organizational outcomes  The Multicultural Org. Paradigm in DM o Three types:  Monolithic Org – demographically and culturally homogenous o Expect members of diverse groups to assimilate into their culture with minimal degrees of structural and formal integration  Plural Org – heterogeneous workforce, relative to the monolithic org, and makes efforts to conform to laws and public policies that demand and expect workplace equality o Takes active steps to prevent discrimination o Women and minorities still only make up small percentage of mgmt. and are expected to assimilate into majority culture  Multicultural Org – rare; culture that fosters and values cultural differences o Incorporates all members of the org via pluralism as an acculturation process, not an end resulting in assimilation o Free of bias and favouritism towards groups Models of Global Diversity Management  Six models: o Strategic: maps out three strategies orgs can use when implementing GDM policies and practices:  Localized: tailor DM program to the needs and characteristics of the specific local context  Universal: implement DM through the “one best way” approach (ignores regional and national differences)  Transversal: allows orgs to create DM policies and practices in a “bottom up” fashion; through dialogue and compromise o Process: describes GDM as a sequence of inputs, activities and outputs over time o Contextual: uses a systems approach and acknowledges multiple layers of influence that can affect GDM activities o Intervention: three categories:  Informational: revolve around staff training and education  Structural: alter structures and processes within the org

BUS364 Chapter 10 Diversity Management

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 Cultural: challenge the implicit cultural assumptions of the org with a view to make the org more welcoming of difference and more inclusive o House: a useful tool for orgs that want to implement GDM; layered, with each layer taking into account org, national, and international requirements and priorities o Communication: address the issue of how an org talks about diversity and inclusion compared to actual action, commitment and organizational change The Impetus for Implementing Diversity Management  Diversity is a reality that is here to stay; businesses have to adapt  Diversity mgmt. is the right thing to do  Diversity makes good business sense; can provide businesses with a competitive advantage Characteristics and Limitations of Diversity Management  Goal = transform the org culture from a majority-oriented to a heterogeneouspluralistic culture in which difference value systems are heard and thus equally affect the work environment  Three key components: o DM is voluntary (self-initiated by the companies; not enforced/coerced) o DM uses broad definitions of diversity (to make diversity programs inclusive and reduce potential objections from members of the majority) o DM aims at providing tangible benefits to the company  Downfalls: o Since it’s voluntary, it may not survive during difficult economic times o Broad definitions = some of the most vulnerable groups may not receive the protection they deserve because resources will be spread across many groups o “Everyone is diverse” – dilutes implications of historical injustices and discrimination that have previously denied certain groups of opportunities o Emphasis on practical benefits = once DM is no longer perceived as beneficial, it will disappear...