Work force diversity
Diversification comes from the word “diverse” which means “different” or “varied” therefore when an organization is taken into consideration it is referred to differences in activities performed at the firm (Salma and Hussain, 2018). The main purpose of diversification is to allow an organization to grow (Thomas and Mason, 2006).The diversity in an organization can contribute a major portion in innovation, problem-solving and flexibility to accept the change (Gomez-Mejia, et al, 2006). Diversity can be categorized mainly into two categories; whereas includes race, gender and sexual orientation, while the other includes religion, education and geographical location (Saxena, 2014).
The valuable asset an organization could have is a diversified workforce because they are very good at solving problems, and they are capable of providing innovative ideas(AsmitaJha, 2009). Anyhow diversity need to be managed properly in a manner that conflicts doesn’t arise (Kochan et al., 2003). Every single individual is different, everyone is having their own discernment, disposition and considerations and to oversee such sort of various people require a particular skill in order to face the complexities found in the process (KMallikarjunan, 2007).
Diversification leads to changes
in the organizational structure, operations, management systems and procedures.
Corporate diversification involves organizations in distinct businesses with the
objective of adding shareholder or stakeholder value (Cretu, 2012).
As stated by Marie-Élène at-al (2010) the workforce
diversity may reflect in both positive and negative way in an organization as
mentioned below.
Positive results
·
Better
solutions for problems.
·
Inspire
creativity.
·
Drive
innovation.
·
Opportunity
for personal and professional growth.
·
Talent
pool allows its organization to retain the best talent.
Negative results
·
Decreasing
the group performance.
· Some might be less likely to let their voices be heard.
·
Communication
might be difficult to understand across different types of cultures.
·
Different
understanding of professional dignity.
As said by K Mallikarjunan, (June 2007) Organization needs to consider when managing diverse workforces are:
1. Valuing diverse employees
2. Respect the diverse employees
3. Conducting cross-cultural training
4. Mentoring of diverse employees
5. Equality in training and development
6. Merit and performance based promotion and salaries
7. No discrimination in providing organizational facilities
The organization which I am working for is also concerned about workforce diversification. As one of the leading company in banking sector it has diversified its director board based on the age of directors, knowledge and skill related to bank and different aspects as showed below in Figure 9 and Figure 10.
Figure 9: Corporate board diversification.
- Asmita Jha, (2009) "Need for Cross- Cultural Management" HRM Review ICFAI University Press
Cretu, R. F. (2012). Corporate governance and corporate diversification strategies. Review of International Comparative Management / Revista de Management Comparative International, 13(4), 621–633.
Gomez-Mejia, L. R., Balkin, D. B., and Cardy, R. L., (2007). Managing human resources (5th ed.). Upper Saddle River:NJ. Pearson Prentice Hall.
HNB annual report 2020
HNB circular 2019 – Branch operating model FAQ revised 2019.
Kochan, T. et al. (2003) The effects of diversity on business performance: report of the Diversity Research Network.Human Resource Management 42(1), 3–21.
Kundu, Subhash. (2015). Re: What factors should organizations consider when managing a diverse workforce? Retrieved from: https://www.researchgate.net/post/What_factors_should_organizations_consider_when_managing_a_diverse_workforce/54ae250ed039b1921a8b45b4/citation/download.
Marie-Élène Roberge , Rolf van Dick, (2010) “Recognizing the benefits of diversity: When and how does diversity increase group
performance?” Human Resource Management Review 20 (2010) 295–308
Salma and Hussain (2018). A Comparative Study on Corporate Diversification and Firm Performance across South Asian Countries. Journal of Accounting & Marketing, 7 (1), 4-7. doi: 10.4172/2168-9601.1000263
As Kitisitya (2017), discussed, Most commercial banks adopt a diversification strategy for three main reasons. First, the strategy may be aimed to attain efficiency by maximizing the Company’s resources using new products to new customers and geographical location. In addition, a commercial bank may adopt this strategy to be able to stretch its corporate parenting capabilities into new markets and products or services. Lastly a commercial bank may employ this strategy to increase market power by having diverse range of product and services.
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Kitisya D. T. (2017), An Analysis of the effect of business diversification on the financial performance of Commercial Bank in Kenya, Strathmore University (online), available on: https://su-plus.strathmore.edu/handle/11071/5593 cited on 28th April 2021.
diversity in the workplace goes beyond the recruitment, representation or preferential treatment of people with specific birth characteristics in an organization. The authors opine Work Place Diversity is the process whereby employers avail potential talent or current employees with equal opportunities to thrive regardless of race, ethnicity or any other distinguishing factors Patrick, H.A. and V.R. Kumar. (2012).
DeleteI agree with your views pernalla, employee diversity is a better technique to improve employee engagement. The employee engagement caters better than commitment and motivation of employees to any organization. Research shows that employee engagement is the driver behind an organization’s success, in that an engaged employee demonstrates the willingness to put an extra effort into the work and to reach optimal performance (Tims et al., (2011).Diversity should be carefully managed to make sure that employees are not marginalized. There is growing evidence indicating that diversity is critical predictors of workplace inclusion. Diverse workforce of present times faces the problem of exclusion, which is experienced in reality by many employees and even a large number of employees perceive that they are not considered as an integral part of organization by the management (Ibarra, 1993; MorBarak, 2000).
ReplyDeleteThank You Gagana, apart to your comment Green et al., (2002). affirm that knowledge of workplace legislation can guard against discriminatory tendencies of employers in the decision-making process and prevent prejudices that either unduly favorable or reprimand employees based on color, religion, age, gender, and race.
DeleteAgreed with you Pernella and further Van der Vegt and Bunderson (2005) tested similar predictions and examined whether team identification would moderate the relationship between expertise diversity, team learning behavior and team performance. Their results were consistent with the prediction proposed by the social identity theory and self-categorization theory. Indeed, in teams with low levels of collective identification, expertise diversity was negatively correlated to team learning and performance; conversely, in teams with high-level of collective identification, those relationships were positive.
ReplyDeleteThank you for your agreement Indeevari, Adding further organizations that promote and actively engage in workplace diversity can attract and retain the quality of employee and increase the loyalty of workforce(Srivastava & Agarwal, 2012).
DeleteAgreed Pernalla, In order for companies to have a sustainable competitive advantage, they should think of diversity as a challenge and opportunity not as a threat (Jayne & Dipboye, 2004).
ReplyDeleteHowever, diversity will be effective only if the less represented groups of the organization feels included as 'positive perceptions of diversity practices will be positively related to a trusting climate only when employees perceive high levels of inclusion' (Downey et al., 2015, p.17).
Boons et al. (2000) stated that an increase in productivity and staff involvement can be seen when job role is a diversified one and it also allows an employee to focus on carrier development.
DeleteI could not be agree more with you. Workforce diversity has become a primary concern for most organizations as it can be used asa tool to increase organizational effectiveness. However, workforce diversity is complex in nature. The study of Henry and Evans (2007) have mentioned that “organizations that value diversity will definitely cultivate success and have a future in this dynamic global labour market“.
ReplyDeleteYes Oshadee I can agree with your view only up to a certain point. Diversity is a strategy that promote perception, acknowledgement and implementation of organizations and it can make significant changes but the managers need to adapt an attitude to clearly explain what is important to change for a diversified environment ,the benefits which are expected to get, the roles of employees and implementation strategies on enhancing diversity and also they should change their attitude treating different groups in different level of recognition. The failure in management approach will bring negative results in diversified environment. That’s why organizations need to closely manage and monitor workforce diversity effectively (Bhagini& Swam, 2014).
DeleteKulin Patel and AnuradhaSriram (2010) mentioned, Manage the role of a diversified workforce in mergers and acquisitions. The union and investment between organizations are like a marriage, which means that compatibility between two different cultural organizations is the most important because artistic evaluation is necessary for organizations.
ReplyDeleteThanks Harsha, adding further for a successful diversity an effective communication is very essential because exchanging information, exchange of options , planning and agreements, executing decisions need good communication practices and when it is stopped individuals feel uncoordinated and organized activities tend to exit from plans(Blalock, 2005).
DeleteYes, you are correct. Workforce diversity represents both a challenge and an opportunity for business. A growing number of progressive organizations are realizing the need for valuing diversity in the workforce, so as to ensure strategic utilization of human resources for the accomplishment of strategic goals(Gunjan,S. 2020).
ReplyDeleteYes wasantha adding to your comment According to Robbins,(2009) Workforce diversity refers to organization becomes more heterogeneous with mix of employees in terms of age, race, gender and educational background.
DeleteAgreed, Workforce diversity has a bounty of advantages, In Additional to your points, I would like to draw your attention to the following advantage as well "Multicultural organizations are found to be better at problem-solving, possess a better ability to extract expanded meanings, and are more likely to display multiple perspectives and interpretations in dealing with complex issues." (Saxena, 2014, p.83).
ReplyDeleteThankyou Aazath, Alder(2008) also emphasize that having a multi culture within the organization can help to increase new ideas ,increase problem solving skills , buildup flexibility and interpersonal communication.
DeleteAgreed with your views Pernalla. Despite the efforts of managing diversity, diversity initiatives fail in many companies because, companies are focusing on increasing diverse employees in the workforce rather than achieving equality and inclusion (Grissom, 2018). While diversity is only a measurable representation, inclusion is intangible and it relates to the emotions of diverse workforce. Inclusion is a sense of belongingness. It includes engagement, involvement and active participation of employees, embracing diversity, giving value to one and another and engaging everyone in organizational activities (Hafeez et. al, 2020).
ReplyDeleteCorrectly said Sathaharan, Managing diversity within the organization has become very challenging and to accommodate the culture managers are required to have flexible managerial skills and if not it is not easy to handle(Klagge ,2013).
DeleteAgree Pernalla, the decision making process and its overall outcome improves drastically when a diverse workforce is promoted. It’s no secret that a team of employees will make relatively better problem-solving decisions than a single employee will. Each employee on a team offers a different background of experiences, which elicits a different set of skills, understandings and overall knowledge-base than every other employee (Dellarocco, 2017).
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