Effective Diversity Management Programs in the Organizations - Literature review Example

Effective Diversity Management Programs and Their Roles In Organizations Name of Student Institution Diversity Management is the art of reaching quality decisions in the face of different opinions, comparable opinions, tension moments and varying complexity. The rationale for managing diversity arises from the fact that due to globalization of business undertakings and fall of trade barriers, it is impossible to flourish in such assorted markets without embracing diversity in your workforce. A diverse workforce harbors a range of ideas and talents that can be drawn to assist in management of issues rather than outsourcing. Another reason is the fact that the target market of these companies comprises both natives and indigenous male and female, able and disabled; it is therefore favorable for representation of all groups in the firm to instill trust, brand loyalty and subsequent adoption of the products and services. Communication is also an important since regional outlets require a native speaker for effective business transactions. This paper will look at the importance of effective diversity management programs basing on a case study of Cosmo organization along different sub-headings as follows: Analysis of the current diversity policy and environment at Cosmo In analyzing Cosmo’s current diversity policy and environment, the rationale for workplace diversity that Cosmo emphasizes must be considered. As Jackson and Alvarez (1992) puts it, all managers, experience with new international partners can be like a slap on the face that forces them to realize the value of employees with cross-cultural considerations, as well as the need for organizational systems that embraces diversity in the work place. Cosmo is moving fast to knitting this seamless whole through adoption of different strategies. The cross gender strategy being adopted at Cosmo means that both men and women have to be represented on an at least level platform if not equal in terms of numbers and at all management levels. the other strategy is the special group representation in the company, this means that regardless of an individual’s physical stature and status with respect to disability, be it an amputee or visually disable, will be included at any level of management as long as they meet the required qualifications and they can deliver without being hindered by their respective disability (Wehman2003). Another strategy regards race with respect to Australian society. Since the Australian society is not homogeneous but rather a heterogeneous race, Cosmo has seen the need to include indigenous minority such as the Chinese Japanese among others residing in Australia with the necessary expertise. Since the inception of these strategies seven years ago compared to the present situation at Cosmo, some significant margins of improvement have been realized. The number of women has registered a 10% increase. The minority and indigenous representation also improved slightly. Despite this small success margin, a major problem still looms in Cosmo since these slight increments are completely manifesting in the lower employment levels rather than cutting across all levels. Tsui & Gutek (1999) indicate that when organizational diversity objectives to increase the upward mobility of women and minorities are enacted across work groups, studies show that most organizations are likely to increase the number of senior women and racial minorities by only a few in each group. This partly justifies the current situation at Cosmo. Benefits associated with effective diversity management When companies adopt effective strategies in managing diversity, several benefits are bound to accompany them. Diversity management creates a clear advantage for the organization over the rest in the competitive business environment (Horwitz & Horwitz 2007). The diversified organizational workforce is in itself a bank for rich and diverse knowledge resource. The readily available knowledge resource puts the company at an advantageous position over the competitors with a narrow spectrum of knowledge in terms of problem detection, novel approaches in analysis and solving them. Diversity also means the organization becomes deeply knowledgeable about its diverse market. Enriching your workforce composition with diverse member’s means the diverse customers and partners in business will better be understood by employees who share same ethnicity and language. The result here is better and smooth rendition of services without language as a barrier. Another benefit comes with customers identifying with the organization. In most cases, diverse customers are more comfortable when they are served by people from their own identity in the organization. Consequently, they will be more willing to be identified with the organization. Thus, there is increased trust and customer loyalty to the organizations products and services. Diversity also increases overall productivity on complex issues and tasks. Complex tasks require different approaches and thinking beyond the obvious. Having different cognitive resources from workers provides an instant solution to these tasks leading to realization of goals. Since different people are blessed with different minds, innovation is likely to be spurred through such minds where each individual is valued for their contribution besides being treated fairly and with respect. Mor Barak. ( 2005) emphasizes that in order to draw out the advantages of increased information and wider, richer perspectives, the organization must allow individuals to feel that they operate in a fair environment that values their inputs. Diversity management paradigms in relation to Cosmo This section shall discuss two main paradigms, the human resource paradigm and the multicultural organization paradigm and reach a classification of Cosmo basing on them. The human resource paradigm According to Joshi &Roh (2007), conventional HR practices tend to produce and perpetuate homogeneity in the workforce as a result of the attraction-selection-attrition cycle. Accordingly, people tend to experience attraction to organizations that appear to be having members who share similar values with them. The human resource management therefore selects and hires new staff because their presence and expertise makes all relevant related parties feel comfortable (French 2005). In essence, those who do not fit in the dominant culture of the organization end up being fired or leave at will. The organization ends up having a homogenous workforce that limits their pool of talent and the ability to adapt to the global market. Kossek, Lobel, & Brown (2006), summarizes three main approaches to diversity management and link them to the human resource practices and outcomes. The first approach is diversity enlargement where the main goal is to change the organizational culture by altering the workforce composition. This entails recruiting employees from different backgrounds who are thought to change the culture without further approaches. The second strategy involves diversity sensitivity where the main goal is to shun adversity and encourage productive communication and subsequent collaboration. The goal is to train employees to increase their sensitivity to diversity with the expectation that increased sensitivity to their differences will automatically influence performance. The third strategy involves cultural edit that identifies cultural barriers and making necessary adjustments and modification to company practices and operations. This is effective by auditing existing practices through surveys and focused group. The multicultural organization paradigm This paradigm was presented by Cox (1993, 2001) who proposes that diversity management should work to create multicultural organizations in which members of all socio-cultural backgrounds can equally contribute and achieve their maximum potential. It describes three types of organizations approach to managing diversity; monolithic, plural and the multicultural organization. The monolithic type is characterized by a demographically homogenous culture. This type, consist of fewer women and minority representation at top management level (Sawyerr, Strauss, & Yan 2005). Their expectation is that diverse groups will get absorbed into the culture with very minimal integration. In essence policies and practices are biased to favor the dominant culture. The plural organization has a workforce that is heterogeneous and ascribes to laws and public policies of equality in the workplace. It does not encourage discrimination along culture gender or disability across all levels. The minority and women are highly represented but with few at the top management. Cox (1993) identifies the plural organization as the most prevalent type in the North American business environment, but this organizational type is also prevalent in other areas of the world such as Europe, Australia, and South Africa. The multicultural organization is very rare if not ideal than factual. It is therefore more of a visionary organization to look up to by managers in managing diversity since no business has achieved it. It values cultural diversity with equality and fairness as the main pillars. There is total integration, bias and favoritism free. Basing on the above paradigms, Cosmo exhibits characteristics of the multicultural organization paradigm with more affiliation to the plural organization. This is likely since minority, disabled and women are represented in high numbers however at the lower levels. The dominant culture of the native Australians carry the day with minimal integration of new cultures through training. Common barriers to diversity and the extend of Cosmo Several barriers hinder effective diversity management. Organizational culture is a hindrance in situations where a successful company may not see the need to embrace and manage diversity after all its ultimate goal is being realized without it. Any efforts to diversify will be seen as compromising the quality of its workforce. Lack of support from the shareholders and management is also an issue where in Cosmo situation, the board is a hindrance to diversity efforts considering seven years down the line since the inception of diversity strategies, the women, indigenous and disabled are still underrepresented in the top management. Resistance from the natives also may arise where they think their privileges and power to rule are being taken away. They may not accept new employees especially at top level questioning why they were appointment over them. This gives rise to male chauvinistic attitudes that is also prevalent in Cosmo where possibly women are not included in top management being viewed as incapable and can not rule over the males. Availability of funds is also a setback in formulating and implementation of diversity strategies. Cosmo is not funding its strategies implementation since only two mechanisms that are yielding very little success are being funded out of an array of possible strategies Lack of training to new employees is also an issue as in the case of Cosmo. Assuming that they will automatically fit and blend in the workforce is a major mistake Cosmo is doing since orientation is an integral part of managing diversity. Language and cultural differences is also a barrier especially when communication is impaired and sensitivity ignored. New employees may feel left out creating misunderstandings. Models of oppression also used can be a stumbling block when their main outcome is to pin point how one group is oppressing the other. This attracts rebellion and more crises from the traditional workers. Lack of follow up and evaluation is a major setback where managers just initiate strategies and sit back waiting for miracles to happen. Recommendations The situation at Cosmo is very serious and it is recommended that mangers ct fast and swift in fixing the situation. The shareholders and the top management must accept that indigenous minority disabled and women can deliver to their standards or even beyond and there is a dire need to try them out in management. Efforts should be made to do away with male chauvinistic values and discrimination against women minority and disabled. Lastly the number of strategies must go beyond recruitment training with proper investment in implementing and following up the strategies including evaluation and necessary adjustments. Approaches in diversity management Different viable approaches can be employed in managing diversity. Promotion of fairness through accountability and transparency by the management is paramount as an approach. All organizations practices and policies must be fair and maintain equality and inclusion. Selection, training and development, promotion/upward mobility opportunities, and the reward scheme must be fair and maintain equity regardless of racial or cultural inclinations (Dreachslin 2007). Mentoring approach to women disabled and minority groups is important in including these groups in the affairs of the company. Mentoring also encourages shared information both formal and informal for them to know how the organization operates besides encouraging support systems for quick adaptation and socialization. However it should not be forced and mutual rewards can be included. Monitoring and evaluation approach is important also to provide meaningful feedback on the success of the programs in place. This identifies loopholes and possible adjustments are made accordingly. Managers must therefore make a follow up on the implemented programs to establish their effectiveness if not be overhauled. Awareness training is also an important approach where employees re made aware of the impact of their behavior in creating a discriminatory impact. Communication especially informal should be taught and harnessed within the work group to promote sensitivity and cultural tolerance without much friction. Lastly, the management must also ensure that the working environment is conducive across all employees in terms of health and safety so that none feels left out and discriminated against. Conclusion In a nut shell, the benefits of managing diversity are many yet organizations still hold doubts about it. Those that have integrated their human resource practices with it are reaping in abundance. The bottom line still remains, diversity is here to stay and companies must therefore invest their valuable resources in embracing and managing it to thrive in the global market. References Cox, T. (1993). Cultural Diversity In Organizations: Theory, Research, And Practice. San Francisco: Berrett-Koehler. Cox, T. (2001). Creating The Multicultural Organization: A Strategy For Capturing The Power Of Diversity. San Francisco: Jossey Bass. Dreachslin, L. (2007). The Role Of Leadership In Creating A Diversity-Sensitive Organization. Journal of Healthcare Management, 52(3), 151–155. French, E. (2005). The Importance Of Strategic Change In Achieving Equity In Diversity. Strategic Change, 14, 35-44. Horwitz, S., & Horwitz, B. (2007) The Effects of Team Diversity on Team Outcomes: A Meta-Analytic Review of Team Demography. Journal of Management, Vol. 33.( 6), pp 987-1015 Jackson, E., & Alvarez, B. (1992). Diversity In The Workplace: Human Resources Initiatives. New York: The Guilford Press: pp. 13-29. Joshi, A., & Roh, H. (2007). Context Matters: A Multilevel Framework For Work Team Diversity Research. In J. Martocchio (Ed.), Research in Personnel and Human Resource Management, Vol. 26. pp. 1−48 Kossek, Lobel, & Brown, 2006). 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