Equality and Diversity Policies - Essay Example

Equality and Diversity Policies Topic: Discuss why line-managers might not have an enthusiastic attitude towards equality and diversity policies. To what extent might diversity practitioners help to overcome this problem? Introduction In a global marketplace, multinational companies have begun to accept workforce diversity as a norm. Businesses seek to leverage global talent using wider demographic pool that is perceived to be socially inclusive, promoting equal opportunity, and equality, in society. While the practitioners of diversity management see corporate value and business case, in accepting cultural, ethnic, and gender differences in workforce; the degree of ownership amongst the line managers, who are the main touch-points with their team, seem to vary. Quoting a survey report by ‘Opportunity Now’ that included 800 line managers from public and private sectors, Cook (2007) states: "If managers do not see the business case reflected in the behaviours and skills which an organisation values and the way in which performance is measured and monitored, then the business case risks being a paper based exercise that makes little impression on managers.” Echoing a sense of concern, Hodges (2008) feels that line managers must be encouraged to appreciate the strategic link between corporate social and diversity goals, vis-à-vis, production, sales, and profitability goals through concrete case studies and examples. Hodges adds that line managers must feel involved in the diversity absorption process, which essentially can be facilitated through effective engagement with diversity practitioners. The Discussion Statement: This essay explores the nuances of diversity management, and examines some of the challenges that line managers face in adapting with a diversity policy for their team. The paper also studies some of the best practices exemplified by diversity practitioners in corporate, to seamlessly implement effective diversity practices in organizations. Diversity in perspective Although there are varied perceptions of diversity in concept and practice, one compact and comprehensive definition is provided by Esty, et al. (1995), where the authors state that: “Diversity is acknowledging, understanding, accepting, valuing, and celebrating differences among people with respect to age, class, ethnicity, gender, physical and mental ability, race, sexual orientation, spiritual practice, and public assistance status.” Diversity management, Foster and Harris (2005) opine, “Encourages innovative practices in human resource management that values employment relationship by addressing individual needs.” Potentially, employers see immense advantage in deploying demographically diverse workforce. Diversity, as opposed to equal opportunity, extends beyond legislation and focuses more on differences amongst individuals and groups (Laflèche, 2005). The liberal perspective has moved the diversity discourse from providing equal opportunities addressing social discrimination to promoting and managing diversity for societal progress and advantages. Equal opportunities policies often promotes sameness in treatment of individuals; whereas, diversity focuses on managing individual differences for gaining competitive edge. Diversity connotes, gender, age, ethnic background, as well as, non-visible characteristics, like work experience and disability factors (Kersten, 2000). In this context, diverse workgroup is beginning to be recognized for its contributory value to meet organizational objectives, than merely to meet legal and regulatory aspects. Laflèche (2005) chooses a metaphor “head and heart” to emphasize the effect of diversity on the inner-workings of an organization. It is another way of saying that the entire enterprise must commit to the cause of diversity in order to make a convincing and lasting change in human resource and team management practices that is seen as consistent and constructive. Benefits of Diversity In an era of global marketplace, where agility and flexibility define the cutting edge of competition, diversity in workplace becomes a critical success factor. Apart from reducing lawsuits, increasing market opportunities and business image (Esty, et al., 1995), embracing diversity opens new vistas and benefits, hitherto, not conceived by organizations (Greenberg, 2004). These include: Increased adaptability: A diversely talented workforce embeds multifarious experiences and skills that can meet fluctuating demands of global market with agility and flexibility. Broad service range: Culturally and linguistically diverse team with multifaceted talents can offer a broad range of service offerings to global customers. Variety Viewpoints: Diverse workforce brings together varied ideas and viewpoints that can enhance collective experience, and provide innovative solutions to customer demands. Effective execution: Organizations with diverse workforce promote their team members to operate at the full abilities. Suitable company-wide strategies and then be formulated to achieve higher productivity, and profits. One key benefit of diversity reported in numerous case studies and surveys is talent acquisition, retaining human capital, and resolving workforce shortages. As a corollary to this key benefit, is the factor of mitigating changing demographics of workforce (especially so, in developed countries), where age, birth-rates, and shrinking workforce, through cross-border sourcing strategies. The Diversity Challenge Managing diversity is not merely about acknowledging differences amongst people. It is more about valuing differences, thwarting discrimination, and promoting inclusiveness, both in percept, and in practice, at all levels in an organization. Diversity management would demand an organizational climate of fairness with regard to opportunities and honouring dignity at workplace. Diversity may therefore bring about fresh challenges for managers and business leaders. These include grievances arising out of prejudice and discrimination, with consequent loss in productivity. There could also be a spurt of complaints and legal actions against the organization (Devoe, 1999). The implementation of diversity policies revolve around the twin factors: social responsibility, and the business case. These are not standalone strands, but are deeply interwoven and require holistic understanding to purport meaningful policies and practices. These are further impinged by concerns of diverging philosophies, ideologies and assumptions which affect the implementation of diversity-related standards and procedures (Benson, et al., 2001). Amongst other challenges reported in a study of European Business Test Panel (EBTP) companies, 39% attributed leadership commitment as the major hurdle (Focus Consultancy, 2008). Further, 28% attributed discriminatory attitudes and behaviours amongst staff as the second major challenge. As a matter of fact, lack of awareness and understanding of diversity issues in companies, is often the biggest stumbling block. All these factors directly percolate to line managers affecting their attitudes towards diversity practices in an organization. The EBTP study also noted that of the 335 participating companies, 147 did not have Equality and Diversity (E&D) policy in place. The common reason quoted for lack of E&D policy was that the companies did not have enough employees to do so; or that, the companies did not give enough thought to E&D. These articulations reiterate an important finding of the study that most of EBTP companies still feel that E&D is related to human resource management department only. The study also noted that many companies still favour recruitment policies on qualification and merit considerations, assuming everyone has an “equal chance” of selection, as opposed to considerations of diversity. Line managers and supervisors being the immediate touch point to team members experience operational challenges posed by diversity issues, commonly arising through reduced effectiveness in communication, and increased conflict at workplace (Cox, 2001). Cox further observes that the challenges for line managers could also manifest by way of lower social attraction, and lower levels of commitment to the group. For line managers, who are often governed by stringent performance metrics that directly impinge on the company’s bottom line, the moot issue is to meet the cultural effects of diversity without adverse impact on performance. On the contrary, using cultural effects of diversity to boost company’s growth and performance, in realistic ways, becomes the foremost consideration for line managers in implementing diversity policies. The moot question therefore is, whether the erstwhile ‘equality officers’ whose penchant was to social justice, can wear another hat for business development as well (Kirton, et al., 2007). It is imperative to accept that diversity issues would bring its share of conflicts, and resistance to change, more so, from the operational staff and line managers, whose focus is more about ‘operational fireworks’ than strategic excellence. The outcomes derived from a diversity enabled organizational culture could be measured in terms of a company’s performance, turnover and satisfaction. The context of workplace is paramount in implementing diversity policies in organizations. If line managers and team leaders understand the organizational context and build appropriate group based processes to leverage innovation and creativity of team members, positive outcomes would follow (Kochan, et al., 2003). The line managers can therefore act as an effective catalyst for change. Diversity in Practice – Role of Line Managers Line managers who don the role of ‘diversity professional’ often find themselves in a state of duality, pulled by social conformity, and justice at one end; and business case, and objectives at the other. This persistent state of flux can result in lack of energetic enthusiasm in line managers accentuated with the tension in managing ‘seemingly contradictory pulls.’ Line managers may also tend to see their role of diversity manager, as an add-on, over their conventional operational roles (Kirton, et al., 2007). In this context, it would help if the diversity champions have the background of mainstream business management, so that their central role is perceived as a strategic-cum-operational combine, than a purely human resource specialist role. This may facilitate effective engagement between diversity champions and line managers. While in principle, diversity is seen as acknowledging differences and managing the uniqueness of individuals, and therefore, calling for discretion in decision making at line managers’ level; in practice however, busy line managers often seem to prefer external regulations and legislation to simplify their decision making process (Foster & Harris, 2005). This is one of the gaps that seem to exist between the principle, and practice, of diversity in organizations. It is imperative that diversity policies must be strongly anchored to business strategy. The organizational expectations from diversity policy should mandate a shared common vision at all levels. As for the leaders and champions in the human resource department, diversity is seen as a strategic initiative; though for operational managers, it is often construed as rhetoric, and a matter of legal compliance (Maxwell, et al., 2001). A clear distinction between ‘equal opportunity,’ as opposed to the broader percept of diversity, must percolate at all levels through extensive awareness and orientation programs. The transition from equal opportunity paradigm to a more holistic diversity outlook requires change management strategies. Line managers would need continuous training, clarity in policy guidelines, and hand holding in matters related to the sensitive aspects of diversity. At Adecco (Best Business Practices Case Studies), mandatory induction training on non-discrimination and disability inclusion is provided to line managers and staff (European Commission Study, 2005). In addition to training, “Air Products” (another best practice case study), conducts awareness programs through posters, and ‘coffee talks’. Regular diversity reports are hosted on company’s websites and valued contribution of associates towards diversity programs are acknowledged. Training programs at “Air Products” are customized to suit the social and cultural context of the local community. Amongst other best practices reported with regard to diversity awareness and training, are initiatives such as, cross-cultural exchange programmes, language and integration programs, legislative and compliance guidelines, and diversity checklists and tool kits. Sensitizing line managers to diversity issues could also include ‘Partnership Awards’ to recognize their contribution in strengthening diversity programs; ‘Employee Assistance Program’ to assist line managers in covering aspects such as, health and well being of associates, work-life and family care issues (The Office of Public Employment, Victoria, 2000). Monitoring and evaluating progress on diversity implementation is a key aspect. Line managers must get a direct feedback on the outcomes of their effort in the larger strategic context of the organization. Diversity policies should be linked with performance metrics related to: staff morale (satisfaction and stress levels, for example), productivity (work output, sick leave, etc.), quality (aspects of creativity, ideas, solutions, rework, etc.) and customer satisfaction (deadlines, satisfaction, for instance). An example of best practice reported in the European Commission study refers to the ‘Global Diversity Network’ of companies such as, Dow Chemical, Deutsche Bank, Unilever, Barclays etc. that focuses on measuring equality, diversity and inclusion (2005). From the point of view of diversity practitioners, it is important that policies be periodically reviewed, more so, since the nature of job, skills and workforce composition is continuously changing. Organizations ought to be agile, flexible and adaptable to the internal and external environment changes. Commitment on part of line managers and staff needs to be sustained in tune with organizational priorities. Diversity practitioners must particularly focus on developing operational framework for implementing career planning, life wok balance, financial and security needs of associates. The application of diversity policies must be seen as fair, consistent and people-friendly. Frequent workshops, surveys and experience sharing must be encouraged to fine tune the operational procedures. As best practice, companies are encouraging enterprise-wide ownership and accountability for diversity implementation and performance management. The human resource department plays the role of internal experts and consultants, facilitating effective implementation of diversity policies (European Commission Study, 2005). Diversity champions are encouraging action to link diversity practices with performance targets, and make it part of appraisal and reward processes for line managers and staff. Creation of diversity council, and specific task forces to provide thrust in implementation of diversity practices (as is the best practice in IBM), can be a wise strategy for diversity practitioners. It is also pertinent for diversity experts to build an internal-culture change programs for leaders and line managers, and address challenges to foster better appreciation and awareness of diversity policies. Lessons learnt from existing policies and fine tuning them to adapt to the changes must become a continuous process for companies adopting diversity strategies. The positive outcomes arising from diversity initiative must be recognized, rewarded, and branded as part of promotional strategies. It is natural for managers in organizations to experience anxiousness and apprehensions, during the transition from conventional workforce to diversity-rich performing teams. Some turbulence, including costly litigations can be expected, and must therefore, be managed. The best performing organizations thrive on a climate of openness, active consultations, and supportive feedback mechanisms that reinforces the confidence of line managers in handling sensitive diversity issues. More significantly, such organizations have top leadership commitment and work with a definite purpose; transparent policy; robust plan; and well defined processes. Conclusion The differences in interpretation of diversity management, leads to varied perceptions and practices at various levels in an organization, and between the line managers. This to a large extent can be mitigated with extensive awareness and orientation programs, periodic training, clarity in policies and procedures, and through active consultations. In practice, line managers, often get mired with the fear of potential litigation and legal compliance issues over diversity implementation. This makes them defensive in implementing the diversity agenda within the organization. This can be diffused through leadership commitment, organizational openness, and building confidence of line managers through supportive feedback, appreciation and mentoring. Whilst in principle, diversity management would require valuing and managing differences between the individuals, in practice, the fear of legal regulations may often lead line managers to play safe and deliver the sameness in treatment amongst individuals. This would largely defeat the purpose of diversity management, and therefore, diversity champions should provide a robust framework for implementation of diversity, and make a convincingly business case for the organization, that is achievable and sustainable in the long run. References Benson, A. P., Hinn, D. M., & Lloyd, C. (Eds.). 2001. Visions of Quality: How Evaluators Define, Understand, and Represent Program Quality. Elsevier Science, New York. Cook, A., 2007. Diversity - what’s in it for line managers? CSR Insights, Associates of Article 13. Cox, T., Quinn, R. E., & O'Neill, P. H., 2001. Creating the Multicultural Organization: A Strategy for Capturing the Power of Diversity. 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