Equal Opportunity and Diversity Management - Essay Example

Equal Opportunity and Diversity Management 0 Introduction: "Managing diversity involves valuing people as individuals, as employees, s and clients - everyone is different. Factors such as sex, age, background, race and disability are taken into account to create a productive environment in which organisational goals are met efficiently and effectively by making the best use of everyone's talents and potential" (CIPD) Diversity and its management is becoming a policy concept choice of UK organizations across the public and private sectors. (European Commission 2005) Though there are ongoing discussions and debates on the nature and scope of equal opportunities, conceptually the idea has been developed into as a framework for redressal of group-based discrimination by adopting a range of procedural measures. "Its focus has been traditionally disadvantaged 'group' categories of gender, race/ethnicity, disability and sexuality, and its basis has been seen as one of 'social justice', prompted and supported by anti-discrimination legislation." (Deborah Dean et al.2006) Managing Diversity which has its roots in the US and has been considered as a "backlash against the promotion of ideas of social justice based on minority group advantage, is explicitly based on the 'business case' and emphasises multiple, individual difference, potentially applicable to all employees" (e.g. Kandola and Fullerton 1998) The basic argument that the gathering and utilising all available talents will greatly benefit the organization has also been found to the basis for the concept of equal opportunities policy. (Liff 1999; Liff and Dickens 2000) However diversity management is viewed more as an organizational imperative. Though the objective of diversity management is also the utilization of all available talents it is said that there is a shift in the orientation of this policy from the concept of equal opportunities. Nevertheless the concepts of equal opportunities and diversity management as emerging aspects of Human Resources Management (HRM) are occupying a central place in the recent periods. In this context this paper presents an overview of the conceptualization of both the HRM aspects and also presents an evaluation of some of the ways in which the present day organizations can improve upon their policies on managing diversity and equal opportunities to make them more effective. 2.0 Concepts of Equal Opportunities and Diversity Management - An Overview: "Managing diversity effectively follows on from, and expands on equal opportunities"(NCVO) Equal opportunities is about keeping within the law and the decisions about the payment of wages, recruitment and promotional policies are to be framed on the basis of the capabilities of the individuals to perform their functions effectively. This requires a systematic policy approach to all facets of personnel management and such policies are framed by a pre-empting discrimination. "Diversity is a more wide-reaching approach to equal opportunities work. It incorporates the principle that all workers should receive equal rights but, rather than ignoring the differences between people in terms of their gender and race, this diversity should be recognised and respected." (NCVO) Diversity management works on the basis of a valuation of the varying aptitudes and skills that different workers bring along with them to be utilized by the organizations. Under this concept the managers arrive at a working environment where all the workers are valued on the basis of their individual skills and expertise and also such skills and expertise are utilized to the fullest extent. Cooper and White (1995) suggested that one reason that equal opportunities had not really made an impact was because those who had the power to change the inequalities - white, able-bodied males - had never really experienced discrimination in employment. This was the possible reason that the interests of the minority group was never focused nor there any empathy with the issue. Research by the Equal Opportunities Commission (1999) found that a quarter of senior political decision-makers could not name a relevant piece of legislation on equal opportunities. Ross and Schneider (1992) stated that this could also be because the notion of equality was expressed in the terms and opinions of the white, able-bodied male. Because of this there was no chance for the minorities to raise a voice of demand for their uniqueness to be brought in the general mould. However, the idea of 'diversity management' is not a new one and has been found in existence even from late 1980s. All the three concepts of Diversity Management, Human Resources Management and Total Quality Management are having the central idea of improving the business efficiency and make it result to produce more economic gain in the form of enhanced profits. But the concept of Diversity management has been found to be deviating in orientation from that of equal opportunities, as observed by Thompson (1997) "The concept of 'managing diversity' is one that has grown out of Human Resources management and is also a movement away from traditional equal opportunities policies and practices. It is premised on recognition of diversity and differences as positive attributes of an organisation, rather than as problems to be solved." However the phenomenon of diversity management finds itself conceptually similar to that of HRM as evidenced by the work of Storey (1995)"A distinctive approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce, using an array of cultural, structural and personnel techniques" One of the key issues about the prominence of diversity concept is that whether it contains any material improvement over the traditional concept of 'equal opportunity' As observed by Thompson (1997) managing diversity is a move that can be identified to have policies and practices slightly away from the concept of equal opportunities. Kandola and Fullerton (1998) have identified the differences between both the concepts as below: Equal Opportunity Diversity Externally initiated Internally initiated Legally driven Business needs driven Quantitative focus (improving the numbers) Qualitative focus (improving the environment Problem-focused Opportunity-focused Assumes assimilation Assumes pluralism Reactive Proactive Race, gender and disability All differences Source: Kandola and Fullerton (1998) 3.0 Managing Diversity - Challenging Stereotypes: "Challenging stereotypes is what managing diversity is all about" (CIPD). There are innumerable ways in which the personal backgrounds and individual characteristics of the people affect the way the decisions are made about providing job opportunities and also the opportunities for training to those who are already in employment. The unpublished results of the 1995 research conducted by the CIPD has shown that different kinds of 'personal and social category characteristics' can result in unfair advantage or in gross disadvantage to the people concerned. The following are some of the areas in which discrimination may arise for providing employment opportunities. These areas were identified the people involved in the recruitment industry. Accent: Accent communicates the background, education and birth place of the people which makes some people desirable while others are rejected Sexual Orientation: There are occasions in which people who are overtly or idiotically gay are rejected Size: The people who are fat sometimes do not get a fair chance as the organizations always expect to have people of normal built Gender: There are quite a number of debates on 'women in employment' with employers finding various reasons for discouraging the women reaching top positions Age: An important determinant of the suitability for job openings. Many a times older men are considered not adaptable to react to new ideas and younger men are considered irresponsible and inexperienced. Disability: The considerations here are "Being disabled means being a wheelchair user, less capable than an able-bodied person, will have high sickness absence and will cost more to employ" (CIPD) Apart from the above there are various other considerations based on race, ethnicity, religion and even locality that act detrimental to the provision of equal opportunities to those who are otherwise well equipped to handle the work for which they can be recruited. Mostly it is the individual managers' perception about these varying aspects than the organizational policies that come in the way of managing the diversity efficiently. 4.0 Business Case for Managing Diversity and Equal Opportunities: Managing Diversity is found to have a multi-dimensional business case in terms of its implementation in the organizations by progressive self interest. The concept offers both indirect and direct enhancements to competitiveness. The indirect enhancement is by achieving cost saving measures. The indirect advantages are: Reduced Employee Turnover: "When people are happier they stay longer and companies don't have to repeatedly incur the huge costs of recruitment and selection and training." (Bartz, D.E. et al 1990) Reduced Absenteeism: By entering into contracts with employees that takes care of the specific needs of the employees the firms are enable to derive maximum output. This particular aspect has been witnessed to ensure a reduction in the absenteeism. (Biznet) Lower Litigation Expenses: "The opportunity cost for handling and dealing with discrimination cases is considerable. Negative publicity further exacerbates the costs to the business." (Echiejile, L. 1995) Direct advantages include: Availability of Best Talents: The firms are able to not only attract the best available talents but also able to retain them. This is very crucial in the current day business environment of war for talents. Improvement in productivity and performance: Managing diversity presents a very dynamic and strategic approach to flexibility and thereby it ensures enhancement in the performance of the organization concerned. (Hall, D. and Parker, V. 1993) Best employer: "In terms of the war for talent at this time of skill shortages, can any employer afford NOT to improve their ability to manage diversity, when there are such significant advantages to policies and practices that promote the employer's commitment to equal opportunities" (Editorial. 1994 Human Resources. Summer.) In terms of improvement in the public profile the following distinct advantages accrue to a firm practicing diversity management and equal opportunities: Ethical Behaviour: By behaving ethically and respectfully towards the community the firm is able to distinguish itself from other firms. Moreover investors and customers are increasingly making choices subject to corporate ethics, and the company's image as an employer." (Commission for Racial Equality. 1995) Being a Role Model: "Equality and quality are increasingly seen as indivisible in the market place" (Adaji, A) Becoming a role model enhances the public profile of the company in the eyes of the stakeholders, investors, customers and employees of the organization. Possibility of International Associations: "Organisations which take on these principles are recognising that the business case for managing diversity is an extremely powerful force for business improvement. What diversity suggests is that the very differences between people, their cultures, skills and experiences are a strength which can contribute to business effectiveness." (Biznet) 4.1 Social Justice Argument for Diversity Practices: The social justice and a positive staff management attitude is the case for majority of diversity practices as opposed to business case. However the business case has an equally persuasive quality as that of the social justice and in some cases even more persuasive than the social justice for bringing about the changes according to the organizational needs. "Some would argue that treating people fairly is in itself fundamental to the business case - unless people feel valued, their commitment is compromised in ways that can result in underperformance - so in many ways the social justice and business case arguments are complementary."(CIPD) The basis for social justice argument is that there should be an equal right to all the workers to have access to the benefits of employment like equal pay and allowances and also equal chances for the getting the training and development while in employment. The employees should be able to have this right provided to them without any discrimination, harassment and/or bullying, along with the respect as unique and different individuals. 5.0 Case Studies - Diversity Approach: "B&Q the DIY and home improvement chain has taken an innovative approach to diversity and particularly employing old workers." (Equality Online) In the matter of diversity the company has remove all barriers on age on its recruitment and promotion policies. In fact the company has no age fixed for retirement. It is interesting to note the age of the oldest member is 89 and more than 21 percent of its staff is aged more than 50 years. These older staff are able to act as mentors to the other younger staff and share their skill and experiences with them. For experimenting in this area as early as 1989 the company opened an exclusive branch in Macclesfield Cheshire staffed with people over 50 years of age. "A comparison with four other stores over a six-month period showed that Macclesfield's profits were 18% higher than average, staff turnover was six times lower while absenteeism was down 39%. B&Q also found that customers reported improved perceptions of service." (Equality Online) In another case a major communication network in the UK has taken the initiative to employ as many disabled workers. The net work has also taken the efforts to encourage its agencies to make up policies to recruit people with disabilities and adverse health conditions but other wise fit to work. "The reasons behind the venture were to explore previously untapped labour market, the individuals recruited are highly motivated and have good attendance record and finally the workforce reflects the diverse world we live in." (Equality Online) "PricewaterhouseCoopers' diversity strategy, agreed by the board in 2001, is based on recognising all the ways in which people are different, both the visible ways such as gender and ethnicity, and the non-visible, such as social background or personality. The long-term aim of the strategy is to create a culture in which all individuals feel respected and included." (CIPD) Remploy is working towards providing equal opportunities for all individuals irrespective of any disability so that the individuals have the chance to lead a full and independent life unaffected by the disabilities they may have. To stress the importance of the diversity concept Remploy has instituted an annual 'Leading the Way' Award to recognize those employers who have encouraged diversities in their respective organizations. Hong Kong and Shanghai Banking Corporation (HSBC) is another organization which has exhibited the idea of diversity even in the composition of its Board of Directors with directors belonging to seven different races and nationalities and four women. The corporation can be regarded as one of the most diverse employee based with more than 235,000 staff spread over 100 customers. As Hilary Wiseman, Head of Diversity in the UK and Europe, says, "In HSBC worldwide, Caucasians are in a minority. One in six of my colleagues is Chinese, one in seven Latin American. I work in a truly multicultural environment, which is a marvellous experience." 6.0 Conclusion: Thus managing diversity can be regarded as working on the concept of recognizing the values of the people as each individual is different one and this value must be recognized for reason relating to both the business reasons and for a moral and social justice reason. The diversity management takes into account the fact that people originating from different backgrounds and culture can bring new ideas and perceptions which can contribute to the production of goods and services in an efficient manner. Managing diversity efficiently would enable the organization to have wide scope for inculcating creativity and innovation in the organizational operations. It also enables the organization to tap the hidden talents and expertise for achieving higher growth and attain an increased competitive advantage. "The management of diversity requires action to ensure organisations have an open workplace culture based on trust and mutual respect. In such a culture people value each other and treat each other with dignity"(CIPD) It is also vitally important that differences in personal backgrounds and individual characteristics do not play any role in making decisions about selecting the individuals for providing employment opportunities or training and development while in employment. References: Adaji, A. As quoted in Equal Opportunities Review, 1995. p. 30 Bartz, D.E. et al. (1990) 'A model for managing workforce diversity' Management Education and Development V 21 part 5 Biznet 'Managing Diversity' http://www.biznet.org.uk/businesscase-managediversity.htm CIPD 'Managing Diversity: People Make the Difference At Work - But Everyone is Different' http://www.cipd.co.uk/NR/rdonlyres/493588D2-1BB3-43A8-9D34-3916C5FC868C/0/mandivers0305.pdf Commission for Racial Equality (1995) 'Racial Equality Means Business - A Standard for Racial Equality for employers' Caxton House Press. London.) Cooper, C. and White, B. (1995) Organisation Behaviour. In Tyson, S. (ed), Strategic prospects for HRM Deborah Dean, Anne-Marie Greene, Fill Kirton and Chris Creegan 'No Them, No Us Managing Diversity and Collectivity http://www2.warwick.ac.uk/fac/soc/wbs/research/irru/publications/recentconf/dd_buira.pdf. Echiejile, L (1995) 'The Business Case for Equal Opportunities' Professional Manager Equal Opportunities Commission (1999) On Line Information 4 October Equality Online Case Study: B & Q' Equality Advice Centre http://www.equality-online.org.uk/equality_advice/case-study-bq.html European Commission (2005) 'The Business Case for Diversity - Good Practices in the Workplace' Luxembourg: Office for Official Publications of the European Communities Hall, D. and Parker V (1993) 'The role of workplace flexibility in managing diversity' Orgnanisational Dynamics. 22.1) Kandola, R. and Fullerton, J. (1998) 'Diversity in Action: Managing the Mosaic' (2nd Edition) London: Institute of Personnel and Development . Liff , S. (1999) 'Diversity and equal opportunities: room for a constructive compromise:', Human Resource Management Journal, 9 (1), 65-75. Liff, S. and Dickens, L (2000) 'Ethics and equality: reconciling false dilemmas' In D. Winstanley and J. Woodall (eds.), Ethical Issues in Contemporary Human Resource Management, London: Macmillan NCVO 'Managing Diversity' http://www.ncvo-vol.org.uk/askncvo/index.aspid=178 Ross. R. and Schneider (1992) 'From equality to diversity' Place of publication: Pitman Publishing. Thompson, Neil (1997) 'Anti Discriminatory Practice' Macmillan Press Read More