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WHAT IS DIVERSITY?:Recruitment and Retention, Organizational approaches

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Organizational Psychology­ (PSY510)
VU
LESSON 05
WHAT IS DIVERSITY?
Diversity may be defined in a number of ways. Some definitions tend to define diversity in terms of race,
gender, ethnicity, age, national origin, religion, and disability (Wheeler, 1994). Broad definitions may include
sexual/affectional orientation, values, personality characteristics, education, language, physical appearance,
marital status, lifestyle, beliefs, and background characteristics such as geographic origin, tenure with the
organization, and economic status (Carr, 1993; Caudron, 1992; Thomas, 1992; Triandis, 1994). Hayles
(1996) defines diversity as "All the ways in which we differ". He adds that the diversity concept is not
limited to what people traditionally think of it as: race, gender, and disabilities1. Morrison (1992) categorized
diversity in terms of four levels:
(1) Diversity as racial/ethnic/sexual balance
(2) Diversity as understanding other cultures
(3) Diversity as culturally divergent values
(4) Diversity as broadly inclusive (cultural, sub-cultural, and individual).
Griggs (1995) classified diversity into primary and secondary dimensions.
Primary dimensions of diversity are those human differences that are inborn and/or that exert an important
impact on our early socialization and have an ongoing impact throughout our lives. The six primary
dimensions include (1) age, (2) ethnicity, (3) gender, (4) physical abilities/qualities, (5) race, and (6)
sexual/affectional orientation. Griggs also concluded that human beings cannot change these primary
dimensions. The secondary dimensions of diversity are those that can be changed and include, but are not
limited to, educational background, geographic location, income, marital status, military experience, parental
status, religious beliefs, and work experience.
There is no one definitive definition that fully describes the broad range of differences diversity includes,
the evolutionary nature of the process it represents, and the far-reaching impact it has on individuals and
corporations (Tomervik, 1995).
A broad definition of diversity goes beyond protected-class differences because all employees bring their
differences, including a variety of group-identity differences, to the workplace (Johnson, 1995).
Benefits of Diversity
As the business environment becomes more global and organizations become leaner and flatter, they must
accomplish more with fewer people: people who have different cultures, values, motivations, work styles,
lifestyles and family roles (Montes, 2000). By averaging the many facets of diversity in the internal and
external environment, organizations can benefit from diversity (Robinson & Dechant, 1997). Some of the
benefits that flow from the effective management of diversity are discussed below.
Improved Organizational Performance
Recent indicates that, within the proper context, cultural diversity does in fact add value to the firm. When
firms pursue a growth strategy, higher racial diversity is positively related to productivity, return on equity
and market performance. Racial diversity enhances productivity and this relationship intensifies as strategic
growth increases. Cultural diversity can provide firms with diverse experience and knowledge, qualities that
seem beneficial for firms with an orientation towards growth and addition, organizations that overcome
resistance to change in the area of accepting diversity, appear to be well positioned to handle other types of
change enabling improved flexibility.
Cost Savings
Failure to manage diversity has significant cost implications for organizations. Research has indicated that
turnover among women is a significant and costly problem. In the U.S. pharmaceuticals stated that its
diversity initiatives resulted in savings of $500,000 mainly from lower turnover among women and ethnic
minorities (Mercer, 1988).
Recruitment and Retention
In order to sustain competitive advantage, an organization needs to attract and retain skilled and talented
human resources. In a tight labor market, a company's ability to attract and retain outstanding people
depends to a large extent on its corporate image. Talented people will be attracted to corporations that value
their capabilities and will be more willing to contribute to the organization's goals if they believe they are
1
(American Society for Training and Development [ASTD], 1996b)
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Organizational Psychology­ (PSY510)
VU
treated fairly. Attracting, retaining and promoting excellent employees from different demographic groups
sends a clear message to potential applicants, that the company has effective diversity management
practices. On the other hand, racially motivated job treatment discrimination and promotion discrimination
against minorities are factors that affect minority employees.
Lower Absenteeism Rates
If diversity is managed correctly, it can lead to reduced absenteeism rates. Absenteeism rates for women
were found to be 58 percent higher than for men (Meisenheimer, 1990). Individuals who are different from
their work units in racial or ethnic background tend to be less psychologically committed to their
organizations, less inclined to stay with the organization and more likely to be absent. Research also
indicates that a positive relationship exists between employees' perceptions of being valued and cared about
by their organizations and their attendance, dedication and job performance.
Increasing Creativity and Innovation
Workforce diversity can enhance market understanding, stimulate creativity and foster innovative thinking.
Cultural diversity enables employees to provide different perspectives for the performance of creative tasks.
In addition, employees who feel valued and supported by their organization tend to be more innovative in
another research study, the ideas produced by ethnically diverse groups were judged to be of higher quality
than the ideas produced by homogeneous groups
Higher Quality Problem-Solving in Teams
Research shows that more innovative teams produce more innovative solutions to problems. As culturally
diverse members have different backgrounds and life experiences, they can see problems from a variety of
perspectives. Multiple perspectives stimulate greater discussion and lead to higher quality solutions.
While diverse groups experience more conflict in agreeing on what is important and in working together at
the outset, they ultimately outperform homogeneous groups in identifying problem perspectives and
generating alternative solutions.
Building Effective Global Relationships
As companies become more global, the need to integrate cultural diversity into marketing, sales and
customer services strategies is becoming essential. Cultural competence is being recognized as a key
management skill. For example, American managers have to adjust to a world of extraordinary variety in
consumer preferences and work practices. The increased cultural awareness developed by a firm's
adaptation to diversity can help it become more effective in cross-cultural situations. International firms do
not experience diminishing performance returns as they face increasingly heterogeneous environments.
Managing Diversity in Organizations
Over the past decade diversity management has become a critical aspect of operating a business. Increasing
globalization, the changing composition of the population and increasing reliance on non-traditional
workforce talent have provided the fundamental stimulus for diversity management (Montes, 2000).
Although top management may view diversity as important, the focus on short term financial results to
satisfy shareholders, often shifts the focus to other more tangible and compelling business priorities
(Robinson & Dechant, 1997). Diversity management requires a long term commitment and the payback is
often not as tangible or predictable as that derived from sales targets or even health and safety initiatives.
Yet, unless proponents of diversity management can demonstrate compelling arguments, diversity
management is unlikely to get the attention it deserves. In other words, a proper business case for diversity
has to be built.
Developing a business case for diversity is more difficult because of the failure to systematically measure
and document the impact of diversity on the bottom line (Robinson & Dechant, 1997). The new paradigm
for diversity management transcends traditional moral arguments, by seeking to connect diversity to
business perspectives. The new model accepts the philosophies of former paradigms by promoting equality
of opportunity for all employees whilst acknowledging cultural differences among people and recognizing
and respecting the value of those differences. The new model for managing diversity lets the organization
internalize differences among employees so that the organization learns and grows because of these
differences (Compton, 1995).
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Organizational Psychology­ (PSY510)
VU
Individual approaches to managing diversity
Learning
In simple terms, the easiest way to manage diversity is to inculcate into the managers the sense that if they
learn about different people working in their organization, they would be able to manage diversity more
effectively. Therefore, learning is an individual approach to diversity management for managers.
Empathy
Empathy approach refers to managers being able to empathize with employees. This means that the
managers are able to feel their emotions and be considerate about their problems which may be related to
their cultural background or any other element of diversity.
Organizational approaches
Some of the organizational approaches to managing diversity are:
Testing
This means that all tests being given in the organization for recruiting, hiring, promotion etc. should be
culturally unbiased and not favour any specific individual or group of individuals. This shall create a sense of
fair play in the organization.
Training
Training to manage and deal with diverse workforce and peers should be held at the organizations.
Mentoring
Managers need to be mentors who guide their diverse workforce to perform efficiently.
Work/Family programs
Adjust work-hours according to family needs. Some employees may not be available at certain times of the
day. Therefore, they may be given appropriate arrangements in order to ensure that they can perform at
their best. This is also called flex time
Studies have found that these programs decrease family conflict, job dissatisfaction and stress-related
problems.
Further, to create an organizational culture that supports workforce diversity involves several important
elements. These elements include a needs analysis, administrative and management support and
commitment, education and training, culture and management systems changes and continuous follow-up
and evaluation.
Needs Analysis
Needs analysis should be prepared first to provide information to senior management in gaining their
support as well as to adequately determine workforce and organizational needs for creating a diverse
workplace. First, find out what employees are concerned about; the needs and expectations of a diverse
workforce can vary by organizational and functional levels, location, ethnicity, and gender. Second,
determine the needs of the organization. Does the organization have trouble retaining employees who
would add to its diversity? In an organization with diversity, which, if any, areas of the workforce are being
treated inappropriately? By using a survey that focuses on these questions you can ascertain where
administration and management feel the organization presently is regarding diversity.
Administrative and Management Commitment and Support
Administrative and management support is critical for diversity change efforts. An important role for senior
management is to provide leadership through development of a vision and goals for a diverse workplace. To
gain support from administration you need to directly link diversity to the business. Provide data regarding
the diversity opportunities in the marketplace, workforce and organization. Benchmarking best practices
related to diversity from other organizations, demographic data, briefings regarding complaints, potential
lawsuits, and hiring and retention problems are all relevant sources of data. In general, the organizations
experiencing the greatest success with diversity training are more likely to view diversity as a business issue
rather than a social issue; link diversity to other organizational initiatives, such as quality management or
career development. Finally, administrative support and commitment is essential also for the means to
provide the programs and resources necessary for diversity education and training.
Education and Training
Organizations that successfully manage diversity distinguish between the differences of education and
training. Education is a building of awareness and creating a base of general understanding. At the
administrative and management levels, educational efforts can spawn interest and an awareness of need,
which can then extend the change process throughout the organization.
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Organizational Psychology­ (PSY510)
VU
Training involves activities designed to build usable skills. Training targets in on specific issues to develop
the skills necessary to effectively and sensitively deal with an issue. For example, training might teach
managers how to conduct performance appraisals with employees from a different culture. By using the
information gathered during the needs analysis, an organization can target in on the specific diversity issues
they need to address with training.
REFERENCES
·  Michale Tom. (2000 December 26). Copy Controls: Fair Use or Foul Play in management? Retrieved
March 7, 2006, from
http://courses.cs.vt.edu/~cs3604/lib/Roanoke.Times/Alarm.html
·  Bergman, P.G., (1999 December 10). HRD in organizations, National Management Journal. Retrieved
March 6, 2006 from
http://www.lawnewsnetwork.com/stories/A11108-1999Dec8.html
·  Miller, Kevin. (2005 January 28). Professors have expressed the most concern about human resource
management. Retrieved March 7, 2006, from
http://courses.cs.vt.edu/~cs3604/lib/Roanoke.Times/Alarm.html
·  Rohde, Laura, (2000 December 15). "BT [British Telecom] Sues Prodigy over HR policies", Retrieved
March 13, 2006 from
http://www.infoworld.com/articles/hn/xml/00/12/15/001215hnbtprodigy.xml?
·  Peter Lobser & Editors of Encyclopeida Britannica Online. (2005-2006). Diversity. Encyclopedia
Britannica Online. Retrieved March 13, 2006. from Encyclopaedia Britannica Online on the World Wide
Web:
http://www.search.eb.com/bol/topic?eu=117376&sctn=1
·  Dowel. Lukare, S., & Doe, j. (2001 March 7). Management of events: Retrieved March 7, 2006, from
http://courses.cs.vt.edu/~cs3604/lib/Copyrights.Patents/Piracy.Ring.html
·  Adler, N. J. (1983). Organizational development in a multicultural environment. The Journal of Applied
Behavioral Science, 19, 349-365.
·  Adler, N. J. (1991). International dimensions of organizational behavior. Boston: Kent.
·  Akabas, S. H., Gates, L. B., & Galvin, D. E. (1992). Disability management: A complete system to reduce costs,
increase productivity, meet employee needs and ensure legal compliance. New York: AMACOM.
·  Alderfer, C. P. (1982). Problems of changing white males' behavior and beliefs concerning race
relations. In P. S. Goodman (Ed.), Change in organizations: New perspectives on theory, research, and practice (pp.
122-165). San Francisco: Jossey-Bass.
FURTHER READING
·  Peter Lobser & Editors of Encyclopeida Britannica Online. (2005-2006). Diversity. Encyclopedia
Britannica Online. Retrieved March 13, 2006. from Encyclopaedia Britannica Online on the World Wide
Web:
http://www.search.eb.com/bol/topic?eu=117376&sctn=1
·  Dowel. Lukare, S., & Doe, j. (2001 March 7). Management of events: Retrieved March 7, 2006, from
http://courses.cs.vt.edu/~cs3604/lib/Copyrights.Patents/Piracy.Ring.html
·  Adler, N. J. (1983). Organizational development in a multicultural environment. The Journal of Applied
Behavioral Science, 19, 349-365.
·  Adler, N. J. (1991). International dimensions of organizational behavior. Boston: Kent.
·
·  Balm, G. J. (1992). Benchmarking: Practitioner's guide for becoming and staying best of the best. Schaumburg, IL:
QPMA Press.
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Table of Contents:
  1. INTRODUCTION TO ORGANIZATIONAL PSYCHLOGY:Hawthorne Effect
  2. METHODOLOGIES OF DATA COLLECTION:Observational method, Stability of Measures
  3. GLOBALIZATION:Aspects of Globalization, Industrial Globalization
  4. DEFINING THE CULTURE:Key Components of Culture, Individualism
  5. WHAT IS DIVERSITY?:Recruitment and Retention, Organizational approaches
  6. ETHICS:Sexual Harassment, Pay and Promotion Discrimination, Employee Privacy
  7. NATURE OF ORGANIZATIONS:Flat Organization, Neoclassical Organization Theory
  8. ORGANIZATIONAL CULTURE:Academy Culture, Baseball Team Culture, Fortress Culture
  9. CHANGING ORGANIZATIONAL CULTURE:Move decisively, defuse resistance
  10. REWARD SYSTEMS: PAY, Methods of Pay, Individual incentive plan, New Pay Techniques
  11. REWARD SYSTEMS: RECOGNITION AND BENEFITS, Efficiency Wage Theory
  12. PERCEPTION:How They Work Together, Gestalt Laws of Grouping, Closure
  13. PERCEPTUAL DEFENCE:Cognitive Dissonance Theory, Stereotyping
  14. ATTRIBUTION:Locus of Control, Fundamental Attribution Error
  15. IMPRESSION MANAGEMENT:Impression Construction, Self-focused IM
  16. PERSONALITY:Classifying Personality Theories, Humanistic/Existential
  17. PERSONALITY ASSESSMENT:Standardized, Basic Categories of Measures
  18. ATTITUDE:Emotional, Informational, Behavioural,Positive and Negative Affectivity
  19. JOB SATISFACTION:The work, Pay, Measurement of Job Satisfaction
  20. MOTIVATION:Extrinsic motive, Theories of work motivation, Safety needs
  21. THEORIES OF MOTIVATION:Instrumentality, Stacy Adams’S Equity theory
  22. MOTIVATION ACROSS CULTURES:Meaning of Work, Role of Religion
  23. POSITIVE PSYCHOLOGY:Criticisms of ‘Traditional’ Psychology, Optimism
  24. HOPE:Personality, Our goals, Satisfaction with important domains, Negative affect
  25. EMOTIONAL INTELLIGENCE:EI IS Related To Emotions and Intelligence
  26. SELF EFFICACY:Motivation, Perseverance, Thoughts, Sources of Self-Efficacy
  27. COMMUNICATION:Historical Background, Informal-Formal, Interpersonal Communication
  28. COMMUNICATION (Part II):Downward Communication, Stereotyping Problems
  29. DECISION MAKING:History, Personal Rationality, Social Model, Conceptual
  30. PARTICIPATIVE DECISION MAKING TECHNIQUES:Expertise, Thinking skills
  31. JOB STRESS:Distress and Eustress, Burnout, General Adaptation Syndrome
  32. INDIVIDUAL STRESSORS:Role Ambiguity/ Role Conflict, Personal Control
  33. EFFECTS OF STRESS:Physical Effects, Behavioural Effects, Individual Strategies
  34. POWER AND POLITICS:Coercive Power, Legitimate Power, Referent Power
  35. POLITICS:Sources of Politics in Organizations, Final Word about Power
  36. GROUPS AND TEAMS:Why Groups Are Formed, Forming, Storming
  37. DYSFUNCTIONS OF GROUPS:Norm Violation, Group Think, Risky Shift
  38. JOB DESIGN:Job Rotation, Job Enlargement, Job Enrichment, Skill Variety
  39. JOB DESIGN:Engagement, Disengagement, Social Information Processing, Motivation
  40. LEARNING:Motor Learning, Verbal Learning, Behaviouristic Theories, Acquisition
  41. OBMOD:Applications of OBMOD, Correcting Group Dysfunctions
  42. LEADERSHIP PROCESS:Managers versus Leaders, Defining Leadership
  43. MODERN THEORIES OF LEADERSHIP PROCESS:Transformational Leaders
  44. GREAT LEADERS: STYLES, ACTIVITIES AND SKILLS:Globalization and Leadership
  45. GREAT LEADERS: STYLES, ACTIVITIES AND SKILLS:Planning, Staffing