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Diversity Management The Challenges and Opportunities 1225805879731764 9 PDF
Diversity Management The Challenges and Opportunities 1225805879731764 9 PDF
ACKNOWLEDGEMENT
The knowledge of our theoretical studies is absolutely incomplete without
its proper implementation and application in todays diversified corporate
world.
With profound sense of gratitude and regard, we convey our sincere thanks
to our teacher, Dr. Shuchi Agarwal for her valuable guidance and the
confidence she instilled in us, that helped us in completion of the project
report. We would like to thank her for providing the basic knowledge of
Organizational Behavior, project topic & the methodology to be used for
preparing the report.
CONTENTS
1. Diversity
Introduction
Managing Diversity
Why Manage Diversity?
Indian and USA Context
2. Managing Workforce Diversity as
A Challenge
An Asset
3. World Best Companies to work for(Fortune Magazine)
4. How to Manage Diversity in an Organization?
5. Diversity Policy
Ways to ensure that Diversity program is successful
Policies that support Diversity at HP
6. A Case Study : Diversity at IBM
7. Conclusion
Bibliography
Diversity Management
The Challenges & Opportunities
Introduction
Diversity is ubiquitous. We all are aware of it since decades .No two persons
are similar. The world has been and is a stage of huge mix of people with
different backgrounds, religion, castes, race, culture, behavior, age, marital
status, nationality, educational qualification, political affiliation, levels of
ability, personality, gender and many more which vary across the globe. Other
sources of differences include socio - economic background of individuals,
membership and non membership of unions, forms and quality/quantity of
education, period and nature of employment, drives to work, and work styles.
Work place diversity therefore, intends to also consist of social, economic and
political visible and non visible differences which might not have a direct
creational origin from the work place, but certainly have direct impact on work
attitude and performance at the work place. Diversity itself relates to the fact
that we are all unique individuals.
Though they work together, they maintain their distinct identities, diverse
culture and separate lifestyles. Managers of today must learn to live with these
diverse behaviors. Diversity, if properly managed, can increase creativity and
innovation in organizations as well as improve decision making by providing
different perspectives on problems.
Diversity mainly came into the picture when globalization came in 1990-91.As
the wave of globalization sweeps across the organizations, there is a
convergence of workforce from diverse countries, cultures, values, styles etc
.Such
convergence
of
distinctly
different
people
presents
tremendous
And as we enter the 21st century, workforce diversity has become an essential
business concern. In the so-called information age, the greatest assets of most
companies are now on two feet (or a set of wheels). Undeniably, there is a
talent war raging. No company can afford to unnecessarily restrict its ability to
attract and retain the very best employees available.
Managing Diversity
A
management
system
which
eliminates
the
differences
found
in
the
management
followed
differences in workforce. It was assumed that people who were different would
somehow manage with the majority group. But it is now recognized that
employees dont set aside their values, beliefs, lifestyles, preferences, etc when
they come to work. Therefore, it is desirable to recognize and value such
differences by adapting management practices to different life and work styles,
etc of the diverse group.
Diversity management involves creating a supportive culture where
all employees can be effective. In creating this culture it is important that top
management strongly support workplace diversity as a company goal and
include diversity initiatives in their companies' business strategies. It has
grown out of the need for organization to recognize the changing workforce
and other social pressures that often result.
6
Diversity in companies is no longer about being melting pots, but being salad
bowls," according to Grady Searcy. "We want people to retain their identity yet
7
be integrated into the company Currently, 7.5 per cent of our workforce
consists of non-Indians," said Mr. S Padmanabhan, Executive Vice President
and head Global human resource, TCS said while speaking at the Nasscom HR
Summit on `The War for Talent'. The Indian workplace is no different from
global MNCs.TCS has announced plans to hire about 4,000 people from across
the world.
A majority of HLL customers are women but till 2000 women constituted just
5% of its management. Alarmed by that number, the company put in place a
plan to hire more women. It looked at companies like ICICI , which had a far
better representation of women in their workforce. HLL started several
initiatives like a six-month fully paid maternity leave as well as a five-year
sabbatical.
IN USA
The 55 + age group which currently makes 13 percent labour force will
increase to 20.5 percent by 2014
Currently, as per ILO report, 45% of world women population aged (15-64)
are employed.
8
Although
employee
diversity can lead to greater creativity and better problem solving; it can
also lead to open conflict and chaos if there is mistrust and lack of
respect among groups. This means that as organizations become more
diverse, they face greater risks that employees will not work together
effectively. Interpersonal friction rather than cooperation may become
the norm
that most
6. Backlash: Some group in the organization feels that they have to defend
themselves against encroachments by those using their gender or
ethnicity to lay claim to organizational resources .Thus, while women
and minorities may view a firms cultural diversity policy as
10
Diversity as an Asset
Diversity in the work force was previously thought to lead to garbled
communications, conflict, and a less efficient workplace. Today, many firms
realize that diversity can actually enhance organizational effectiveness.
to
function
without
teamwork.
Interacting
with
diverse
c) Better Image: Companies that have diverse workforce are having better
image, reputation and patronage than those who do not encourage
diversity. This has huge impact on expansion of business as it can reduce
the talent crunch by targeting the diverse groups.
11
12
Google
Quicken Loans
Wegmans Food Markets
Edward Jones
Genentech
Cisco Systems
Starbucks
Rank
Minorities
(Percentage)
Women
to Men
Ratio
1
2
3
4
5
6
7
36
19
15
6
44
41
35
33
44
53
65
50
25
66
Yes
Yes
Yes
Yes
Yes
Yes
Yes
70
60
50
40
Minorities
30
Quicken Wegmans
Loans
Food
Markets
According to the above mentioned data, we can analyse that best companies
(to work for) works with diverse group of people. Google, ranked first by
fortune500 magazine, employs about 36 % minority people and 33 % womens
13
i.
ii.
Recruit Broadly: When you have job openings, work to get a diverse
applicant pool. Avoid relying on referrals from current employees, since
this tends to produce candidates similar to existing work force. An
exception is that if the present workforce is fairly diversified then there
is no harm in accepting referrals from current employees.
iii.
Select Fairly: Make sure your selection process does not discriminate.
Particularly ensure that selection tests are job related.
iv.
v.
vi.
vii.
viii.
ix.
15
x.
are
harmful
for
several
reasons.
person
may
be
16
Diversity Policy
Today the attrition rate of every corporate sector is high due to lack of proper
diversity program/policy. It is more challengeable since we are in global
village. Before we look to hire diverse candidates, we must be sure that our
organizational culture and environment support diversity, otherwise retention
will become a challenge
The purpose of the Diversity Policy is to encourage an atmosphere in which all
staff embrace the benefits of working in a diverse community and to provide a
framework for the fair and equitable treatment of all employees, job
applicants, customers, suppliers and visitors irrespective of their individual
differences or any personal characteristics.
Following are 10 ways to ensure that our diversity program is successful
1. Make it strategic: Incorporate diversity into your business strategy and
communicate the professional business sense and leadership
commitment to diversity;
are their interests? How might you position your organization to meet the
needs of an increasingly diverse market?
4. Make it inclusive:Make your program applicable to all employees of the
organization, rather than targeting people of color, women and/or
disabled employees.
5. Make sure there's accountability: Assign responsibility to a core team of
leadership professionals for the development and implementation of
strategic action plans
6. Make it experiential: Roll out development programs that enable
participants to draw from real world examples and engage in interactive
exercises so that they can try-on new concepts and build new skills.
7. Make it unifying:Rather than polarizing or alienating, which many
diversity programs tend to be as they recreate social inequities
8. Make it standard:Role model an appreciation of differences from the top
down; the message must stem from leadership and business vision, and be
modeled by senior executives.
9. Make it collaborative: Encourage accountability and ownership of the
responsibility for fostering an inclusive environment by all managers and
staff throughout the organization.
10. Make it comprehensive: Cover the basics, like rolling out compliance
training and developing anti-harassment and anti-bias policies, but be
sure to assign critical importance to the development of intercultural
competence and the associated skills.
18
No Discriminating Policy
Open communications
19
Issues
1. To provide an understanding of diversity and its significance at the
work place.
2. To provide insights on how an organization can leverage diversity to gain
competitive advantage.
Introduction
In the year 2004, IBM was listed among the top 10 companies on Fortune
magazine's list of "America's Most Admired Companies." The ranking was
based on eight variables like employee talent, innovation, use of corporate
assets, social responsibility, quality of management, financial soundness,
long-term investment value, and quality of products/services
Fortune was appreciative of IBM for recruiting and retaining the best talent
20
across the world. Analysts attributed IBM's success to its skilled diverse
workforce that included people from almost all the countries in the world.
Women at workplace
IBM started recruiting women professionals well before the Equal Pay Act,
1963. A letter issued by Watson Sr. in 1935 stated, "Men and women will do
the same kind of work for equal pay. They will have the same treatment,
the same responsibilities, and the same opportunities for advancement."
IBM's management has made efforts to find out what are the specific needs
of its women employees and provided women-friendly facilities accordingly.
This improved the productivity(of women) even while maintaining a proper
balance between work and family life.
IBM treats diversity as a part of its business strategy. It Have employees from
different social and cultural strata which helps them to understand and serve
its customers better.
22
Conclusion
A diverse workforce is a reflection of a changing world and marketplace.
Diverse work teams bring high value to organizations. Respecting individual
differences will benefit the workplace by creating a competitive edge and
increasing work productivity. Diversity management benefits associates by
creating
fair
and
safe
environment
where
everyone
has
access
to
23
BIBLIOGRAPHY
HRM Review, The Icfai University Press, Managing Diversity, Nov(2007)
Luthans, Fred ; Organisational Behavior
www.mindtools.com
Aswathappa K & Dash Sadhna; International Human Resource
Management
Robbins, Stephen; Organisational Behavior
Rao V.S.P; Human Resource management
Mejia L, Balkin D.V and Cardy L; Managing Human Resources
www.Financialexpress.com
U.S. Labor Review
24
Submitted By
Section C (Roll Number 61 to 70)
1. Shruti Bhatia (Group Leader)
2. Sonal Khandelwal
3. Sukriti Harit
4. Sarthak Taneja
5. Shiva Kant Yadav
6. Shweta Shilpi Das
7. Shamita Paul
8. Satish Jangra
9. Shadab Anwar Siddiqui
10. Sunny Khatuja
25