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Managing Workforce Diversity

Managing Workforce Diversity

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Published by: Vishal Vats on Nov 12, 2010
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MANAGING WORKFORCE DIVERSITY Challenge Faced By Organizational Behavior Project Report

Submitted By

Vishal Vats
Roll No. 03 Personnel Management 2010-2012


that helped immensely in completion of the project report. project topic & the methodology to be used for preparing the report. With profound sense of gratitude and regard. rather it bears imprint of number of persons who directly or indirectly helped us in completing the study. . Prof. Bodra for her valuable guidance. I would like to thank her for providing the basic knowledge of Organizational Behavior. An undertaking of study like this is never an outcome of efforts put in by a single person. I convey my sincere thanks to our teacher.ACKNOWLEDGEMENT The knowledge of our theoretical studies is absolutely incomplete without its proper implementation and application in today’s diversified corporate world. Mary S.

INTRODUCTION • • • • 2. Organizational Behaviour Workforce Diversity Managing Workforce Diversity WHY MANAGE DIVERSITY • Diversity seen as in Indian Context • Diversity seen as in American Context 3.CONTENTS 1. A CASE STUDY: IBM • Historical Background • Present Scenario 4. CONCLUSION .

rightly or wrongly. OB is multidisciplinary in nature. Organizational behavior is concussed with the study of what people do in an organization and how that behavior affects the performance of the organization. It stems from and is directed towards some and that individual believes. is in his or her best interest. such as • Psychology • Sociology • Social psychology • Anthropology • Political science • Economics .INTRODUCTION Organizational Behavior Organizational behavior is field of study that illustrates the impact that individual. in fact. an applied behavioral science that is built on contributions from a wide variety of social science disciplines. It is. Underlying this systematic approach is the belief that behavior is not random. groups and structure have on behavior within organization for his purpose of applying such knowledge towards improving an organization affective ness i. Organizational behavior is an applied behavioral science that is built on contribution from a number of behavioral disciplines.e.

Diversity mainly came into the picture when globalization came in 1990-91. project. . Organizations can derive unassailable lead in the marketplace when they have in place effective Human Resource Management practices and diversity initiatives that accepts differences. values. cultures. In the so-called information age. Diversity. there is a convergence of workforce from diverse countries.WORKFORCE Workforce can be defined as the total number of workers employed by a company on a specific job. etc.Such convergence of distinctly different people presents tremendous opportunities as well as challenges. Generally diversity refers to the multiculturalism which means the people from diverse cultures and background. Undeniably. DIVERSITY The term diversity is used in various perspectives. the greatest assets of most companies are now on two feet (or a set of wheels). workforce diversity has become an essential business concern. No company can afford to unnecessarily restrict its ability to attract and retain the very best employees available. can increase creativity and innovation in organizations as well as improve decision making by providing different perspectives on problems. if properly managed. values equality and creates preferred places to work And as we enter the 21st century. styles etc .As the wave of globalization sweeps across the organizations. there is a talent war raging.

Organizational behavior offers important insights into helping managers work through there changes. Managers have to shift their philosophy from treating everyone alike to recognizing differences and responding to those differences in ways that ensure employee retention and greater productivity while. Employees don’t set aside their cultural values and lifestyle preferences when the come to work. is to make them more accommodating to diverse group of people by addressing their different lifestyle. It has implications for Organizational behavior because it requires employees to rethink what they do and become more involved in workplace decisions. Workforce diversity has important implications for management practice. workforce diversity addresses difference among people within given countries. at the same time. Quality management is driven by constant attainment of customer satisfaction through the continuous improvement of all organizational processes. The challenge for organizations.Managing Workforce Diversity One of the most important and broad based challenges currently facing organizations is adapting people who are different. not discriminating. This shift includes for instance providing diversity training and revamping benefits programs to accommodate the different needs of different employees. there is communication and more interpersonal conflicts. Workforce diversity means that organizations are becoming more heterogeneous in terms of gender. . family needs and work style. When diversity is not managed properly. Today’s managers understand that the success of any effort at improving quality and productivity must include their employees. race and ethnicity. Diversity if positively managed can increase creativity and innovation in organizations as well as improve decision making by providing different perspectives on problems. While globalization focuses on differences between people from different countries. therefore. These employees will not only be a major force in carrying out changes but increasingly participate in planning those changes.

both by choice and design. • Bharti Enterprise has mandated their recruitment agencies to have a 25-30% percentage of women candidates at the interview stage.WHY MANAGE DIVERSITY There are various reasons explaining the need to manage diversity. TCS and Wipro are actively recruiting foreign nationals and women. • International careers and expatriate are becoming common. They are: • A large number of women are joining the workforce. • Young workers in the work-force are increasing • Ethnic minorities' proportion constantly in the total work-force is increasing.) have entered organizations as a result of a policy of reservations and concessions. . • IT Industries like Infosys. etc. DIVERSITY IN INDIAN CONTEXT Diversity can be seen through these figures in Indian context Over 400 million women are employed in various streams • Around 30 percent of the workforce in the IT sector is women • Socially disadvantaged people (scheduled casts/tribes. • Old employees have grown in number because of improved medical and health care. • Work-force mobility is increasing.

as per ILO report.7 percent in 2003 and are projected to increase to 47% by 2010 • Currently. A majority of HLL customers are women but till 2000 women constituted just 5% of its management." said Mr.1% in 2000 and it is projected to decrease further to 69. the company put in place a plan to hire more women. 45% of world women population aged (15-64) are employed. • Number of female workers have increased from 29. Executive Vice President and head Global human resource. . HLL started several initiatives like a six-month fully paid maternity leave as well as a five-year sabbatical.5 to 14 percent • Asians from 5 percent to 11.6 percent in 1950 to 46. The Indian workplace is no different from global MNCs. but being salad bowls.2% by 2010.7 percent in 1990 to 73. It looked at companies like ICICI ." according to Grady Searcy.5 per cent of our workforce consists of non-Indians. TCS said while speaking at the Nasscom HR Summit on `The War for Talent'. "We want people to retain their identity yet be integrated into the company Currently.000 people from across the world.TCS has announced plans to hire about 4. S Padmanabhan. DIVERSITY IN AMERICAN CONTEXT • By 2050 the percentage of Hispanics will grow from today’s 11 percent of workforce to 24 percent • Blacks from 12.Diversity in companies is no longer about being melting pots.5 percent • The 55 + age group which currently makes 13 percent labour force will increase to 20. 7. which had a far better representation of women in their workforce. Alarmed by that number.5 percent by 2014 • The white non-Hispanic percentage of the population has decreased from 77.

They have created an innovative and strategic global framework for this new era of diversity. managing your corporate culture). • Diversity Training: . and the growing awareness of ethnic minorities. and Africa. in Europe. An international company with local management. Their focus on the advancement of women and the diversity of leadership team helps ensure that all employees have an opportunity to develop into successful leaders. No matter where IBM employees are they are aware of what the organization stands for. It is much more than good social policy for IBM. Issues vary across regions. • Corporate Culture: IBM put’s a lot of energy into managing employee behavior through creating a strong culture (2007. IBM is putting increased focus on issues related to gender. For example. Latin America. the Middle East. disability. and respecting and valuing differences among countries and regions. IBM addresses diversity issues that are representative of local priorities and experience. This is done through their newemployee program “Your IBM”.A CASE STUDY: IBM IBM • Workforce Diversity: IBM has operations in 170 countries of the world. In Asia Pacific countries. It sets the stage by providing new hires with a learning continuum and action plan to help them gain the knowledge needed to understand IBM its culture (Learning and Opportunity). as well as from country to country. IBM understands the importance of diversity in its many dimensions. Attention to cultural awareness and to the inclusion of people with disabilities in the workplace helps provide an environment free of discrimination and harassment (Global Diversity). IBM's policies and practices are mindful of gender. people with disabilities.

These investments are supported by a methodology designed to move people along a development continuum. Middle East and Africa 25. they focus and invest in the market-valued skills employees will need now and in the future. gender. Table 2.5% .0% 23. It is the skills and potential of the people they are interested in. • Recruitment/Development: IBM recruits employees from all over the world and does not take into account the race.IBM conducts training sessions in a variety of diversity-related subject areas. applications or platforms. These processes also help manage the inevitable changes that take place in a services business as clients renegotiate their requirements (Learning and Opportunity). culture etc of people. IBM's internal redeployment processes are designed to make the most of the industry's top talent by reducing potentially wasteful loss of skilled employees whose talents are often needed elsewhere in IBM. role playing and videos to build understanding and skills for multicultural engagement. nice-to-have self-improvement.0% 28.2% 28. group discussions.2% 24. religion. giving them IBM a competitive advantage. But this isn't random. "Shades of Blue" is a learning experience for managers to develop competencies for engaging in business across cultures. For example.9% 18. IBM also offers "Quick Views" and "Learning Clusters" — online programs — to educate managers on the issues of diversity (Workforce Diversity). so that as demand declines for certain skills in yesterday's technologies. Consisting of online learning followed by a two-day face-to-face workshop.4% 18. IBM has structured programs to help employees develop the skills that are most in demand in the marketplace.5% Total Worldwide Total Women Women Managers 31.7: Women in IBM Workforce Americas Asia Europe. the program combines presentations.

"Men and women will do the same kind of work for equal pay. usually want to advance in their careers. They will have the same treatment. the same responsibilities. A letter issued by Watson Sr. It Have employees from different social and cultural strata which helps them to understand and serve its customers better. and the same opportunities for advancement. the company responded by creating the Global Work/Life Fund with a five-year. IBM observed that women like other employees. $50 million commitment. while they're working.WOMEN WORKFORCE IN IBM IBM started recruiting women professionals well before the Equal Pay Act." IBM's management has made efforts to find out what are the specific needs of its women employees and provided women-friendly facilities accordingly. . 1963. At the same time. IBM responds to the needs of its employees and tries to satisfy them it observed a significant increase in the number of women in its workforce and made program catering especially to their needs. IBM treats diversity as a part of its business strategy. This was made possible by the introduction of Child care and Dependent care programs. This improved the productivity (of women) even while maintaining a proper balance between work and family life. they want to make sure that. As childcare and eldercare became increasingly important to IBMers. in 1935 stated. It was the first fund of its type to address employee issues on a global basis (Employee well being). their children are receiving good care.

2.MOTIVATION IBM also has many rewards and recognition programs from manager-determined recognition awards to technical recognition awards to peer awards. It was appreciated for recruiting and retaining the best talent across the world. To provide an understanding of diversity and its significance at the work place. the leading IT Company in the world. Introduction . For these employees motivational and other HR management practices would be different as they have completely different needs and requirements.IBM sloe has a global recognition program which includes cash rewards as well as merchandise. The marketplace supported employees to find the most suitable job across different organizational units within the company. Award values vary by country. 2005). IBM had developed a talent marketplace to effectively manage its workforce. IBM also places a lot of emphasis on employee health an well being (Compensation and Benefits) IBM being a technology company has many employees who work form home without ever coming to the organization (Dittmann. Issues 1. IBM actively encouraged recruiting people from various social and cultural backgrounds irrespective of their age. IBM figured in the Fortune magazine's list of "America's Most Admired Companies" in the year 2004. sex or physical status. In the same year. depending on currency exchange rates and local customs. To provide insights on how an organization can leverage diversity to gain competitive advantage. The case examines the diversity and talent management practices of the US-based IBM.

and quality of products/services Fortune was appreciative of IBM for recruiting and retaining the best talent across the world. social responsibility.. This trend made it important for them to focus on diverse cultures across borders in order to offer products and services that suited the specific needs of different markets. financial soundness." The ranking was based on eight variables like employee talent. Recruiting people with disabilities IBM had a well-structured plan in place for recruiting and training people with disabilities.IBM has a diversity website where prospective candidates with disabilities could submit their resumes directly. The recruitment specialists and hiring managers are specially trained for this purpose. Watson Jr. use of corporate assets.. long-term investment value.the managers experienced in hiring and working with people with disabilities . In an attempt to sustain themselves amidst the continuously increasing competition. Women at workplace . organizations initiated efforts to broaden their marketplace. At IBM. they started doing business across the world. it came under government compliance under the Civil Rights Act of the US in 1964. IBM was listed among the top 10 companies on Fortune magazine's list of "America's Most Admired Companies. IBM had „line champions' . Later. quality of management.to facilitate the recruitment process. Analysts attributed IBM's success to its skilled diverse workforce that included people from almost all the countries in the world. issued the first equal opportunity policy letter in 1953. Workforce diversity at IBM Diversity at the work place in the US originated from the concept of EEO (Equal employment Opportunity) in the 1940s. The company also worked with various educational institutions for campus recruitment of such candidates .In the year 2004. In each business unit. With the onset of „globalization' in the 1980s. innovation.

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