SOCIO ECONOMIC DIVERSITY

AND ITS EFFECT ON HRM

By: Ricardo Bryan G. Canlas II

Workplace diversity is a vital part of any company culture. Can you imagine working at a
job where everyone was the same, and everyone had the same ideas? It is beneficial for
companies to have people with different backgrounds who can bring different knowledge and
ideas to the table.

Socioeconomic diversity is based on a worker's education and his financial status. It is

important for managers to stress socioeconomic diversity within the business. A person's
financial situation should not have any bearing on how he performs at work. Just because a
person may be wealthy, does not mean he is a good fit for a position, or will necessarily perform
well. Treating all employees equally is essential for a fair workplace environment.

People like to stay in their comfort zones. That is why routines develop over time. When
we feel safe, then the idea is that we can be more creative in every element of our life. This
process envelopes our personal and professional lives.

Human resource management (HRM), the management of work and people towards
desired ends, is a fundamental activity in any organization in which human beings are employed.
It is not something whose existence needs to be elaborately justified: HRM is an inevitable
consequence of starting and growing an organization.
Advantage: Fact-Based Decision-Making

There’s never one way to solve a problem. Each person’s unique problem-solving
approach is based on a blend of our different backgrounds, experiences, personality and the
different ways we process information. . Studies have found that diverse groups tend to focus on
facts when making decisions. They look beyond old-school ways of thinking and examine and
re-examine facts to remain objective, thus making better decisions for their company. The more
diverse your team is, the more opportunities you’ll have to approach a problem from different
angles

Advantage: Creative and Innovative Thinking

If everyone acts and thinks alike, you’re likely to see the same-old, same-old when it
comes to approaches to products, distribution, marketing, management and sales. Promoting
diverse talent creates a better culture. In the workplace it's easy to fall into the groupthink trap.
And it's easy to hire and promote people who are just like you. But promoting diverse talent will
help to create a culture that embraces diversity, and ultimately, an environment that attracts the
best talent who will move the needle on your business. However, when several people approach
problems and challenges from varied perspectives, you’ll discover more creative solutions.
Research suggests that diversity increases innovation and improves market growth.

Advantage: Cross-Cultural Understanding

Cross-cultural understanding, along with local market knowledge, lends itself the
production of more effective marketing strategy and materials. While homogenous groups may
naturally get along better, in an increasingly diverse world, cross-cultural understanding creates a
better working environment and a better world. Rather than relying on a crutch of old world
prejudices and misconceptions, diverse work groups improve internal climates and external
results for businesses.
Disadvantage: Difficulty in Transitioning

Management needs to buy in and educate employees across the board if workplace
diversity is to have its first measure of success. If your company is just beginning to recognize
the potential of diversification, there will likely be challenges to creating a more diverse work
environment. Old ways of thinking and entrenched prejudices may hinder your efforts and create
tension and conflict. Additionally, as cultures collide, there may be misinterpretations of
meanings.

Disadvantage: Short-Term Cost Outlay

Depending on how long you’ve been in business, you may have already learned a great
deal about accommodations in the workplace. As your employees become more diverse, you
may face associated costs that you hadn’t considered. For example, if you have employees who
are practicing Muslims, you’ll need to give them time and space for daily prayer. Transgender
employees may need their own bathrooms.