Diversity in Organizations

BITS Pilani
Pilani | Dubai | Goa | Hyderabad
 BITS Pilani
Pilani Campus

MBAHL ZG511, Managing People and Organizations

Lecture No. 3
• Singapore is a remarkable country in many respects. Economically, Singapore has been one of the fastest growing
countries in the world over the past four decades. For example, gross domestic product (GDP) per capita in Singapore has
grown from 55 percent of U.S. GDP per capita in 1980 to 120 percent of US GDP per capita in 2010.* Moreover, the
country has grown by 7 percent on average in the years from 1960 to 2010 and by an im- pressive 17.9 percent in the first
half of 2010.
• At the same time, Singapore is one of the most diverse countries in the world—more than 35 percent of the population
are non-natives, and more than half of the population was born outside Singapore. And indeed, the Singaporean
population and workforce could not be much more diverse, including Malayans; first-, second-, and third-generation
Chinese immigrants from different Chinese provinces; Indians; and Caucasians, among many others. Not only do these
ethnic groups speak different languages, but they also subscribe to different religions, customs, and values. As such,
Singapore is home to several large, distinct subgroups, whose members value their cultural and intellectual heritage.
• At the same time, Singapore has one of the highest population densities in the world, which requires people to share tight
spaces throughout the day, whether this is in public housing, public transport, office space, or on Orchard Road, the main
shopping road of the city state. Given the scar- city of space, dealing with different ethnic or religious groups takes on a
to- tally different meaning. Overall, the question arises whether Singapore has experienced such a remarkable growth
despite its diversity or whether Singapore’s diversity has been one of the driving factors in Singapore’s transition from a
third-world to a first-world country. Restated, is diversity good for business, or does it detract from the bottom line?

06/12/20 MPO Lecture 3

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
• We all realize that diversity can sometimes cause conflicts, misunderstandings, and reduce productivity.
But Singaporean businesses are experts at dealing with diversity, turning a nuisance into a competitive
advantage. To understand this, let’s take a closer look at muvee Technologies, a Singapore-based
software company that produces automated video editing software for the consumer PC market. Muvee
has 50 employees from 13 different countries. One of the key values of muvee is an appreciation of
diversity. This manifests itself in a number of ways, some of them more readily observable than others.
For example, muvee assists foreign employees in finding accommodation and uses a buddy system to
help newcomers with their integration. Departments are allocated money for social events, which
promotes a more collegiate work atmosphere and ensures that employees socialize with employees from
different backgrounds. Unlike many other companies, however, muvee does not stop here; it has also
changed the very nature of work. For example, muvee employs an open-office concept, where all
employees, including the CEO, sit in an open office with workspaces without partition walls. Moreover,
individuals work in teams that are designed with the purpose of bringing together people with diverse
cultural and functional backgrounds. Most importantly, however, the muvee culture makes the biggest
difference: recognizing that diversity can increase the number of different viewpoints and valuing
diversity shifts the focus from the differences between employees to the goals that muvee wants to
accomplish as a3company.
06/12/20 MPO Lecture
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
Learning Objectives

– Describe two major forms of workplace diversity.

– Define the key biographical characteristics and describe how they are
relevant to OB.
– Define intellectual ability and demonstrate its relevance to OB.
– Describe how organizations manage diversity effectively.

MPO Lecture 3
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
 Discrimination vs. Diversity

• Eliminating discrimination due to diversity should be a prime point of

focus

• Example

• Mockery, intimidation, Incivility, Discriminatory policies

06/12/20 MPO Lecture 3

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
Levels of Diversity

Surface-level diversity

Deep-level diversity

Diversity Management

MPO Lecture 3
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
Levels of Diversity - Example
• A and B are co-workers who seem to have little in common at first glance. A is a
young, recently hired male college graduate with a business degree, raised in a
Punjabi speaking neighborhood in Bangalore. B is an older, long- tenured woman
raised in rural Meerut, who achieved her current level in the organization by starting
as a high school graduate and working her way through the hierarchy.

• At first, these co-workers may experience some differences in communication based

on their differences in education, ethnicity, regional background, and gender.

• As they get to know one another, they may find they share a common way of
thinking about important work problems, like to work collaboratively, etc…

MPO Lecture 3
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
Biographical Characteristics

•Age

•Gender

•Race

•Disabilities

•Tenure

MPO Lecture 3
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
 Ability

An individual’s capacity to perform the various tasks in a job.

– Intellectual Abilities

– Physical Abilities

MPO Lecture 3
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
• That women are underrepresented on boards of directors is an understatement. In the United
States, only 15 percent of board members among the Fortune 500 are women. Among the 100
largest companies in Great Britain, women hold approximately 12 percent of board seats, a
representation that has changed little over the past 5 years. In the European Union (EU) more
generally, only 9.7 percent of the directors of the 300 largest companies are women. In China and
India, the figure is roughly half that.
• In response to such underrepresentation, many EU countries—including France, Spain, and
Norway—have instituted compulsory quotas for female representation on boards. Great Britain
has guidelines and recommendations. A 2011 official British government report recommended
that women make up at least 25 percent of the boards of the largest British companies. Under the
recommended guidelines, companies would be required to announce their board composition
goals to their shareholders and state clearly how they plan on meeting them. France passed a law
in 2011 that requires large companies to fill at least 40 percent of board seats with female
members within the next six years. Spain has a similar quota in place.

MPO Lecture 3
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
1. Given that women participate in the labor force in roughly the same proportion as
men, why do you think women occupy so few seats on boards of directors?
2. Do you agree with the quotas established in many EU countries? Why or why not?
3. Beyond legal remedies, what do you think can be done to increase women’s
representations on boards of directors?
4. One recent study found no link between female representation on boards of
directors and these companies’ corporate sustainability or environmental policies.
The study’s author expressed surprise at the findings. Do the findings surprise you?
Why or why not?

06/12/20 MPO Lecture 3

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
Diversity Management

https://www.youtube.com/watch?v=PKiTEog37NY

MPO Lecture 3
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
• Choose the correct options that are representative of
surface level diversity:
(a) age, (b) gender, (c) race, (d) ethnicity, (e) intelligence,
(f) tenure
• (a), (b), (c), (d) and (e)
• (a), (b), (c), (d) and (f)
• (b), (c), (d), (e) and (f)
• (a), (c), (d), (e) and (f)

MPO Lecture 3
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
• Choose the correct options that are representative of
surface level diversity:
(a) age, (b) gender, (c) race, (d) ethnicity, (e) intelligence,
(f) tenure
• (a), (b), (c), (d) and (e)
• (a), (b), (c), (d) and (f)
• (b), (c), (d), (e) and (f)
• (a), (c), (d), (e) and (f)

MPO Lecture 3
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
Implementing Diversity Management Strategies

Making everybody more aware and sensitive to the needs of others.

Attracting, Selecting, Developing,

and Retaining the Diverse Employees

Working with Diversity in Groups

Effective Diversity Programs

MPO Lecture 3
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
 Research Findings on Diversity
• Thomson Reuters created the first ever Diversity and Inclusion (D&I) Index, an
analysis of the practices of over 5,000 companies.

• Growing body of research shows that diverse companies create more innovative
products, happier customers, and better financial returns. “We have found that
companies who have proactively built and consistently fostered a diverse workforce
often financially outperform their peers,” reported Thomson Reuters.

• Companies such as Accenture, Novartis, Microsoft etc., all made the top 25
(https://www.thomsonreuters.com/en/press-releases/2018/september/thomson-reuters-
di-index-ranks-the-2018-top-100-most-diverse-and-inclusive-organizations-
globally.html).

MPO Lecture 3
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
 Case – The Treasure Trove of the Aging Workforce

• Over the past century, the average age of the workforce has continually
increased as medical science continues to enhance longevity and vitality.
The fastest-growing segment of the workforce is individuals over the age
of 55. Recent medical research is exploring techniques that could extend
human life to 100 years or more. In addition, the combination of laws
prohibiting age discrimination and elimination of defined-benefit
pension plans means that many individuals continue to work well past
the traditional age of retirement.

MPO Lecture 3
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
 Case – The Treasure Trove of the Aging Workforce
• Unfortunately, older workers face a variety of discriminatory attitudes in the
workplace. Researchers scanned over 100 publications on age discrimination
to determine what types of age stereotypes were most prevalent across
studies. They found that stereotypes that suggested job performance declined
with age, counter to empirical evidence presented earlier in this chapter that
relationships between age and core task performance are essentially nil.
Stereotypes also suggest that older workers are less adaptable, less flexible,
and incapable of learning new concepts. Research, on the other hand,
suggests they are capable of learning and adapting to new situations when
these are framed appropriately.

MPO Lecture 3
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
 Case – The Treasure Trove of the Aging Workforcex

• Organizations can take steps to limit age discrimination and ensure that
employees are treated fairly regardless of age. Many of the techniques to
limit age discrimination come down to fundamentally sound
management practices relevant for all employees: set clear expectations
for performance, deal with problems directly, communicate with workers
frequently, and follow clear policies and procedures consistently. In
particular, management professionals note that clarity and consistency
can help ensure all employees are treated equally regardless of age.

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BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
 Questions for Discussion

• What changes in employment relationships are likely to occur as the

population ages?
• Do you think increasing age diversity will create new challenges for
managers? What types of challenges do you expect will be most
profound?
• How can organizations cope with differences related to age
discrimination in the workplace? How can older employees help?

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BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
 Sample Answer for Question 1

• Jobs may need to be redesigned.

• Supervisors may require specific training in working with and leading

older workers.

• Benefit programmes may require restructuring to address issues of older

workers.

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BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
 Sample Answer for Question 2

• Aging population require changes in organization, including such

components as job design, working hours and leadership styles

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BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
 Sample Answer for Question 3

• Open their communication techniques as they observe differences in

work, attitude and behavior brought by an older workforce. They must
be prepared to make organizational changes to accommodate the
differences productively.

• Older workers should make it a priority to continually seek opportunities

to update their skills and be current in their professions.

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BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
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Question Session
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End of Lecture