Managing diversity in organizations

Managing Diversity

Diversity is a fact of American and International business and is a broader, more complex issue than one might initially believe. A universally vital element of global commerce, Diversity has spawned an abundance of theorists, journals and specialists, some of whom are encountered in this composition. Addressing the remarkable breadth and complexity of Diversity, this essay reviews: the nature of Diversity; legally protected classes within the United States; aspects of Diversity that fall outside the scope of U.S. legal protections; the benefits of Diversity for employers; the differences/challenges presented by Diversity for employers; general business adjustments/accommodations for Diversity; and suggested specific business adjustments/accommodations for Diversity. Though this work cannot exhaustively address all aspects of Diversity, it is meant to give a good overview of modern businesses' Diversity issues and possible solutions.

Analysis

Nature of Diversity:

"Diversity" involves legally protected classes of people but also involves other classes of people who are not specifically protected by U.S. Law. As Tillery and Rutledge state, "Diversity is also a broadly conceptualized term, used in multiple ways. It can be used to categorize differences in thought, actions, beliefs, value sets, needs as well as groupings codified by race, gender, age, skin-color, educational levels or other attributes" (Tillery & Rutledge, 2009, p. 36). Consequently, in order to discuss Diversity, this paper will discuss the legally protected classes and the other assorted groups that a company must address.

Legally protected classes in the U.S.:

Normally when we think of Diversity, we think of classes protected by the Federal and State Laws of America. Edward Powers sets them out, saying, "The purpose of Title VII of the Civil Rights Act of 1964 (CRA) was to eliminate all of the workplace barriers that result in discrimination on the basis of race, color, sex, religion, and national origin. Age was added as a 'protected class' in 1967 by the Age Discrimination in Employment Act (ADEA), and in 1990, disability was included by the Americans with Disabilities Act (ADA)" (Powers, 2009, p. 49). These legally protected classes pose challenges and opportunities for American business, as they become increasingly important in the business community. The aging workforce, for example, is becoming a fact of business that all businesses, including American business, must realistically face and accommodate. As Howard and Ulferts state, "The number of young people entering the workforce over the next few decades will be considerably fewer than the number of people retiring. The result will be a decline in the workforce in many countries, which will probably start happening around 2014. As fewer young people join the workforce, recruiting will become more difficult. Employers will have to create more flexible working arrangements to retain older employees. Americans over 50 make up 35% of the nation's population, and have 77% of the financial assets and 57% of the discretionary income. This coupled with the proportion of the workforce over 45 in the next decade will force employers to reexamine how they are going retain and accommodate the ageing population so not to lose that level of experience in the workforce" (Howard & Ulferts, 2007, p. 7). Another example of a rising protected class in the workforce is employees with disabilities, not only in the classic sense of "disability" but also due to aging. According to Howard and Ulferts, "One in five people are living with a long-term impairment and/or disability... An individual with a disability is a person that has a physical or mental impairment that substantially limits one or more major life activities/functions...As people age, they are likely to experience changes that may affect hearing, vision, cognition and mobility. While older adults may not think of themselves as having disabilities, they often seek out businesses that accommodate the changes they have experienced" (Howard & Ulferts, 2007, p. 8). Though only aging and disability have been mentioned, the classes of race, color, sex, religion, and national origin also pose new opportunities and challenges for business.

Additional aspects of Diversity:

In addition to protected classes, U.S. businesses work in a shrinking Globe in which worldwide business is a fact. As Akbari stated, there are three factors involved in successful global business: "the exponential rate of increase in the presence, use and impact of globalization, Internet and Communication technologies on our everyday lives and experiences. These three, combined with the increasing pace and Diversity of the populations immigrating to the western industrial societies, have already forced all fields, including management, to begin a process of developing new competencies for the present and future managers" (Akbari, 2008, p. 57). This globalization of business "forces" U.S. businesses to deal with people whose cultures, languages and customs are as varied as all the countries on the Planet. That global nature of business is another element of Diversity. Consequently, it is no longer smart business to stick with uniquely-American ideas, customs and ways of doing business.

Another element of Diversity that is touched on but not completely addressed by U.S. laws against age discrimination is the fact that businesses must now deal with four generations of U.S. workers. Comperatore and Nerone identify these four generations: "Veterans or Radio Babies as they are sometimes called were born between the years of 1925 and 1945. Baby Boomers are the people born between 1946 and 1964. Generation X'ers were born between 1965 and 1981, and Gen Y'ers, also called the Millennium Generation and Echo Boomers were born between 1982 and 2000" (Comperatore & Nerone, 2008, p. 15) As Comperatore and Nerone observe, "For the first time in American history, corporations are challenged with managing four generations of employees at once, each with different values, expectations, and attitudes" (Comperatore & Nerone, 2008, p. 15). Dealing with four generations of workers with different values, expectations and goals is another aspect of Diversity and has become a fact of U.S. business.

Benefits of Diversity to Employers:

It is widely acknowledged among business scholars that embracing general Diversity results in profitability. Analyzing the effects of business, Treven and Treven point out that "companies with employees who systematically embrace Diversity tend to be more profitable than those that allow discrimination to occur" (Treven & Treven, 2007, p. 36). In addition, while exploring several arguments for Diversity, McMahon points out the simple "business case" for Diversity: "the view that more Diversity would increase performance effectiveness - is gaining momentum because of talent shortage and an increasingly diverse customer base" (McMahon, 2010, p. 41). Discussing the reasons for business success created by Diversity, Kaifi and Aslami believe, "Organizations that have a diverse population are able to serve a wider range of customers," and "Organizational culture can easily influence an organization's success" (Kaifi & Aslami, 2009, p. 33). Individual groups of employees also bring unique benefits to employers. For example, the protected class of disabled employees brings unique benefits to businesses that embrace Diversity. According to research, these two classes benefit employers due to employee loyalty, attendance, education, experience, qualifications, tax benefits, a positive public image and the financially significant status of their class (Howard & Ulferts, 2007, p. 9). Most scholars apparently believe that there are many benefits to Diversity, including but not limited to those presented by disabled workers.

At this point, it should be mentioned that not all scholars agree about Diversity's benefits. Charles Domina, a lawyer writing for the Journal of Diversity Management, believes that Diversity has always been a fact of business and that the new emphasis on differences rather than likenesses hurts business. Challenging most scholars' positive assessment of Diversity in the workplace, Domina states, "Will corporate America… allow itself to become caught up in the tides and currents of social engineering and theories based on empty platitudes which never have carried those who rode them to any positive or worthwhile destination? Perhaps business should get out of the business of Diversity and concentrate on the business of conducting business. If it does that and does it well, all the rest will follow" (Domina, 2011, p. 8). Domina clearly has little or no use for the current emphasis on Diversity. However, according to research, Domina is definitely in the minority.

Differences/Challenges of Diversity for Employers:

Though most scholars agree that Diversity brings great benefits for business, many sources also cite differences and challenges posed by Diversity. Though these cannot be exhaustively discussed in a paper, some of those differences and challenges will be addressed. One general difficulty is the attitude of some businesspeople, such as Domina, who believe that Diversity consists of empty platitudes that actually harm business (Domina, 2011, p. 8). A second general problem for Diversity is longstanding societal prejudice that makes the inclusiveness of Diversity difficult: "Many of the stereotypical views in cultures are deep-seated and enduring. They are part of the history that people have experienced, both shared and as a result of conflict. They are part of traditions that have been perpetuated. Even the offensive humor that is investigated by Human Resource Managers is something that is embedded in the behavior of people and endures through generations" (Figiel & Kummel Sasser, 2010, p. 15). As Figiel and Kummel Sasser point out, companies are comprised of people and people have prejudices that cannot be easily erased. A third general problem for Diversity is the different attitudes of different cultures. For example, Rich and Mihalek discuss a study involving a fictional job applicant who lies on his resume and showing that different cultures may act differently when faced with ethical problems. Focusing on students in order to determine how they will eventually behave in the workplace, Rich and Mihalek found that minority students "felt much stronger than the non-minority students that the liar was preventing a more qualified person from getting the job...felt a stronger sense of loyalty to the university...are more sensitive to ethical transgressions by their peers and feel more negatively impacted if someone lies in the process of getting a job…were slightly more likely to report transgressions when the individual was from a different ethnic background…. have stronger feelings that the liar is preventing a more qualified applicant from getting the job and & #8230;are less comfortable in reporting the individual to a recruiter, the company, or to the university" (Rich & Mihalek, 2010, pp. 27-28). Though this study was limited, it does point out a possibly serious gap in attitudes by non-minority vs. minority workers about ethics, and since ethics is an integral part of business, employers will have to address that gap. A fourth general difficulty in Diversity is the apparent tendency of business to inadequately honor international cultural differences while doing business. As Washington, Okoro and Thomas point out, "Recent studies have traced the failure of some international business ventures to three significant factors: lack of intercultural skills and competence, inability to communicate effectively at a global level, and failure to practice acceptable etiquette in business negotiations" (Washington, Okoro, & Thomas, 2012, p. 217). Consequently, it is not sufficient for businesses to merely include legally protected classes in their Diversity programs; rather, they must learn and respect a huge array of cultural and national differences if their businesses are to succeed.

Additional differences and challenges are posed for businesses in connection with specific groups. One group-specific problem of American business involves Middle-Eastern workers, particularly after the tragedy of 9/11: "When the United States is in conflict with an Arab country, negative opinions and views of Muslims tend to intensify" (Kaifi & Aslami, 2009, p. 32) and as a result, it is a "well documented phenomenon that not only Muslims or Arab-Americans, but also members of other ethnic and racial groups experience a significant degree of discrimination in settings such as workplaces, public offices, housing, or even during causal encounters" (Kaifi & Aslami, 2009, p. 32). Faced with this intensified anger and resentment toward Middle-Eastern workers, American businesses must counteract it with adequate Diversity training for its employees, which will help business and the community at large. A second group-specific challenge involves women & minorities, for "the lower the percentage of women and minority partners in one's firm, the higher the perceived glass ceiling In addition, the higher the perceived glass ceiling, the lower one's advancement expectations, organizational commitment, job satisfaction, and the higher one's intention to leave the firm" (Walters Balfour & Mujtaba, 2009, p. 8). The lower expectations, lower commitment, lower job satisfaction and higher intention to leave by women and minorities when there is less advancement for them all pose serious problems for an ongoing business that is trying to foster commitment, satisfaction and worker retention; consequently, American business must address the actual or at least perceived glass ceiling that keeps minorities and women out of higher management positions. A third group-specific difference/challenge for American business involves those four generations of American workers: Veterans, Baby Boomers, Generation X and Generation Y According to Comperatore and Nerone, each of these generations has different traits, expectations and goals: Veterans exhibit patriotism, loyalty, faith in institutions, value logic and discipline and dislike change, among other traits; (Comperatore & Nerone, 2008, p. 16); Baby Boomers are idealistic, optimistic, question authority, want stellar careers and rewards of money, title and recognition, and are willing to work long hours to get those rewards, among other traits (Comperatore & Nerone, 2008, p. 18); Generation X'ers are suspicious of politics and may be cynical about the world around them, value teamwork, value flexibility that balances work and personal life and aren't intimidated by authority, among other traits (Comperatore & Nerone, 2008, p. 20); Generation Y'ers are extremely conscious of the environment, worry about our local and global future, are more open-minded about Diversity and are very expressive, among other traits (Comperatore & Nerone, 2008, p. 21). While those differences in four simultaneous generations of workers bring richness to American business, they also pose a complex challenge to businesses who wish to retain and attract these separate generations with somewhat different traits.

General Business Adjustments/Accommodations for Diversity:

The lion's share of research involves the ways in which American businesses can adjust and accommodate the reality of Diversity, both in America and around the globe. Though sources may disagree about some specifics, they do seem to agree on general attitudes that must be adopted by business for successful Diversity. The first general attitude adjustment is Recognition of Diversity. These sources consider recognition of Diversity to be a basic business requirement because they find that success is determine by "the ability or competence the firm possesses to identify the other delimiters of differences and to incorporate those in its business endeavors, both in their strategy determination and its subsequent operationalization" (Tillery & Rutledge, 2009, p. 39). Consequently, successful Diversity should not merely be a grudging adherence to non-discrimination against protected classes; rather, it has to be a conscious and positive effort to recognize, incorporate and use those differences in business strategy. A second general need for Diversity is recognizing the need for Diversity Training, for three identified reasons: due to increasing Diversity in the U.S. labor force, Diversity training is just the correct action; Diversity training is good business because better working relationships increase productivity and reduce costs; Diversity training helps the company defend itself against discrimination cases (Whitney Gibson & Kimis, 2005, pp. 18-19).

Accepting those two general principles, American businesses then need to set up a "corporate culture" "of mutual learning and cooperation" (McMahon, 2010, p. 41). This corporate culture requires communication, because "All Communication and Management textbooks and articles recognize the centrality of communication in the success of organizations" (Smith, 2008, p. 9). The company must not merely rely on one department or group of people to bring about this communication corporate culture; rather the company as a whole must act as a "moderator" of these Diversity values, for "employees form their opinions about affirmative action based not only on their personal ethical and justice frameworks but also on whether or not they work in environments in which these programs are supported" (Fubara, McMillan-Capehart, & Richard, 2008, p. 33). By acting as moderator for open communication in a diverse corporate culture, the company can counteract deep-seated cultural prejudices by creating "a visible Diversity policy and making associates more aware of their commitment to Diversity and other ethical behaviors" (Figiel & Kummel Sasser, 2010, pp. 17). This general approach will also create an atmosphere of "inclusion" by "creating and maintaining a workplace free of discrimination where stakeholders (i.e., employees, customers, suppliers, investors, and people from the local or global community), regardless of their differences (i.e., based on gender, culture, religion, expertise, personality etc.), feel included and supported" (Roberge, Lewicki, Hietapelto, & Abdyldaeva, 2011, p. 2). A final general proposition on which all sources seem to agree is that there should be an overall management plan for Diversity: "Diversity initiatives need to be imposed by the CEO as a part of an overall Diversity management plan," possibly with "a Diversity-training program initiative from the top down" (Thibeaux, Tillotson, Falls, & Bell, 2006, p. 4). This overall plan could include assembly of a multicultural team (McMahon, 2010, p. 41) that emphasizes Diversity coaching (Mujtaba & Sungkhawan, 2009, pp. 6-7).

Specific Business Adjustments/Accommodations for Diversity:

Once the general principles are accepted in a company, the specific ways to create that "corporate culture" of Diversity are widely varied, according to sources. This paper will discuss some of those suggested courses of action. Prieto, Phipps and Osiri offer five propositions about Diversity plans: "A needs assessment that assesses the Diversity climate of an organization; organizations with a less supportive Diversity climate should design a Diversity training/initiative based on a needs assessment; organizations with a supportive Diversity climate that utilize heterogeneous teams would be more innovative and creative; organizations with a less supportive Diversity climate that utilize heterogeneous teams would be less innovative and creative; organizations that have a supportive Diversity climate will result in higher organizational performance than organizations with a less supportive Diversity climate" (Prieto, Phipps, & Osiri, 2009, p. 18). In addition, some researchers have offered more specifically designed plans: Whitney Gibson and Kimis offer the following simple diagram for a successful Diversity program: