Running head: Diversity

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2 Abstract

Presently, diversity is no longer just about anti-discrimination compliance. It has raised many complex issues since factors such as race, sexual orientation, ableness, gender, etc., are fundamental factors in peoples lives, institutional systems and in contemporary social issues. Today, diversity has a focus on inclusion and the impact on the bottom line. As such, capitalizing on diversity is increasingly seen as a vital strategic resource for competitive advantage. In such context, managing diversity has become a business imperative in order to meet the threats and challenges posed by diverse workforce and to capitalize on diversity for business reasons such as improved competitiveness, better customer service and enhanced profitability. Further, importance of diversity is demonstrated by the fact that Global multicultural enterprises are increasingly incorporating diversity to their strategic goals and objectives and hold management accountable for results. In this regard Human Resources plays a key role in diversity management and leadership to create and empower an organizational culture that fosters a respectful, inclusive, knowledge-based environment where each employee has the opportunity to learn, grow and meaningfully contribute to the organizations success.

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Abstract.....................................................................................................................................2 Approaches to Managing Diversity.......................................................................................9 References...............................................................................................................................13 Bibliography...........................................................................................................................14

1. Introduction Diversity is representation of multiple groups within a prescribed environment, such as a workplace. The success of an organization depends on the workforce of the organization. A workforce made up of diverse individuals from different backgrounds can bring the best talent to an organization.

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2. Definitions and Categories of Diversity

Diversity has no definite definition and same has defined in many different ways. However, all such definitions possess common basic features. In general diversity refers to the variety of differences between people in an organization and it encompasses race, gender, ethnic group, age, personality, organizational function, education, background and more. Historically, diversity was associated with affirmative action plans requiring employers to hire and promote under-represented groups of women and minorities. The goal of affirmative action was to assure that the workforce demographics of businesses were representative of the population demographics in the communities where the businesses
operated.

Recent definitions of diversity are much broader in elaboration as detailed here after. The University of Tennessee Libraries Diversity Committee (2003) has defined diversity as a commitment to recognizing and appreciating the variety of characteristics that make individuals unique in an atmosphere that promotes and celebrates individual and collective achievement. Examples of these characteristics are: age; cognitive style; culture; disability (mental, learning, physical); economic background; education; ethnicity; gender identity; geographic background; language(s) spoken; marital/partnered status; physical appearance; political affiliation; race; religious beliefs; sexual orientation. The Chancellor's Advisory Committee on Diversity of University of California (2008) has defined diversity as the variety of experiences and perspective which arise from differences in race, culture, religion, mental or physical abilities, heritage, age, gender, sexual orientation, gender identity and other characteristics. Dimensions of diversity can be broadly categorized in to primary dimensions and secondary dimensions. Primary dimensions of diversity include inherent or inborn differences such as age, race, ethnicity, gender, mental and physical abilities and sexual orientation. Primary dimensions of diversity are the core elements that contribute in shaping and creating unique self-image of an individual. Secondary dimensions of diversity are acquired in life time and there is a possibility of same to change from time to time throughout the life cycle of an individual. Secondary dimensions mainly include education, religious beliefs, marital status, parental status, income, work background, geographical location and etc. It is believed that when compared with primary dimensions, secondary dimensions have a lessor impact in defining self-image of an individual (Daft, 2009). However, even in modern contemporary word, impact of secondary dimensions in defining an individuals image is amply

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demonstrated by widely seen discriminations associated with religious beliefs as evident by recent post nine eleven period. At the workplace the major barriers that have inhibited the employment, development, retention, and promotion of diverse groups are primarily categorized into two types. The first type of barrier is organizational in nature and comes from the workplace environment. The second type of barrier is individual and comes from the employees themselves. The organizational barriers which are most likely to inhibit the advancement of diverse groups in the workplace include negative attitudes and discomfort toward people who are different, discrimination, prejudice, stereotyping, racism, and bias. The individual barriers that are most likely to inhibit the advancement of diverse groups in the workplace are poor career planning, inadequate skill preparation, lack of organizational political savvy, lack of proper education, low self-esteem and poor self-image (Wentling & Palma-Rivas, 1999). 3. Emergence of Diversity Emergence of diversity has direct links to legislation and lawsuits. Historical evidence on emergence of diversity draws attention to United States of America. In 1961, President John F. Kennedy established the President's Committee on Equal Employment Opportunity with a view to end discrimination in employment by the government and its contractors. The Civil Rights Act of 1964 went further, prohibiting discrimination in employment. The following year President Johnson went further still, with an executive order to promote equal employment opportunity through "a positive, continuing program in each department and agency." This was a turning point, because it moved from prohibiting the consideration of "race, creed, color or national origin" to acting on the principle that fairness required more than a commitment to impartial treatment. In 1971, the Nixon Administration took this one step further in a revised order requiring contractors to develop an affirmative action program with goals and timetables (ASME Professional Practice Curriculum,n.d). Some of the other more recent US legislation that has an impact on workplace diversity includes Age Discrimination Act of 1978, Pregnancy Discrimination Act of 1978, Americans with Disabilities Act of 1990, Civil Right Act of 1991 and Family and Medical Leave Act of 1990 (Luthans, 2008). In Sri Lanka too similar legislations are in place. As per the chapter three: Fundamental Rights, of the Constitution of Sri Lanka no citizen shall be discriminated against on the grounds of race, religion, language, caste, sex, political opinion,

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place of birth or any such grounds. The Sri Lanka Womens Charter adopted in March 1993 aims at eradicating sex based discrimination and at achieving gender equality. The Protection of the Rights of Persons with Disabilities Act, No. 28 of 1996 is another such legislation. The legislation is not the only contributory factor for emergence of diversity. Today, the impetus behind workplace diversity is that of inclusion and the business case: embracing and leveraging differences for the benefit of the organization. The collaboration of cultures, ideas and different perspectives is now considered an organizational asset bringing forth greater creativity and innovation thus many companies are increasingly focusing on work place diversity. In fact, evidence suggested that management would have to take a more sustained and committed approach in order to realize the benefits of diversity. As such, current emerging trends of diversity recognize that diversity should not only be legislated or mandated, but also valued as a business attribute.

4. Developing a Multicultural Organization Luthans (2008) has noted a multicultural organization as one that with following characteristics:

Values the contributions and interests of all employees in its mission, operations, and products or service. Acts on commitment to eliminate all forms of oppression within the organization, including racism, sexism, ageism, classism, ableism, religious oppression, etc. Employees reflect diverse social and cultural groups throughout all levels of the organization. Follows through on broader external social responsibilities, including support of other institutional efforts to eliminate all forms of social oppression In leading up to a multicultural organization theorists have identified several

preliminary stages;

Stage 1: The Exclusionary Organization Openly maintains the dominant groups power and privilege Deliberately restricts membership

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Intentionally designed to maintain dominance of one group over others Overt discriminatory, exclusionary, and harassing actions go unaddressed Unsafe and dangerous environment for subordinated group members Monocultural organization

Stage 2: The Club

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Maintains privilege of those who have traditionally held power and influence Monocultural norms, policies, and procedures of dominant culture viewed as the only "right" way: "business as usual" Dominant culture institutionalized in policies, procedures, services, etc. Limited number of "token" members from other social identity groups allowed in if they have the right credentials, attitudes, behaviors, etc. Engages issues of diversity and social justice only on club members terms and within their comfort zone

Stage 3: The Compliance Organization

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Committed to removing some of the discrimination inherent in the Club organization Provides some access to some members of previously excluded groups No change in organizational culture, mission, or structure Focus: Do not make waves, or offend/challenge dominant group members Efforts to change profile of workforce at bottom of organization Token placements in staff positions: Must be team players and qualified Must assimilate into organizational culture Must not challenge the system or "rock the boat" Must not raise issues of sexism, racism, classis, etc.

Stage 4: The Affirming Organization -

Committed to eliminating discriminatory practices and inherent advantages Actively recruits and promotes members of groups that have been historically denied access and opportunity Provides support and career development opportunities to increase success and mobility Employees encouraged to be non-oppressive awareness trainings

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Employees must assimilate to organizational culture

Stage 5: The Redefining Organization -

In transition Moving beyond non-discriminatory, non-oppressive Working to create environment that values and capitalizes on diversity Working to ensure full inclusion of multicultural workforce to enhance growth and success of organization Begins to question limitations of organizational culture: mission, policies, structures, operations, services, management practices, climate, etc. Actively works towards developing a multicultural organization Committed to redesigning and implementing policies and practices to redistribute power, and ensure the inclusion, participation, and empowerment of all members

Stage 6: The Multicultural Organization

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Mission, values, operations, and services reflect the contributions and interests of the wide diversity of cultural and social identity groups Leaders and members act on the organizational commitment to eradicate all forms of oppression within the organization Members across all identity groups are full participants in decision-making Actively works in larger communities (regional, national, global) to eliminate all forms of oppression and to create multicultural organizations

As such characteristics of a multicultural organization include integration of minorities into all structural levels of the company, integration of informal/social networks of the business; absence of prejudice and discrimination; and a mind-set that not only accommodates diversity but also values that diversity. Even in contemporary world it is believed that most of the organizations are in still in transition levels leading to a true multicultural organization.

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9 Approaches to Managing Diversity

Organizations can adopt different approaches for managing diversity. These approaches can be either at the individual level or at the organizational level. The individual approaches that can be used to manage diversity include 'learning' and 'empathy.' These two approaches are interdependent. Learning involves acquiring knowledge from real or simulated experience, while empathy is based on one's ability to understand others' feelings and emotions. Organizational approaches such as testing, training, mentoring (of employees) and designing alternative work schedules also help organizations manage diversity. TESTING; General assumption is that most of the tests are culturally biased. It means that they are made for only a particular culture and are not valid to all cultures. So, those who do not belong to that culture perform poor on these tests. Therefore, in a true multicultural organization, tests should be designed in an acceptable manner for all people regardless of their cultures. A widely accepted approach to make tests more valid for diverse employees is to use job-specific tests rather than the general aptitude tests TRAINING; Training can play important role in two ways. One is providing training to the diverse groups the other is providing training and education to the managers. A technique most widely used by some researchers on management involves putting the trainees into ethnic groups. Then each group is asked to describe other groups. The purpose of this exercise is to gain insight and knowledge about the way one group perceives other group. Then at the end both workers and managers are trained how to better communicate and understand other groups. Another technique is diversity board games, which requires the participants to answer questions related to gender, race, age issues, cultural differences, and disabilities to give an understanding on laws and rules of diversity. MENTORING: A mentor is a trusted counsellor, coach, or advisor who provides assistance and advices. In recent years, many organizations have begun assigning mentors to women and minorities. The purpose of mentor program is to help members of a diverse group in their jobs, socialize them in the cultural values of the organization to improve their working and solve their problems. Mentors are useful as they;

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Provide instructions in specific skills and knowledge needed to perform the job. Help in identification of skills, interests and aspirations of individuals Help the workers understand the written rules and regulations of the organization. Answer the problems and questions of the workers. Offer emotional support. Serve as a role model. Create and environment in which mistakes can be made without losing selfconfidence. WORK/ FAMILY PROGRAMS: Nowadays, in most countries most of the time both

parents have to work and this gives them less time to look after their children and spent time on family matters. So, to solve these problems a number of methods and techniques are used.
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Flexitime, it allows workers greater choice in choosing their timings for the work. Compressed work weeks, in this arrangement all the work of the week is compressed in to fewer working days. Hence giving more time for the families to get together.

Job sharing, it is splitting a full-time job position between two people. Telecommunicating, it is gaining popularity. In this arrangement the workers can do their office work at homes.

Kindergartens within organizations, these help the mothers work better while their children are looked after in the kindergarten.

5. Conclusion

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In today's rapidly changing and diversifying world, the leading organizations of the world will be those that create a constant stream of innovative goods and services, winning customers and earning loyalty through exceptional performance. No one type of person, or group of people, has all the skills and talents needed to do this. As such, recognizing the business advantages of embracing diversity, many organizations have successfully implemented diversity programs and some have even gone in to the extent of giving prominence to diversity in their web sites; Chevron Corporation: learn from and respect the cultures in which we work. We value and demonstrate respect for the uniqueness of individuals and the varied perspectives and talents they provide. We have an inclusive work environment and actively embrace a diversity of people, ideas, talents and experiences. (Chevron) Pratt & Whitney: With more than 36,000 employees around the world, our real power and innovation comes from our people. The professionals at Pratt & Whitney are leading the way in the aerospace industry. Our ability to build and maintain an inclusive work environment is critical to our continued success. We believe that our diverse workforce drives innovation and keeps us ahead of the competition. We are committed to recruiting and retaining the best and brightest people from the broadest talent pool possible, so that we can serve our customers globally (Pratt & Whitney) Pfizer Incorporation: Our Company is sustained on innovation which seeks a nourishing environment in which ideas and perspectives can flourish. Pfizers diversity provides just such this opportunity. It is an array of unique characteristics, perspectives, and life experiences which define us as individuals. Diversity encompasses our visible differences such as gender, age, ethnicity, physical appearance, plus other underlying characteristics including thinking styles, sexual orientation, religious or national identity, and education. Inclusion is an environment where our people feel valued, involved, supported and respected (Pfizer)

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However, workplace diversity still faces many barriers and challenges. Managing diversity is not easy, and undertaking a diversity initiative can backfire if the program is mismanaged, with long-reaching effects on employee satisfaction and productivity. Resistance to change among the workforce is usually due to stereotypes based on lack of information, fear of change, fears of reverse discrimination, and a lack of understanding of the benefits associated with change. Effective training can often alleviate these fears and misunderstandings, increasing the possibility of a successful diversity initiative.

6. Recommendation With the expansion of business horizon to the North and East and to regional countries the Bank will have to deal with diverse employees and diverse clientele. Thus it will be necessary to treat diversity as a positive force simply because without differences or variety among people in the world, the ability to grow and learn would be limited. Thus, the Bank's commitment to diversity must be sustained. The leadership commitment requires the establishment of priorities and realistic objectives, the assessment and development of policies and practices to meet the particular diversity needs of the bank and the provision of management and employee training and support processes.

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13 References

Chevron. (n.d.). About Chevron. Retrieved 01 11, 2011, from Chevron Web site: http://www.chevron.com/about/diversity/ Committee, The University of Tennessee Libraries Diversity. (2003, January). What is Diversity? Retrieved 12 26, 2010, from University of Tennessee Knoxville: http://www.lib.utk.edu/diversity/diversity_definition.html Daft, R. L. (2009). Principles of Management. New Delhi: Cengage Learning. Luthans, F. (2008). Organizational Behaviour. New York: Mcgraw Hill. Pfizer Inc. (n.d.). Who we are. What we stand for. Retrieved 01 19, 2011, from Pfizer Web Site: http://www.pfizer.com/about/history/history.jsp Pratt & Whitney. (n.d.). Corporate Citizenship. Retrieved 01 19, 2011, from Pratt & Whitny Corporation Web Site: http://www.pw.utc.com/Corporate+Citizenship/Diversity The Chancellor's Advisory Committee on Diversity University of California, San Francisco. (2009, july 1). Chancellor's Advisory Committee on Diversity. Retrieved 12 26, 2010, from diversitycommittee.ucsf.edu: http://diversitycommittee.ucsf.edu/diversity/All_pages/1666-DSY.html Unknown. ("n.d"). Workplace Diversity. Retrieved 12 28, 2010, from ASME Professional Practice Curriculum: http://professionalpractice.asme.org/MgmtLeadership/Diversity/Introduction.cfm Wentling, R. M., & Palma-Rivas, N. (1999). Diversity in the Workforce Series Report Current Status and Future Trends of Diversity Initiatives in the Workplace: Diversity Experts' Perspectives. Retrieved 12 26, 2010, from National Center for Research in Vocational Education : http://vocserve.berkeley.edu/Summaries/1082sum.html

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14 Bibliography

Daft, R. L. (2009). Principles of Management. New Delhi: Cengage Learning. Luthans, F. (2008). Organizational Behaviour. New York: Mcgraw Hill.