1. Introduction
We often hear the term “diversity”
bandied about in our everyday usage. Usually, when we come across the term, it
is in the context of having a mix of gender, race, ethnic, sexual orientation
etc in a setting wherein there is no discrimination based on these traits.
In an organizational
context, diversity refers to equality of opportunity and employment without any
bias because of these traits. Indeed, it has become fashionable in the present
scenario to have a diverse mix of employees drawn from all classes and
proclivities so that the aura of correctness and humanitarianism can be
actualized. However, this does not mean that organizational diversity has
succeeded or it has become the norm in organizations. Rather, there are many
barriers to diversity even after strenuous efforts by activists and experts and
these relate to societal mindsets and personal psychological discomfort with
having people drawn from diverse backgrounds working alongside.
Diversity is not
practiced in society and let alone organizations which make a feeble attempt to
enforce the rules. The reason for this is the prevailing cultural attitudes
against certain sections of society, which makes it impossible for corporates
to embrace diversity since they risk the wrath of the dominant cultural and
societal groups. The point here is that when the entire society discriminates
against say, homosexuals or lesbians, it is indeed difficult for even the best
meaning of corporate leaders to buck this trend. Hence, it needs to be
remembered that organizational diversity is not only about a certain
organization’s policies but also reflects the broader societal consensus on
this issue.
Of course, this is not
to say since society discriminates against ethnic minorities, corporates can do
so likewise. On the other hand, there is more responsibility on corporates to
follow their heart and heed their conscience and ensure that their
organizations reflect diversity. The point here is that there is a symbiotic
relationship between organizations and their environment and hence both must
work in tandem to resolve cultural conflicts and biases. When either is
unwilling for whatever reasons, leaders must step in and ensure that diversity
is encouraged for humanity’s sake. This is the way shown by several business
leaders like NR Narayana Murthy of Infosys and the late legendary Steve Jobs of
Apple who put their personal reputations at stake to promote diversity.
2. Why
Care About Diversity?
Not only is diversity in organisations
important because the government has brought in so many legislations, but it is
also important because organisations can use it to their advantage.
If you operate in an equal way, or
manage your diversity well, then you will be able to get a competitive
advantage, which not only will make your product/service better, but it could
also lead to getting better staff as people will feel better about working for
that organisation.
Obviously most organisations worry about
diversity because they don’t want legal action taken against them because of
the laws in place, but if we look at it in a different light, then it can prove
to be a very important aspect of a business.
2.1
Racism
One of the major aspects of this topic
is Racism, as it is one of the biggest parts which makes up diversity in our
culture.
2.2
Racism Definition:
The
systemic institutionalised mistreatment of one group by another, based upon
skin colour or ethnicity. So that Racism is taken seriously training needs to
be done, allowing people to understand different people, different attitudes,
content and identity. As well as this people need to see beyond how people
look, instead seeing what their connections are in other areas.
3. The
Areas of Diversity:
ü Makes
it easier to recruit scarce labour
ü Improves
customer service
ü Increases
sales to minority groups
ü Promotes
team creativity and innovation
ü Improves
problem solving
ü Enhances
organisational flexibility
ü Improves
corporate image
ü Improves
quality
ü Improves
intergroup relations
ü Opens
people’s minds to different perspectives and thereby increasing resilience,
flexibility, inquisitiveness
4. What
is Organisational diversity?
Diversity in the workplace means that
there is an array of differences among employees such as race, ethnicity,
gender, age, religion and education. Over the past few decades, increasing
diversity within various business industries has become more common. Diversity
affects how organizations understand that employing people who hold multiple
perspectives increases the need to mitigate conflict between workers from
different identity groups, enhances creativity and problem solving in teams,
and serves as a resource to create a competitive advantage for the
organization. Diversity in the workplace increases the organization's morale
and creates efficiency and effectiveness. Workers from cultural backgrounds
bring their skills to the table. This helps you critically examine a problem or
task at many diverse levels. It enables you to understand the customer base
from diverse backgrounds.
The
global is a constantly changing marketplace, and the best way to gain a
competitive advantage is through diversifying the workforce in companies and
organisations. Diversity in the workplace matters not only because it brings
benefits in business spheres as brand management, client engagement and CSR but
because it creates additional value for the organisation by attracting diverse
professionals that drive innovation.
5. Why
diversity is important in an organisations?
§ Diversity in the
workplace promotes the individuality within an organisation, acknowledging that
every person can contribute with different, creative and new ideas and
solutions. Employees with different backgrounds and experiences can bring
together a variety of perspectives on matters and thus increase the
productivity and deliver better results. Diversity brings in diverse different
talents together working towards a common goal using different sets of skills
that increases their retention and productivity.
§ Diversity within
a company helps in building a stronger brand and makes the company more
interesting and desirable employer. With
a diversified workforce an organisation gains even good reputation and image
because it is seen as having fair employment practices.
§ Workplace
diversity increases creativity and problem solving. Having a variety of
different people from various backgrounds together is essential for finding and
implementing creative solutions to business problems. With diverse mindset
coming together many more solutions will arise as every individual brings in
their way of thinking, operating and solving problems and decision making.
§ A diversified
organisation encourages personal growth and development. Having expats or
persons with international background
working for the company can help employees learn new ideas, perspectives
and connect professionally with different people. That enriches the employees and
gives them another point of view on how the market and the business work.
§ Interacting with
diversified staff improves their ability to work in a diverse environment, with
different styles, cultures and personalities.
§ Diversity in a
workforce can optimize an organisation’s ability to meet the needs of each
different market. Representatives of specific country or demographics can be
paired with clients of the similar backgrounds, helping clients feel more
comfortable and in a way to create customer loyalty to the company. For example
having an employee who is actually part of a specific culture or a region where
a given business is conducted is a great advantage for the organization.
§ A diversified
company can attract and retain talents, young and as well experienced
professionals and thus add a competitive edge to the organization. Possessing
different set of skills and having a good command of different and/or exotic
languages and being appreciated for that increases the feeling of belonging.
This enables the company to compete in the international market or to increase
its diverse customer base and market share.
6. Benefits
of Organizational Diversity
Organizational diversity brings together individuals
of varied experiences, educational qualifications, age groups and backgrounds
at a common place in your organization. The first and the foremost benefit of
organizational diversity is individuals get to learn lots of things from each
other. You get to know about each other’s religion, community and also get an
opportunity to gain from each other’s expertise. You might not know everything
which probably someone associated with the organization for quite some time
would know. It is foolish to underestimate anyone.
§ Organization
A had individuals who were more than forty years of age and were in the system
say for last ten years. The management did not like the idea of recruiting
fresh talent and relied only on experienced ones. In due course of time, the
experienced lot could not cope up with the changing technologies and failed to
survive the challenging times. Organization A eventually suffered great losses
and had to be shut down.
§ Organization
B on the other hand believed in the concept of organizational diversity and had
individuals of all age groups, work experiences, qualifications striving for a
common goal. Young talents are generally little keener on upgrading their
knowledge as compared to older employees who are on the verge of retirement.
During tough times, Organization B gained not only from the experiences of the
older people but also from the young lot who faced challenges with a smile and
encouraged others to stay calm and patient.
An organization needs to have all types of people
around. Everyone is talented and everyone if mentored and guided well can
actually make a difference. So what if the other person is a fresher? If he/she
has the right knowledge, he/she can actually prove to be an asset for your
organization. Organizational diversity ensures equal opportunities for all.
Organizational
diversity goes a long way in exposing individuals to varied cultures and
traditions. It gives you a chance to know about other festivals and how they
are being celebrated by other religions. Believe me, during festival seasons,
everyone loves to bring delicacies from home and it is like a big party at
workplace. Organizational diversity not only brings employees closer to each
other but also strengthens the bond among them. Employees feel happy and
motivated when they celebrate different festivals together. This certainly also
reflects in their work when they readily help each other and seldom indulge in
unnecessary conflicts and solve issues among themselves. Individuals from
different backgrounds and experiences can also sit together, brainstorm ideas
and reach to better solutions benefitting the organization.
7. Role
of Management in Managing Organizational Diversity
Organizational
diversity enables individuals from diverse backgrounds, religions, communities,
age groups, experiences, educational qualifications and so on to work on a
common platform, striving hard towards achieving the goals and objectives of
the organization within the shortest possible time frame.
7.1 Management
plays an essential role in managing organizational diversity:
All
individuals need to be treated equally. If you have recruited someone, he/she
is your employee and thus indispensable resource of the organization. Do not
misbehave once he/she joins. You have no rights to ill-treat the other
individual just because he is a peon. Management should not forget that even the
office boy is an employee of the organization and ought to be treated with
utmost respect and care, the same way you treat your other employees. Make them
feel important. Do not make separate policies for them. Remember, even they
have the right to enjoy company’s benefits, the way others do.
Every employee is important irrespective
of designation; amount of time spent in the organization or educational
qualification and contributes in his/her own way. Organization B had all types
of employees, some who recently joined and some who were there in the system
for quite some time. Joe was never called for team meetings because he joined
the organization just one month back. This certainly is a wrong practice.
Management and superiors need to ensure that every individual is called for
team meetings and also has the liberty to contribute in formulating team
strategies and organization policies. Remember, an organization does not always
need experienced people but also young and dynamic individuals who have the passion
for innovation and accepting challenges. Do not neglect someone just because he
is new to the industry. You never know when he comes up with a wonderful idea
which would benefit not only the team but the entire organization.
Appraisals and incentive plans need to
be similar for everyone. If you have decided for twenty percent hike, make sure
it is same for everyone, be it the general manager, manager, executive or the
office boy. Even the office boy has the right to ask for his appointment
letter. It is his right. Appraisals should be strictly done based on
individual’s performance over a period of year and nothing else.
Encourage effective communication at the
workplace. No employee should be left out of important discussions. Management
needs to ensure transparency at all levels of hierarchy. This is in fact the
best way to effectively manage organizational diversity.
It is the responsibility of the
management to encourage individuals to celebrate and enjoy all festivals
irrespective of their religion and community. We may be Hindu, Muslim, Sikh or
Christian, but above all we are Indians. Do not be happy because 25th December
is a holiday and you will have another day to watch your favourite movie or
spend some time with your family. Do celebrate all festivals and enjoy them to
the fullest. Do not ignore someone just because he/she does not belong to your
religion. Believe me, individuals who do so have no rights to be a part of the
system.
8. Organizational
Diversity: Ideal vs Practice
Diversity
also means that the employees from different orientations are treated equally
with other employees and inclusivity is practiced. Often, it is the case that
employees from different backgrounds are hired and then treated shabbily
because their coworkers have different views about diversity than the
management. The reason for elucidating the point so deeply is that unless
mindsets change, diversity would remain a concept on paper only. Hence, the
only way out for companies to embrace diversity would be to educate their
employees and enforce strict codes of conduct across the organization. Only
then would the employees from different orientations would feel comfortable
working in the company. In this endeavor, the government has to do its bit by
passing and enforcing laws that take care of the rights of the differently
abled and differently oriented employees.
As with any idealistic notion,
organizational diversity is usually done more in theory than in practice if the
experiences of organizations in the United States and Asia are taken into
reckoning. This is because the concept is good in theory where all
organizations commit themselves to employing people of all genders, classes,
ethnicities and sexual orientation.
However, due to prevailing mindsets,
organizations do not actually practice this ideal and often the result is that
organizations pay lip service to the ideal of diversity without practicing it.
This results in the organizations proclaiming their commitment but in a
hypocritical manner, abandoning it for the sake of convenience.
In India, Infosys was one of the first
companies to have introduced the IWIN (Infosys Women’s Inclusivity Network)
initiative where the management proclaimed their support for diversity.
However, with the passage of time, the initiative was suitably toned down to
meet business goals where the need to encourage diversity was given up at the
altar of convenience. Though the initiative had the blessings of the founders
including NR Narayana Murthy, other executives at different levels did not see
the need to follow these principles because of mindset issues. The point here
is that mindsets are hard to change and hence, diversity is often sacrificed
for organizational cohesion. The usual excuse given is that there are not
enough employable candidates from different backgrounds and hence, it is not
possible to practice diversity. However, a careful consideration of the facts
shows that this is not true given the available labor pool that is very rich in
diversity.
The
inescapable conclusion is that unless there is a wholesome embrace of diversity
by walking the talk instead of talking the talk, diversity would only remain
compliant with the letter of the law and not the spirit of the law. This is the
overriding message that emerges after surveying the experiences of
organizations worldwide and in Asia.
9. Diversity
and Inclusivity as a Value Based Imperative
Diversity
and inclusivity in organizations have to be practiced instead of being
preached. This is because they are concepts that lend credence to value based
management and management that is humanistic in nature. Many organizations
claim to have diversity programs only to have a few women in positions of power
or differently abled employees just for the sake of satisfying the principle of
diversity in the letter of the law rather than the spirit of the law. This is
the case with many top-notch companies where regressive attitudes exist to
prevent women and other minorities from being significant. However, this is
neither the ideal situation nor even the acceptable situation, as management
has to be driven by values instead of being driven by profit alone. Hence,
there is a need to practice value-based management and incorporate diversity as
a guiding principle for recruitment and promotions.
Of course, we are not making the case
for an affirmative action kind of scenario where disadvantaged groups are
recruited and promoted irrespective of their abilities. Rather the point that
is being made here is that there should not be implicit and explicit barriers
to women and differently abled employees reaching senior positions.
The prevailing attitudes must change and
leadership must set an example to the rest of the organization to follow when
formulating and actualizing diversity management policies and procedures. In
this scenario, women and differently abled people as well as disadvantaged
groups are treated equally with the other employees and without showing them
undue favours, barriers are not placed in their path. This should be the goal of
diversity management if value based management is adopted as the guiding
principle for organizations.
The point here is that the ongoing
economic crisis has shown how lack of ethics and normative principles can wreak
havoc with the corporate system. Hence, the only way out is for corporate
leaders to practice value based management and this can be done only if the
senior leadership walks the talk instead of just talking the talk. Moreover, a
culture of tolerance and inclusivity has to be built into the organizational
DNA since senior management alone cannot change the system on their own. What
this means is that middle management and even the employees from the ground up
have to be taught to respect diversity and welcome inclusivity.
There
are many companies including Infosys where the senior management is committed
to diversity and inclusivity but the situation in the shop floor is something
different altogether. Indeed, there are many instances of employees showing
scant respect for diversity and be exclusive in their dealings with women. This
presents problems for the companies concerned, as not only does this attitude
vitiate the organizational culture but is also detrimental for its reputation
and adherence to corporate governance principles. As mentioned earlier, if
there is one lesson from the recent events, it is that one can fool people for
some time but not all the time. Hence, value based management that promotes
diversity and inclusivity as a business principle should be the goal of
corporate leaders.
10. Fostering
an Inclusive Environment
The
question that is uppermost on business leaders’ mind is how to foster an
inclusive environment as the current environment in the business world is about
not tolerating harassment and discrimination. For instance, in recent years,
there has been some high profile cases involving senior management figures in
the US and in India in matters related to sexual harassment and discrimination.
Though the defendants and the victims reached out of court settlements in some cases,
the damage done to the reputations of individuals and the companies is immense.
This makes the case for fostering an inclusive environment in the workplace and
avoiding such incidents that much more important.
It needs to be remembered that having
policies in place alone is not enough to prevent harassment. Rather, companies
and business leaders must walk the talk and practice what they preach about
having an inclusive environment in the workplace.
The first aspect here is the
sensitization towards gender, ethnic, and alternative sexualities and
orientations that must take place before any meaningful action on inclusivity
happens. For this to be actualized, employees at all levels have to be made
sensitive to the problems of women, racial minorities, and those who are of
alternative sexual orientation.
In many multinationals, explicit
training programs are conducted to sensitize the staff on these issues. This is
a practice that other companies can follow to have an inclusive environment.
Apart from this, there needs to be redressal mechanisms wherein victims can
report the incident in a confidential and secure manner. This means that the
identity of the victim is kept confidential until the incident is investigated
and action taken.
The other aspect is that strict
punishment must be meted out in case wrongdoing is proved. Instead of mildly
reprimanding the perpetrator and allowing the person to get away with the
misdemeanor, there needs to be concrete action so that such incidents are not
allowed to recur again. The point here is that justice must be seen to be done
as well as seen to be effective. In many organizations, there are no punitive
actions taken against the perpetrators, which embolden them and others to
repeat such acts. Hence, the only way out would be for the company to initiate
as strict an action possible that would deter others and serve as an example.
Finally, change comes from within and
there is no point in having rules and regulations as well as punishments if the
underlying mindset is one of mediaevalist thinking. Hence, the best way to
foster inclusive working environment would be to effect a change in the mindset
that creates inclusivity rather than narrow mindedness. Therefore, it would be
in the interests of business leaders if they inculcated some of the values like
tolerance, respect, and diversity among the staff. Only when there is an
attitudinal change can there is an inclusive working environment.
In conclusion, fostering an inclusive
working environment takes time, patience, and courage which the business
leaders’ and the other management figures need to have in abundance.
11. Communicating
Across Cultures
In
these times when global corporations operate in many countries across the
world, it is important for the employees in these organizations to know the
nuances of intercultural communication. It is often the case that many Asian
employees (especially the younger lot) say, “they passed out in a certain year
from college”. This has different connotations in the West as it refers to the
act of losing consciousness. The correct phrase would be that “we graduated”.
To take another example, it is common for many Westerners to start talking
about the weather as an icebreaker for the conversation. However, this is
interpreted differently in Asian countries where many employees do not seem to
understand why the weather is a topic for conversation. Finally, many Asian
employees (especially Indians) usually use the term “freaked out” to mean that
they have had a good time. However, this is interpreted differently in the US
where it has entirely different connotations.
The point here is that intercultural
communication depends on a variety of factors that include the specifics of
language, style, and substance.
Further, one has to be sensitive to the
fact that what is acceptable in one culture might be prohibited in another
culture. Hence, it is common for Asian employees to enquire about the families
of their coworkers, whereas, in the West, it is not common for the employees to
talk openly about them.
Most important aspect in cultural
communication is the gender aspect where the way in which employees address the
issues of women in the workplace makes a lot of difference to how they are
interpreted. In the West, employees are usually politically correct in their
communication, which means that they do not overly make racist and gender based
statements. This does not mean that such issues do not exist there. On the
contrary, there are enough cases of sexual harassment at the workplace in the
west. Rather, the point is that in the West, employees are usually guarded when
talking about their female coworkers. However, many Asian employees are openly
racist and gender biased in their comments.
The other aspect of cross-cultural
communication is the issue of how cultural differences are handled. For
instance, while it is common for Asians to know many details about the US and
the Europe, many westerners have a rather sketchy knowledge of countries other
than in the West. This ignorance can sometimes be annoying to the Indians as
was evident in the recent issue involving the popular Talk Show Host, Oprah
Winfrey. Her statement that “Indians still eat with their hands” kicked up a
row with many Indians taking umbrage at this remark. Hence, one must be cognizant
of cultural differences and not say or do anything that would be interpreted in
a different manner. Finally, cross-cultural communication is all about
sensitivity and having empathy with the person from the other culture. Hence,
it goes beyond differences and depends largely on the individual who is
communicating.
In conclusion, there is a need for
training for employees who are being sent onsite or who have to deal with
employees from other cultures. This would make the job of communicating across
cultures easier and would reduce the chances for faux pas in the communication
process.
11.1
Intercultural Communication: The Hofstede Model
One
of the most widely used frameworks for analyzing cultural differences is the
model developed by the eminent cultural theorist, Geert Hofstede. In this
model, the differences in culture between countries have been plotted along
five dimensions, which can be used as the basis for predicting the cultural
differences between different countries. The model was developed after
extensive research into the cultural differences between different countries
and after surveys of thousands of employees in the West and the East. The five
dimensions along which the cultural differences are plotted are power distance,
masculinity vs. femininity, long-term orientation vs. short-term thinking,
individualism vs. collectivism, and uncertainty avoidance. The model is comprehensive
and exhaustive in its treatment of cultural differences across cultures.
To take the first dimension, power
distance measures the extent to which hierarchy dominates the work environment.
In the US, the power distance is relatively small when compared to China where
the power distance is more because of the hierarchical nature of Chinese
society. Similarly, the Masculine traits predominate in India and China as
compared to the US and UK as the cultures in the former tends towards
patriarchy.
The third dimension of individualism vs.
collectivism yields the result that employees in the West would be highly
individualistic as compared to the employees in the East who subscribe to the
group instead of to the individual. The fourth dimension of long-term thinking
vs. short-term thinking is likewise different in the US and the UK where the
emphasis is on getting the short-term results whereas in China and India, there
is a tendency to look ahead into the future. Finally, the fifth dimension of
uncertainty avoidance refers to the structured work environment, which in the
West would be oriented towards specific and measurable goals and objectives
whereas out of the box thinking is prevalent in the East.
The Hofstede model is useful for
expatriate managers who when they work in the East find it easy to understand
the cultural differences in the work environment. Using this model, the
expatriate managers can be trained to adjust to the different cultures. To take
an example, it is common in the East (China and India) to be hierarchical in
the organizational structure where the position and the status of the employee
matters a lot. Given the fact that in the West, these are important but not to
the extent that they are in the East, expatriate managers can learn to negotiate
cultural differences using this model. Another important aspect is that
culturally China and India are male dominated, which is different from the US,
and the UK where gender equality is prevalent. Hence, the expatriate managers
can likewise adjust to the East when they work there using this model.
Finally, for expatriate managers to
adjust to the local cultures, adopting a “Glocal” approach would be the ideal
solution. This approach wherein a global outlook is combined with a local
approach means that multinationals can adapt themselves to the local cultures
and at the same time do not lose focus of their global vision. This is the most
important learning that the Hofstede model and the other models of culture
provide to the expatriate managers. In conclusion, cultural differences can
make or mar the chances of multinationals in the globalized world economy of
the present. Hence, it is important to realize and understand that culture
plays a prominent part in shaping the work environment.
