Workforce diversity is a phrase to differences and similarities among the employees of an institution based on their ages, physical abilities and disabilities, cultural backgrounds, sexual orientations, race, and religion (Saxena, 2014). Everyone is different from the other in either their perspectives or judgments, among other things, and therefore, it is necessary to employ a diverse workforce to ensure heterogenicity in the workplace (Saxena, 2014). This paper is written to analyze and demonstrate the importance of workforce diversification, and how it impacts on an organization's productivity.
Diversity can be described to be either acquired or natural (Hewlett, Marshal, &Sherbin, 2013). Inherent or natural diversity refers to features or characteristics that one is born with, for example, their gender, or their ethnicity (Hewlett et al., 2013). On the other hand, acquired diversity refers to traits that an individual obtains from their working experience, including new languages learned and gained perspectives (Hewlett et al., 2013).
Delegate your assignment to our experts and they will do the rest.
Due to increasing globalization that is ongoing in this century, international trade is becoming easier to carry out each passing year. This means businesses experience more competition from all over the world. An efficient, as well as competent workforce, is required to handle this level of competition in the market and, therefore, it is vital that the human aspect of an organization is appropriately managed to ensure employee development and satisfaction occur alongside the achievement of organizational objectives (Saxena, 2014).
Although workforce diversification plays an essential role in keeping up with these new changes in the business environment, several challenges in the management of a diversified workforce are present. This is because a diversified workforce means that each employee development or satisfaction would be different from the next depending on their differences in age, attitude, gender, or religion and this creates a challenge in human resource management.
A body of research that can adequately tackle these management challenges is not yet available (Pitts &Recascino Wise, 2009). It is, therefore, cautious about paying attention to workforce diversity- to analyze it and to carry out more research around it- to find a solution to the present management challenges. Wise and Tschirhart, as early as in 2000, asked for more significant contributions to the body of research that focuses on the best management of human diversity for the production of positive results (Pitts &Recascino Wise, 2009).
Since then, only a tiny portion of available resources has been shown to cover the management of diversity, and therefore the research suffers an inadequacy of data, methodology and innovation, and insufficiency of attention to the possible connections between organizational results and variety (Pitts &Recascino Wise, 2009). These shortages validate the requirement of more studies and analysis of workforce diversity.
Importance of Workforce Diversification
An organization's competitiveness and success depend on its ability to grip the aspect of diversity. However, to enjoy the benefits of workforce diversification, effective management of diversity must take place (D'Netto&Sohal, 1999), through development and implementation of diversity plans, and prompt command of workplace diversity issues (Saxena, 2014). In general, competent workforce diversity practices improve the performance of both the employees and the organization (D'Netto&Sohal, 1999). Besides, a study by Hayles and Mendez in 1997 showed a strong correlation between profits and good diversity practices (D'Netto&Sohal, 1999). The next paragraphs will give a point by point explanation of the multiple benefits of workforce diversification.
One benefit of workforce diversity is that it kindles innovation and productivity, and creates a culture that can out-perform the competition (Saxena, 2014). Research that surveyed a large number of professionals, case studies, and several other focus groups examined diversity in leadership and the market outcomes (Hewlett et al., 2013). According to this study, diversity unlocks innovation by allowing 'outside the box' ideas to be heard- ideas from different minorities can easily acquire resources for the development of the senses (Hewlett et al., 2013).
It got learned from the study that companies that showed more diversity out-innovated and out-performed the others. The diversified companies were 40% more likely to report growth in their market share, and they were also 70% more inclined to capture new markets (Hewlett et al., 2013). Also, it was discovered that in the absence of diverse leadership, the ideas from minority groups, for instance, people of color or LGBTs women, had lower chances of being endorsed (Hewlett et al., 2013). This causes the companies with these people to lose significant marketing opportunities, and thus negatively impacting sales. LGBTs refers to lesbian, gay, bisexual, and transgender people.
A diverse organization is also better matched to serve a more extensive base of customers. With the widening global market, such multicultural organizations have an improved understanding of the requirements of foreign nations (Saxena, 2014). Hewlett et al. realized that when a member of a team had attributes similar to those of the final user, the whole team had a better understanding of the customer (2013). Moreover, when a team member was from the same ethnic group as the end user, there was a 152% likelihood of the team understanding the client (Hewlett et al., 2013).
Diversity within an organization can supply a more excellent range of solutions during problem-solving (Saxena, 2014). Employees with different experiences and backgrounds can provide variant perspectives, leading to alternative solutions and approaches to challenges (Cletus, Mahmood, Umar, & Ibrahim, 2018). Workplace diversity also provides an avenue for employees to share personal views and strategies that can result in nurturing of local talent as well as improving the working culture in an organization (Cletus et al., 2018). A study showed that diversity gives workers different competencies that help to ensure tactical execution of management (Cletus et al., 2018). Additionally, another study also showed that even the differences or biases that are present with diversity could provide insight into the management of conflicts if appropriately handled (Cletus et al., 2018).
According to Cletus et al., diversity can potentially stimulate employee growth and personal development (2018). This is possible due to the experience of individual employees to varied cultures, ideas, and opinions in the work environment, which may initiate learning and thus, growth in skills. The interaction of diverse employees also improves an employee's ability to adapt to various circumstances, which enhances the employee's abilities to work despite the cultural or personality differences of other employees (Cletus et al., 2018).
Diversification at the workplace provides a chance for employees to bring on board their individual experiences and talents (Saxena, 2014). This unification of different strengths allows the organization to exploit its employees' diversity to help in the achievement of organizational goals (Cletus et al., 2018). In support, a study by Dhuppar in 2015 showed that diversity could unify the collective strengths and weaknesses of employees to the organization's benefit (Cletus et al., 2018). Moreover, the study also revealed that cross-cultural understanding could result in a better workplace that could dispel stereotypes, misconceptions, or prejudices in a diversified workplace (Cletus et al., 2018).
Finally, workforce diversification promotes corporate attractiveness to possible collaborators, partners, and society in general (Cletus et al., 2018). This is in tandem with a study in 1997 showed that promotion of workplace diversity, as well as corporate inclusion, is appealing to future employees and clients (Cletus et al., 2018). This gives the organization a chance to pick the best employees from the available talent pool, thereby improving the company's workforce capabilities. In the long run, a diverse organization can understand the target demographics better, leading to an improvement in product delivery and eventually maximization of customer satisfaction (Cletus et al., 2018).
Challenges Facing Workforce Diversity
In 2007, over eighty thousand cases under diversity issues got filed by the Equal Employment Opportunity Commission (Okoro & Washington, 2012). Most of these were by organizations that did not pay attention to the diversity within their workforce (Okoro & Washington, 2012). This is an indication that although the changing business environment requires workforce diversity, workforce diversity has some disadvantages, and there are several challenges faced in the management of a diversified workforce. The next paragraphs will describe the challenges brought about by variety at work.
The management of diversity at the workplace is more than just admitting differences in people, and it is crucial that a business can quickly adapt to the change in work relationships as well as responsibilities (Okoro & Washington, 2012). According to research carried out in 2008, the increase in workforce diversity includes an extensive range of challenges in communication (Okoro & Washington, 2012). These challenges include traditions, skills, backgrounds, outlooks, and attitudes toward work (Okoro & Washington, 2012). Poor communication can result in a lack of teamwork, confusion, as well as low drive at the workplace. Besides, it can also lead to missing of deadlines, miscommunication of objectives, and inevitable conflicts work relationships (Cletus et al., 2018).
Generational-gaps is another issue that creates a significant challenge in diversity (Cletus et al., 2018). Lack of cohesion between the young and old employees is problematic, especially when strategic changes are required. The young are usually open to changes, willing to take risks while the former are more often than not reserved, and not wanting to switch to new methods or techniques. The process of decision-making can, therefore, be dragged along by this difference in preference by different generation employees.
In addition to challenges in communication and age differences, managers and supervisors also get faced with the challenge of creating harmony among workers with different interests (Okoro & Washington, 2012). Gender and lifestyle differences among the employees can result in behavioral attitudes that can build an unbearable working setting, and thus affect productivity (Cletus et al., 2018). Moreover, cultural and ethnic variances may create unfair prejudices, biases, anger, or frustrations to some employees who may be deemed different within the organization (Cletus et al., 2018).
Conclusion
Throughout the essay, it has gotten illustrated how diversity in an organization can improve the organization's productivity. This includes having an increased rate of innovation and creativity, having a better understanding of the global market, developed problem-solving, employee development, and improvement of corporate attractiveness of the organization. This essay has also pointed out the challenges that may be faced by a diversified workforce that arise from the differences in individual traits, preferences, and orientations of the employees.
As it got captured in the introduction part of this essay, due to globalization and other changes, workforce diversification is the only option for any organization, business or otherwise, that wants to keep up with the new trends. This gets supported by Wentling and Palma's study in 1997 that predicted future trends related to diversity. Some of the predictions were that the American society would be more diverse, there would be an increase in globalization of corporations, and various work would be a reality for most organizations (Wentling& Palma-Rivas, 1997). The other predictions were that there would be an increase in the involvement in diversity issues by senior managers, and that training in diversity would get included with additional training (Wentling& Palma-Rivas, 1997).
The illustrated importance of diversification at the workplace warrants additional researches to be carried out to identify relevant changes in the society, and to determine the best ways through which organizations can be convinced to adopt diversity. Additionally, due to the deficiency in research that seeks to explore how the challenges of diversity can get managed, more studies should be carried out to help organizations that have adopted variety to enjoy the benefits maximally.
References
Cletus, H. E., Mahmood, N. A., Umar, A., & Ibrahim, A. D. (2018). Prospects and Challenges of Workplace Diversity in Modern Day Organizations: A Critical Review. HOLISTICA–Journal of Business and Public Administration , 9 (2), 35-52.
D’Netto, B., & Sohal, A. S. (1999). Human resource practices and workforce diversity: an empirical assessment. International Journal of Manpower , 20 (8), 530-547.
Hewlett, S. A., Marshall, M., & Sherbin, L. (2013). How diversity drives innovation. Harvard business review , 91 (12), 30-30.
Okoro, E. A., & Washington, M. C. (2012). Workforce diversity and organizational communication: Analysis of human capital performance and productivity. Journal of Diversity Management (Online) , 7 (1), 57.
Pitts, D. W., & Recascino Wise, L. (2010). Workforce diversity in the new millennium: Prospects for research. Review of Public Personnel Administration , 30 (1), 44-69.
Saxena, A., (2014). Workforce diversity: A key to improving productivity. Procedia Economics and Finance , 11 , 76-85.
Wentling, R. M., & Palma-Rivas, N. (1997). Current Status and Future Trends of Diversity Initiatives in the Workplace: Diversity Experts' Perspectives. Diversity in the Workforce Series Report# 2.
