kerala university mba Subject:Managing diversity in workplace Module 1

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MANAGING DIVERSITY IN WORKPLACE
Unit I: Introduction to Diversity - Fundamentals of Diversity – Levels of Diversity
Discrimination –Forms of discrimination – Models and process of Diversity - Theories of
diversity.
INTRODUCTION TO DIVERSITY
The ever-increasing globalization of the world has given rise to an increase in factors which
cause g rowing heterogeneity on the labour market and in organizations. These factors include:
Demographic changes, the growing demand for manpower, growing employment of women and
the endeavor towards greater inclusion of migrants and people with a disability into the work
process. Ignoring these facts could have far reaching negative consequences for organizations in
the future. It represents a significant global phenomenon which should be monitored by both
management theoreticians and practitioners.
Diversity and management thereof the necessity of which stems from social and economic trends
causing changes in the world of labour, is the focus of Diversity Management.
 Diversity (fundamentals)
The concept of diversity is based on individual acceptance and respect. It is an understanding
that individuals are unique and different.
Diversity can be defined as the sum of the ways that people are both alike and different.
Diversity is difference between two or more human beings. It can be treated as human
differences due to age, gender, income, disability, marital status, geographical area, nationality,
religion, etc.
Diversity can generally be defined as recognizing, understanding and accepting individual
differences irrespective of their race, gender, age, class, ethnicity, physical ability, race,
Sexual orientation, spiritual practice and so on.
 Diversity encompasses race, gender, ethnic group, age, personality, cognitive style,
tenure, organizational function, education, background and more.
 Diversity not only involves how people perceive themselves, but how they perceive
others and perceptions affect their interactions.
 Successful organizations recognize the need for immediate action and are ready and
willing to spend resources on managing diversity in the workplace now.
 Promoting and supporting diversity in the workplace is an important aspect of good
people management - it‟s about valuing everyone in the organisation as an individual.
The study of diversity can be categorized in to two broad categories (Diversity can be classified
into two dimensions)
(i) Primary
(ii) Secondary.
The primary category includes the differences of human beings related to age, gender, sex, etc.
These differences have an impact on initial encounters and can be easily identify throughout the
world. While, the secondary category includes education level, religion, income level,

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geographical location, nationality, etc. These cannot be easily identified and have a deeper
impact on person‟s personality. The secondary differences can only be identifying after some
interaction and conversation.
In present modern world, every human being interacts with each other through various
modes of communication. These can be e-mail, mobile phone, twitter, Facebook, Whatsapp,
internet, etc., besides face to face communication. People of different backgrounds, culture,
nations are interacting throughout the world. For effective communication and effective business
practices at the workplace these people will have to learn to be tolerant.
Diversity fundamentally influences individual working groups and teams.
 Wellner, (2000) conceptualized diversity as representing a multitude of individual
differences and similarities that exist among people.
 Esty,et.ol. (1995) defined diversity as acknowledging, understanding, accepting, valuing
and celebrating differences among people with respect to age, class, ethnicity, gender,
physical and mental ability, race, sexual orientation and spiritual practices.
 According to Gardenswartz & Rowe, diversity “encompasses all of the ways that human
beings are both similar and different. It involves variations in factor we control as well as
those over which we have no choice”.
Thus diversity can be coined as understanding individual uniqueness and recognizing individual
differences. These can be along the dimensions of race, ethnicity, gender, sexual orientation,
socio economic status, age, physical abilities, religious, beliefs, political beliefs or other
ideologies. It‟s the exploration of these differences in a safe, positive and fostering environment.
Diversity means more than just acknowledging and tolerating differences.
It‟s a set of conscious practices and involves:
(a) Understanding and appreciating interdependence of humanity, cultures and the natural
environment
(b) Practicing mutual respect for qualities and experiencing that are different from our own
(c) Understanding that diversity includes not only ways of being but also ways of knowing
(d) Recognizing that personal, cultural and institutionalized discrimination creates and sustains
privileges for some while creating and sustaining disadvantages for others and
(e) Building alliances across differences so that we can work together to eradicate all forms of
discrimination.
Thus, conceptualizing Diversity in a broader sense, it tends to advocate inclusiveness and serve
as a reminder that diversity does not only imply the enforcement of affirmative action as
prescribed by law, but also entails other motivation for attending to diversity such as, benefitting
from the value of different perspectives in the workplace .
Four Layer Model of Diversity
The characteristics representing diversity are illustrated in Gardenswartz and Rowe‟s Four Layer
Model of Diversity. According to Gardenswartz & Rowe the four layers of diversity are
organizational dimensions, external dimensions, internal dimensions and personality. This model
can help the manager to understand that diversity comprises of many characteristics of people at

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work and not only few. The diversity mature organisation will seek to understand these factors
and dimensions of diversity ensuring to bring out all aspects of an individual talents and abilities
in support of the organization‟s mission and goals.
Organizational Dimension
It represents the outermost layer and consists of characters such as management, status, union,
affiliation, work location, seniority, divisional department and work content. The characteristics
of diversity associated with this layer are items under the control of the organization in which
one works. Much attention of diversity effort is focused on issues of preferential treatment and
opportunities for development or promotion.
External Dimension
This layer represents those characteristics that deal with the life choices of an individual. The
individual exercises a higher level of control over these characteristics over those that in the
organisation dimension and might change over time. The characteristics in this layer are personal
habits, recreational habits, religion, educational background, work experience, appearance,
status, marital status, geographic location and income.
Internal Dimension
An individual has no control over these characteristics. Characteristics of this layer are assigned
at birth such as age, race, ethnicity, gender and physical ability. Often these characteristics are
the sources of prejudice and discrimination.
Personality
It is described as traits and stable characteristics of an individual that are viewed as determining
particular consistencies in the manner in which the person behaves in any given situation and
over time. The personality of an individual is influenced by the other three levels of the model. A
manager who wants to understand diversity and form an effective diverse team need to pay
attention to all. The above layers of diversity with the goal of using both differences and
similarities enrich the work environment and bring every employee closer to their organizations‟
mission.
Cultural diversity

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Cultural diversity acknowledges the existence of broad cultural groups within Indian culture.
Cultural diversity has been part of India's history, and through it, India culture is constantly
developing.
Diversity at the Workplace
Today the world with increasing globalization requires more interaction among people from
diverse cultures, beliefs and backgrounds than ever before.
Business organisation in the developed and developing countries are all caught up in the web
which has heralded increased demographic diversity in the workplace.
What leads an organisation to construct a diverse workplace environment?
Probably this can include various factors such as globalization of the market place, presence of
more diverse workplace, operational changes of organizations like acquisition, mergers and
transfer for facilities overseas or increasing no. of women and minorities entering the workforce
or +external (customers, suppliers, civil liberties group or any social, legal, economic and other
imperatives) or internal (employee groups or change in managers) pressures.
Cox, argues that organizations experiences three stages in the evolution of towards a diversity
sensitive environment i.e. Monolithic, Plural and Multicultural.
In the Monolithic stage the organisation has a minimal amount of structural integration
for e.g. white male employee‟s dominancy. Others are expected to assimilate and accept the
dominant culture of the organisation. This type of organisation may have women or marginalized
members in their workforce but not in position of any sort of leadership or power.
In the plural or non-discriminatory stage the organisation has more heterogeneous
members than monolithic. This type of organisation seeks to empower minorities by providing
them equal advancement opportunities. They adhere to affirmative action or EEO regulations as
a result of government regulations or due to threat of employee grievances. These organizations
also meet quota in hiring and promotion.
In the multicultural stage differences are recognized and respected. The working culture
allows employee freedom of choice. Policies and procedures are flexible, applied equitably and
no one is exploited.
Workplace Diversity
According to Josh Greenberg, "Workplace diversity refers to the variety of differences between
people in an organization”.
Workplace Diversity can be defined as how the various similarities and differences in a group
of people unite towards a common organizational goal on an individual and sub group level.
These differences and similarities can be present in varying degrees and manifest in aspects such
as age, gender, race, culture, ideas, perspectives and preferences. Each employee comes with a
unique set of working values and needs that must be carefully handled by managers if they want
to benefit from what each employee has to offer to their organisation.
Workplace and diversity when combine, bring together a number of special skills
necessary for the improvement of an organisation bottom line which cannot be ignored. Having

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workplace diversity is considered to be a key point in today‟s business rather than just viewing it
through philanthropically.
With a realization that diversity brings about competitive advantage, partnering occurs among
diverse groups across all functional areas and is anchored by common goals. This reduces single
mentality and allows for increased creativity and innovation.
The benefit of diversity at workplace often cited by researchers and theorist alike like increasing
positive relationship, variety of ideas, a wider knowledgebase, varied perspectives and skills,
heightened creativity, increased effectiveness in problem solving, improved work performance
and broader market intelligence within the organisation.
Effects of Workplace Diversity on Organisation
Theoretically the workplace diversity literature espouses three different theoretical frameworks
for the examination of the possible effects of workplace diversity.
The first is social categorization describes the categorization of people based
on salient attributes like gender, ethnicity or age resulting in stereotyping on the basis of these
differences.
The second is similarity/ attraction theory which asserts that similarity on salient
and non-salient attributes like race or values increases interpersonal attraction and attachment
People who share similar important attitudes are more likely to be attracted to each other than
those who share less important attitudes.
The third is information and decision making theory which examines the impact
of distribution of information and expertise on work teams
Some of the positive effects of diversity at workplace:
 Promotes cost-effective employment relation
 Enhances customer relations
 Enhances creativity, flexibility and innovation
 Promotes sustainable development and business advantages
Company’s Brand Image
When an organisation recognizes that diverse people have different needs, different values,
different desires in the workplace the organization tends to create a brand image of being a
company that values the diversity of its employees globally. Organisation which seeks
acceptance and tolerance for these differences in order to create health and productive workplace
is viewed as a benchmark company for others.
Company’s Bottom Line
Workforce diversity positively affects a company‟s bottom line by increasing the skill base and
range of talent among employees. When a company recruits from a wider pool of candidates they
are able to hire large number of exceptional. Diversity at workplace enhances organizational
productivity, profitability and responsiveness.
Various studies suggest that by developing diverse workforce a firm can expand its customer
base and appeal. Diverse employees are better at communicating and understanding the needs of
diverse customers thereby increasing the quality of customer services and relations.
Better working environment for employees

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A common premise in the literature is that more diverse workplace promotes personal
development and higher level of satisfaction. Effective diversity in the workplace improves the
quality of the work environment, job satisfaction and performance of the employees.
A diverse environment can increase worker satisfaction only as long as discrimination does not
exist. By making diversity integrating into firm‟s social and business fabric, firm can increase its
commitment towards retention and personnel development of employees.
Attract and Retain Talent
One reason to diversify a workplace is talent shortage. In an era of critical talent shortage
organisation has to attract, motivate, retain and utilize their valuable employees effectively if
they are to be competitive. In order to get the best out of workforce companies does not exclude
any particular group by gender, race or religion but instead construct an inclusive environment
where everyone is invited and treated fairly which creates greater effect on organisation success
by reducing the cost incurred due to labour turnover.
Managing Diversity
 Managing diversity is defined as "planning and implementing organizational systems and
practices to manage people so that the potential advantages of diversity are maximized
while its potential disadvantages are minimized.
 Managing diversity well provides a distinct advantage in an era when flexibility and
creativity are keys to competitiveness. An organization needs to be flexible and adaptable
to meet new customer needs.
 Heterogeneity promotes creativity and heterogeneous groups have been shown to produce
better solutions to problems and a higher level of critical analysis. This can be a vital
asset at a time when the campus is undergoing tremendous change and self-examination
to find new and more effective ways to operate.
 With effective management of diversity, the campus develops a reputation as an
employer of choice. Not only will you have the ability to attract the best talent from a
shrinking labor pool, you can save time and money in recruitment and turnover costs.
 The basic notion of Diversity Management is that recognition of the value of diversity of
employees serves towards the economic success of the firm or institution.
Its foundation is the integration of principles and approaches of diversity into everyday
managerial practice and into the process of learning in the scope of the company.
Managing diversity focuses on maximizing the ability of all employees to contribute to
organizational goals.
Managing and valuing diversity is a key component of effective management which can improve
workplace productivity. Demographic changes will require organizations to review their
management practices and develop new and creative approaches to manage people. Looking to
the need of managing diverse workforce effectively, the term diversity management plays a
significant role.
Diversity management is an ongoing process that unleashes the various talents and
capabilities which a diverse population brings to an organisation, community and society, so as
to create a wholesome inclusive environment i.e. “safe for differences”, enables people to “reject

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rejection” celebrating diversity and maximize the full potential of all where everyone benefits for
e.g. the law requires only to employ a certain percentage of people with disabilities and we
choose the easiest way by employing them in administrative sort of jobs but managing diversity
is not about restricting these people to certain jobs but making possible for them to work in
diverse sectors and fields by providing them facility as per their requirement of their disability
and with advent of technology it has made possible for organizations to some extent.
Diversity Management as the name says is a management strategy. It is applied
predominantly top down as a managerial instrument. Its purpose is to enhance the effectiveness
and productivity of organizations. The central idea of diversity management is that the workforce
consists of a diverse population of employees and through recognizing, valuing, promoting and
utilizing this diversity organizational improvement can be achieved.
There are various reasons explaining the need to manage diversity. They are:
A large number of women are joining the work-force.
Work-force mobility is increasing.
Young workers in the work-force are increasing
Ethnic minorities' proportion constantly in the total work-force is increasing.
International careers and expatriate are becoming common.
 LEVELS OF DIVERSITY DISCRIMINATION (Different Kinds /Levels
of Diversity in Organization)
Mainly there are two types. They are:
1. Surface level diversity
2. Deep level diversity
Surface-level diversity, as illustrated in Figure, consists of differences that are immediately
observable, typically unchangeable, and easy to measure. In other words, independent observers
can usually agree on dimensions of surface-level diversity, such as another person's age, gender,
race/ethnicity, or mental or physical disabilities.

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 Surface level diversity are those differences that are easily noticeable such as age,
gender, ethnicity/race, culture, language, disability etc.
 Surface level diversity is easy to be measured and managers/recruiters can fall into the
wrong practice of discrimination based on these factors.
 For example, thinking that performance degrades with age, they might prefer younger
workforce. Surface level diversity is often difficult to change. For e.g. racial differences
cannot be scaled down to zero.
Age discrimination is treating people differently (e.g., in hiring and firing, promotion, and
compensation decisions) because of their age. It's commonly believed that older workers are
unable to learn how to use computers and technology, are incapable of adapting to change, are
sick more often, and, in general, are much more expensive to employ than younger workers.
Unfortunately, attitudes like this are all too common.
For example, 80 percent of human resource managers surveyed by Personnel
Management magazine said that age discrimination was a major problem in their organizations
and those older employees were not receiving the same training and promotional opportunities as
younger workers. As for the widespread belief that job performance declines with age, the
scientific evidence clearly refutes this stereotype. Performance does not decline with age,
regardless of the type of job. To start, managers need to recognize that age discrimination is
much more pervasive than they probably think. And, because studies show that interviewers rate
younger job candidates as more qualified (even when they aren't), companies need to train
managers and recruiters to make hiring and promotion decisions on the basis of qualifications,
not age.
Gender discrimination means treating people differently because of their gender. Gender
discrimination and racial/ethnic discrimination (discussed in the next section) are often
associated with the glass ceiling, the so-called invisible barrier that prevents women and
minorities from advancing to the top jobs in organizations.
To what extent do women face gender discrimination in the workplace? In
some ways, there is much less gender discrimination than there used to be. For example, while
women held only 17 percent of managerial jobs in 1972, today they hold nearly 43 percent of
managerial jobs, a number that nearly parallels the percentage of women (45 percent) in the work
force. However, in general, gender discrimination continues to operate via the glass ceiling at
higher levels in organizations. For instance, women hold only 5 percent of top-level management
jobs, up from 0.5 percent in 1979. However, beyond these reasons, it's likely that gender
discrimination plays a major role in the slow advancement of women into higher levels of
management. And even if you don't think so, a clear majority of the women you work with
probably do. Indeed, one study found that more than 90 percent of executive women believed
that the glass ceiling had hurt their careers.
Racial and ethnic discrimination means treating people differently because of their race or
ethnicity. Sometimes studies show that the disparities are due to pre-existing differences in

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training, education, and skills, and that when African, Hispanic, Asian, and white Americans
have similar skills, training, and education, they are much more likely to have similar jobs and
salaries. However, other studies provide increasingly strong direct evidence of racial or ethnic
discrimination in the workplace. For example, one study directly tested hiring discrimination by
sending pairs of black and white males and pairs of Hispanic and non-Hispanic males to apply
for the same jobs. Another step is to eliminate unclear selection and promotion criteria. Vague
hiring and promotion criteria allow decision makers to focus on non-job-related characteristics
that may unintentionally lead to employment discrimination. Instead, selection and promotion
criteria should spell out the specific knowledge, skills, abilities, education, and experience
needed to perform a job well.
According to the Americans with Disabilities Act), a disability is a mental or
physical impairment that substantially limits one or more major life activities. One out of five
Americans, or more than 49 million people, has a disability. Disability discrimination means
treating people differently because of their disabilities.
In most cases, whether intentional or not, discrimination toward people with
disabilities results from incorrect stereotypes, incorrect expectations, and the emotional
responses that people have when interacting with people with disabilities.
Stereotypes are negative, false, over-generalized beliefs about people in particular categories.
People with disabilities are often thought to be shy, honest, helpless, hypersensitive, depressed,
unappealing, bitter, unaggressive, insecure, dependent, or less competent. Inaccurate stereotypes
of people with disabilities can lead to inaccurate expectations about on-the-job performance. For
example, the stereotypes listed above lead to the expectation that people with disabilities are less
qualified and have difficulty interacting with others. Consistent with these expectations, people
with disabilities are less likely to be hired or recommended for promotion. Also, it's well
established that people react emotionally to others' physical or mental disabilities. Reactions,
which range from simple discomfort to negative attitudes to revulsion, can lead organizational
decision makers to not hire or promote people with disabilities.
Deep-level diversity consists of differences communicated through verbal and nonverbal
behaviors that are learned only through extended interaction with others. Examples of deep-level
diversity include personality differences, attitudes, beliefs, and values. In other words, as people
in diverse workplaces get to know each other, the initial focus on surface-level differences such
as age, race/ethnicity, gender, and physical capabilities is replaced by deeper, more accurate
knowledge of co-workers.
If managed properly, the shift from surface- to deep-level diversity can accomplish two things.
First, coming to know and understand each other better can result in reduced prejudice and
conflict. Second, it can lead to stronger social integration. Social integration is the degree to
which group members are psychologically attracted to working with each other to accomplish a
common objective, or, as Kevin Kelly described it, "working together to get the job done."

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 Deep level diversity on the other hand, is not easily noticeable and measurable since they
are communicated through verbal and non-verbal behaviours.
 Examples are personal differences in attitudes, values, beliefs and personality.
 For e.g. a person belonging to a minority ethnic group may be treated differently by the
others since his culture and language might be different. But as everyone interacts with
him more, they seem to forget the surface level differences and then they begin to notice
his differing values and beliefs and later on, his personality differences.
 People often use the dimensions of surface-level diversity to form initial impressions
about others. However, over time, as people have a chance to get to know each other,
initial impressions based on age, gender, race/ethnicity, and mental or physical
disabilities give way to deeper impressions based on behavior and psychological
characteristics. When we think of others this way, we are focusing on deep-level
diversity. Deep-level diversity are differences that can only be learned through extended
interaction with others. Examples of deep-level diversity include personality differences,
attitudes, beliefs, and values. In short, deep-level diversity means getting to know and
understand one another better. And that matters, because it can result in less prejudice,
discrimination, and conflict in the workplace. These changes can then lead to better
social integration, the degree to which organizational or group members are
psychologically attracted to working with each other to accomplish a common objective.
 A disposition is the tendency to respond to situations and events in a predetermined
manner. Personality is the relatively stable set of behaviors, attitudes, and emotions
displayed over time that makes people different from each other. For example, think of
your closest friends.
Forms of Diversity in the Workplace
 Race and Gender
 Culture and Religion
 Age
 Physical Abilities
 Education and Life Experience
 Types of Discrimination in the Workplace
In the workplace, everyone deserves to feel safe and comfortable, which is why our government
has important anti-discrimination and anti-harassment laws. As an employer, it is vital you be
aware of the common types of discrimination and implement policies to minimize their
occurrences. Legally recognized characteristics protected against discrimination include the
following:

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 Direct discrimination
Direct discrimination is when you‟re treated differently and worse than someone else for certain
reasons. The Equality Act says you‟ve been treated less favorably.
Direct discrimination can be because of:
 age
 disability
 gender reassignment
 marriage or civil partnership
 pregnancy and maternity
 race
 religion or belief
 sex
 Sexual orientation.
The Equality Act calls these things protected characteristics.
 Indirect discrimination
The law which says you mustn‟t be discriminated against is called the Equality Act
2010. Discrimination which is against the Equality Act is unlawful. This means you can take
action in the civil courts.
Indirect discrimination is when there‟s a practice, policy or rule which applies to everyone in
the same way, but it has a worse effect on some people than others. The Equality Act says it puts
you at a particular disadvantage.
 Victimization
Victimization is when someone treats you badly or subjects you to a detriment because you
complain about discrimination or help someone who has been the victim of discrimination.
Because the Equality Act recognizes you may be worried about complaining, you have extra
legal protection when you complain about discrimination.
1. Age
Protected under the Age Discrimination in Employment Act, age is a characteristic often targeted
in instances of discrimination. This kind of discrimination occurs when employers make
decisions based on age stereotypes or preference over merit. For example, if a sales company
actively hires the youngest applicants, this is an example of age discrimination.
2. Disability
According to the Americans with Disabilities Act of 1990, employers may not turn away
qualified professionals due to a serious disability. In fact, many employers may be required to
provide reasonable accommodations for a disabled hire. The document covers businesses with
more than 15 employees.
Employers, by law, are required to provide reasonable accommodation to job
applicants and employees with a disability. Employers cannot discriminate disabled employees
in any aspect of employment. This includes job assignments, hiring, firing, promotions, training,

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layoffs, or any other condition of employment. Employers are also prohibited from asking job
applicants medical questions or requiring them to take a medical exam before being hired.
3. Race
In addition to protecting other characteristics, Title VII of the Civil Rights Act of 1964 prohibits
workplace discrimination based on color or race. Discrimination is prohibited at every point of
the employment process, from the initial application to future career promotions. Segregation
and harassment based on race are also illegal under this act.
Racial discrimination is the type of discrimination most people are familiar with. This
involves treating an employee unfavorably because of their race, or because of certain
characteristics associated with race, such as facial features or skin color.
4. National Origin
National origin is protected under the Title VII Civil Rights Act of 1964, along with several
other characteristics. You are not allowed to deny job access due to an employee‟s accent or
harass employees based on their national background.
It is illegal to treat an employee or an applicant unfavorably because of their country of
origin, appearance, accent, or ethnicity. This law forbids discrimination in any aspect of
employment.
5. Pregnancy
The Pregnancy Discrimination Act adds to the Title VII Act and prohibits discrimination based
on pregnancy. Under the law, pregnant individuals must be treated in the same manner as other
employees with similar responsibilities. The law also covers the stipulations of pregnancy leave
and on-going health benefits.
6. Religious
As with race and national origin, religious freedoms are protected under the Title VII Civil
Rights Act of 1964. Employees cannot be fired or hired for maintaining their personal beliefs.
Reasonable accommodations must be made for religious garb, and you may be required to grant
time off for important religious holidays.
7. Gender/Sex
Sex discrimination occurs when individuals are treated differently based on their sexual or
gender identity. Currently, laws are in place to protect workers against discrimination based on
their sex, but some gender identities are not protected under these laws. For example, many
transgender individuals find they are not adequately protected under existing legislation.
When paying a salary to men and women of the same qualifications, responsibility,
skill level, and position, employers are forbidden to discriminate on the basis of gender. Also,
businesses are forbidden from lowering one gender's salary in order to equalize pay between men
and women.
8. Sexual Harassment
Sexual harassment is a specific form of sex or gender discrimination. In many cases, it places
women-identified individuals in positions of less power. However, men and others also fall
victim to sexual harassment. Sexual harassment is defined as unwelcome sexual behavior and
advances.

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Harassment is prohibited in the workplace and becomes unlawful under the following
circumstances:
 The employee is forced to endure the offensive conduct in order to remain employed.
 The harassment is so severe that it creates a hostile, abusive, or intimidating work
environment.
Employers are held accountable for harassment by a supervisor when their conduct results in
negative employment action.
9. Sexual Orientation
At the federal level, there exist few protections for queer-identified individuals. Fortunately,
many states have seen fit to implement their own anti-discrimination laws to protect queer
people. Currently anti-discrimination legislation protecting the queer community is making its
way through Congress, which may expand federal anti-discrimination protection to the queer-
identified individuals.
10. Equal Pay
The U.S. Equal Employment Opportunity Commission enforces various equal pay legislation
and acts. Under these laws, you are required to provide equal compensation for comparable
positions, experience and qualifications regardless of the employee‟s race, religion, age, sex,
national origin, color or disability. Failure to do so may leave you open to a discrimination
lawsuit.
Advantages and Disadvantages of Diversity management
There are some advantages and Disadvantages that come with managing a diverse workforce of
which management must be aware of to guide them in the decision making processes in the
organisation. They also reflect on the findings on the research conducted on the case companies.
Advantages
 High level of Productivity
 Exchange of varieties of ideas and Team work
 Learning and growth
 Effective Communication
 Diverse Experience
High level of Productivity: Increasing productivity at the workplace has been one of the major
challenges for managers and leaders and to the company in general. Due to the fact that every
organisation has its own unique company structure and objectives, different strategies may be
used to challenge or address the company in order to increase productivity.
One of those strategies involves adopting workplace diversity and managing it effectively. When
management takes the welfare of its workers at heart by means of offering them proper
compensation, health care and employee appraisal, It enables workers to feels they belong to the
company irrespective of their cultural background by remaining loyal and hardworking which
helps to increase the company‟s productivity and profit.

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Exchange of varieties of ideas and Team work: In recent times teamwork is increasingly
advocated by businesses and organizations as a means of assuring better outcomes on tasks and
also for the delivery of goods and services. A single person taking on multiple tasks cannot
perform at the same pace as a team could; therefore each team member brings to the table
different ideas and offers a unique perspective during problem solving to effectively arrive at the
best solution at the shortest possible time.
Learning and growth: Diversity at the workplace creates an opportunity for employee‟s personal
growth. When workers are being exposed to new cultures, ideas and perspectives, it can help
each person to intellectually reach out and have a clearer insight of their place in the global
environment and hence their own surroundings. The more time spent with culturally diverse co-
workers can slowly break down the subconscious barriers of xenophobia and ethnocentrism,
thereby encouraging workers to be more experienced members of the society.
Effective Communication: Workplace diversity can immensely strengthen a company‟s
relationship with some specific group of customers by making communication more effective.
Customer service department is one of the areas where effective communication is crucial. A
customer service personnel or representatives can be paired up with customers from their
specific area or location, making the customer feel at home with the representative and thus with
the company. For example some companies in the south-western part of the United States often
prefer to hire customer service personnel‟s who are bi-lingual to deal with customers who speak
Spanish in their native language.
Diverse Experience: Employee and their co-workers that come from a diverse background bring
to the table some amount of unique perceptions and experience during teamwork or group tasks.
Pooling the diverse skills and knowledge of culturally distinct employees together can
immensely benefit the company by strengthening the responsiveness and productivity of the
team to adapt to the changing conditions. Every diverse culture has its own strengths and
weaknesses, therefore in addition to their individuality; every diverse employee possesses a
unique strengths and weaknesses that is derived from their culture. When each workers´ unique
trait is managed properly and effectively in the organization, it can leverage the strengths and
complement its weaknesses to highly impact the workforce.
Disadvantages
 High Cost of Diversity Management
 Discrimination
 Communication issues
 Numerous Accommodation
 Incorporation issues
 Stereotyping
 Gender
 Ageism
High Cost of Diversity Management: To increase job satisfaction, workplace diversity
management could sometimes be very costly, when an organisation strives to effectively manage

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the diverse workforce, it undergoes mandatory diversity training during which supervisors,
employees, and managers receive lessons on the best way to interact with employees and clients.
In recent times, there are lots of Diversity management program available where companies
could choose from, taking into account the size of the company and it‟s employees. Some
training programs require a high travelling and participation cost.
Discrimination: One significant disadvantages of working with a diverse workforce is
discrimination in the part of both managers and employees. It can exist but hidden aspect of a
poorly managed workplace. When a worker is being discriminated, it affects his ability to
perform well and it also affects the perception of equity and raises issues of litigation.
Communication issues: Workplace diversity can negatively impact communication in the
company. It can place an obstacle in the way of effective communication, which can cause a
decrease in productivity and dampen the cohesiveness among workers. Even though spending
time with employees by getting to know them helps reduce and in some instances eradicate
communication barriers during a long-term, co-workers orientation periods and an individual´s
first impressions can be difficult to control when culture clash.
Myriad Accommodation: Although the premise of workplace diversity is mutual respect, making
way to accommodate each diverse worker´s request can be burdensome of employers, which
makes it difficult to manage diversity. Some employee work constraints such as race, religion,
country of origin and gender can sometimes be overwhelming if the diversity in the organisation
tends to be so much to the extent that the company has to employ a fulltime staff to keep track of
accommodating the employee‟s needs. For example, some Muslim employees may decide not to
work on Fridays, as it is a special day for prayers. In such instances employers has to make
provision for someone to take their shift when the need arises.
Incorporation issues: Social incorporation at the workplace cannot be influenced to the maximum
degree. Forming exclusive social groups is often a natural process that cannot be controlled
sometimes. Therefore, companies tend to experience some degree of informal divisions amongst
their workers thereby creating conditions where diverse employees avoid having contact with
each other during leisure times and when work is over. Although this scenario doesn´t seem
fundamentally wrong, it can reduce the effectiveness of knowledge sharing amongst teams and
hence decreasing productivity.
Challenges of Diversity in the Workplace / Barriers to effective diversity management
 Communication
 Resistance to change
 Implementation of diversity in the workplace policies
 Successful Management of Diversity in the Workplace
 Difficulty in balancing career and Family
 Unsupportive and hostile working environment for diverse employees
 Fear of discrimination
 Diversity is not seen as an organizational priority
• The difficulty in balancing career and Family: Women are most likely to be presented with
this challenge. In modern culture, women are still expected to take care of young children

16. 16
and to manage the household. Although attitudes are shifting, women still bear the greatest
household responsibilities.
• An unsupportive and hostile working environment for diverse employees: Diverse
employees are excluded from social activities and are thus prevented from forming networks
among other employees.
• Fears of discrimination: People fear of being discriminated upon and therefore are reluctant
to apply for jobs where there are different nationalities than theirs.
• Diversity is not seen as an organizational priority: Employees may not view diversity
efforts as work contributing to the success of the organization.
• Resistance to change: People resist change for reasons such as fear of failure, mistrust and
peer pressure.
DIMENSIONS OF DIVERSITY
Diversity is synonymous of Difference. Gardenswartz and Rowe12 are the authors of one of the classic
models to analyze differences by 4 levels or dimensions of diversity.
It should be remembered that:
1) An individual can obviously belong to more than one category.
2) Belonging to an identity group is not a permanent or unchangeable circumstance.
3) Each group is heterogeneous
Internal dimensions:
They represent the classic dimensions or “usual suspects” (age, ethnic origin,...). Present in the UE
legislation, they are usually elected, in whole or in part, as priorities by most organizations (as the
British Council) 14. However, it is necessary to evaluate if they provide information, when considered
in isolation, about the individual characteristics - it would be something similar to judge the content of
a book just by having a look to the cover.- For this reason, it is necessary to regard another internal
dimension: personality. Thus, those personal characteristics that leader of organizations consider
positive or disappointing, are a key element in assessing the possibilities of success of employees and
come from the following dimensions:

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Age
Generational diversity is a subject of special relevance in Spain and in Europe due to the significant
ageing of population and consequently, of workforce. The financial press and specialized literature on
diversity management have dealt with this concern15, taking into account the previsions that the
Spanish population will be the most elderly by 205016.
Gender
Though this is probably the aspect which has undergone more advances in the last years -generally
regarded the only mainstream dimension- some factors as the salary gap, the glass ceiling or the few
numbers of women in the upper rungs of the corporate ladder (Boards of Directors), show that there is
still a long way to go.
Sexual Orientation
Organizations usually feel uncomfortable when enquired about this dimension. “Why should we have
any interest in what people do in their private life?” But the question is that there is not a clear
boundary between working and private life. Organizations were sexual minorities can openly chat
about their private life without fuelling gossiping around the coffee machine, are usually mature with
respect to the other dimensions.
Ability
Though the original model only mentions differences related to physical abilities (for instance, reduced
mobility), we would also include cognitive differences (people with Down Syndrome).
Ethnic and Race Origin
Though pioneer countries in the treatment of diversity as the US usually refer to race or race origin
(for historical reasons), in the context of the European Union the broader term of “ethnic or race
origin” is used.
In Spain there was already ethnic and race diversity before the arrival of immigrants in the 90s: the Roma
People (Roma ethnicity) But, besides ethnic traits (as in the case of people coming from sub- Saharan
countries), the phenomenon of immigration is also characterized by other cultural aspects such as
language (Quechua spoken by Peruvians and Bolivians) and religion (people coming from Pakistan, a
Muslim-majority country.) Today the development of cultural competence is essential for organizations,
both for companies (especially those undergoing globalization processes) and for Public Authorities and
NGOs that have to meet new requirements and provide support to new citizens
External Dimensions:
They differ from internal dimensions in that they can change throughout the life of a person-people get
married and divorced, they change their academic and professional status, etc).
• Geographical Origin: To what extent may geographical origin imply certain assumptions?
• Socio-economic status: exerts a multiplying effect upon the other differences making them more
noticeable. It includes, for instance, clothing styles that determine the perceptions and
expectations about the level of competence and/or “eligibility” for senior positions).
• Free-time habits and hobbies: they are important because they permit the establishment of
informal relationships and have, therefore, an effect on the visibility of the person within the or-
ganization (for instance, playing golf or attending bullfighting).
• Education: e.g. the importance of credentials, the attendance to a state or private university,
prestigious degrees or minority ones, etc.
 Physical Appearance: its relevance comes from the “Halo effect” that make us attach positive
characteristics to good-looking people (a study of the University of California states that people
who stick to traditional canons of beauty earn 12% more than their peers18).

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• Marital status or family situation: the importance of this dimension becomes evident with the
existence of policies on flexibility and reconciliation of work and private life.
Organizational Dimensions:
The last layer of diversity has to do with the organization itself, especially with aspects such as the
functional or departmental division, line of business, hierarchy of managers, etc. Analyses of working
environments make it clear19 that the best indicator of the degree of commitment of people with their
company is not the salary or the working conditions, but the relationships with their line managers. Then,
to the extent that team managers represent a behavioral model of conduct regarding the treatment and
respect for differences, this speaks volumes of the degree in which those differences will be valued or,
otherwise, considered as something to evade, ignore or even leave out.
 MODELS AND PROCESS OF DIVERSITY
Models
1. Rationales Model
 Before investing in global diversity management, companies need to discuss and decide
on their rationales for adoption of diversity, as it is not self-evident that diversity is a
critical issue for organizations.
2. Strategic Model
 Global arms face the challenge of standardizing or localizing their diversity management
efforts. The choice between localization and standardization is a false comparison, as
many global organizations opt for mixed approaches.
 These are outlined as localized, universal, and transversal strategies
Localized
 Global organizations may choose to localize their diversity management strategies if
there is high degree of dissimilarity between home and host country approaches and also
little scope for standardization due to differences in regulatory contexts.
Universal
 A universal strategy for GDM overcomes regional and national differences in practice of
diversity through a “one best way” approach. The main difficulty in adoption of the
universal strategy is that it is blind to differences across national borders, which is
problematic when overlooked

19. 19
Transversal
 The transversal strategy involves a commitment to dialogue and negotiation among
country representatives of a global organization, in which national priorities for managing
diversity are discussed in a bottom-up fashion. In the process, the organization arrives at
a set of common principles that all parties may commit to.
3. Process Model
It is termed a process model, as it depicts inputs, activities, and outputs of managing global
diversity across time. The model illustrates that in order to build up the suggested benefits of
diversity management through a set of interventions, an organization should first and
foremost have leadership support and other conditions that encourage diversity to flourish
4. Contextual Model
 The contextual model of diversity management suggests that activities gain shape
through a set of influences at the global, national, sectoral, organizational, and individual
levels over time and place.
 The main utility of the contextual model is that it allows practitioners to map out the key
influences across international, national, sectoral, organizational, and individual levels.

20. 20
5. Intervention Model
 To address the diversity gap, the intervention model of lines up activities in terms of their
depth. Some diversity management activities remain at a shallow level, as they are
limited to a number of interventions that do not change the way organizations embrace
diversity and inclusion; others can effect deeper changes in organizations, driving the
organization toward an ideal state of full inclusion.
 Informational Interventions
 Structural Interventions
 Cultural Interventions
6. House Model
 The House Model was built for global organizations with diversity and inclusion
departments for their business on a global scale.
 This model is built to design a global strategy, while taking into account national as well
as business specific requirements.
7. Communication Model
 When a company invests resources in diversity management activities such as, promoting
better relations between diverse members and groups within the workforce, it often does
so without classifying its action as such.
 In essence, many activities that create or facilitate diversity may not be formally labeled
as diversity activities
PROCESS OF DIVERSITY (7 steps to more effective HRD)

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Successful diversity management is about unleashing the rich and diverse potential of an entire
workforce. Here are seven steps to build a better diversity strategy:
1. Define your terms
• Everyone has a different idea about what diversity means. Beyond race and gender, it can also
include but is not limited to considerations of age, ethnicity, religion, sexual orientation, mental
and physical capabilities, gender identity, family status, language, opinions and working style.
Define diversity for your organization as there is no one-size-fits-all solution.
2. Be realistic
• When setting goals, involve everyone who has a responsibility for diversity, from the CEO on
down, as buy-in is critical. But also manage their expectations. Diversity management is
complex and not every company will advance at the same pace.
3. Build in metrics
• Successful organizations typically require that their executives achieve measurable objectives.
• Like any operational function, diversity management should be accountable for measuring
progress with regards to specific, quantifiable long- and short-term goals.
4. Assemble your resources
• You can‟t achieve your goals as a company if you don‟t have the right human or fiscal
resources in place. A wish is not a fact. Just saying you want to become a diverse organization
doesn‟t guarantee that you will get there.
5. Set up a system
• Talent acquisition is not about attracting the best talent from a pool of outstanding individuals
of diverse backgrounds who will ultimately contribute to the ROI. Once you've attracted the
talent, it is critical to establish a process that will enable them to become an integral part of the
established culture of your organization.
6. Education is essential
• Everyone needs to be trained. Managers must be educated about the bottom-line benefits of
diversity and the processes necessary to achieve it. New talent and current employees must be
Define your terms
Be realistic
Build in metrics
Assemble your resources
Set up a system
Educate
Demonstrate CEO support

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given the coaching and skills they need to move forward in the company. Without sophisticated
ongoing training, you risk lose your best human resources to your competitors.
7. Demonstrate CEO support
• Employees take their cues from the top, so your most senior executive must be able to articulate
the business case for diversity
• Diversity is much, much more than a recruitment issue. It‟s a perpetual process, with an
ambitious goal: the creation of an organizational culture where the best people want to work,
where everyone is treated with dignity and respect, where people are promoted on their merits
and where opportunities for success are available to all. Embedding the principles of diversity
management in everything you do can be a stepping stone to achieving your company‟s most
ambitious business goals.
Diversity is the creation of an organizational culture where the best people want to work, where
everyone is treated with dignity and respect, where people are promoted on their merits and
where opportunities for success are available to all. Embedding the principles of diversity
management in everything helps in achieving your company‟s most ambitious business goals.
Theories of diversity / Diversity Management Theories
Diversity Management go back to “Equal Employment Opportunity/ Affirmative Action”
followed by “Valuing Differences” and then “Managing Diversity”. These evolving concepts
emerged from broader, social and historical developments.
 Institutional Theory of Diversity Management
This theory, based off of organization theory, recognizes that in order to determine an
organization‟s structure one cannot separate the social environment found within an
organization. In order to understand the structure of the organization it must also be understood
that the behaviour of employees in organizations and organizations themselves have limiting
factors such as legislation, laws, rules, regulations, and social and professional norms
 Resource Based Theory of Diversity Management
The main focus of Resource Based Theory of Diversity Management is how the implementation
of diversity will affect organizational resources. There are four categories of resources that
organizations possess: physical capital, financial capital, human capital, and corporate capital
resources. Organizations attempt to use these resources in ways that will assist and improve
business. From a business perspective organizations that are more diverse gain an advantage
compared to organizations that are homogenous.
 Evolution Theory of Diversity Management
The evolution theory of diversity management can be categorized into four stages evolving
initially with the stage of „EEO/AA‟ followed by „Valuing Differences‟ and „Managing
Diversity‟. Continuing on in this evolution is the more recent notion of „Global Diversity
Management‟.
Figure 1.2 Evolution of Diversity Management

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Stage One: Equal Employment Opportunity/Affirmative Action
EEO/AA is an outcome of the civil rights movement a term used to describe political equality
and betterment of social and economic conditions. In terms of workplace the past literature
pointed out how organizations have been legally forced to hire more broadly and also providing
a working environment that endures equal employment opportunity in terms of employees, job
status, promotion, benefits and layoffs This has resulted in management changing where
necessary the personnel policies and system within the confines of these new laws.
The literature dealing with the EEO/AA stage speaks of greater diversification of the workforce
in the terms of race and color. The proposed theory was for minorities who were traditionally
discriminated and must be given preferential treatment i.e. positive discrimination in areas
including social, political and economic. Introducing „Affirmative Action‟ (AA） on top of
Equal Employment Opportunity (EEO) was the solution for the corporate environment.
Stage Two: Valuing Differences
Literature on valuing differences casts its focus away from changes in demography of the
workforce, changing nature of the work or shift in values to the firm‟s workplace environment
and globalization. The literature notes that how management perspectives and motives that had
been based on legalistic concerns were now shifting towards an opportunistic approach to
harness the business advantage that flow from a diverse range of employees. Valuing Differences
study focuses on differences at three different levels.
Level First: The Theory of the Individual which comprehends the influence of individual
behavior in work and interactions with others within the same organization.
Level Second: The Group Theory focuses on how different individual traits influence the
dynamics of interaction within the groups and how these dynamics characterize group or team
outcomes. The theory advocates that each group forms a common sense of group/team work and
experience share of knowledge amongst each other.
Level Third: Theory of multiculturalism which calls for the recognition that differences between
people being good for the company, especially in terms of creativity, innovation and problem
solving.
According to, Thomas Valuing Differences stage saw management motivated in exploiting the
benefits in differences amongst company employees. If leveraged in a right way varied skills of
diverse workforce could be an asset to the company. By valuing differences an organisation is
able to create a situation where everyone is considered with dignity and treated with respect
which eventually empowers people and this empowerment translates into a more powerful

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workforce. Thus, a company who values differences fosters mutual respect amongst groups of
individual.
Stage Three: Managing Diversity
The Managing Diversity stage represents a more strategic attempt by top management to obtain
competitive advantage through integrating organization wide system and initiatives that harness
the differences found within its own workforce Management must view its employee diversity as
an asset which forms an essential part of the equation for corporate success and managing this
diversity can be the best ritual an organisation can follow.
Since, Managing diversity aims at empowering employees. It prescribes approaches that are
philosophically broad enough to encompass all dimensions of diversity. It also emphasizes the
managerial skills and policies required to optimize and emphasize every employee's contribution
to the organizational goals
. It emphasizes on the importance of strategic frameworks and attempts to align diversity
initiatives and programs with that of corporate objectives to have successful diversity
management at the workplace.
Stage Four: Global Diversity Management
There is very little empirical literature that provides us with insights into how diversity
management is being played out in the world of business in countries throughout the world. It
can be expected that further research will contribute to the literature and our understanding of
how diversity is evolving universally. Diversity managers in various countries are presently in
the process of planning and implementing diversity management according to the situation of
their own company. As Thomas (1999) [39] points out, diversity management means that
managers have to make long-term commitments to change and shifts in mindsets requiring
modifying definitions of leadership and management and changes in organizational systems and
mechanisms.
In today‟s global world of business, multi-national companies, especially those companies whose
initial business operations developed in the West, are faced with the task of how to localize
global diversity initiatives. This paves the way, the literature on Global Diversity Management
tells us, for” the urgent need of attention to concerns of diversity and equality beyond the narrow
considerations at the national, organizational and intergroup levels”.
Global Diversity Management embraces both international aspects of diversity management
from cross-national perspectives as well as domestic diversity management practices which
increasingly operate within the international workforce. Theories in
Global Diversity Management recognizes the importance of planning, coordination and
implementation of strategies for a growing number of work organizations with international,
global and transnational business activities.
Diversity Management Model
1. Diversity Excellence Model
The Diversity Excellence Model is a tool by which an organisation can access its performance in
working towards race equality and diversity outcomes. It‟s the most popular model for

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measuring and managing diversity. The DEM model explains causal relationship between
enablers of diversity and positive organizational outcome. The model is based on the European
Foundation for Quality Management with a framework of assessment concentrating on:
1. Enablers – The things that an organisation does to enable it to function such as:
 Leadership - Is leadership at all levels committed and active inside and outside the
organisation in promoting diversity, and is this demonstrably part of the organizational culture
and philosophy?
 People - Do people understand and are they committed to, involved and recognized in the
effective management of diversity?
 Policy & Strategy- Is the management of diversity mainstreamed, with a clear strategic aim
which is communicated effectively, sensitively and implemented?
 Partnerships & Resources– Are partnerships and resources identified, aligned and deployed to
take into accounting the diverse needs of all stakeholders?
 Processes – Are processes systematically designed / reviewed and improved to manage
stakeholder diversity and generate increasing value?
2. Results – These are the outcomes of the organization‟s business like:
 People Results– Is there data showing how the organisation is perceived by its people in the
management of diversity?
 Customer Results – Is there disaggregated data (age, disability, gender, race etc) which
systematically measures customer satisfaction?
 Society Results– Is there data showing how the organisation is perceived by local society in
its management of diversity?
 Key Performance Results – to what extent is the organization‟s management of diversity
contributing to its business results?
2. Model of Structural Change: Total Quality Diversity
Total Quality Diversity is a holistic model of managing diversity that operates on two levels. The
primary or horizontal (includes biological attributes i.e. age, gender, sexual orientation,
disabilities) and the secondary or vertical (includes psychosocial-spiritual attribute such as value
system, ethics, core intelligence and world views).
The first dimension is focused on the individual and concerned with embracing and
valuing differences. This area is of tremendous importance. Here, is where discomfort employees
are noticed and workshops on prejudice, cultural awareness, cross-cultural communication and
conflict resolution are conducted to minimize this discomfort.
The second dimension is focused on the institution and is concerned with
harnessing and empowering diversity at workplace. It deals not only with corporate culture and
structure but also the way tasks are divided to accomplish the mission of the company and its
thinking system. Both factors are driven by the bottom line profit motive to help business deliver
a quality product and services that meets human needs in a competitive society. Included in TQD
is TQR i.e. Total Quality Respect.
Total Quality Respect is an integral part of total quality diversity which advocates that the proper
management of today‟s diverse business world is not possible without respect of human beings.

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Total Quality Respect is the process whereby the others are treated with courtesy and
compassion in an endeavor to safeguard the integrity, dignity, value and social worth of the
individual. It‟s a lack of respect for others, no matter their position or the differences they bring
to an institution which gives rise to most of the conflicts in organization.
The end result of this Total Quality Diversity process of management is a lean, competitive
organization with a multicultural, truly diverse workforce where creativity, innovation,
imagination and intelligence operate in a democratic workplace environment.
The principles of diversity management for implementation in a business organisation.