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Chapter 9
149
DOI: 10.4018/978-1-5225-4933-8.ch009
ABSTRACT
Diversity and inclusion have been increasingly recognized and are the most
utilized organizational resources over the last three decades. However, research
has demonstrated that many organizations may not have the requisite diversity in
their midst. Research further highlights that employees might feel that few of their
components of their social identities may be valued and included, leaving them
feeling excluded. These attitudes may influence employee behaviors, leading to
low morale, high absenteeism, low job satisfaction, negative word of mouth, and so
on, which will eventually make the estranged employee leave the job/organization.
Understanding the impact of diversity and inclusion on individual, group, and
organizations performance is analyzed through employee engagement by developing
a framework. To develop a framework that provides rigorous theoretical evidence for
its ability to determine whether an organization has indeed engendered an inclusive
and engaging environment for its employees is the goal of the chapter.
Diversity and Inclusion
Management:
A Focus on Employee Engagement
Urmila Itam
REVA University, India
Bagali M. M.
REVA University, India
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Diversity and Inclusion Management
INTRODUCTION
Excellence through diversity-inclusiveness is one of the organization’s toughest
goals, though the term often raises confusion, tension, and controversy. When people
think about diversity, they may begin with ethnicity, race and then gender. However,
diversity is a broader term which includes age, gender, ethnicity, physical qualities,
ancestry, race, sexual orientation, education, geographical location, income, parental
status, marital status and work experience, but not limited to these dimensions
(Loden & Rosener, 1991). The term diversity has interpreted in many ways – “any
differences in an individual that distinguishes from our internal and external groups
or a broad range of overt and hidden qualities in a person from others or combination
of personality, internal, external and organizational areas” (How, 2007; Johnson,
2003; Moore, 1999; Simmons-Welburn, 1999; Digh, 1998a). These differences
are vital and evaluated as the prospects that help in advancing the innovation and
technology at the workplace and also bring business and people closer to each other
than ever before. Keeping this in view, organizations, business, educational systems
and other bodies are exploring new ways to serve their stakeholders better and be
successful in the markets.
Workforce diversity has become a potent tool which promotes new ways to
accomplish individual as well as organizational goals. Global companies like
Starbucks, Deloitte, HCL Technologies, Verizon and many other Fortune companies
emphasized that companies must hire people with different skills, gender, race,
ethnicity, and ages. Also suggested that managers need to learn how to distribute the
diversified workforce evenly and equitably across the company’s divisions (Morais
et al., 2014; Lundrigan et al., 2012; SHRM, 2009). Studies stated that productivity,
financial performance, and predictions for growth and survival of the organization is
mostly influenced by the diversified workgroups (April & Shockley, 2007; Kossek
et al., 2004; Fredman & Davidson, 2002). However, a study by Gallup consultancy
concluded that diversity might help organizations to accomplish the set goals, but
in the long run, inclusiveness matters a lot in the overall corporate growth (Riffkin
& Harter, 2016) .
The ‘inclusion’ philosophy focuses beyond the concept of some and shifts the
group effort towards the term all (April & Blass, 2010). Moreover, inclusiveness
requires a fundamental change in the organizational structure, human resource
policies, operational procedures, style of leadership and altogether the culture of
the organization (Miller, 1998). It indicates that diversity and inclusion is a total
culture change at individual, group and the organizational levels. Further, this was
supported by the Thomas & Ely (1996) in their work and concluded that effective
implementation and maintenance of diversity and inclusion practices develop positive
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attitudes and behaviors towards the job and organization. According to Robinson,
Perryman & Hayday (2004), employee engagement is defined as “positive attitudes
held by the employee towards the organization and its values” (p. 4). Therefore, this
chapter identifies the various strategies required to manage the diversified workforce
and analyses its impact on the employee engagement and organizations performance.
DIVERSITY AND INCLUSION MANAGEMENT
The subject of diversity management has gained much attention with globalization
and recognized its need to satisfy and serve the stakeholders globally. Many managers
have experienced in the early 1990s, the new trend in the form of workforce diversity
due to the implementation of liberalization, privatization and globalization policy in
the Indian markets (Harish & Anil, 1996). Organizational scholars stated that future
organizations workforce composition might reach to 90% of women and minorities;
many of them would be migrants who may lead to communication challenges;
also many racial groups will become part of the company’s businesses (Johnston
& Packer, 1987; Caudron, 1990; Griggs, 1995). Organizations that appreciate the
need to develop and train all the segments of their workforce to ensure unique
and competitive in the markets are responding to a huge variety of approaches to
managing their diversified workforce (Jamieson & O’ Mara, 1991).
Several studies defined the term diversity in numerous ways. Diversity is not limited
to traditional thinking like race, gender, and disabilities (ASTD, 1996a;1996b). It is
“all the way in which people differ to each other “(Hayles, 1996). In broader sense,
it includes all the characteristics of an individual and groups such as race, gender,
ethnicity, national origin, age, religion, affectional orientation, personality, language,
education, physical looks, lifestyle, marital status, beliefs, geographical origin,
tenure with the job and organization, and economic status (Triandis, 1994; Wheeler,
1994; Carr, 1993; Caudron, 1992; Thomas, 1992). According to Morrison (1992),
diversity has been categorized into four levels as - racial, sexual and ethnic balance;
understanding other cultures; culturally different values; and broadly inclusive.
Further, from the Griggs (1995), diversity is the collective effort of primary and
secondary dimensions. Primary dimensions of diversity cannot change; they shape
the self-image of an individual on others and the world. Secondary dimensions can
be adjusted by the change in their geographical location, education qualification,
tenure and level of job, and much more but not limited which shown in Table 1.
There is no one definition of diversity, it is a broad, dynamic and evolutionary
nature of the process and it has a far-reaching impact on individuals and organizations
(Tomervik, 1995). The term diversity has so broadly defined by many researchers,
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that it is all-inclusive and recognizes everyone as part and valued in the process
(Griggs, 1995; Jonhson, 1995).The broadness in the concept shifted from some to all
to focus on maximizing diversity to accomplish organizational and individual goals.
According to Hayes & Major (2003), inclusiveness means “a collective judgment or
perception of belongingness or valued and welcome member” at workgroups, and
organizations units. Further, inclusion as the degree to which individuals believes
that their role is critical in the organizational process (Mor-Barak & Cherin, 1998).
Studies predicted that adopting diversity and inclusion at the workplace would
benefit from enhanced employee commitment and effectiveness (Ferdman et al.,
2006; Davidson & Ferdman, 2002). Regardless of whether one looks the concept
of diversity and inclusion as an individual, societal, or organizational issues, these
demographic changes cannot be disregarded, and these will expect to change
significantly in future (Jackson & Associates, 1992). These changes have shown
the path to many organizations to investigate the business implications and have
provided a solid basis for managing and valuing diversity at the workplace.
Organizational researchers explain that managing diversity-inclusiveness is more
of empowering or enabling employees (Thomas, 1992). It prescribes philosophically
broad approaches to encompass all the dimensions; emphasizes the managerial
policies and skills in the accomplishment of the individual and organizational
goals (Henderson, 1994a); changing the standard operating procedure to discover
the best work culture for each group (Triandis et al., 1994). Valuing diversity-
inclusiveness is wise for individual, social, legal and profitability reasons (Hayles,
1992). The importance of managing and valuing diversity has remained in the field
of International Business, where many multinational corporations force to adopt
the strategies that could lead them to recruit, engage and retain a diverse workforce
that mirrors its markets (Simons, 1992; Fernandez, 1993). Diplomacy, religious,
Table 1. Dimensions of diversity management
Primary Dimensions Secondary Dimensions Other Dimensions
• Race
• Ethnicity
• Sex
• Age
• Disability
• Religion
• Culture
• Sexual orientation
• Political orientation
• Geographical origin
• Family status
• Lifestyle
• Education
• Experience
• Nationality
• Language
• Thinking ability
• Beliefs
• Assumptions
• Perceptions
• Attitudes
• Values
• Feelings
• Norms
Source: (Mazur, 2010)
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voluntary associations are the fields that have shaped and pioneer in dealing diversity
inclusiveness and also documented managing diversified cultures at the workplace
(Simons, 1992).
Business Cases on Diversity-Inclusion Management
Diversity and inclusion strategy at Walmart is “think globally and serve locally”.
Across the world, this giant retailer continuous to attract, seek and hire diverse
talents and fosters a diverse and inclusive culture. According to Walmart - Diversity
& Inclusion report (2015), women’s representation in total workforce was 57% and
41% in management roles; people of color representation in the total labor force was
40%, 30% in managerial positions and 22% in corporate affairs. Veterans’ welcome
home commitment, career link mentoring program, and global women’s development
series are some successful programs by Walmart efforts to embed diversity &
inclusion across the company to drive exceptional business results. Continuous
commitment to foster a trust-based inclusive environment for the workforce that
they feel connected and supported to each other.
Apple believes that ‘most innovative company must also be the most diversified
company’. The success story of any company is based on the new ideas they developed
and implemented and this can be experienced by seeing things in diverse ways.
According to Inclusion and Diversity Report of Apple (2017), it strives to represent
the communities which are not involved before and also break the historical barriers
in technology. This experience a steady growth in the hiring scores of global females
from 31% to 37%, 54% of new hires in the United States who are minorities, and also
initiated close the pay gaps for similar roles and performance. Although creating
inclusive work-culture is more challenging and requires both commitment and action
of both employees and management, Apple strives to help and address unconscious
racial and gender bias in the workplace. Cultivating diverse leadership and tech talent,
supporting in the promotion of LGBTQ equality, investing in providing resources
for Veterans and their families, and exploring various new approaches to support
employees with disabilities.
Starbucks is well-known and globally accepted brand in the markets by the people.
According to Starbucks (2011), business ethics and compliance,
(..) actively develops an environment that is inclusive of all cultures and their
unique abilities, strengths, and differences and promotes diversity as a strategic
and competitive business advantage for the company (Morais et al., 2014, p. 41).
Starbucks perceives that cultural competence is essential and it should be enacted
principally by top management which in turn influences the behavior of managers
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and its workforce throughout the organization (Elder et al., 2014; Hinkin & Tracey,
2010). At Starbucks, top management has given the option to their employees to
work more hours during weekdays to compress their working days (Hinkin & Tracey,
2010). Similarly, provided flex work schedules to meet their partner’s schedules and
encourages potential talents with disabilities at the workplace (Marques, 2008, p.
253). Also, employees of Starbucks must consider ethical practices and values when
managing customers and staff. Top management takes necessary steps in training
their managers as well as employees in handling stakeholders with different cultures
(Marques, 2008; Hinkin & Tracey, 2010).
Starbucks adopted open communication system, flexible environment, a broad
range of training programs, bias-free interviewing systems, analysis of workforce
demographics, gender diversity as best practices for their success (Pohlman &
Gardiner, 2000; Kochan et al., 2003; Starbucks, 2003; Bunny, 2007; Lundrigan
et al., 2012; Jones & George, 2014; Starbucks, 2014). Starbucks wise business
practices have its impact on company’s performance and image over time. It always
evaluates the difference base in the workforce and spends an enormous amount in
doing business with women and minorities (Forsythe, 2005). As a result, Starbucks
has become one of the best employers of choice to potential employees; socially
responsible and respectable company for the partners, as well as most admired and
inspired management for the competitors.
Best Practices to Value Diversity and Inclusion Management
During the last two decades, many organizations have realized that the traditional
assumptions made about workforce diversity were critical to appreciating in the
current business context (Beilinson, 1991; Loden & Rosener, 1991; Walker 1991).
The Conference Board conducted research on 166 leading companies and listed few
important diversity initiatives such as – 1) career planning and development activities,
2) culture change, performance, and accountability, 3) employee involvement, 4)
communication, 5) learning and development initiatives (Winterle, 1992). Further,
Gottfredson (1992) categorized three diversity issues related to gender and ethnicity
such as – procedure to reduce sex and ethnicity issues during changes in organizational
climate, in accommodating immigrants, and in building career outcomes. Two diversity
issues related to individual differences such as – procedure to accommodate local
conditions and individual differences among employees. Another study conducted
by The Conference Board on 69 diversity managers, researchers and consultants
found that developing diversity action plans, incorporation of diversity into mission
statement, accountability, employee involvement in all functions, career development,
community outreach activities, and long-term culture change initiatives were seven
innovative diversity inclusion initiatives (Wheeler, 1995).
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Similarly, studies also identified various approaches and strategies for managing
diversity and inclusion at the workplace. According to Louw (1995), managing
diversity consisting of five phases: (1) identifying the needs and analysing them in
detail; (2) designing the diversity strategy; (3) framing unique diversity interventions
and initiatives; (4) implementing the above three stages; (5) continuous evaluation
and monitoring of diversity strategy process. Further Griggs (1995), stressed that
acknowledging the differences, educating the employees about the differences,
figuring out the differences among the workgroups and valuing and appreciating
those differences at work are the essential diversity strategies to be adopted to manage
the challenging workplace. Moreover Loden & Rosener (1991), identified various
unique diversity strategies from numerous leading-edge organizations. Few important
common practices among them are – strategic goals; continuous monitoring of all
HR systems; climate setting; training and retraining as an organizational priority;
rewards and enhancing benefits based on results; reinforcing the hiring and promotion
systems as per the organization’s goals (pp. 166-167).
In summary, most successful organizations have undertaken and implemented
numerous unique diversity interventions at each level. However, implementing strategy
is not a single and isolated approach; it varies accordingly with the organization’s
vision, mission, and goals (Arrendondo, 1996). Managing diversity and inclusion
requires careful selection of innovative interventions and initiatives tied to business
requirements. Further, diversity issues need to work down using the strategic
planning procedure of the organization. Evidently, researchers acknowledged that
organization’s need to assess and reassess its diversity and inclusion strategies and
consider it as an ongoing process (Carnevale & Stone, 1994; 1995).
EMPLOYEE ENGAGEMENT
Employee Engagement (EE) is termed to be a new paradigm in the academic research.
However, much of the practitioners and consultants’ works explained how EE could
be created and leveraged (Macey & Schneider, 2008). In general, from the literature, it
is observed that EE measures the employees’ emotional commitment towards the job
and organization (Waldman, 2016). The pioneering work on EE associated with Kahn
(1990), also called the father of EE. The idea of “personal engagement and personal
disengagement” developed on the premise of the intrinsic motivation theory (Kahn,
1990, p.692). While personal engagement is defined as “the employees differ in levels
of connecting selves physically, emotionally and cognitively with the work roles, in
contrast, personal disengagement as disconnecting once own presence with the work
functions” (p. 693). Further, Kahn (1990) adopted qualitative research approach to
study the applicability of engagement to work with a sample of sixteen summer camp
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counselors and sixteen architectures from different firms. Two qualitative studies
have conducted while the first survey was carried using open-ended questionnaire
methods and the second study adopted in-depth interview method. The findings of
the work identified three psychological attributes as psychological meaningfulness,
psychological safety, and psychological availability.
May et al., (2004), conducted an empirical research to retest the Kahn’s (1990)
concept of personal engagement and personal disengagement (Shuck, 2010). The
replication research study further confirms that all the three psychological attributes
had significant positive relationships with personal engagement, and in particular
psychological meaningfulness has the highest positive correlation. Finally, May et
al., (2004) concluded that the other work related attributes like working conditions,
training, and development activities might mediate the effect of personal engagement.
The burnout family of engagement literature is rooted in positive psychology
which states that burnout is a destruction of job engagement (Maslach & Leiter,
1997). Later, it was redefined “Job engagement as the opposite of burnout” (Maslach
et. al., 2001; Schaufeli et al., 2002; Seppala et al., 2009). According to Maslach
et al., (2001), “job quantity, socialization, degrees of fairness, values, rewards,
and control” were the six major burnout dimensions identified from the literature.
Excessive workloads, lack of monitoring and authority on work, de-motivated
reward system, poor relationships with employees and managers, and inadequate
supervision leads to burnout.
A meta-analysis conducted on samples of seven thousand nine hundred thirty-
nine (7,939) business units from thirty-six (36) firms using Gallup Workplace
Audit (GWA) as a measurement tool. GWA was used to measure the perceptions of
employees about their job characteristics, associations at the workplace, and the role
of leadership and management. Later categorized employees into three categories
– a) Engaged employees – exhibit high degrees of performance and works for the
growth of the organization, b) Not-engaged – task completed and not associated with
team growth and success, c) Actively-disengaged- express their disregards with the
job and the organization at every possible situation (Gallup, 2006).
Saks (2006) was the pioneer in differentiating employee engagement as job and
organization engagement. The multi-dimensional approach included individual
as well as organization focus and stated that employee engagement is a degree of
intellectual and passionate commitment towards the once own job and organization
(Baumruk, 2004; Shaw, 2005; Richman, 2006; Saks, 2006). Therefore, Saks (2006)
defined EE as a “combination of emotional, cognitive and behavior elements linked
with individual role performances”. Further, an empirical investigation has been
carried out by Saks (2006) with a sample of 102 employees of distinct job positions
from various organizations and concluded that “job engagement and organization
engagement are distinct with each other”. The findings of the study stated that
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perceived organizational support envisages both job engagement and organization
engagement while job characteristics contemplate job engagement and procedural
justice envisages organization engagement. Also identified that job and organization
engagement mediates the relationship between the antecedents (procedural justice,
job characteristics, perceived organizational support, perceived supervisor support,
rewards and recognition, distributive justice) and consequences (job satisfaction,
organizational commitment, intention to quit, organizational citizenship behaviour)
(Saks, 2006 p. 604).
Another set of research work divided the idea of employee engagement into
three states as “trait engagement – personality characteristics of an individual;
psychological state engagement – refer to once own involvement to the job and work
engagement; behavioural engagement – refer to encouragement towards innovation
and organizational effectiveness” (Macey & Schneider, 2008). The idea of Macey
& Schneider (2008) was criticized further that the concept of work engagement
was discussed in the early engagement literature and it could not be a new design
of distinct meaning (Saks 2008). Further, the idea of state engagement seems to
be more than individual job attributes and study fails to provide the supporting
arguments (Newman & Harrison, 2008).
In summary, engagement researchers acknowledge that the concept of employee
engagement lacks a final consensus; however, researchers are trying to seek
clarifications by linking employee engagement with organizational attributes.
Dell et al., (2001) suggested that each scholarly work seems to focus on different
factors of the construct rather than all at once nevertheless contributing to the
nomological space. Hence, EE is viewed as a psychological state and holds several
related organizational attributes; each, in turn, showed some form of enthusiasm,
absorption, and association. Engagement is all about employees’ commitment and
passion, as well as, inclination to invest one’s discretionary effort to perform beyond
the expectation and to help the employer succeed.
HOW DIVERSITY AND INCLUSION BOOST
EMPLOYEE ENGAGEMENT
There is no doubt that many studies have proven that there is a significant positive
relationship between highly engaged workforce and organizational performance
(Deloitte 2015; Fernando, Pedro, & Gonzalo 2013; Avigdor et al., 2007). According
to a survey result, 96 percent of top executives’ stress that having diversity and
inclusive talents at workplace increase the engagement scores as well as organizational
performance (Ferry, 2013). In contrast, companies who disrespect the idea of diversity
and inclusion in their business strategy have seen highly disengaged workforces
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(Riffkin & Harter, 2016). The study conducted by Jones & Harter (2005) stated
that intentions of an employee leaving the organization would likely to be high
when the employee and the manager were of different race, which in turn leads
to disengagement at the workplace. However, if top management able to handle
these differences strategically and provide them the best organizational climate
may influence the employee intentions to stay with the organization, which in turn
leads to high engagement (Jones & Harter 2005). Similarly, Badal & Harter (2013)
investigated and confirmed that organizations having diversified workforce and high
employee engagement scores record high financial gains.
According to Gallup’s study, employee engagement and inclusiveness are
believed to be closely related to each other because highly engaged employees
are most likely to express that their company values distinct ideas; and responds
to discrimination concerns. In contrast, only 3% of the disengaged or actively
disengaged workforce agrees with the above statements (Riffkin & Harter, 2016).
Based on an EE survey conducted by Sodexo confirms that diversity and inclusion
initiatives increased the engagement scores and ranked them as top two drivers of
employee engagement (Anand, 2013). Despite having many advantages identified
and given by the researchers and consultants, many organizations and the senior
management do not have a clear understanding of the effective implementation of
diversity and inclusion management at the workplace. Also, they fail to realize the
benefits it gives to the individual, group and at the organizational level (Skalsky &
McCarthy, 2009).
Diversity-Inclusion and Engagement Framework (DIEF)
According to Fernando, Pedro, & Gonzalo (2013), the objective of any framework
related to workforce management must consider two important criteria’s – a)
generalizability, and b) ultimate goal must lead to the development of individual,
group and organizational performance. Drawing from the above assumptions, the
author identifies some suitable diversity and inclusion tools from the systematic
literature review which can utilize under any organizational circumstances to
increase the engagement scores. Intercultural training (McCain, 1996; Koonce,
2001), open communication system (Morais et al.. 2014; Starbucks, 2014), Strong
senior leadership teams (Daft, 2011; Morais et al.. 2014), flexibility at workplace
(Mujtaba & Cavico, 2013), balanced work-life (Kossek & Lobel, 1996; Fernando,
Pedro, & Gonzalo 2013), equal rewards and recognition policy (Barber & Daly,
1996; Hicks-Clarke & Iles, 2000) or participative performance assessment (Nowack,
1993) are considered as critical diversity and inclusion tools for the framework.
Moreover, interference of contingency variables between workforce policies
and performance may disturb the stability of these relationships. Because of the
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inconsistency, the above-identified diversity-inclusion tools that could lead to superior
performance under any settings may contradict (Delery & Doty, 1996). The new
idea of theorizing the complex understandings of diversity management was given
by Kossek & Lobel (1996) and considered to be the first researcher who studied
the benefit of associating internal factors of organizations with diversity-inclusion
practices. Further few studies stated that involvement of certain moderating factors
such as organization’s strategy (Richard & Johnson 1999, 2001; Richard et al. 2006),
organizational climate (Richard et al. 2006) and workforce characteristics (Benschop
2001, p.1167) are vital. These internal factors were grouped and named as diversity
climate which defined as a “collection of organizational strategies, structure, and
values” (Gonzalez & DeNisi, 2009). Similarly, few European scholars stressed the
adoption of external factors like environmental uncertainty (Richard et al. 2006),
culture (Sippola & Smale, 2007) and sector (Fernando, Pedro, & Gonzalo 2013).
Studies also proposed different ideas how diversity-inclusion management models
change across countries, and how they are affected by sectors, political, institutional
and cultural influences (Goodstein, 1994; Greene et al. 2005; Fiona, 2011).
Several psychological studies have proposed that how diversity-inclusiveness
impacts on cognitive, emotional and social processes within groups (Kearney et al.
2009; Pendry et al. 2007; Stockdale & Crosby, 2004; Hobman et al. 2003). According
to social identity theory, identifying and managing the differences conveniently at
individual and groups leads to performance (McKay et al. 2009; Pendry et al. 2007).
The theoretical foundation of EE based on social exchange theory when an employee
receives cognitive, emotional and social processes from their workplace; they feel
obliged and tend to reciprocate with a high degree of engagement with the job and
organization. On the other hand, when an organization fails to provide such conditions
for employees, they disconnect themselves with the job and the organization (Kahn,
1990; Maslach et al., 2001). Figure 1 demonstrates the associations developed
between diversity-inclusive practices, employee engagement and performance
measures. Here, study depicted the construct employee engagement as a mediating
variable and internal/external factors as moderating variables.
FUTURE RESEARCH DIRECTIONS
Diversity-inclusion practices are must to excel and sustain financial growth at the
country level or the institutional level or company level or the individual level.
Keeping update with the change in the global trends in managing the workforce,
organizations need to balance their strategies accordingly. Therefore, this section
deals with the various key trends that will drive diversity-inclusion policies in future.
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Diversity and Inclusion Management
Companies should think beyond the current government legislations like the
Equal Employment Opportunities, and other parallel acts that protect the diverse
workforce from discrimination.Encouraging more women in boards, avoiding
differences when promoting women to leadership positions, and equal pay for any
gender are few female economic development activities to be considered. Aging
workforce is one of the biggest concern for many global economies that increases
not only the pension and healthcare expenses but also slowdowns the economic
growth. Hence, the government should raise the retirement age based on health
conditions, profession in which individual holding and other similar criteria. To
manage the aged and women workforce, companies should encourage flex-work
plans like work from anywhere, as well as allowance and health benefits to the
parents of young children.
Rebalancing economies is the current buzz word for the countries due to the global
recession. Companies want to balance and rebalance their financial position strong
globally by spreading their roots into every business, sector, location, and markets.
Further, change in migration patterns such as highly skilled, and flexibility in adopting
change are some of the essential requirements of many global firms. Companies
are very keen in hiring migrants with the above conditions as well as to capture the
best talents from the talent pool. With these things in mind, organizations and their
workforce must be willing to learn each activity from each other to be productive.
Organizations with wise leadership team will focus more on performance rather
than the individual differences such as age, gender, race or sexual orientation, which
Figure 1. Diversity-inclusion and engagement framework
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will, in turn, enhance firms competitiveness. Management must develop diversity
strategies, in a way they promote and encourage fair and equal treatment to all the
employees and stand as role models for a better workplace where everybody can
become part of it.
CONCLUSION
In conclusion, an exhaustive review of available literature on managing diverse
workforce demonstrates the importance of various managerial practices in handling
the diverse employee base. Ideas like open communication system fosters better
work culture; demonstrate how organizations benefited by allowing employees to
understand the fellow employees culture using inter-cultural training; involvement
at every level irrespective of their differences through equal opportunity practices;
the critical senior leadership roles in promoting ethical work culture; tell us how
diversity factors challenges and benefits the organizations and its team; and finally,
the various internal and external factors that influence the perceptions of an employee
towards job and organization.
A brief summation of two business cases helps us to highlight the significance of
initiating the implementation of unique and innovative diversity-inclusive practices
at workplace. Most important among all the ideas is that the organizational leaders
and managers must able to understand the background and differences in the
workforce. The practices and methods are given for the management to improve
their skills to manage diverse workforce so they can increase the individual, group
and organizational performance. An outcome of cultural training not only improves
employee communication but also improves the company’s visibility at the time of
demonstrating the cultural competencies at the corporate level.
Although companies realize the importance of diversity and inclusion practices at
their workplace, the challenging effects of internal and external factors like culture,
environmental uncertainty, climate, structure, sector and workforce characteristics are
not considered much. Therefore, the chapter considered these factors as moderating
variables to enhance the diversity climate of an organization further. Moreover, the
organizations’ culture should be respectful, unique, healthy, flexible, open and active
to encourage employee commitment and engagement. On the other hand, improvement
in the engagement scores ensures growth at individual, group and organizational
performance. At last, the authors, believe that the developed framework can help to
overcome the drawbacks outlined and understand how differences in the workforce
can be managed and encouraged towards individual, group or organizations growth
and development.
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KEY TERMS AND DEFINITIONS
Cognitive: It is a psychological process of acquisition and understanding of
knowledge, experience, and the senses.
Culture: It is a complex set of shared values, beliefs, and behaviors that are
taught, learned, and shared by a group of people.
EE: Abbreviation of employee engagement.
Emotional: It is a complex state of feeling that results in physical and psychological
changes that influence thought and behavior.
Equal Employment Opportunity: These terms are used to ensure that barriers
to inclusion and historical sources of exclusion are eliminated.
Leaders: All the employees who are responsible for showing their leadership
skills to accomplish the organization’s vision, mission, and goals.
Performance: It comprises the actual output or results of an entity as measured
against its intended outputs.
Workforce Management: It is an integrated set of processes that an organization
utilizes to enhance the performance of its employees on the individual, departmental,
and unit-wide level.
