Managing diversity and equality in the workplace.

Abstract

This study investigates the relationship of leadership role, performance appraisal and equal pay, equal employment opportunities (EEO) and affirmative action (AA) in managing diversity and equality in the workplace. Leadership role can play an importance role whereby firms move towards global leadership approaches to tackle diversity related issues in organizations. The performance appraisal system was used to assess the performance of employees. But some managers had different agendas while rating which resulted in bias. In this regard Equal Employment Opportunity (EEO) and Affirmative Action (AA) laws were enforced by the US government to ensure the organizations meet minimum requirements but it often came down to organizational commitments , in which loops hole in these law saw firms take advantages .This study found that organizations have to develop diversity management system and promote culture audits to bring diversity and equality in the workplace. Therefore organization themselves have to develop diversity polices into strategies for competitive advantage in this globalized scenario.

Full text

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Abstract
This study investigates the relationship of leadership role, performance appraisal and equal pay, equal
employment opportunities (EEO) and affirmative action (AA ) in managing diversity and equality in the
workplace. Leadership role can play an importance role whereby firms move towards global leadership
approaches to tackle diversity related issues in organizations. The performance appraisal system was used
to assess the performance of employees. But some managers had different agendas while rating which
resulted in bias. In this regard Equal Employment Opportunity (EEO) and Affirmative Action (AA) laws
were enforced by the US government to ensure the organizations meet minimum requirements but it often
came down to organizational commitments , in which loops hole in these law saw firms take advantages
.This study found that organizations have to develop diversity management system and promote culture
audits to bring diversity and equality in the workplace. Therefore organization themselves have to develop
diversity polices into strategies for competitive advantage in this globalized scenario.

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Contents
Abstract ....................................................................................................................................................... 1
Introduction ................................................................................................................................................. 3
Leadership role in managing diversity and equality in work force ............................................................ 6
Performance appraisal and pay equality ..................................................................................................... 9
Affirmative action (AA) and equal employment opportunity (EEO) in managing diversity and equality
................................................................................................................................................................... 12
Methodology ............................................................................................................................................. 15
Managerial implication ............................................................................................................................. 17
Conclusion ................................................................................................................................................ 19
Recommendation for Future Research ...................................................................................................... 21
Acknowledgements ................................................................................................................................... 23
Reference .................................................................................................................................................. 23

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Introduction
Globalization has increased the multinational companies to address diversity and equality issues not only
to survive but gain a competitive advantage .The workforce has become gradually diverse , firms are
challenged with managing diversity issues, both from human resource and an organizational perspective
(Ross-Gordon & Brooks, 2004). This study helps to understand the role of leadership, performance
appraisal relating with equal pay and Affirmative action (AA) with equal employment opportunity (EEO)
in managing diversity and equality in workforce .
Globalization has rapidly increased the interaction between people from different parts of the world .
This has brought a lot of mobility in workforce worldwide with completion increasing globally. Due to
globalization firms have seen diversification of their work as an competitive advantage .Maximizing and
capitalizing on workplace diversity is an important issue for management. Firms and their management
need to adjust their workforce as workplace is changing and evolving. Managing diversity and equality is
a vital organizational challenge, so human resource managers must adapt to accommodate a multicultural
workforce.
Diversity can be defined as recognizing, understanding, accepting, and valuing differences among people
with respect to age, class, race, ethnicity, gender, disabilities, etc. (Esty et al. 1995). Where as equality is
associated with tolerance, rights based, and legal rules enforced by government towards increasing the
proportion of minority and women in senior role in organization workforce (Greene & Kirton,
2002).Companies need to embrace diversity and look for ways to imbed diversity into their organisation
culture which reflect or their organization strategies which helps firm achieve greater work productivity
and competitive advantages (SHRM ,1995). Diversity can be invaluable competitive asset for firm
competing on a global scale or even for companies looking to expand (Robinson,2002). Managing
diversity and equality is a key component of human resource department in the workplace .

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The change in diversity of workforce because of demographic changes like women in the workplace,
organizational structure , EEO and AA laws will require organizations to change their management
policies and develop new and creative approaches to managing people. Positive changes will increase
work productivity and improve better brand image.
Leadership plays a vital role to addressing diversity issues in organization. According to Cox and Blake
(1991), top leadership involvement to address diversity related issues is vital for any organization to have
positive impact on organization behavior. Effective managers must be aware that certain skills are required
for creating a successful, diverse workforce due to which understading discrimination and its
consequences is necessary. Then managers must recognize their own cultural biases and prejudices to
accept the changing workforce environment. (Koonce 2001). According to Agars and Kottke (2004),
human resource managers should be open towards addressing diversity related issues with their co-
workers. These managers should start with the highest ranking executives because these executives
influence many other employees. This process can be accomplished by human resource managers
demonstrating model behaviors as an example to other employees. This becomes even more relevant when
a diversity management program requires effective recruiting and training (Caldas and Wood, 1999).
Myers (2003) argued that human resources managers must play decisive roles in diversity management
practices because they can determine the details of practice implementation. Myers (2003) also stated that
the manager should always be prepared to find ways to increase diversity due to the economic, individual,
and social benefits that diversity can create. If diversity is the objective of companies and if human
resources managers support such organizational objectives, it can be concluded that human resource
management can boost favorable diversity management practices in companies.

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According to Jabbour and Santos (2008) human resource polices should be focused towards ethnic
minorities. The human resource department should also have policies to reward employees based on
equality, distributive justice, respect, and autonomy (Jabbour and Santos, 2008). These policies should be
based on the principles of respect, transparency, honesty, privacy, and freedom, all of which can provide
more safety in the workplace. Actively engaging an increasingly diverse workforce can improve an
organization’s reputation and enable it to attract and retain employees and develop appropriate services.
The demographic setting of society and workforce is changing which results in multiethnic and
multicultural practice becoming more common in day to day activities(McGuire, et al., 2002). The current
traditional HR polices and practices of recruitment, retaining and motivation of women and minorities
must be revised (Tung, 1993). In the organisations the necessity of managing a multiethnic and
multicultural workforce has increasing importance.
The HR manager must respect traditions, culture and gender of every member group. It is vital to
understand likenesses and differences among the diversity groups in the firm. The differences in the mind
set of the top management on diversity could affect the organizational culture and how it handle diversity
issues (Iles, 1995;Spector, et al., 2001; Smith, et al., 2002; Chevrier, 2003).Another consequence of
globalisation is the market diversification. The diverse market bring diversified necessities. As an
example, firms must think that there is the requirement for a different advertising and marketing
campaigns which meet the different diversed culture needs of different nations. This is another context in
which the diverse workforce can be a source of great competitive advantage. The diverse workforce can
quickly create diversified advertising strategies to meet the multiethnic market and to attract multiethnic
and multicultural public’s attention (Griggs, 1995). There are different laws and regulations of different
counties which can understood through a diverse workforce. Moreover the diverse workforce can offer
better ideas for products and services to a multicultural public (Milliken and Martins, 1996).A proper
management of diversity and equality helps human resources department of an organisation that work in
its units in a foreign countries to have been two way communication to understand culture dimension of
each other relating to Hofsteds cultures dimension .

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This study draws on three themes through which diversity and equality can be managed which are
leadership role, performance appraisal and pay equality and EEO and AA laws. A framework for
managing diversity and equality in the workplace is presented in Figure 1.
Figure 1 A framework for managing diversity and equality in the workplace.
Leadership role in managing diversity and equality in work force
Globalisation has brought an increasingly diverse workforce and organizations face a lot of challenges
with managing diversity, from a human resource point of view or as an organizational perspective (Ross-
Gordon & Brooks, 2004). If effectively managed from organization point of view it can bring a positive
attitude towards managing a diverse workforce which in turn benefits the organization.
The top leadership commitment towards managing a diverse workforce is crucial but not enough . Line
managers from the lower organizational levels also need to address this issue. Although most organization

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handle this by acknowledging the leadership needs by developing advisory committee on diversity or task
force usually headed by senior managers. Most organization have appointed managers for diversity related
tasks in addition to their regular work rather than forming a task force which are important for better
foundation for adapting in new environments.
According to Cox and Beale (1997) argue that the leaders must be alert about the impacts of diversity on
organization , to implement changes through personal and organizational action. Relating to Hopkins, and
Mallette (2001) there is a critical link between managers’ values and
beliefs and an organization’s commitment to diversity.
All through top level management value and cognitions are important, other important factors like
leadership styles also affect the organization outcomes. For example, some organizational culture and
system reflect the leadership style of top management, Kets de Vries and Miller (1986) . The leadership
style can effect how a leader plays a role in managing diversity. Some of the common leadership traits
include flexibility , need for achieving , and focus on power of top management are key factors effecting
strategies formation of most organisations(Miller & Toulouse, 1986).
According to Burns (1978) there are either two types of leadership mostly common - one being transaction
or other transformationa. Transactional leadership closely related bureaucratic approach and practice of
power in high level. Transactional leadership places more important on task assignments, work standards,
and employee compliance. They mostly rely on rewards and punishment to influence employee behavior
which results demotivation and biasness in organization. Without the support of top leadership for
diversity, some programs are likely to fail because individual departments or plants may not have the
resources to fund extensive initiatives to address diversity related issues or even lack proper leadership.
Whereas transformational leader motivate their subordinates by their ethical ideas and moral values .They
build a vision for the organization and inspire others to follow them which help them achieve better results
,loyalty , and willingness to change and sacrifice their personal interest for achieving team
goals.(Finkelstein &Hambrick, 1996).

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Transformational leaders can influence their organizations towards managing diversity as it is a business
imperative and ethical responsibility, and not a burden because of government rules. (Gilbert, Stead,&
Ivancevich, 1999). Transformational leaders have been related with higher perceived integrity (Parry &
Proctor-Thomson, 2002), and exhibit more adaptive to changing environment behaviors which
globalization has brought (Egri & Herman, 2000). These leaders exhibit the traits of a global citizen who
are more to open to address the issues of managing diversity this is why a leadership styles play a
important role to communicate and transfer ethical values that can lead positive attitude towards managing
diversity and equality For example, Dansky, Weech-Maldonado, DeSouza, and Dreachslin (2003) found
leaders engage in diversity practices who were more sensitive to diversity issues. In a similar case, Leo
and Barton (2006) research shows senior leaders in educational institute practiced their moral values of
inclusion
to diversify the school’s students’ and teachers’ profiles and diversity.
From the argument presented above we can relate a firm diversity practices are influenced by the
leadership style of top management . The manager who have transformational leadership style are more
likely to lead organization to better diversity and equality practices than leader who are more transactional.
However even though leaders recognize the importance of diversity, there are usually more tangible and
compelling business issues that will take priority in the short run (Robinson & Dechant, 1997). Diversity
management requires a long term
commitment, and the return is not often as tangible or predictable.
Global leaders experience a lot of challenges in how to influence culture and diversity of organisations
round the world. Only the aware and skillful global leaders have cultural influences on the personality
,motivations , values , of their multi cultural partners . Leaders know what they want to accomplish and,
how proper management of diverse workforce is effected by understanding of culture of all those to be
influenced ,use of formal and informal influencing skill can address issues relating with diversity relating
to cohen and Bradford. According to studies conducted by different authors the study for global leadership
has received a lot theoretical and empirical attention because of the clear benefit to global leadership
capability of seeing diversity not only as issues but as opportunities (e.g. Brewster and Suutari, 2005;
Conner, 2000; Morrison, 2000; Suutari, 2002). Today global work can be done in short durations where a
person doing a task in USA in day time can ask their subordinates in India in night for feedback. The

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supporting research from different research suggest that there has been a positive growth of organisation
identifying and developing global leader who can function effectively on global scale with global
perspective .
For example from the survey conducted by Adler and Bartholomew (1992) of organization having
headquarter in USA and Canada they found the major organization were taking global approaches to
making business strategy. Relating to the other research Global Leadership Trends survey report 1998
showed that top level manager and human resources manger stated developing leader as most important
goal of Human resource department for a global effective (Csoka and Hackett, 1998).. Society for Human
Resource Management (SHRM). 1998.“SHRM survey explores the best in diversity practices Fortune 500
firms outpace the competition with greater commitment to diversity. In the another research conducted by
Gilbert and Ivancevich,(2000) found 75 percent of fortune 500 firms have formal diversity program as
most organizations consider diversity education and educational programs as a part of global leader
initiative. The research clearly indicates managing diversity and addressing equality issues will be
addressed by global manager and most companies have included this in their strategic plan .Without the
support of top leadership for diversity, some programs are likely to fail because individual departments
or plants may not have the resources to fund extensive initiatives so address diversity related issues .
Performance appraisal and pay equality
It is common in most organisations today to evaluate the performance of employees by performance
appraisal systems. Performance appraisal has been defined by Fletcher as activities human resource
departments seek to evaluate employees and develop their competence, improve performance and provide
rewards (Fletcher, 2001, p. 473). Minimizing of biasness in performance appraisals continues to be a
major issue in -human resource management and practice which would address the issue of managing
diversity and equality. Treating employees unfairly can play a reactive role to change job attitudes and in
long term even cause employee turnover (Vigoda, 2000). According to Cox and Blake (1991) in their
study, finding suggest that performance appraisals can be more fair if organization conduct a cultural and
management audits and help to identify and reduces biasness in cultural diverse workforce.
In the research by Poon, (2004) suggests performance ratings are often manipulated for political

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purposes .From the research conducted on 127 MBA students both male and female from different ethic
group who are working , received evidence that personal bias and punishment motive have negative effect
on performance appraisals . The result indicated performance ratings to be manipulated on the basis of
personal liking and for the purpose of punishing employees, they experienced reduced job satisfaction(
Poon 2004). It can be concluded that discrimination occurs either on the basis race or gender . The raters
may not want to provide accurate appraisals because it doesn’t meet their interests or find important to be
fair . Longenecker along with other author suggest that some managers deliberately sabotage performance
rating for political reasons and personal satisfaction (Longenecker et al., 1987). Companies like Digital,
Esso and Westpac have included AA(Affirmative action ) and EEO while preparing performance appraisal
systems (Kramar 1998). All though some manager may still manipulate rating because such decision
effect on the pay , raises and promotions or simply to gain goodwill or to even simple to avoid
confrontation over lower performance ratings with major races(Fried and Tiegs, 1995). Biased
Performance appraisal leads to Pay inequality, which is a main cause of job dissatisfaction, demotivation
racial biasness and staff turnover , and therefore a major HR diversity issue in addressing equality in
workforce (McLoughlin and Carr 1997; Van den Bos, Lind, Vermunt and Wilke 1997).
Pay equality contributes to effective diversity management and organizational performance. Relating to
an example in Australian firms were performance based incentive system is used to implement goal
criteria to evaluate the performance appraisal process in a fair manner (Dagher et al. 1998). According to
Dagher (1998) diversity management in paying salary requires applying equal pay concept. The
performance-based pay system have been applied in Australian companies,but they don’t include
culturally diverse employees in performance appraisal panels (Dagher et al. 1998).
Kramar has been supported by Dagher et al. (1998) agreeing that diversity practices in

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remuneration area help organization to better push equality policy in workplace. Dagher et al. (1998)
further argues positive side of equal play can also help build better relations with labour unions which
help to strengthen ties .These authors stated that a relatively sturdy organization movement in Australia
has prevented the incidence of wage discrimination among unionized staff. All there are some firms who
promote diversity like BHP Billiton, a number one Australian organization where they bring together
health and safety, surroundings and community matters in one policy and one set of management
standards. The BHP Billiton area unite the company’s diversity polices keeping all management standard
equal for diverse staff(DIMIA 2002).
Application of equal pay has significantly reduced wage differences
between men and women, but the gender income compared in the global context is still at par
(Blau and Kahn 1994; Katz and Autor 1999; Brainerd 2000). Earning of women different in global
perceptive vary from 20% to 30% less than that of men (Kossek et al. 2005). However, appraisal and
performance-related pay practices and techniques area unit typically inherently gendered and against
ladies (Rubery 1995). All though even in developed country like France, the gap in earning in men and
wome pay is at around 22% in 2002 for those coming into the labor marketplace newly compared to
figure of 1970s which was around 15% suggest question mark of how diversity and equality are practiced
(INSEE 2002).
According to Tsui and Gutek (1999) supervisors and subordinates on age, race or gender are the factors
that effects the rating, discrimination which causes lower role ambiguity and conflict . Different
mechanisms of discrimination area unchecked within the performance appraisal processes, within which
ladies appear vulnerable to get lower ratings and are seen mostly effected (Ohlott, Ruderman and Molly
Pitcher 1994). The gender wage difference in China in 1990s ranged from 10 % to 54 % in urban places
and from 20% to 45.7% within the rural areas (Meng 1998; Gustaffson and Li 2000; Hughes and Maurer-
Fazio 2002). The dimensions of gender wage differential in China is similar thereto of Russia and different
developed counties (Blau andKahn 1994;Brainerd 2000). The following discussion concludes
performance appraisal and equal pay can be have direct impact on managing diversity.

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Affirmative action (AA) and equal employment opportunity (EEO) in managing diversity and equality
Despite many global organization adopting cultural audits, diversity management programs or even
through selection of global leaders who are transformational, inequality and cultural issues have been
found in different countries. .While most countries adopt the modern human resource management
polices, different governments have made laws with equal employment opportunity (EEO) and affirmative
action (AA) to remove barriers in employment and advancement for women and racial minorities (Jain,
Sloane, & Horwitz, 2003). Equal employment opportunity (EEO) means that it is against the law to
discriminate; affirmative action programs mean that companies need to take positive steps to ensure equal
opportunities; and diversity management is proactive and aimed at growing a diverse workforce. The
increasing practice of discrimination in the work force around has effected government to make EEO and
AA organizational practices are compulsory, due to which they have been legally implement into diversity
management of organsaition (Kossek and Pichler 2006; Thomas 1990; Wrench 2007). USA is leading
the way for anti discriminatory law in workplace and many different countries are following this process
by including into their polices to address discrimination issues (Kossek and Pichler (2006: 254),. However
firm are affected by government polices of EEOs and AA, but it is the organsaition’s decision whether to
practice and implement how to mange diversity (Mighty, 1996).
According to Kevin and Donald (2013) in their research monitoring the data from 1966 suggest that the
progress for tackling diversity has stalled, and many firms are increasing gender and racial employment
segregation with only few firm monitoring EEO progress. Kevin and Donald (2013) also suggest that firm
might manage diversity but fair practice of treating their employee regardless of gender , race or ethinicity
is hardly effected . to Kevin and Donald (2013) also criticize the firm that are actually running EEO and
AA policies to hide what is actually happening inside a frim, where firm ignore hiring patterns or the
turnover of talented people at lower levels. Re-segregation is happening because firms are failing to keep
tract towards equal opportunity.

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Figure 2
Relating to study conducted by Tessa L. Dover Brenda Major and Cheryl R. Kaiser 2016, they suggest -
as most companies practice AA and EEO polices in their hiring which show diversity polices makes it fair
for women and minorities, but it also suggests there is evidence of discrimination at deeper roots. It is an
undeniable fact that EEO and AA organizational practices are compulsory , since they are legally enforced
and organizations have to develop and implement such initiatives in order to comply with legal mandates
(Kossek and Pichler 2006; Thomas 1990; Wrench 2007) . However some companies have found
loopholes. For example in 2011 supreme court in USA, Walmart successfully used the presence of anti
discrimination policy to defend itself against allegation of gender discrimination in their workforce and
Walmart isn’t only one to use legal policies once used to defend discrimination makes them less
accountable for discrimination practices . (Tessa L. et al, 2016). Such policies are only use full at

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preventing discrimination and promoting equality of treatment for all employees in the hiring process but
they don’t usually focus on discrimination which occurs in workspace.
Further more EEO and AA polices are heavily criticized for being mainly concerned with hiring
process(Ford 1996; Liff 1997; Thomas 1990). All though they help minority get jobs into entry level
position, they don’t have policies of law supporting promotions at the higher levels, the main issues which
are major challenges for firms are motivating employees to give maximum output and breaking the glass
ceiling to enable promotions to higher level (Thomas 1990).
All though there is mix of both positive and negative side to EEO and AA relating to government polices,
India provides for 33% political representation of women in Parliament and the state legislatures. Women
already enjoy between 33% and 50% reservation for ethic minorities at local governance (Jayal,2014) but
this has also given negative effect on majority with higher educational qualification being subjected to
not being selected for jobs because of AA polices and quota systems within India. According Hester 1989
we should analysis on whether women are being empowered or not, relating to India where Women’s
Reservation Bill for legislative representation at higher levels has been pending for 16 years show only
providing entry through AA is not enough but polices should also focus on promoting women in higher
level .
From the discussion above between different literature suggest there are both advantages or a drawback
of EEO and AA. In EEO and AA policies the focus is placed on group differences, not on individual
characteristics (Liff 1997; Thomas 1990; Wrench 2007). To be more specific, the collectivist approach to
the management of workplace diversity focuses on the fact that the aforementioned legally imposed
policies do not neglect the fact of structural discrimination and inequalities that certain categories of the
population (such as women, racial and ethnic minorities etc.) have historically faced (Prasad et al. 2006).
EEO and AA are more collectivist in nature in comparison to Diversity Management, which is a more
individualistic approach to workplace diversity (Carnevale and Stone 1994; Johns et al. 2012; Jonsen et
al. 2013; Wrench 2007), On the other hand, other organizational theorists remark that the focus on group
based characteristics leads to the neglect of individual attributes such as competence and character on
account of race, sex, ethnicity religious beliefs, origins etc. fact that simply entails another form of
injustice and discrimination (Johns et al. 2012; Thomas 1990).

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EEO and AA are also criticized for creating a gender-, culture- and color-blind workplace, focusing more
on assimilating differences than on enabling every individual to perform according to their potential
(Thomas 1990). In this way, minority employees bear the burden of adapting to a work environment,
where their special capabilities and innate background cannot necessarily be accommodated. Although
EEO and AA have been the focus of negative critiques their contribution to the creation of a more
inclusive workplace should not be underestimated.
Taking the example of developing country like Nepal , the constitution of Nepal has put a lot of effort to
bring equality. Article 84 of the Constitution of Nepal enforces the party representing in constitution
assembly to have one-third representation of women in the Federal Parliament i.e 33% (Constitution of
Nepal,2015).
Methodology
The literature above contains both theoretical and empirical literatures to support the framework of
managing diversity and equality with themes like leadership role , performance appraisal , pay equality ,
eeo and aa law .
First theme which is leadership role that primarily uses theoretical literature to define leadership and types
of leadership. The survey conducted by Adler and Bartholomew (1992) showed organizations in USA and
Canada taking global approach to making business strategy play important role in placing importance on
leadership responsibilities in managing diversity . Surveys, quantitative tools are easy to administer , and
are cost effective with good statistically significance. But there are some disadvantages as this survey was
conducted only in USA and Canada hence the data gathered cannot be generalized for all other companies
supporting global approach in making business strategies. It could be improved if some organisations
from some European nations and Asian countries were included in the survey. In the same theme Gilbert
and Ivancevich (2000) and Society for Human Resource Management (SHRM) 1998 have used survey
of fortune 500 companies to identify the need for global approach in tackling diversity . All though this
research helps to understand that companies to observe diversity issues as opportunities for top global
firms, this research lacked what was actually happening inside the organization . It would be more clear
if the research was conducted on focus group with qualitative research on employee of this fortune
companies as this would help understand what employee actually thought of global leadership approach

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in tacking diversity related issues. Hence focus groups have a better flexibility to go deeper into issues
that only come during discussion in a comfortable zone where they feel free to tell the truth .
The trend witnessed from past two decades show huge amount of attention to managing diversity and
equality that comes from two different streams of research in tradition approach and other in global
approach . To debate on whether differences between co-workers in member characteristics (e.g. age,
gender, functional background etc.) lead to increased creativity, higher quality decisions, more innovative
solutions and various other positive team- and organizational level outcomes conducted , the reviewed
numerous paper in this study also point toward diversity polices moving toward a more contextual
approach to fit current needs .
In the second theme Performance appraisal and pay equality the research conducted by Poon 2004 shows
evidence that performance ratings are often manipulated for political purposes. The study examined the
effects of employees' perceptions of political motives in performance appraisal on their job satisfaction
and intention to quit using survey data from an occupationally heterogeneous sample of white-collar
employees (N=127) from various organizations. The regression analysis results indicated that
performance ratings to be manipulated because of raters' personal bias and intent to punish subordinates.
They research is very good and highly cited by many other authors. The study could be improved if it
was conducted with several organization with large sample size and respondents, combined with an
objective evaluation performance appraisal politics. This would provide more significant insight on the
issues of performance appraisal roles in managing diversity.
In the third theme the literature surrounding EEO and AA law, have been reviewed. In the research
conducted by Kevin and Donald (2013) where they monitored the data from 1966 and have used secondary
data showing that the progress for tackling diversity has stalled. The authors have collected data for
Desegregation ,Racial and Gender Segregation in Private Sector Employment since the Civil Rights Act.
The data presented in the study is collected annually and includes data on race, gender, and the
occupational composition of medium and large private sector workplaces. The collected data were
collected by U.S. Equal Employment Opportunity Commission (EEOC). All though using secondary data
is less costly but a larger samples should be collected for a cross population comparison of lower minorites
as compared tp white color workers. All though the quality of data has been controlled by us government
,but it doesn’t state the evaluation methods used to collect data. The finding are strong and reliable , all

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though the research is backed up heavily by quantitative data but the research has not included ethic
monitories and people from different races .
A paper by Niraja 2014 has been reviewed to understand the application of this law in Asian context. This
paper’s findings are also strong and reliable as it assesses the discursive and empirical claims, But this
research has been mainly focused on low minorities and women. All though this paper lacks use secondary
data a more inclusion of theories backed up quantitative data is suggested to further support the claims of
improvement of equality. In some sections the author departs from the perspective that power inequalities
in societies exist in organizations
too and that, as a consequence, organizations should pursue diversity in order to empower minority, groups
and transform these inequalities (Noon 2007).
However, the last 15 years of debate between EEO and AA laws have not yet lead to a theoretical
perspective on dealing with diversity in organizations that adequately integrates the main arguments of
the equality and defend the rights of minorities in the business case perspective (Syed and Kramar
2009).All current trend suggest most countries bring EEO and AA law to promote diversity .
Managerial implication
This study will be beneficial for human resource managers and human resource department in the context
of managing diversity and equality in work force , Managers in today’s globalized world face a lot of
difficulties in the managing a diverse workforce , but the benefits of diverse workforce may lead to
successful outcomes and bringing competitive advantages. This study focuses on managing diversity and
equality through different themes and sub-themes like leadership roles , performance management ,equal
pay, affirmative action and equal employment opportunities . The study focuses on full filling theoretical
gaps seen in review of literature of various sources with contextual approach ,all though some theories
common in HR polices are applied from western HR point of view . The globalization has brought these
HR polices to adjust according to needs and wants of different counties and organization .

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Although the theory puts transformational leadership as a promotor of change and key to manage
diversity and equality in workforce, transactional leadership approach cannot be seen as being open
towards diversity management because of the bureaucratic ideologies the leaders hold. Transformational
leadership gives benefits of developing a inspiring and attractive vision to promote cultural diversity.
Leaders can develop strategies with vision and suggest success to management of diversity will be possible
through small planned steps. In the managerial implication point of view in the leadership role while
managing diversity , organisation which are going through drastic change of getting used to a diverse
workforce first should clearly focus on the transformational leadership . However , the second part of the
theme suggest managers from organization competing in a global scale should be focused on more
different approach of selecting a global leader which indicates how global firms placing more importance
on creating a global leader who embrace diversity as a competitive advantage of a company. Managers in
search of global leaders also should implement training and programs within the organization which help
understand diversity as a positive factor for globalization.
The second theme performance appraisal and equal pay has both cons and benefits but only a proper
management can give organization a competitive edge. The managerial implication of this theme to
manage diversity and equality firms, organizations are required performance appraisal responsibility
handed over to human resource department but the political and biasness towards a particular staff on the
basis of gender and race can bring negative impact. The HR department while implementing review should
hire a diverse manager to tackle such issues. Relating to Cox and … the cultural audits can be solution
towards implementing a fair performance appraisal system . All though majority of biasness occurs with
female employees which reflects in pay ineqality , the solution to this problem can be addressed if HR
managers are able to link EEO and AA laws.
Performance appraisal system can bring transparency in firms towards assessing performance and equal
pay . Another challenge which appears to HR manager operating in more global context operating in
different countries is the need to follow rules and regulation of those countries while conducting such
reviews .The most common problems which will be faced are related with examples of Australian workers
forming a union to address such issues for a more fair solution that would result in equal pay policy which
would help reduces the inequalities in wages between male and female around the global . Applying equal
pay systems would help to reduce the diversity related issues and help promote equality in workforce .

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The third theme is EEO and AA law. The managerial implication of these themes is necessary to promote
women and ethnic minorities participation in organizations . EEO and AA laws have been implemented
by government in organsations to follow the hiring practices athough these have been criticized by most
authors above in the review. some solutions to applying these laws can be addressed through affirmative
recognition which concentrates on shifting the attitudes of those in the strategic level rather than hiring
people just to ensure legal compliance. Although some organization have taken benefits of these laws as
hiring woman and ethic minorities, it is a challenge when considering the tight budget environment to gain
cost benefits in operation . However the mangers can choose wether they take EEO and AA laws as
positive opportunities to combine them with their strategic goals to achieve a competitive role has
managerial implication. The changing in the mind of set of managers in deciding AA and EEO not for just
letting in minorities to entry level jobs but let them promote and grow on their basis of performance should
be a managerial implication this theme.
However for a better solution managers should look into implementation of a diversity management
department which can benefit job function such as recruiting and retaining talent from a diverse pool of
candidate . This can further bring improvements in productivity, quality, team work efficiency, creativity,
and bring satisfaction to improve organization culture. The other benefits include improvement in
customer services and reduction in the level of discrimination and harassment in company this will help
the firm to gain a better brand image .
Conclusion
The topic Managing diversity and equality has gained a lot of attention because of business becoming
international competitive on global scale . The diverse workforce ,growing importance of outsourcing to
reduce costs have brought back awareness about the importance of human resource management. The
unethical practices of some firms have created backlash towards the perception of treatment for women
and ethnic minorities in managing a workforce .
Critically reviewing different literature , the study explored three themes which could lead to improvement
in diversity and equality management in workforce . The first themes was leadership roles and it was
found the a organisation needs to have suitable leader who is open towards change a transformational
leader would embrace diversity issues (Burns,1978). However there are researches and surveys conducted

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from different authors that show how global leadership has been seen important in planning, training and
recruiting manager with global mindset that can help firms . According to Moran and Riesenberger
(1994)) the leaders who have a global mindset are more likely to work as an equal with other employee
of diverse backgrounds, have a long-term vision, are positive towards organizational change, creating new
learning systems, are good negotiators , skilled in managing expats, high motivators . They can understand
value and cultures of own and other host counties and show respect which helps them to effectively
manage a multicultural team .
The second theme reviewed in the study was on performance appraisal and equal pay and it was found
that employees faced a lot of problem when manager conducted a bias appraisal as they were
discrimination on the basic of race color , sometimes even the political factor played a important role as
it was not in the best interest for manager to conduct a fair review without look at the benefits (Poon 2007)
. All though literature reveals such biasness, cultural audits and management audit will help to reduce this
problems Cox and Blake (1991). Further review of literature showed diversity management practices in
Australian firms with the principle of equal pay and a performance-based pay system have help to address
the uneven pay used by manager to take advantages of minority .
The third and final theme EEO and AA law role to manage diversity and equality was reviewed . it found
that government of different counties used this law to promote diversity . This topic was criticized by
many authors as they state that this law only help minorities gain entries into work force but didn’t help
them gain promotion. All though AA an EEO ,have some drawbacks ,some addition of this polices with
diversity management can be the implemented . EEO enforced by law through monetary fines and AA
are enforced through incentive and government grants , but diversity management is self initiated by firm
themselves. They are voluntary which make them more successful as organization themselves take
initiative to address the diversity related issues .Minority members may view the organization’s few
gender-focused policies and practices as an indication that the organization is unwilling to fully engage
minority members (Mor-Barak and Cherin, 1998)

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Recommendation for Future Research
Most of the literature reviewed in this study have used qualitative and quantitative analysis and clearly
fulfilled the purpose of showing connections of managing diversity and equality with themes and sub
themes. The study follows research process to make the reader have natural flow for reading the paper.
This study focuses on framework discussed in the background of literature however , more research should
be done to identify more theme which have a direct relation to the topic . Themes which have direct impact
on addressing diversity issues for organisation in small scale ,need to researched as this study mostly focus
on global practices in global firms .
To gain a competitive edge in towards globalized world it is clear that managing diversity and equality in
work force will play a vital role . However , there is lack of sufficient research in human resource papers
as firm mostly follow western systems . Papers with more contextual approach should be included for
further research to justify the changing need of globalized world. All though research of Fortune 500
companies have been added in this review , further research should include focused interviews of
employee from firms like IBM , google , Xiaomi, to be included in further research . Most successful
companies in the world have embraced diversity ,such interviews represented in data and hypothesis can
help understand how to further understand diversity practices in current organizations. The topic of
managing diversity and equality has relevant application to HR manager and to firms. However the topic
lacked significant empirical research . Another aspect of the research which remain untouched was how
diversity and equality be monitored in a firm all though few papers on cultural audit were examined but
they lacked completeness , as more research will be required to answer gaps.. There are some HRM studies
covering diversity issues. However, these studies are normally regarded as part of the HR literature and
makes it difficult to draw complete conclusions managing diversity and equlit. Further study should

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include research in developing and brick economies like Brazil, Russia, South Africa ,etc . Most past
studies have been conducted in the Western contexts, such as the US, EU nations and Australia. There are
different diversity issues in different national contexts. Research in developing economic would develop
a better understanding of the parameter of diversity management. Moreover, past studies are usually
prescriptive in exploring the relationship between HR diversity practices and organizational performance.
As a result, there is, so far, no study statistically examining the contribution of diversity management in
HR to organizational performance from financial and non-financial perspectives as paper suggest diversity
can vastly effect on marketing a new product in new markets. Further empirical research on this aspect
would enrich our understanding on effective management of diversity and equality in firms.

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Acknowledgements
This study is based in part on my bachelor degree dissertation submitted to University of West of England
2017. I wish to gratefully acknowledge the suggestions of my thesis supervisor, Mr. Jayendra Rimal , as
well as the teaching faculty members, Dr,Govind Tamang and Programme Leader Kumuda Lamichhane
. I also wish to thank the British college Kathmandu for providing necessary access to the data necessary
for this analysis . I would also like to thank Mr. Manish Pant the Associate Programme Leader of BBA
faculty for providing guidance through the research.
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