Impact of diversity and inclusion within organisations. Why workplace diversity is so important, and why its so. Survey results that organisations are slowly awakening to the positive benefits available through a diverse workforce. This study therefore seeks to find out the impact of workforce diversity on organizational effectiveness. Managing diversity is a key component of effective people management in the workplace black enterprise 2001. This research project focuses on the impact of a diverse workforce on an organization. Its a job that is so important that there are occupational safety standards and regulations set by the us occupational safety and health. However, your hr department has official duties regarding diversity and can provide advice or guidance if you have questions. Leadership role can play an importance role whereby firms move. The impact of cultural diversity in the workplace john. Study the views of various companies regarding the choice and implementation of workplace diversity. However, that doesnt mean implementing diversity initiatives at work isnt without its unique set of challenges. The specific challenges for diversity and inclusion will likely vary widely from region to region, and employees interests and concerns in different regions will likely differ as well. Diversity and diverse integration viewpoints into organizations are pertinent in a world of shifting demographic patterns and work practices.
The effects of cultural diversity in the workplace clute journals. It might feel as if womens presence in the workplace is a given, but globally, despite making up 50% of the population, women generate just 37% of gdp. In the workplace, health and safety regulations are paramount to the wellbeing of the employees and the employer. Looking at how leaders, managers and nonmanagerial employees view diversity. It is in this context that the present study was conducted to explore the diversity dimension in the indian context. The effects of workforce diversity towards the employee performance in a organization iii declaration we hereby declare that.
Cultural diversity in organisational theory and practice. This is the first part of that series and focuses on four essential skills companies must possess in order to manage diversity in the workplace effectively. Research summary 5 both opportunity costs and attrition lead to big losses for it firms. About the authors vivian hunt is a director in mckinseys london office, where dennis layton is a principal. The diversity and inclusion revolution deloitte us. Managing a diverse workplace can be challenging, as not everyone wants to be exposed to new ideas or work with people who have a different perspective.
Aluko, olabisi onabanjo university, nigeria abstract. Diversity is about differences in people, so topdown leadership practices do not address it. For example, racial diversity stimulates curiosity, and gender balance facilitates conversational turntaking. Collectively, it suggests that diverse work environments boost profitability, culture, and public perception. Aug 28, 2018 the impact of cultural diversity in the workplace. The importance of health and safety in the workplace. The evidence arises out of a fragmented literature where different conceptual frameworks, methods, and measures have been used, and where there are substantial methodological. The existence of workplace diversity, within a workplace, indicates that the workplace is heterogeneous in terms of gender, race, and ethnicity, in which employees possess distinct elements and qualities, differing from one another robbins, 2003, buckingham, 2012. Culture is considered to be the underlying values that direct how people behave. However, it can lead to a lack of a cohesive corporate culture.
Old models of diversity and inclusion are undergoing change, and this trend is expected to accelerate. Workplace diversity is a term which describes the inclusion of people in the workplace regardless of their cultural differences such as gender, race and sexuality. Diversity management, challenges and opportunities in. Pdf the objective of the research is to investigate diversity elements that are prominent at the workplace and its impact on employee. Employees of firms with 2d diversity are 45% likelier to report a growth in market share over the previous year and 70% likelier to report that the firm captured a new market. Therefore diversity can be perceived as a doubleedged sword. Businesses that fail to foster inclusive workplaces see higher turnover rates than businesses that value a diverse workforce because they foster a hostile work environment. This paper critically analyses the workforce diversity and its impact on productivity of an organization. Rather than disregarding them, diverse workplaces utilise these differences to. Objectives of the study to map the attitudes to workplace diversity in the it context to find the most important strategies adopted to enhance workplace diversity. Jan 20, 2017 this research will identify the impact of such diversity on the levels of engagement that employees tend to have in a diverse workplace. Managers should implement policies such as mentoring programs to provide associates access to information and opportunities. Diversity in the workforce journal of education and human. But even today, although it has become part of the.
The evidence arises out of a fragmented literature where different conceptual frameworks, methods, and measures have been. Okoro and washington 2012 stated given the widespread impact of globalization and internationalization, workplace diversity in all forms of organizations, including higher education, is now a fact of life and a trend that will continue for a long time p. Workplace diversity is the idea is that your workplace should reflect the makeup of greater society. 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. Workplace diversity and inclusion strategy 201619 11 our commitment to action employee plans we have committed to a range of actions designed to build upon our inclusive workplace culture, retain our diverse workforce for the benefit of performance and productivity and support our people to have long and productive working careers. Relationship between diversity and an inclusive work place the intent of looking at the diversity in your workplace and customer ranks is to create impact a more. The top 10 economic facts of diversity in the workplace.
Why workplace diversity is so important, and why its so hard to achieve. Businesses must also be aware of the impact of cultural diversity on significant business factors, especially communication. Cultural diversity in the workplace is a result of practices, values, traditions, or beliefs of employees based on race, age, ethnicity, religion, or gender. Diversity management is a process intended to create and maintain a positive work environment where the similarities and differences of individuals are valued. The study also focuses on barriers encountered by employees for accepting workplace diversity in it sectors in india. Also, the consequences loss of time and money should not be overlooked.
From the virgin group to disney and pricewaterhousecoopers, organizations across industries are embracing the benefits of a diverse workforce. Diversity in the workplace benefits and challenges. Impact of workplace diversity society of interdisciplinary business. Here are a few of the top benefits or diversity in the workplace. A diverse and inclusive workforce helps businesses avoid employee turnover costs. Individuals from diverse backgrounds can offer a selection of different talents, skills, and experiences, that may be of benefit to the organization and their work performance. The diversity and inclusion revolution 85 its indirect effect on personal behaviors and group dynamics. Faculty of health sciences, durban university of technology kev words abstract.
Learn more ever since john kennedy was the president of the united states, the concept of workplace discrimination, and the flip side of that coin which is workplace diversity, has been a common issue. This study analyzes the effects of gender diversity in management on organizational performance using korea workplace panel survey data for 2005, 2007, and 2009. The responsibility for dealing with diversity issues belongs to every employee in the company. Many hazards are present in todays work environments, and its the employers job to keep their employees safe from these hazards. Diversity is gradually used and accepted as a significant organizational. Diversity training understanding how our differences may effect or influence our relationships at work peers, subordinate, boss, and customers intentionally or unintentionally. Consequences of ignoring diversity ignoring diversity issues costs time, money, and efficiency.
Diversity in the workplace succeeds because it encourages the organisation to be at ease with everyday difference. Diversity leadership takes place at the workgroup and organizational levels. Diversity is a commitment to recognizing and appreciating the variety of characteristics that make individuals unique in an atmosphere that promotes and celebrates individual and collective achievement. Workplace diversity through recruitment a stepbystep. This paper critically analyses the workforce diversity and its impact. An introduction to culture and diversity in the workplace 2. When people think of diversity, they often think of demographic groups like race or gender.
Discrimination was the most frequently encountered barrier for accepting workplace diversity, followed by prejudice and ethnocentrism. Diversity and inclusion at the workplace deloitte insights. Download limit exceeded you have exceeded your daily download allowance. The impact of a diverse workforce on an organization. Over the past two decades, as scholars have sought to quantify the economic effects of workplace diversity, a growing body of research has emerged. How well the workplace embraces cultural diversity may spell a companys competitive edge and profitability. Few studies have examined this relationship for firms outside the united states, particularly in asian countries. The concept of diversity in the workplace has become important because historically, this wasnt the case. Diversity and its impact on organizational performance scielo. Research method the research relied heavily on studies and articles concerning workplace diversity. Within organizations, the management of diversity is a process of creating and maintaining a discrimination free workplace. To date, the services have focused on the broadest organizational level, as seen in their diversity policy statements military leadership diversity commission, 2010c. Successful organisations are inclusive organisations and they see diversity as a strength not as a weakness. The influence of diversity constructions on expectations and outcomes.
Jun 06, 2017 a leading provider of diversity and inclusion training tools and the top diversity calendar, diversity resources covers cultural diversity in the workplace in a series of articles. Todays organisations need to recognise and manage workforce diversity effectively. The impact of workplace diversity on organisations core. Companies can capitalize on the diversity they already have by including more diverse employees in business decisions at all levels. Importance of cultural diversity in the workplace deputy. The result shows that workplace diversity plays an effective role in some companies. With few exceptions, however, they have paid little or. It is generally recognized that there is diversity in the workforce of any enterprise, be it business, government, or civil society. This article is adapted from the report diversity matters pdf 1,732kb, which was rereleased in february 2015.
Pdf managing diversity and equality in the workplace. What are some ways that diversity can impact the workplace. The literature on diversity management has mostly emphasized on organization culture. Diversity in the workplace edis university of florida. Different opinions, different worldviews, different skillsets, different methods, different expertise. Jul 24, 2019 the positive effects of diversity in the workplace include having a variety of perspectives represented and being able to reach a diverse clientele. Looking at how leaders, managers and nonmanagerial employees view diversity, it. In current scenario, employing diversified workforce is a necessity for every organization but to manage such diversified workforce is also a big challenge for management. The impact of workplace diversity on the workplace 997 words 4 pages. There are many positive aspects to diversity in the workplace, such as exchange of. The author used articles that answered the question of impact of diversity to workplace and personal experiences over the years of working in different organizations and. Benefits, challenges, and the required managerial tools 3 where every member must listen and have the chance to speak, are good ways to create dialogues. Explore the required tools for managing workplace diversity. On the other hand, diversity is also a cause of misunderstanding, suspicion and conflict in the workplace that can result in absenteeism, poor quality, low morale and loss of competitiveness.
Research papers diversity in the workplace and the impact of work values on the effectiveness of multigenerational teams by carlos. Economic globalization is one of the driving forces of cultural diversity in the workplace. Diversity management is a holistic and sity, wor p ace iversity strategic intervention aimed at maximizing every individuals potential to contribute. Research by mckinsey and company report that companies with workforces comprising a large percentage of diversity in gender, race, and ethnicity often outperform the national industry median by as much as 35%. Diversity and its impact on organizational performance. In short, while managing diversity is also concerned with underrepresentation of women and people of color in the workforce, it is much more inclusive and acknowledges that diversity must work for everyone. Diversity in the workplace leads to a plethora of benefits both from an internal and external perspective. These effects are depend on the factors surroundings organizations externally and internally. 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. A descriptive research design was used in this research. Stephen butler, cochair of the businesshigher education forum, believes diversity is an invaluable competitive asset robinson 2002. The impact of diversity in the workplace is largely positive, bringing different viewpoints into the organization and broadening the companys perspective.
There are some very positive benefits that can be hard from having a more diverse workforce. Unintended negative effects of diversity management. Evidence on the impact of diversity and inclusion the evidence on the impacts of diversity and inclusion appears to be mixed and inconclusive. There are many factors that impact and influence the wellbeing of an organization. Ever since john kennedy was the president of the united states, the concept of workplace discrimination, and the flip side of that coin which is workplace diversity, has been a common issue. This research is also justified by the fact that the contemporary workplace is commonly focused on raising productivity and competitive advantages, to which an engaged workforce is proved to play an important. Diversity in this study embraces all forms of diversity.
Accepted 27, june 2007 workforce diversity is a primary concern for most of the businesses. To answer the research question as well as obtain and practical and relevant information on each company, the author conducted an interview on three of the companies, and gathered information on the internet on two of the companies. The importance of diversity in the workplace there are clear signs in the latest leadership, employment and direction l. However, workplace diversity offers many positives for employers and employees. Benefits, challenges, and the required managerial tools 2 advantages. So why is diversity important in the workplace and how are organizations missing out if they dont get the gender balance right. The objective of the research is to investigate diversity elements that are prominent at the workplace and its impact on employee satisfaction towards diversity at workplace in malaysian hotel. Faiza maqbool shah supervisor department of business administration, jinnah university for women juw karachi pakistan. Unmanaged diversity in the workplace might become an obstacle for achieving organizational goals. One positive effect is that employees belonging to different cultures usually have different ways of thinking and can thus analyze a matter at hand from a variety of. However, the association between age diversity and employee performance was insignificant. The study will be useful for the companies under discussion nevertheless it shall also be helpful for people who want to know more about workplace diversity, and how to manage it. The study also sought to determine the effect of education diversity, ethnic diversity, gender diversity and age diversity on employee performance in the banking industry in kenya.