Implementing Diversity Management Strategies
As we mentioned before, discrimination—for any reason—leads to increased turnover, which is detrimental to organizational performance. While a better representation of all racial groups in organizations remains a goal, an individual of minority status is much less likely to leave the organization if there is a feeling of inclusiveness, known as a positive diversity climate.76 Although the reasons aren’t completely understood, a positive climate for diversity can also lead to increased sales, suggesting there are organizational performance gains associated with reducing racial and ethnic discrimination.77
How do we move beyond the destructiveness of discrimination? The answer is in understanding one another’s viewpoints. Evidence suggests that some people find interacting with other racial groups uncomfortable unless there are clear behavioral scripts to guide their behavior,78 so creating diverse work groups focused on mutual goals could be helpful, along with developing a positive diversity climate.
We have discussed the facts surrounding stereotypes and discrimination, the effect of employee differences and how they influence important employment outcome variables, explained some of the laws countries use to curtail discrimination, explored some of the policies organizations employ to mandate inclusiveness, and suggested ways organizations can address certain specific employee conditions. We now look at how a manager can and should manage employee differences. Active diversity management makes everyone more aware of and sensitive to the needs and differences of others. This definition highlights the fact that diversity programs include and are meant for everyone, regardless of characteristics and in light of varying specific abilities. Diversity is much more likely to be successful when we see it as everyone’s business than when we believe it helps only certain groups of employees.
Attracting, Selecting, Developing, and Retaining Diverse Employees
One method of enhancing workforce diversity is to target recruitment messages to specific demographic groups that are underrepresented in the workforce. This means placing advertisements in publications geared toward those groups; pairing with colleges, universities, and other institutions with significant numbers of underrepresented minorities, such as what Microsoft is doing to encourage women to pursue technology studies;79 and forming partnerships with associations like the Society of Women Engineers or the National Minority Supplier Development Council.
Research has shown that women and minorities have greater interest in employers that make special efforts to highlight a commitment to diversity in their recruiting materials. Diversity advertisements that fail to show women and minorities in positions of organizational leadership send a negative message about the diversity climate at an organization.80 Of course, to show the pictures, organizations must actually have diversity in their management ranks.
Some companies have been actively working toward recruiting less-represented groups. Etsy, an online retailer, hosts engineering classes and provides grants for aspiring women coders, and then hires the best.81 McKinsey & Co., Bain & Co., Boston Consulting Group, and Goldman Sachs have similarly been actively recruiting women who left the workforce to start families by offering phase-in programs and other benefits.82
The selection process is one of the most important places to apply diversity efforts. Hiring managers need to value fairness and objectivity in selecting employees and focus on the productive potential of new recruits. When managers use a well-defined protocol for assessing applicant talent and the organization clearly prioritizes nondiscrimination policies, qualifications become far more important factors than demographic characteristics in determining who gets hired.83
Individuals who are demographically different from their coworkers may be more likely to feel lower commitment and to leave, but a positive diversity climate can aid retention. Many diversity training programs are available to employers, and research efforts are focusing on identifying the most effective initiatives. It seems that the best programs are inclusive in both their design and implementation.84 A positive diversity climate should be the goal since all workers appear to prefer an organization that values diversity.
Diversity in Groups
Most contemporary workplaces require extensive work in group settings. When people work in groups, they need to establish a common way of looking at and accomplishing the major tasks, and they need to communicate with one another often. If they feel little sense of membership and cohesion in their groups, all group attributes are likely to suffer.
In some cases, diversity in various traits can hurt team performance, whereas in other cases it can facilitate performance.85 Whether diverse or homogeneous teams are more effective depends on the characteristic of interest. Demographic diversity (in gender, race, and ethnicity) does not appear to help or hurt team performance in general, although racial diversity in management groups may increase organizational performance in the right conditions.86
Teams of individuals who are highly intelligent, conscientious, and interested in working in team settings are more effective. Thus, diversity in these variables is likely to be a bad thing—it makes little sense to try to form teams that mix in members who are lower in intelligence or conscientiousness, or who are uninterested in teamwork. In other cases, diversity can be a strength. Groups of individuals with different types of expertise and education are more effective than homogeneous groups. Similarly, a group made entirely of assertive people who want to be in charge, or a group whose members all prefer to follow the lead of others, will be less effective than a group that mixes leaders and followers.
Regardless of the composition of the group, differences can be leveraged to achieve superior performance. The most important factor is to emphasize the similarities among members.87 Managers who emphasize higher-order goals and values in their leadership style are more effective in managing diverse teams.88
Diversity Programs
Organizations use a variety of diversity programs in recruiting and selection policies, as well as in training and development practices. Effective, comprehensive workforce programs encouraging diversity have three distinct components. First, they teach managers about the legal framework for equal employment opportunity and encourage fair treatment of all people regardless of their demographic characteristics. Second, they teach managers how a diverse workforce will be better able to serve a diverse market of customers and clients. Third, they foster personal development practices that bring out the skills and abilities of all workers, acknowledging how differences in perspective can be a valuable way to improve performance for everyone.89
Most negative reactions to employment discrimination are based on the idea that discriminatory treatment is unfair. Regardless of race or gender, people are generally in favor of diversity-oriented programs, including affirmative action programs (AAP), to increase the representation of minority groups and ensure everyone a fair opportunity to show their skills and abilities.
Organizational leaders should examine their workforces to determine whether target groups have been underutilized. If groups of employees are not proportionally represented in top management, managers should look for any hidden barriers to advancement. Managers can often improve recruiting practices, make selection systems more transparent, and provide training for those employees who have not had adequate exposure to diversity material in the past. The organization should also clearly communicate its policies to employees so they can understand how and why certain practices are followed. Communications should focus as much as possible on qualifications and job performance; emphasizing certain groups as needing more assistance could backfire.
Finally, research indicates a tailored approach will be needed for international organizations. For instance, a case study of the multinational Finnish company TRANSCO found it was possible to develop a consistent global philosophy for diversity management. However, differences in legal and cultural factors across nations forced the company to develop unique policies to match the cultural and legal frameworks of each country in which it operated.90