Managing workforce diversity for better business outcomes

Diversity is a problem for most organizations, successful companies learn to manage their full advantage. By adopting the new structure and working practices that are radically different from traditional management views, these organizations managed to gain a competitive advantage in the global market. The aim of diversity management is to bring out the best of employees Talent, skill, expertise and knowledge for the benefit of individual employees, as well as the welfare of corporations. When the diversity of the workforce is well maintained, no employee in the organization feels disadvantaged.

Commercial enterprises are starting to recognize the power of workforce diversity as a competitive tool. Cascio in his book 'Managing Human Resources: productivity, quality of work life, profits (published by McGraw Hill in 2006) recommended to ask the following questions in order to justify that diversity is indeed a competitive factor:


How can diversity help companies expand their business operations in the global market?
How can diversity help build and sustain brand equity and increase consumer spending?
How does workforce diversity enhances a company's human resource strategies?
How does the element of diversity to build corporate image among consumers?
Differences improve operational efficiency? How?
Cascio citing studies conducted by different researchers, each responds to the question presented with examples to make a business case for diversity. In the process of discussing the business case for diversity, the author wants readers to make an important question - 'What steps can you take as a manager to become more effective in a work environment that is more diverse than ever "? .

The diversity of the workforce should be seen in terms of age, sex. Race, ethnicity, religion and nationality. Successful companies of the 21 st century is to see diversity as a problematic issue. They view diversity as an opportunity that can be used to compete more effectively in local and global markets.

According to Cascio (2006, p.119), Managing diversity means aiming for a 'diverse workforce' which is able to reach his potential in a non-discriminatory, fair and just working.

What are the reasons for diversity is seen as an important activity in human resource management? Cascio lists the following 5 reasons why diversity has become an important activity:


Switch from producing to a service economy
Globalization
Innovative business strategies that require teamwork
Mergers and alliances
The changing labor market conditions
Unlike jobs in manufacturing, service sector (banking, financial services) job holders must maintain a close and constant contact with their customers. Services sector employees are required to understand the needs and expectations of its customers. With increased customer base, which is varied, no commercial company has the luxury of ignoring customer groups. To take full advantage of opportunities corporations need to bring employees who understand and can relate to a diverse customer base. This is to ensure in the words of Cascio "workforce should reflect their clients." This allows an optimum and most cordial interactions between companies and their commercial customers.

Recognizing the limited market locally, companies increasingly look to global markets to sustain and enhance the market share. With the globalization of markets, corporations must learn to manage diversity in the workforce. Successful companies try to learn from their colleagues around the world. This will improve business performance. This would not be possible without a system for managing diversity.

In their attempt to address the problems and challenges that their companies, managers understand the limits of traditional forms of organizational structure. The strategies to be implemented can not be handled by the traditional hierarchy and command-based control system. For these strategies to work you need teamwork. Teams basically means diverse workforce. Managing successful team is about success in managing diversity in the workforce. To emphasize the usefulness of the teams, Cascio (2006, p.123) quotes the words of Ted Childs, vice president, IBM Global Workforce Diversity: "When the vision of a society includes the growing mix of talent pool and customer base , so the real issue is the business case for diversity ".

Mergers, acquisitions and alliances are becoming more common than ever before. When two trading companies decide to combine their expertise and other resources as a result of mergers, acquisitions and alliances know the difficulties they will face if you do not have an effective system to make them work together. The cultures of the merged companies differ. The way of the strategic partner of doing things may be different. The values, beliefs and norms can not be a 100 percent match. To avoid culture shock and clash of cultures, organizations should implement a system so that employees at all levels understand and accept their differences, while working to fully exploit the diversity that has come as a result of mergers, acquisitions and strategic alliances. Here the focus is on opportunities arising from diversity and to be proactive in managing issues related to diversity. To make this work, the upper-level managers must be convinced of the competitive advantages of diversity in the workforce.

The job market is changing rapidly. More women are entering the labor market and continue to remain in the labor market for a longer period of time. Limited liability companies should take appropriate measures to meet the specific needs of women. Balance work and life seems to be the main focus when it comes to managing the female workforce. Cascio, Managing human resources: productivity, quality of work life, profits have listed the following six ways in which companies can adopt to take into account the interests and welfare of women employees:


Alternative career paths
Extended leave
Scheduling of flexible working
Flexi-time
Job sharing
Tele-working
Organizations need to train their employees on diversity and its usefulness for the welfare of society. Diversity training is a key part in managing diversity. According to Cascio (p.124) employees need to 'understand and value' the differences between them. Acceptance of differences in a positive way is essential if society is ready to enable innovation thorough creative thinking in the workplace....