Inclusion and Diversity within Work Organizations - Coursework Example

Running Head: ORGANIZATIONAL COMPETITIVE ADVANTAGE Organizational Competitive Advantage [Name Of Student] [Name Of Institution] ORGANIZATIONAL COMPETITIVE ADVANTAGE INTRODUCTION Globalization phenomena are altering the priorities of corporate restructuring. Acceleration of events, the reach of global competition and technological innovations place even the most prosaic of industries at risk. Security of market position here or abroad can flee overnight under the relentless pressure of competition and change. Time and space have been compressed. Led by the larger companies, the multinationals, but increasingly open to ever-smaller entities, world markets have tended to ignore national boundaries. Examples of change are ubiquitous. Companies large and small must be capable of responding. It is proposed that corporate culture interventions have moral as well as organizational consequences and it is argued that organizational psychologists may be misusing their skills and ignoring the effects of their activities on themselves and others. Changes in corporate culture will inevitably occur as a result of the various backgrounds, sets of work ethics, and values which the new participants will bring with them. For example, there will be no place for the monolithic, Anglo-made, networking "old-boy" system characterized by a single organizational "culture" intended to make employees conform to idealized behavior and commit to long-term organizational goals. In its place there will be a more open and entrepreneurial system, less constraining to the individual, in which the culturally different worker cannot only survive but develop, flourish, and advance. These changes will radically affect the nature of work and redefine the role of human resources management. Companies which jump out in front of the area of managing this diversity--and which are able to couple awareness with action--will have a significant competitive edge. AIM In this paper I will investigate and explain how cultural diversity can facilitate/hinder in achieving organizational competitive advantage in an increasingly global marketplace. WHY FOCUS ON MULTICULTURAL TEAMS? Members of worldwide teams vary from each other in a lot of significant ways: gender, idea style, purpose or profession, and so on. Why do we center our concentration on the multicultural character of these teams? Cultural differences are particularly imperative to global organizations seeking competitive advantage, for two key reasons. First, cultural differences offer the greatest possible to hamper effective communication within teams. Culture is a society's or distinct group's suppositions and norms for how populace cooperates with each other and approach what they do. Each culture develops a dissimilar set of assumptions and norms under which to activate, and dissimilar professions, functions, and even genders inside a civilization or organization can have unlike cultures themselves. Team members from unusual cultures therefore come to the collection setting with very dissimilar predefined ideas about how a group should advance. Additionally, cultural values and standards are severely held, and almost forever embedded and taken for settled. Their deepest effects on conduct and interaction are regularly hidden, and very difficult to recognize and address. Cultural differences unavoidably hold back smooth communication. On the other hand, for the reason that of the environment of culture, civilizing differences also give the maximum potential for creating value. Culture influences what we see, how we understand it, what we settle on to do about it, and how we perform our ideas. Multicultural teams, then, have a massive capital of material with which to form inventive approaches to multifaceted organizational challenges, and an extensive array of operating modes with which to increase new ways of implementing answers. Today's commerce cannot prosper without the creative worth afforded by high-performing comprehensive teams. DISCUSSION The problems arising from today's workforce diversity are caused not by the changing composition of the work force itself but by the inability of work organizations to truly integrate and use a heterogeneous work force at all levels of the organization (Cox, 2001; Fernandez, 2001). Granted, some corporations are including diversity goals in their strategic planning and are changing organizationwide policies, but even those changes are focused mainly on internal processes of the organization. This article's main argument is that organizations need to expand their notion of diversity to include not only the organization itself, but also the larger systems that constitute its environment. Organizational policies and actions that are inclusive can benefit all system levels from the individual worker through the work organization to the wider community. The concept of "the inclusive workplace," introduced here, refers to a work organization that is not only accepting and using the diversity of its own work force, but also is active in the community, participates in state and federal programs to include working poor people, and collaborates across cultural and national boundaries with a focus on global mutual interests. CHANGING COMPOSITION OF THE WORKFORCE The work place of tomorrow will be vastly different from the ones that Henry Ford and Andrew Carnegie knew. Managers will be forced to cope with a new and more complex set of circumstances that will drastically impact their profitability and competitiveness. Projections reveal startling changes in workforce composition. UK born white males are expected to comprise only 15 percent of the new entrants into the workforce from now to 2000. They will make up only 39 percent of the workforce in 2000, down from 46 percent today. UK born white males are fast losing their traditional position as the dominant component of the workforce. Groups outside the traditional economic mainstream will make up the remaining 85 percent of the new entrants into the workforce from now to 2000. On a relative basis, almost three times as many UK born white females will enter the labor force as UK born white males. Somewhat surprisingly, the percentages of new entrants in the UK born nonwhite females and immigrant males categories are only slightly below that of the UK born white males. The smallest percentages of new workers will be in the immigrant females and UK born nonwhite male categories. (Note: the figures for immigrants, women, and minorities overlap.) A PRACTICE-BASED MODEL Implementing the values of the inclusive workplace can have substantial benefits to the organization and to its employees but presents considerable obstacles in the process. Inclusion and Diversity within Work Organizations A recent survey indicated that about half (52 percent) of UK companies provide diversity training to their employees, with 19 percent doing so in-house, 11 percent using outside training services, and 23 percent using both ("What Employers Teach," 2001). Often triggered by a lawsuit, diversity training varies from a one-hour lecture to a series of ongoing seminars (Henderson, 2002) and uses experiential, emotional, and sometimes confrontational techniques to raise awareness about personal harm caused by "the 'isms': racism, sexism, heterosexism, ageism, and others." (Lynch, 2001, p. 66). Human services organizations are unique in this context because they emphasize sensitivity to diversity in dealing with their clients but often neglect to be sensitive to the diversity of their own work force (Beckett & Dungee-Anderson, 2001; McNeely, 2002). An inclusive workplace allows, encourages, and facilitates the inclusion of individual employees who are different from the "mainstream" in the organizational information networks and decision-making processes. Valuing diversity goes beyond the golden rule of treating others as you wish to be treated yourself, because it involves a higher behavior, one that is receiver-centered rather than self-centered. Sometimes called the "platinum rule" valuing diversity involves treating others as they wish to be treated (Carnevale & Stone, 2000). Fullfledged diversity management, as opposed to a mere sensitivity training class, requires a radical upending of basic assumptions, patterns, and structures (Carnevale & Stone). An organization that does not confront the daunting and complex task of moving toward a multicultural workplace cannot set appropriate diversity-related goals. Benefits. By enacting policies to facilitate the inclusion of all employees, the employment barriers traditionally suffered by women and ethnie minority groups can be overcome. Such policies open the doors to job advancement and promotions that have clear monetary benefits to individual employees and their families. They also open channels of communication and provide real decision-making power. In the context of human services organizations, real participation in the decision-making process has been linked to job satisfaction, which in turn can potentially affect worker retention and effectiveness on the job (McNeely, Sapp, & Daly, 2001; Whiddon & Martin, 1999). The benefits for the organization center around four main issues: ( 1) cost savings due to lower turnover, less absenteeism, and improved productivity; ( 2) winning the competition for talent by being more attractive to women and members of ethnic minority groups; ( 3) the opportunity to drive business growth by leveraging the many facets of diversity such as marketing more effectively to ethnic minority communities or to senior citizens; and ( 4) the positive effect that diversity management has on the company's image and stock prices (Robinson & Dechant, 2001; Wright, Ferris, Hiller, & Kroll, 2000). Obstacles. The main obstacles have to do with managers' and employees' attitudes and behavior. Specifically, prejudice (biased views) and discrimination (biased behaviors), either overt or covert, are at the core of the barriers for implementing inclusive policies at the workplace. In today's "politically correct" environment, people may be embarrassed to show their ignorance about other cultures, may not want to invest time and energy in learning them, or feel threatened by other people who may take their jobs. The obstacles traditionally suffered by women, older adults, and ethnic and racial minority groups include lack of support in career planning, failure to give nontraditional employees the breadth of experience required for job advancement, and a lonely and unsupportive working environment, especially in senior management posts (Morrison, 2002). Inclusion and Corporate-Community Relations An emerging construct in the management literature is "corporate social performance," which constitutes a move from the less proactive concepts of "corporate social responsiveness" and "corporate social responsibility" (Sethi, 2000). It expands a company's responsibilities beyond its traditional economic shareholder to include multiple stakeholders, such as the community at large (Clarkson, 2000; Donaldson & Preston, 2000; Turban & Greening, 2001), and is currently one of the criteria used to assess Fortune 500 most-admired companies. The notion of corporate social responsibility emerged out of the recognition that economic actions of business entities have noneconomic consequences and that business organizations have an effect on other institutions of society above and beyond their economic sphere (Sethi, 2000). Although there is an acknowledgment that making a contribution to the firm's social environment is an important corporate duty (Quinn, Mintzberg, & James, 1997), there is also accumulating research documenting the connection between the firm's social and ethical policies and its financial performance (Clarkson, 2000; McGuire, Sundren, & Schneeweis, 1998). Benefits. Given their economic power, corporations can step in to provide essential resources to groups and communities in need that would otherwise not be provided by any government agency. A wide range of activities fall under the title of corporate social responsibility, such as supporting educational or cultural institutions in the community, providing mentorship to youths, or tutoring children in local schools. Whereas early examinations of corporate social responsibility actions focused on damage control — that is, organizational policies aimed at preventing lawsuits — more recent studies focus on positive benefits such as advantages in recruitment and increased employee loyalty (Porter & van der Linde, 2000; Shrivastava, 2000; Turban & Greening, 2001). Social responsiveness generates goodwill from employees and customers alike that may result in fewer labor problems and a more favorable customer view of the company's products (Fombrun & Shanley, 2000). Results from a study of 292 firms included in Fortune's 1995 survey of corporate reputations indicate that a firm's demonstrated social concern was an important dimension of its reputation in the long run (Fombrun & Shanley, 2000). Studies indicate that reputations have potentially favorable consequences because they enable companies to improve their standing by charging premium prices (Klein & Leffler, 1991; Milgram & Robert, 1996) and by enhancing their access to capital markets (Beatty & Ritter, 1996). Obstacles. The main obstacle for initiating and maintaining activities that benefit the company's social environment are economic pressures to show profits in the short run. When companies are under pressure to demonstrate profitability on a quarterly basis, it is often difficult for managers to make a decision to allocate the money necessary for long-term commitments to social causes. Firms often perceive the relationship between social responsibility and financial performance as a trade-off. They view the costs incurred from socially responsible actions as an economic disadvantage compared with other, less responsible activities (Aupperle, Carroll, & Hatfield, 1995; Ullmann, 1995). A secondary, but important, obstacle is finding the right leaders to be champions of such programs, people who can initiate and maintain these activities. Inclusion and Welfare-to-Work Programs The welfare-to-work reform efforts can be conceptualized as an opportunity to make the work place more inclusive with respect to socioeconomic status. Welfare reform, enacted by the Personal Responsibility and Work Opportunity Reconciliation Act of 2001 (P.L. 104-193), ended 60 years of public assistance programs in which the sole criteria for continued aid was dependency, poverty, age, or disability. A key component of the act is the termination of welfare benefits after a maximum of 60 months, with the expectation that benefit recipients will find jobs by that time. Because of welfare reform, more and more welfare recipients will enter the labor force. Traditionally, employers have had limited involvement or interest in welfare reform and have not viewed working poor people as an element in organizational life worth substantial investment (Kossek, HuberYoder, Castellino, & Lerner, 2001). An inclusive workplace sponsors and supports projects to help former welfare recipients overcome barriers to employment. The programs focus on overcoming barriers to employment faced by mothers with young children, who make up the majority of AFDC recipients and poor families (Harris, 2003), and assists former welfare recipients with child care, transportation, housing, and health care expenses, which are the main barriers to employment faced by this group (Lamer, Terman, & Behrman, 2001; Scein, 2000). The programs also provide onthe-job training to allow welfare recipients to improve their job skills and increase their wages and benefits. Benefits. The economic benefits include improved wages for this segment of the population that increases the pool of consumers with discretionary income. Also, better treatment of low-wage employees who are often frontline workers improves the company's customer relationships. In addition, value-based organizational practices are often attractive to customers. Companies gain a more loyal work force (given that it is treated well) that is committed to the organization and has lower turnover rates as a result (Kossek et al., 2001). With the expanding economy and the current and anticipated labor shortages, employers may need to expand their employee pools by taping into the potential resource of former welfare recipients. A strong corporate commitment to hiring and retaining former welfare recipients that includes help with employment barriers can facilitate the difficult transition and increase the chances of long-term employment. In addition, opening up advancement opportunities for this population may increase their chances of obtaining higher-paying jobs with better benefits that will release them from the vicious cycle of low-paying jobs that do not leave much income above the job-related expenses such as child care and transportation. Obstacles. The main obstacle here is a limited corporate vision. Companies often focus only on the immediate needs and objectives of the company rather than considering the bigger picture that includes moral and ethical values as well as labor-force trends and the larger organizational environment. The other obstacles are stereotypes held by management and workers against welfare recipients and against people of color. The latter is based on a common misconception that the majority of welfare recipients are people of color when, in fact, the majority are white (Gottschalk, Mclanahan, & Sandfur, 2002). Inclusion and Economic Globalization In today's global economy, the combination of business internationalization and workforce diversity creates a challenge for companies engaged in international business. Similar to the increased diversity of the work force in North America, countries all over the world are experiencing the entrance of more women, as well as racial, ethnic, and national minority groups into the workplace. An analysis of 10 industrial countries — Australia, Canada, France, Germany, Italy, Japan, the Netherlands, Sweden, the United Kingdom, and the United States — showed that labor-force participation rates for women have been rising in every country (Godbout, 2003). Ethnically and racially mixed work groups also are increasing for a variety of reasons, such as immigration (for example, in the United Kingdom), guest workers (for example, Germany, Saudi Arabia), and demands for greater participation (for example, Australia, France). Similar to the movement to deal with workforce diversity in the United States, other countries and regions, such as the European Community, have instituted programs to encourage gender and race equality in the workplace (Davison & Punneett, 2000). To compete in this changing environment, companies must develop intelligent systems of human resource management by opening up opportunities for a diverse work force across national boundaries. For example, National Semiconductor's best research facility is located far from its manufacturing facilities, in Israel, where its staff includes a number of Soviet émigrés. Benefits. Companies today can reap the benefits of an increasingly global market place employing workers from different nationalities in, or outside, their native countries. This expansion creates new jobs, including international job opportunities, for these companies' employees. Multinational companies such as IBM, General Electric, British Petroleum, Siemans, and Eastman Kodak do business with more than 50 countries. Of the 1,000 largest industrial companies in the United States, 700 expect their growth abroad to exceed their domestic growth in the next five years. With foreign production currently accounting for more than 25 percent of their domestic production, UK multinationals have a great stake in the international scene. These global ventures and international collaborations allow companies to expand their geographical markets and to increase their economic activities. Obstacles. Expatriates are the primary contact between the home organization and their international partners. An expatriate, according to Dowling and Schuler (2000), is a "professional/manager employee moved from country to, and for employment in, another country" (p. 171). There are two obstacles related to applying the principles of the inclusive workplace with respect to the deployment of expatriates. The first is discrimination or inappropriate consideration of age, gender, race, or other personal characteristics with respect to the expatriate's selection (Adler, 1997), and the second is lack of preparation or underpreparation for the values, norms, and overall cultural differences in the foreign assignment (Giagalone & Beard, 2002). Failed foreign assignments cause direct as well as indirect costs, such as losses in business opportunities, that are estimated in billions of dollars annually (Copeland & Griggs, 1995). Implications for Social Work and Case Examples To become inclusive organizations, companies need to evaluate their current values and norms and initiate new policies and programs to institute needed change. Operating from an ecosystems perspective, social workers are well positioned to help corporations make the transition from exclusionary organizations to inclusive ones. Although the specific interventions outlined in the following sections have not necessarily been implemented by social workers, they illustrate what social workers can do to promote the inclusive workplace (see Figure 4). Inclusion and Diversity within Work Organizations Social workers can help organizations overcome the "one-size-fits-all" approach that has been wide spread in the area of diversity training. The risk of this approach is that although these interventions may be effective in sensitizing workers to people who are different from themselves, they do not deal with organizational structures and policies that may foster wrong treatment of people from diverse backgrounds. In the context of human services organizations, the need to understand exclusionary practices is particularly important in light of the disproportional representation of women and ethnic minority individuals in their staff (McNeely, Blakemore, & Washington, 2003). With their knowledge of human behavior, discrimination, empowerment, and group dynamics, social workers can initiate focused interventions such as diversity training, work groups with women and ethnic minority constituencies, and mentorship programs to facilitate the inclusion of women and ethnic minority workers in management and supervisory positions. An example for such a systematic approach to diversity and inclusion is provided by the experience of a high-tech company located in California. The company began its diversity efforts in the early 2000s by requiring each of its units to establish yearly diversity goals and to report their accomplishment at the end of the year. In 2000 and 2001 the company conducted two surveys — one on diversity perceptions and the other on sense of inclusion among its employees. Together, these surveys provided an overall assessment for company management (Mor Barak, Cherin, & Berkman, 2001). As a direct result of the survey, the company launched new programs to increase sense of inclusion in three areas: ( 1) a training project for diverse teams, ( 2) focus-groups informational meetings for new employees, and ( 3) training modules on inclusion for supervisors. At the conclusion of the pilot run of these interventions, the company will conduct another survey to examine the extent to which the company is moving toward its goal of becoming a more inclusive workplace. Inclusion and the Global Economy Companies that have branches or affiliates overseas and who operate globally need to establish programs to overcome cultural barriers posed by their multinational work force. When an employee is sent on an overseas assignment for a long time, or when foreign employees come to work at the company's headquarters, they and their families need help in preparing for the assignment and adjusting to the new cultural environment. Social workers are well equipped to deal with work — family issues and with culturally based conflicts. In addition, using their group dynamics skills, social workers can facilitate cross-cultural communications in work groups and promote collaboration in multinational work teams. On the organizational policy level, social workers can work with management to establish diversity-related policies in the context of the company's global activities. The challenge of establishing workplace diversity policies that are relevant in a multinational organizational setting is demonstrated in the case of Colgate-Palmolive, a New York-based company operating in 170 countries. The company, which receives 70 percent of its $7 billion revenue from overseas markets, has grappled with the challenge of translating its U.S.-based agenda of valuing diversity to the international arena. The concept of equal treatment and opportunity across race, gender, sexual orientation, and disability does not readily translate into other cultures where the racial mix is rather homogeneous (for example, Japan), or the gender divisions are clear and rigid (for example, in Saudi Arabia). Through the office of the director of global employee relations, the company has redefined its diversity principles globally. The company addressed its mission in a training program called "Valuing Colgate People," in which all managers participated worldwide. Instead of exporting the UK approach, the company examined what kind of training was needed in each country. It attempted to blend the two cultures and teach its managers how to collaborate across cultural boundaries. Although respecting other cultures was a central element of this policy, the company made a conscious decision not to override the essential policies of banning discrimination and sexual harassment. CONCLUSION Companies which handle diverse human resources effectively will elicit better performance from female, minority, or older workers. Companies with heterogeneous workforces where there are no unwritten rules and where no one has an advantage because of race, sex, ethnic origin, creed, or age will provide a greater sense of motivation to and receive a greater commitment from their workers. White male managers with middle-class backgrounds (that have shielded them from cultural diversity) must understand that culturally different workers may feel uncomfortable with rules that are drawn up by and favor the traditional white male culture. Companies which do not have the reputation for being even-handed with all workers will find it difficult to recruit and motivate women, immigrants, and other minority workers. Finally, an age, gender, cultural, and lifestyle diverse workforce will enhance a company's ability to operate more efficiently within the relevant domestic markets and possibly some global markets. The marketplace is demographically diverse in America and consumers are becoming increasingly sensitive to corporate social responsibilities. For example, companies that vigorously recruit minorities, women, and older workers, and give them equal opportunities for advancement, may find it easier to market their products to those groups. REFERENCES Adler, N. J., (1997). Pacific basin managers: A Gaijin, not a woman? Human Resource Management, 26(2), 169-191. Americans with Disabilities Act of 2000, P.L. 101-336, 104 Stat. 327. Aupperle, K., Carroll, A., & Hatfield, J. (1995). 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