The Role of a Diverse Workforce in Company's Development - Literature review Example

Human resource management Institution: Name: Human resource management In the recent times, there has been dramatic increase in the number of women joining the workforce. The changes have contributed to affirmative action as well as equal employment legislation, economic realities and feminist movement. Even presently, women still earn less compared to their male counterparts and some companies still discriminate women when it comes to hiring and promotion based on various basis. As the representation of women in the workforce continues to increase, they experience unique problems and concerns. This is because the lives of women are distinct from that of men. For example, women have the responsibility of giving birth and taking care of the children. Furthermore, in most cases, women choose to minimize their commitment to part-time schedules or carry their careers in a serial fashion, and instead spend their time as a mother and wife prior to entering the workforce. A high percentage of women are being discriminated while looking for job or while on job because the employee thinks that they are likely to become pregnant or they are pregnant. For several years, employees have been permitted to discriminate against women and the discrimination was justifiable by the fact that women are likely to become pregnant. One in five directors of British companies admitted that they avoid hiring women between the age of 20 and 30 who are more likely to have babies. (BBC Radio 4 Nov 2007). In the past, women were temporarily assigned part-time, temporary, or at times assigned to low demanding jobs. This is because it was assumed that the first priority of women was to bear children and take care of their families. Additionally, unmarried women between the age of 20 to 30 years were likely to quit their jobs immediately they get unmarried while the married ones between similar age groups were likely to quit their jobs too as soon as they get pregnant. Studies have proven that women with children mind more about their compared to their work. Additionally, there has been widespread belief that as compared to men, women are not as capable either emotionally, mentally or physically. In the present world, women are perceived as inferior compared to their male counterparts. Nonetheless, there are group of women who want to place their career first and not necessarily the family. However, some scholars have perceived tis issue in terms of strategic concepts. Studies have proven that most businesses compete for human resources and as workforce increasingly become heterogeneous in nature, organizations will be forced to handle these needs or risk losing to their rivals. Therefore, organizations, which discriminate against women employees, have no option but rather to recruit from a small pool of employees, thus minimizing their chances of hiring top performers. Similarly, a group of managers point out that increased diversity within the workplace can contribute to various challenges. For instance, having high percentage of women can result into increased sexual harassment (Daft, 2010, p. 87). The reason why companies do not want to hire women from this age group is to minimize the aspect of turnover. It is evident that employee departure cost a company a lot of money, time in addition to other resources. According to studies, direct replacement costs a company approximately 50-60 percent of the annual salary of employees. Additionally, the total cost that is associated with the turnover is about 90 to 200 percent of the company’s annual salary. Consequently, there have been key changes to business because of outsourcing and downsizing that has influenced human resource management. Furthermore, work practices have dramatically changed because of technology and globalization impact and there is a developing trend towards working for longer hours an aspect that disadvantaged women. This has made some employees to they avoid hiring women between the age of 20 and 30 who are more likely to have babies. However, state and federal equal opportunity legislation regard discrimination in the workplace is regarded as illegal. The laws specify that the responsibilities and rights for both employers and associates in the workplace and make the groups accountable (Karsten, 2006, p. 67). The key conception among business scholars and employees is to regard company’s employees as the most valuable asset. The coordination as well as combination of the skills, abilities and knowledge of the employees has become the organization’s capital and human resource in addition to a source of competitive advantage to the degree whereby the resources are valuable, rare and difficult to imitate. The mentioned perspective is a representation of the resource based view of the company. Hiring should be based on diversity and skills without any form of discrimination. This is because diversity is beneficial to both employers and associates. Even though associates in the workplace remain interdependent, respecting the individual differences and focusing on the ability and competency results into increased productivity. Furthermore, it can contribute to increased marketing opportunities and reduced lawsuits as well as improved business image, creativity and recruitment. In the era when creativity and flexibility is crucial to competitiveness, diversity is important for the success of the organization. Consequently, a number of companies have realized that diverse workface contributes to improved performance satisfied employees and happier customers. Diversity is defined as the understanding, valuing, acknowledging and celebrating the differences among people with regard to ethnicity, age, mental and physical ability and class. For the last few years, the workforce in the industrialized nations has become heterogeneous in nature. These nations are investing a lot with an aim of diversifying the workforce. Hence diversity is being recognized as well as utilized as an essential organizational resource as a way of achieving competitive advantage and ensuring productivity. The need to understand the aspect of diversity within the workplace is also driven by increasing number of women joining the workforce. The current workforce has a high percentage of women participants. Furthermore, the number of single mothers and dual income families has also increased. Alteration in the family structure indicates that there are fewer women and men in the existing traditional family roles. Hence, the aspect of diversity cuts across gender and race (Roberson, 2013, p. 59). According to Kennedy-Luczak & Thompson (2004, p. 19), most companies have recognized the importance of hiring employees based on skills and abilities and not on other aspects such as gender, race or culture. This is because, through integrating employees from diverse backgrounds, organizations are likely to become stronger. Nonetheless, most firms fail to understand the necessity or challenges associated with workplace diversity. It is important to perceive diversity as an essential component of the organization that is important to increased sales and successful products. The mentioned is true to the current global market. This is because; most organizations interact with different customers and cultures. Employees should concentrate on skills and abilities of the employees and focus on the diversity within the workplace. This is because diverse workforce increases creativity. This is because different group of people in the organization such as women, men, the aging workplace and baby boomers have different ways of finding solution to challenging problems at work. Furthermore, if organization based their hiring on skills regardless of the culture, it is likely to have insightful alternatives while tackling different challenges and is likely to develop a workable solution. Gender equality in the workplace is achieved when people are in apposition to enjoy same opportunities, rewards and resources regardless of their gender. Most nations globally have made significant changes towards realizing gender equality. In the recent past, women have managed to advance in their education and hence excel in their careers. However, women continue to be discriminated at the workplace by either being not promoted or earning less. Organizations should hire people based on various skills and achieve gender diversity within the workplace. Andrews (1999, p. 12). Diversity can contribute to competitive advantage for companies. This is because there is positive relation between performances. However, in order to ensure that the diverse workplace has the required skills, there are required tools needed for managing diverse workforce. Effective managers acknowledge that there are certain skills that are important for establishing successful and effective diverse workforce. It is important for managers to have a better understanding of discrimination as well as its consequences. Secondly, it is essential for managers to recognize their prejudices and cultural biases. It is important to note that diversity is not based on differences existing among groups but the differences that is present among the individuals. Every individual is unique and does not speak or represent a given group. Amos (2008, p. 23). however argues that there is no single way of managing diversity. This is because it mainly relies on the ability of the manager to understand what is good for the organization based on the dynamics and teamwork within the workplace. Daft, (2010, p. 22), managing diversity is a process that is so comprehensive that creates a work environment which includes everyone based on the skills and competencies. When establish a workforce, the management should focus on creating personal awareness. Therefore, associates and management should be so informed about their personal biases. Therefore, it is important for the organization to not only develop and maintain but also maintain ongoing training. This is because effective training is likely to change individual’s behavior. It is also important for managers to have a better understanding of the fairness and not necessary based on the equality. It is important to point out employment should be more about affirmative action and equal employment. Furthermore, it is recommendable for companies to hire their work force based qualifications and not gender. However, it is important for organizations to create a supportive management culture. Women have the skills and abilities to manage. Therefore, there should be a representative proportion of women in the company’s management positions. There should also be changing of mindsets on gender via training for managers and supervisors. Studies have proven that putting in place various systems to measure the costs, outcomes and benefits of various interventions that are aimed to support women employees are effectively positioned to ensure that the employment of women forms the integral part of organization’s strategy. There are various benefits that are related to employing women and these include reduced absenteeism rates or staff turnover while some are a representation of long-term benefits such as higher levels of innovation, talent attraction and reputational gains. Instead of companies discriminating against women, it is important for them to respond to the needs of the women employees. Particular benefits can make it easier for women to be efficient and productivity within the workplace (Armstrong, 2007, p. 56). Additionally, hiring on skills regardless of the age, culture, gender or race further contributes to increased productivity. This is because people from different cultures and having different abilities are likely to pull their efforts together in realizing a single inspiring goal. For example, foreign executives are successful in the American and European corporate world because of internationalization and globalization. Additionally individuals from India and China benefit various firms with their excellent quantitative skills. Therefore, increased productivity within the organization is linked to diverse workforce characterized by different skills and abilities. Hiring based on the skills further contributes to heightened creativity. According to Wang & King (2009, p. 28), creativity is likely to be fostered in an environment where individuals are skilled and are from a variety of backgrounds and are different from one another on the basis of skills, talents and abilities. Successful organizations get their members from many functions and many levels and in most cases have a greater diversity of race and gender. New attitudes are brought into the organization if people are hired based on skills and abilities and the workforce is characterized by diversity. For instance, qualified workforce from American may want to develop others cultures perspective regarding time. For example, for America, time is money and it is essential for business. Nonetheless, in other nations, time is meant for establishing relationship. Furthermore, language skills are required in the today’s expanding global economy and diverse and workforce with different language skills has this required proficiency. If the organization requires specific language skills or knowledge, it is likely to hire foreign nationals for assistance. This is because in some markets, international/foreign job seekers have the advantage. For example, companies expanding in Asian, European and Latin American markets require foreign expertise. This has made some organizations to hire mainly based on the required language skills regardless of the ethnic, gender, nationality and culture (Daft, 2010, p. 17). Hiring on the abilities can contribute to new processes. When people with different skills come together, they are likely to collaborate hence contributing to new processes. The present global world, there is no sufficient room and time for thinking. Therefore, it is important for organizations to hire with an aim of bringing different skills to the environment who are capable of thinking cross culturally and quickly adapt to emerging situations. Employees who meet this criteria are likely to be efficient in their work regardless of the gender, age, culture or race. Karsten (2006, p. 67) in his study explores way organizations are embracing diversity and skills and there should be no discrimination. Diversity is encouraged as a motivational tool that can not only attract but also retain the best staff in addition to increasing the organizational competitiveness. Success of a business depends on the ability of the management to effectively manage a diverse workforce that can contribute to innovative views, perspectives and ideas. The existing challenge of a diverse workplace can be changed into a strategic organizational asset if a company is in a position to effectively manage different talents. With the mixture of talents and abilities from diverse cultural backgrounds, lifestyles, ages, genders, it is possible for an organization to respond to respond to various business opportunities more creatively and rapidly. It is possible for companies to excel at diversity and with effective skills and competency in addition to the initiative to not only create but also manage and has to value the diverse workforce is fully supported by the upper management. Diversity in the skills need line management as compared to human resources. By hiring qualified workers based on various skills and incorporating diversity, most organizations are becoming resilient, adaptable and fast to change particular directions and be customer centered. Therefore, it is important for organizations to hire diverse workforce with the necessary skills capable of withstanding global challenges as well as coping in the competitive business environment. In addition, hiring based on qualification and competency contributes to resource utilization, innovation, market insight in addition to improved creativity. Skilled workforce further contributes to business growth. This is because they are characterized with creative ideas, which contribute to competitive strategies. It is important to also note that organizations that attempt to attract potential and skilled human resources will have a greater opportunity of success if it can maintain a diversified race, culture, gender and ethnicity (Esty, Griffin& Hirsch, 1995, p. 17). Consequently, while hiring employees, it is important for organizations to ensure a possible talent during recruitment. In the present day characterized by competition, it is essential for every organization to hire energetic and smart individuals to boast of having the largest pool of talented employees. Men may primarily dominate most companies that prefer men or discriminate when it comes to recruiting and the management. This disadvantages the organization. This is because high percentage of the talented candidates may turn out to be women or people from different races who may opt for other organizations that do not discriminate but solely hires based on the skills and abilities. Nondiscriminatory hiring is also important for a firm’s image. This will enable them to be regarded as the employer of choice. Information spreads first concerning organizations, which are best for individuals with disabilities, for women, for the aged and for other diverse members in the society. The grapevine further spread information regarding organization, which does not provide conducive places for blacks, women, for parents among other group of people. At times, it is only when the company discovers that it has a negative image does it seeks to change its policies which may be late (Roberson, 2013, p. 19). In conclusion, most people believe in equal opportunity and social justice based on the skills, abilities and talents. Most people prefer a diverse workplace that provides different opportunities for creativity and increased productivity. Management want to establish a workplace whereby every employee can successfully contribute to his/her full potential. Therefore, it is important for the organizations to hire people based on the skills, abilities and talents and not discriminate based on gender, race, color, and religion. This is because a diverse workforce enables a competitive advantage on the market in addition to increased productivity. References Amos, T. (2008). Human Resource Management. Wetton, Cape Town: Juta. Andrews, P. (1999). Gender, race, and comparative advantage: A cross-national assessment of programs of compensatory discrimination. , NSW: Federation Press. Armstrong, M. (2007). A Handbook of Human Resource Management Practice. London; Kogan Page. Daft, R. L. (2010). Management. Mason, Ohio: South-Western Cengage Learning. Esty, K. C., Griffin, R., & Hirsch, M. S. (1995). Workplace diversity. Holbrook, Mass: Adams Publ. Karsten, M. F. (2006). Management, gender, and ethnicity in the United States. Westport, Conn. [u.a.: Praeger. Kennedy-Luczak, K., & Thompson, C. E. (2004). HR how-to--recruiting & hiring: Everything you need to know about recruiting and hiring new employees. Chicago: CCH. Roberson, Q. M. (2013). The Oxford handbook of diversity and work. New York: Oxford University Press. Wang, V. C. X., & King, K. P. (2009). Fundamentals of human performance and training. Charlotte, NC: Information Age Pub. Read More