Diversity Management
Chapter-1
Q. The historical context of workplace diversity-the early years (1960s to 1970s)
Ans: We have been writing about diversity for almost twenty years and in that timeframe much
has changed. Historically, the United States has always had a diverse population due to its heritage
of immigration, slavery and religious freedom.
However 1960s, early civil rights legislation became a catalyst for workplace change. The initial
focus was on “righting the wrongs” experienced by people with visible differences, particularly
race and gender. Responsibility for diversity resided in HR departments that had minimal power
to initiate change. Diversity training focused on how to avoid lawsuits.
During this period, there was much confusion about how to accomplish this goal, especially in
terms of the executive orders that required affirmative action plans.
Q. 1980s to 1990s- The valuing Diversity Era
Ans: In 1987, the Hudson institute publish a landmark study, workforce 2000: work and workers
for the twenty first century (Johnson and Pucker).
This report analyzed the population trends and projected growth of nonwhites, women, and older
employees in the workforce. Anticipated the expansion of global business. Stated that by 2000,
the net newcomers to the U.S. workforce would be primarily women and racial minorities. The
reality was that workplace was becoming more diverse in terms of race, gender, age, ethnicity,
people with physical challenges so on.
Training tended to focus on identifying differences between groups, which were often
generalizations that failed to recognize that people hold multiple group identities, some more
important to them than others.
Q. Competitive Advantages of diversity management?
Ans: Diversity theorist respond to these change. Organizations began to realize that workforce
differences could potentially offer business advantages and that differences were far border than
just race and gender. In 1991, an article by Cox and Blake explained, but did not validate, six ways
that organizations could make diversity a competitive advantage by:
1. Reducing the turnover costs.
2. Attracting the best talent from diverse group.
3. Creating a marketing advantage in global business.
4. Improving creative thinking by having input from diverse perspectives.
5. Improving the quality of business decisions.
6. Increasing systems flexibility by developing new policies and procedures and ways of leading.
Q. Loden’s dimensions of Diversity?
Ans: Adapted from Loden, M (1996) Diversity encompasses both primary and secondary
dimensions. The table below lists some of the diversity characteristics through which all of us
process stimuli and information.
Primary dimensions are also known as internal dimensions. These include aspects of diversity
over which, typically, we have no control; they cannot be changed.
Secondary dimensions are also known as external dimensions. These include facets of our lives
which we have some control over and may transition over time. This dimension also impacts who
we choose to build friendships and relationships with.
Q. What is Workplace Diversity and Diversity Management?
Ans: Diversity in the workplace is a method of creating a diverse environment in which
individuals' diverse talents, cultural experiences, and backgrounds are respected. People's diverse
viewpoints are influenced by several characteristics, including age, race, gender, disability,
language, religion, identification of origin, intersex status, life phases, education, and sexual
preferences.
Diversity management is the organization's structured and designed responsibility to hire,
compensate, encourage, and maintain a diverse workforce with inclusivity and blend the
individuals' unique cultural characteristics for the greater well.
Q. Why is diversity management important?
Ans: The key importance of diversity management is as follows.

Diversity leads to economically stimulating employer-employee relationships.

Diversity leads to creating and establishing positive consumer connections.

Diversity promotes ingenuity, imagination, and versatility in an organization's functioning.

Diversity helps in stabilizing balanced corporate growth and economic benefit.
Q. Types of diversity management?
Ans: Generally there are three types of diversity management:
1. Structural Diversity Management: It is when an organization changes its structure to be more
inclusive. This could involve changing the way job descriptions are written so that they do not
exclude certain groups of people or setting up employee resource networks for underrepresented
groups.
2. Process Diversity Management: It is when an organization changes its processes to be more
inclusive. This might involve changing the way performance reviews are carried out or redesigning
recruitment and selection processes to remove unconscious bias.
3. Behavioral Diversity Management: It is when an organization changes its culture to be more
inclusive. This might involve changing the way leaders communicate with employees or
introducing policies and initiatives to support a more diverse workforce.
According to organizational context: the following are the two types of diversity management:
1. Intranational diversity management: Intranational diversity management refers to managing
a workforce that comprises citizens or immigrants in a single national context. Diversity programs
focus on providing employment opportunities to minority groups or recent immigrants.
2. Cross-national diversity management: Cross-national, or international, diversity management
refers to managing a workforce that comprises citizens from different countries. It may also
involve immigrants from different countries who are seeking employment.
The main challenge of cross-national diversity management is that the parent company must
consider the legislative and cultural laws in the host countries it operates in, depending on where
the employees live.
Q. Characteristics of Diversity Management?
Ans: There are some key characteristics of diversity management:
1. Voluntary: Unlike legislation that is implemented through sanctions, diversity management is
a voluntary organizational action. It is self-initiated by organizations with a workforce from
different ethnicities, religions, nationalities, and demographics.
2. Provides tangible benefits: Unlike in the past when diversity management was viewed as a
legal constraint, companies use the diversity strategy to tap into the potential of all employees and
give the company a competitive advantage in its industry. It allows each employee, regardless of
his/her race, religion, ethnicity, or origin to bring their talents and skills to the organization.
3. Broad definition: The broad definition makes diversity programs more inclusive and has less
potential for rejection by the members of the majority group or privileged sections of the society.
Q. Best Practices of Diversity Management
Ans: Organizations can implement these best practices to maintain a competitive business
advantage and also capitalize on the potential of their diverse workforce. The following are the
best practices that an organization can implement:
1. Commitment from top management: Workforce diversity can succeed if it is adopted by a
shared vision within the company’s top management. The senior executives of an organization are
responsible for policy formulation, and they can promote or eliminate workplace diversity
depending on the policies they make. When the senior management fails to show commitment to
implementing the diversity strategies, the diversity plan becomes severely limited.
2. Identify new talent pools: In an organization where more people are leaving the workforce
than are being hired, management must immediately employ fresh talents. Most companies prefer
traditional new-employee sources, such as competitor organizations and graduate schools, to
recruit the best talent. Hiring individuals with diverse skills and knowledge can help companies to
deliver better quality services to a global client base.
3. Provide a safe avenue for dialogue on diversity-related issues: Organizations should create
resource groups where employees from similar backgrounds can connect and communicate their
concerns in a safe environment. People from minority groups often feel isolated from organizations
and may, therefore, increase employee turnover.
4. Make diversity part of the company’s objectives: An organization that practices workforce
diversity should not shy away from letting the world know that the organization embraces diversity
and works with people from all backgrounds. The organization can start by encouraging and
supporting its staff who volunteer for different causes such as a disability walk or an HIV/AIDs
awareness forum.
5. Distinguish between diversity and affirmative action: Various governments around the world
have implemented affirmative action programs to provide opportunities for women and other
minority groups. While such affirmative action’s complement diversity, organizations should
make a distinction between affirmative action and diversity.
Q. Objectives of diversity management?
Ans: Diversity Management Strategies are gaining more and more importance within the
Corporate Culture. “Not only because it is the right thing to do, but also because [having a diverse
workforce] is more fruitful,” claimed Arwa Mahdawi.
Diversity Management aims at making optimal use of the existing skilled workforce in the labour
market. This allows companies to pursue various goals:
1. To Decrease Employee Turnover Rate: A high turnover in the company often indicates a high
level of dissatisfaction among employees. Companies can improve the working environment by
increasing diversity and inclusion efforts and by hiring employees according to cultural fit.
2. To Improve Innovation Capability: Long-established companies sometimes struggle with the
lack of innovation. Heterogeneous teams help here, too. It is proven that they have a more creative
problem-solving process than the homogeneous ones. Since a diverse workforce brings a wider
variety of perspectives and skills to the table, this results in diverse teams having more creative
approaches.
3. To Conquer the International Market: If companies have not yet been able to gain a proper
foothold in the international market, intercultural problems may be responsible. Employees of
different ethnic backgrounds and with different skills can help to better understand international
customers’ needs.
4. To Fight the Skilled Labour Shortage: The shortage of skilled workers is a well-known issue
to the companies, and it will become even more visible in the future due to demographic change.
Companies will have a competitive advantage if they make sure to hire the best employees today.
Q. Benefits of diversity management in the workplace?
Ans: Diverse workplaces employ people who represent a wide range of ages, races, backgrounds,
languages spoken, sexual orientations, abilities (physical and mental), gender identities and
nationalities. Here are five significant benefits of diversity management in the workplace:
1. Better opportunities for creativity and problem-solving: A diverse workforce brings a wide
variety of people with different experiences, skills, perspectives and insights together to solve
problems. Diversity increases innovation, creativity and strategic thinking because teams of people
who come from different backgrounds can draw upon their unique experiences and a wider range
of knowledge to spark new, innovative ideas.
2. Smarter decision-making: Diverse groups of employees pull from a wider range of sources
and experiences. That can help them make more educated decisions, leading to better results for
your business.
3. An increase in profits and productivity: Ambitious professionals are often more attracted to
inclusive companies. This can result in a more motivated, efficient workforce and increased
productivity and profitability. It is very or extremely important to work at a company that
prioritizes diversity and inclusion.
4. Reduced rates of employee turnover: One of the most significant advantages of diversity in
the workplace is that employees often feel more comfortable and satisfied in inclusive
environments.
5. Improved reputation for your business: When businesses promote diversity, they’re
perceived as more relatable, socially responsible and human by a greater number of people. This
can improve your overall brand reputation, allowing you to attract new customers, partnerships
and markets.
Q. How to structure diversity management at workplace?
Ans: There are six key steps to take when structuring your diversity management:
1. Define what inclusion means for your organization: This will involve understanding what
your organization's values are and how they relate to inclusion. It is also important to consult with
employees from different backgrounds to get their perspectives on what inclusion means to them.
2. Assess where your organization is currently at: This will help you to identify any areas where
your organization is falling short when it comes to inclusion. It is important, to be honest about
the areas that need improvement and to consult with employees from different backgrounds to get
their perspectives on the current situation.
3. Set targets and objectives: This will involve setting realistic and achievable goals for your
organization in terms of inclusion. These should be aligned with your organization's values and
strategic priorities.
4. Implement an inclusion strategy: This will involve putting in place the actions and processes
that are needed to achieve your targets and objectives. It is important to consult with employees
from different backgrounds when designing your inclusion strategy so that it meets their needs.
5. Create an action plan to get there: This will involve setting out the specific actions that need
to be taken in order to achieve your inclusion targets and objectives. It is important to consult with
employees from different backgrounds when designing your action plan so that it meets their
needs.
6. Monitor and review progress: This will involve regular monitoring and reviewing your
organization's progress towards its inclusion targets and objectives. It is important to consult with
employees from different backgrounds when designing your monitoring and review process so
that it meets their needs.
These six steps will ensure that your diversity management is strategic and will help you to achieve
your desired outcomes. Diversity management is essential for business recovery and resilience in
times of crisis.
Q. What are the challenges of diversity management?
Ans: There are many challenges in managing diversity in the workplace. Some of challenge is:
1. Unconscious Bias: One of the most significant challenges is unconscious bias when people
judge others based on their personal beliefs and prejudices. This can lead to people feeling
excluded or marginalized at work.
2. Time-consuming and Costly: Another challenge is that diversity programs can be timeconsuming and costly. It can be difficult to change long-standing processes and structures, which
can take time and money.
3. Managing diversity: Managing diversity can also be challenging because it requires people to
change how they think and behave. This can be a difficult process for many people, and it can take
time for them to adjust to the new way of working.
4. Employee Resistance: Finally, one of the biggest challenges to managing diversity is that it can
often be met with employee resistance. This is because people can be reluctant to change the way
they work or because they may not understand the benefits of implementing diversity management.
Q. How can you improve organization diversity management?
Ans: Improving an organization’s diversity and inclusivity can be a slow task. Five ways to
manage diversity well include:
1. Setting goals for diversity management and examining progress: Without clear diversity
goals, it is difficult to understand whether or not your organization is truly making progress.
Including diverse talent management goals in the broader organizational strategy will make it clear
that diversity strategy is important.
2. Encouraging open communication: Open communication is key to ensuring that everyone in
the organization feels included. Diversity should be seen as an opportunity to learn from others
rather than a threat. Encourage employees to share their experiences and perspectives in a safe and
welcoming environment.
3. Providing training on unconscious bias: Unconscious bias is a type of prejudice that happens
outside of our conscious awareness. It can result in people making decisions that are not in line
with the organization’s diversity goals. Diversity training can help employees to identify their own
biases and learn how to avoid letting them influence their decision-making.
4. Getting managers involved in diversity management: Instead of managing diversity efforts
and then rolling them out to managers, it can be more productive to have managers involved from
the start. They have ‘real-life’ knowledge to help implement the plans and may have ideas that
could otherwise have been forgotten.
5. Ensuring zero-tolerance toward discrimination: In the world of diversity management, it can
be easy to ensure diversity through hiring practices. However, inclusivity is more challenging,
implementing a zero-tolerance approach toward discrimination is an important signal toward
supporting it.