MGT8033: Leading Organisational
Change
Leadership & Diversity
Material comes from two sources
Daft & Pirola-Merlo, 2009
And Lussier & Achua, 2010
Lecture Overview
Exploring and explaining diversity
Why diversity is important to organisations
Culture as an impediment to diversity?
Minority groups: who are they and what
challenges do they face?
Solutions – what can leaders do to instil diversity
in their organisation?
Exploring the positive and negative sides of
diversity
What is ‘diversity’ ?
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Diversity means different things to different people so the starting point
has to be finding a useful and common definition or understanding.
At the individual level diversity refers to characteristics of people which
make us all different.
Age, mental/physical abilities, race and gender are included in this set
(see Exhibit 10.1 Daft & Pirola-Merlo for other elements of diversity).
Workforce diversity means a workforce made up of people who have
different human qualities or who belong to different cultural groups
(Daft & Pirola-Merlo 2009, p.341)
Diversity is seen as a positive attribute of contemporary organisational
life. You should give some thought to why this is and what it might
enable or assist.
What is ‘diversity’ ?
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Primary dimensions of diversity are differences
that have some impact throughout your life, or
differences with which you are born
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include physical abilities and sexual orientation – in
addition to those mentioned in previous slide
Secondary dimensions are acquired or changed
over your lifetime
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They include religion, work experience, education level,
communication style
You should be able to see – these have some
implications for organisational life and functioning
What is ‘diversity’ ?
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Both primary and secondary dimensions can
have a big impact in the organisation. For
example, in some organisations, sexual
orientation can result in barriers to entry. Then
again, naturally quiet, introspective individuals
are usually not well-suited to jobs that demand
self-promotion, extensive networking and hype.
Diversity has entered the literature on
organisation change through changing
demographics (e.g. there is a large set of baby
boomers in the workforce).
What is ‘diversity’ ?
But other groups are also contributing, viz.
 More women in management and
traditionally male jobs. By 2020 women
should make up 50% of the total US fulltime workforce (Daft & Pirola-Merlo 2009,
p.342)
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Cultural minorities (Spanish-speaking group in
the USA stretches the notion of ‘minority’)
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Rising incidence of immigrant workers
What is ‘diversity’ ?
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Globalisation has also raised the importance of
diversity to organisational functioning and change
Persons with knowledge &/or experience of how other
marketplaces operate are sought after. Note how
many CEOs in large Australian companies are not
Australian (including Qantas Airlines). Important
knowledge/experience sets for high profile
organisation leaders includes understanding of cultural
differences
Diversity has become necessary. Wider market
penetration exposes the enterprise to increasing
numbers and types of cultures
Why diversity is important to organisations
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Shifts in demographics make it necessary (e.g. if your
overseas clients don’t speak/understand English, you need
staff who can communicate with them).
 Put more simply, the greater the diversity among suppliers,
clients or customers, the greater the need for diversity
within the organisation.
 Note the figures given by Daft & Pirola-Merlo (2009) p. 343
- two-thirds of the USA population are minority group
members or female or both.
 Diversity in staff can help to build better relationships with
customers. You should be able to explain how.
Why diversity is important to organisations
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Diversity helps with the development of employee and
organisational potential. When everyone is made welcome
and treated equally, there are morale benefits
Insights into different cultures enables greater closeness to
clients and customers (better understanding of needs)
Diversity in staff reflects fairness and equity in recruitment
and other work practices. This can further attract quality
people
Diversity develops greater org. flexibility, e.g. a broader
and deeper base for experience in problem-solving and
innovation (thereby providing competitive advantage)
National and organisational culture can impede the
acquisition of diversity in organisations
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See ‘actual cultural differences’ section in Daft & PirolaMerlo 2009 p.362. Unawareness of the cultural drivers of
behaviour in some contexts can lead to unpleasant and
unproductive outcomes (as a ‘burp’ in some cultures
reflects enjoyment of a meal, in others it simply shows
poor manners).
Note the work of Hofstede and how different countries
(cultures) differ across four dimensions (Daft & PirolaMerlo 2009 p.348+).
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Hofstede’s 4 dimensions are ... power distance,
uncertainty avoidance, individualism, masculinity
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See Waddell et al Chapter 4 pp. 118 -21 which builds on
Hofstede’s model
National and organisational culture can impede the
acquisition of diversity in organisations
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Power distance: High power distance reflects
people accept inequality in power in organisations
and people in general. Low power distance
indicates people expect equality in power
Uncertainty avoidance: A high measurement
here indicates people are uncomfortable in
ambiguity and uncertainty. Low uncertainty
avoidance indicates people have a high
acceptance/tolerance for ambiguity and
uncertainty
National and organisational culture can impede the
acquisition of diversity in organisations
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Individualism versus collectivism:
Individualistic cultures reflect values which
accept and expect the person will look after
himself/herself. Collectivism reflects preference
for tight social networks where everyone looks
out for each other
Masculinity versus femininity: each is linked
with certain characteristics. Achievement is
more aligned with masculinity. Group decisionmaking is more feminine
National and organisational culture can impede the
acquisition of diversity in organisations
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For each of Hofstede’s 4 dimensions, an
argument can be made re how it may impede
diversity. Develop your arguments.
For example, differences in power distance can
be critical because some may simply accept
inequality as a natural by-product of
organisational life, in which case there is no
impetus for change. Similarly, groups who are
more team-oriented in their approach to work,
are less likely to prosper where the prevailing
managerial system is more outcome focussed.
Minority groups and the challenges they face
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Minorities in general can be disadvantaged by
others’ ethnocentrism (belief that one’s culture
is superior to other cultures).
 Ethnocentrism is a natural tendency for
most
 However, it can result in a culture that
reinforces only one way of doing things (not
consistent with diversity)
 In its extreme form, this ethnocentrism
presents as prejudice (the assumption that
minorities are inferior and therefore
unsuitable for responsible roles)
 Stereotypes are often based on prejudice
of some form
Minority groups and the challenges they face
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Sometimes differences are also perceived as
weaknesses or deficiencies
Minorities in general are also susceptible to others’
unequal expectations. Such groups may not be
given opportunities because of these misperceptions
Minority persons in senior positions in attempting to
delegate tasks, often encounter hostility from their
employees
Women must feature in any minority list. The glass
ceiling and the mummy track are both substantial
obstacles (see def. Daft & Pirola-Merlo 2009, p. 355) for
personal development in the workplace
Minority groups and the challenges they face
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Minority can also be defined in terms of age. Older
employees can be marginalised in some companies,
sometimes because attitudes are unbending, and
sometimes because they are unable to cope with
consistent change (e.g. with new technologies).
 Race also features. One of the major obstacles here
is the opportunity gap (see Daft & Pirola-Merlo
2009, p. 357). Education and employment may be
much more difficult to access for some racial groups.
 See also ‘living bi-culturally’ p. 355. This set of
perceptions held by minorities themselves can be
very self-limiting in terms of personal development.
Remedies available to corporate leaders in dealing with
diversity-related issues
From Lussier & Achua 2010 re creating a diversitysupporting culture.
 CEO must act as a role model.
 Role of corporate philosophy, supported by policy
and procedures and pro-diversity HR practices (e.g.
clear recruitment practices which reinforce diversity.
 Communications that install diversity as the norm.
 Diversity as a criterion for measuring success.
Remedies available to corporate leaders in dealing with
diversity-related issues
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Leadership qualities: 4 personal qualities identified as
necessary for leading diverse organisations
 1. A personal long-range vision. Plans which attract
and include minorities in all levels of org. functioning
 2. Knowledge of dimensions of diversity and
awareness of multicultural issues. Understanding of
the operation of primary and 2ndary dimensions from
Exhibit 10.1 (Daft & Pirola-Merlo 2009, 341)
 3. Openness to change
 4. Mentoring and empowering of diverse
employees/minorities
Remedies available to corporate leaders in dealing with
diversity-related issues
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Change Corporate Culture: many contemporary
organisations reflect the white male model of carrying
out business. This disadvantages minorities.
 May have to change formal policy and procedures and
practices
 Changes may have to extend to informal patterns of
work behaviour and mindsets and attitudes of managers
 Challenge unwritten rules and unhealthy norms
 Address acts of racism (and ageism and
sexism)
Remedies available to corporate leaders in dealing with
diversity-related issues
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Diversity awareness training: much variation in our
sensitivity and awareness of other cultures, races and
groups. This can inhibit diversity.
Objective is to uncover our own biases about thinking
and treatment of other individuals and groups.
Can also help persons from different backgrounds to
communicate and understand the language and
customs of the workplace.
Positive and negative sides of diversity
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With what you’ve read in this lecture and your notes,
develop argument which reflects why the below
developments may have both negatives and positives.
 Minorities currently holding 1 in 4 jobs in the US.
 Migration of African & Muslim people into Europe in
particular (e.g. what pressures will this have on
employment practices? ).
 Entry into medicine, law, management, engineering - at
accelerating rate for women.
 Threats to white, male, managerial roles (cannot
continue to enjoy protected species status in the future).
 Rising numbers of skilled ethnic minorities in all aspects
of work.