Managing multicultural workforce
...order to achieve a more diverse workplace, there must be involvement of management in all aspects of the process. Top management plays a crucial role in making diversity a success. Leaders must be the first to receive training to address myths, stereotypes, and real cultural differences as well as organizational barriers that interfere with the full contribution of all employees. Organizations have to make continuous learning a must for trainers. Diversity must be part of an organization’s strategic business objective. Diversity goals must be linked to business goals, not just meeting affirmative action legal requirements. Diversity must be stressed internally as well as externally through outreach programs within the community. Managers must be held accountable for meeting diversity goals. Performance evaluations and rewards should be tied to a manager’s ability to develop and manage a diverse workforce. Top management must ensure fairness when it comes to compensation. A company must improve its supply of diverse workers through recruiting. It must break the “glass ceiling” and increase the number of women and minorities in the higher salary groups through career development, mentoring, and executive appointment. It must encourage all of its employees to use their full capacity within the organization. Efficient lines of communication must be established in order for employees to communicate new ideas, problems, grievances, input, and feedback. A company must value diversity. The main objectives of valuing diversity include awareness, education, and positive recognition of the differences among people in the workforce. A cultural environment must allow differences to be celebrated instead of merely tolerated. All employees must understand the competitive and moral advantages of diversity. They must respect and support cultural diversity through the Managing workforce diversity 523 recognition of cultural and religious holidays, observances, practices, and diet restrictions. Often, an organization must undergo a “cultural transformation” before it can successfully achieve the full benefits of diversity (Carnevale and Stone, 1994). To be successful, managers need to “unlearn” practices rooted in an old mind set, change the ways organizations operate, shift company culture, revise policies, create new structures, and redesign human resource systems. Diversity initiatives can improve the quality if an organization’s workforce. Organizations spend a large sum of their budgets on human resources in the form of salaries, benefits, training development, and recruitment. In order to get a good return on their investment in human capital and maximize their competitive advantage, it is important to recognize that the workforce will grow in the number of women (see Table I), people of color (see Figure 1 and Table I), and immigrants each year. Strategies to a multicultural work environment Workforce diversity is a present day necessity for future clarity and efficiency of all organizations (CSREES, 1997). In order to make this work we need strategies and multiple ways to make each organization become a multicultural workplace. This process begins with the top leaders of the organization, as well as a put forth effort from all employees. “Diversity is a commitment from senior managers; the budget and Category Total White Black Hispanic 2001 2002 2001 2002 2001 2002 2001 2002 Sex Total (all civilian workers) 136,933 136,485 114,430 114,013 15,006 14,872 16,190 16,590 Men 73,196 72,903 62,212 61,849 6,938 6,959 9,668 9,845 Women 63,737 63,582 52,218 52,164 8,068 7,914 6,522 6,744 Occupation Managerial and professional specialty 42,271 42,482 36,242 36,405 3,393 3,378 2,329 2,461 Technical, sales, and admin. support 39,469 38,947 32,969 32,665 4,385 4,193 3,877 3,828 Service occupations 18,656 19,219 14,279 14,643 3,241 3,379 3,278 3,475 Precision production, craft, and repair 15,138 14,660 13,372 12,970 1,133 1,083 2,462 2,503 Operators, fabricators, and laborers 18,065 17,697 14,489 14,137 2,695 2,667 3,466 3,472 Farming, forestry, and fishing 3,335 3,480 3,079 3,079 159 171 777 850 Class of worker Agriculture 3,231 3,340 3,047 3,103 111 131 716 779 Nonagricultural industries 258,623 257,706 214,999 214,205 29,253 28,936 30,237 30,866 Full- or part-time Full-time workers 113,573 112,700 94,275 93,521 12,938 12,782 13,983 14,163 Part-time workers 23,361 23,785 20,154 20,491 2,067 2,091 2,206 2,427 Note: Data for “other race” are not presented and Hispanics are included in both the white and black population groups Source: US Census Bureau (2002) Table I. Employed white, black, and Hispanic-origin workers by sex, occupation, class of worker, and full- or part-time IJPPM 53,6 524 Figure 1. Employment by race/ethnicity 1975-2002 Managing workforce diversity 525 staff downsizing; the difficulty of attracting minorities; the scarcity of minorities with the skills required; and finally, resistance of some groups to working with staff from diverse backgrounds” (CSREES, 1997). All of these constraints are real problems that we have in our society. Therefore, we need to find ways around this negative attitude. Some strategies involve equal employment opportunity and affirmative action. Advantages to diversity in the workplace There are many advantages to having a diverse workplace. In their book Workforce 2020, Judy and D’Amico (1997) discuss some important statistics. They stated that the number of white non-Hispanics would decrease from 80 percent of the nation’s population in 1980 to only 64.3 percent in 2020. Latinos will comprise 37 percent of the population increase with African Americans and Asians following. Most of the shifts will occur in the Southeast as its economy expands (Byrd-Giles, 2003). This is important for a company to know and understand. A company that is prepared for such a change in demographics will be prepared for the future as the market changes as well as the pool of applicants. The company will also be able to experience many of the advantages that a diverse workplace can bring. Having a diverse workplace creates an increase in attracting and retaining the most qualified candidates. The SHRM study, released last year, found that 91 percent of respondents think diversity initiatives helped their organizations maintain a competitive advantage. According to the study, 79 percent of the companies believe their diversity programs improved corporate culture, 77 percent think they helped in recruitment and 52 percent said they fostered better client relations. Companies will gain a competitive advantage of being able to market and deliver their products within different cultures. Having inside information on how to communicate and what a community wants in a product is a great asset. A multicultural company can penetrate and widen their markets with the knowledge of political, social, legal, economic and cultural environments (White, 1999, p. 477). Further, having someone within the organization who can negotiate and speak the language of the country is a very valuable asset. Take for example Chevrolet’s experience in Latin America. They produced a car, which they called the Nova. They marketed the car and at first could not understand why they were not having success with it in the Latin communities. As they soon learned, Nova, or no va as the Spanish speaking communities heard and read it, means does not go in their language. This all could have been prevented. There have been many of these kinds of examples of cultural blindness, which could have been prevented by having a culturally diverse company (Dibble, 2001). “Creativity thrives on diversity” (White, 1999, p. 477). This quote implies that a company with a diverse workforce can experience higher creativity and innovation. When people of different cultures come together to solve a problem or come up with an idea, they are more able to reach a common solution. Different cultures can bring insightful alternatives to the table (Lee, 2000). Every company is in search of an idea, which will bring them added value. Ideas, which will increase profit for the business, create a competitive advantage and cannot be copied by their competitors are in great demand. Since only people can create these ideas, the more diverse the company is the greater the chances are for creating these new ideas. One group of people is no better than another at generating these ideas; and no one can say who will come up with the next big idea. Along with new ideas comes an increase in productivity. When people IJPPM 53,6 526 are brought together to achieve a common goal there is an increase in support for it. People who believe in its success will in turn work harder (Naik, 1999). Finally, a multicultural firm is better able to adapt to change and is more flexible. For example, a woman is more likely to have a higher tolerance for uncertainty than men. Also, bilinguals are more capable to have a higher level of contrasting thinking and cognitive flexibility than those who only speak the common language (White, 1999, p. 477). Disadvantages to diversity in the workplace With all of the positive aspects that multiculturalism brings a company, there are a few disadvantages. Many people feel threatened by working with people of a different age, sex, or culture. First, there is an increase in the cost of training. This increase comes from costs associated with seminars, programs and lectures given to promote diversity in the corporation. These types of training are given to all levels of staff within the organization. They teach employees how to accept the personalities and ideas or thoughts of others. These programs also teach one how to deal with conflicts and prejudice in a professional and civil manner (White, 1999, p. 478). A second disadvantage a company may encounter is reverse discrimination. This is a feeling that is associated with affirmative action policies. It is a major argument against such policies. Reverse discrimination is a claim by white males that they have been unfairly discriminated against. They claim they are equally or more qualified for the position, yet were passed over for a minority to receive the job (Brunner, 2003). This can cause lawsuits in some cases, but mostly a sense of rejection by other workers in the company toward the minority who received the position. Reverse discrimination became an issue by the famous Bakke case in 1978. Allan Bakke, a white male, had been rejected two years in a row by a medical school that had accepted less qualified minority applicants. The school had a separate admissions policy for minorities and reserved 16 out of 100 places for minority students. The Supreme Court outlawed inflexible quota systems in affirmative action programs, which in this case had unfairly discriminated against a white applicant. In the same ruling, however, the Court upheld the legality of affirmative action (Brunner, 2003). Another disadvantage of diversity in the workplace is an increase in conflicts. Conflicts arise when two or more individuals or groups do not see eye to eye on a particular situation. In regard to diversity, conflicts arise largely due to ignorance. Prejudice feelings or derogatory comments cause a lack of acceptance. “This can produce negative dynamics such as ethnocentrism, stereotyping and culture clashes” (White, 1999, p. 478). The most common conflict comes from one feeling superior. If management ignores such conflicts, the company’s performance may suffer (White, 1999, p. 478). If conflicts can be managed and controlled creativity and performance can be increased. Employers will work harder to gain acceptance by creating a solution or invention first. This can be the case when managers reconcile competing goals, promote in a representative manner, stand behind the minority group member, and act when resources are plentiful and cultural differences are low or well understood (White, 1999, p. 480) Increases in turnover and absenteeism are another disadvantage in having a diverse workplace. Research has shown that the turnover rate for African Americans in the US Managing workforce diversity 527 workforce is 40 percent greater than whites. Another study by Corning Glass stated that between the years 1980-1987, the turnover rate for women in a professional job was two times higher than males. Women also have a 58 percent higher absentee rate than men. Yet, another study shows that a person, who is not a member of the “inner group” will be one of the first to leave a company (White, 1999, p. 479, flextime scheduling). Some research contradicts the idea that flextime reduces these rates, however absenteeism and turnover can cost a company up to and over $3 million annually (White, 1999, p. 479). Mismanaged diversity can have long-reaching effects on employee satisfaction and productivity. Employees who perceive themselves as valued members of their organization are harder working, involved, and innovative. Unfortunately, minority-group members often feel less valued than do majority-group members due to stereotyping, ethnocentrism, and prejudice. Mismanagement of diversity in the form of denied access or unfavorable treatment can have negative consequences, such as inhibiting workers’ abilities and motivation. This leads to lower job performance. Therefore, when an organization ignores the existence and importance of workforce diversity, conflict can emerge and neither the corporation nor its employees will realize their potential (Goetz, 2001). In today’s fast-paced work environment a successful organization is one where diversity is the norm and not the exception (Lawrence, 2001). Albertson’s, BJ’s Wholesale, CompUSA, Costco, Office Depot, Sears, Staples, Target, and Toys R Us are examples of retailers that explicitly bar discrimination in the workplace, as do more than half of the Fortune 500 companies (The Home Depot, 2003). Home Depot is another prime example of an organization that bars discrimination in the workplace and makes diversifying an organization a priority. Home Depot In recent years Home Depot has successfully built a reputation as an organization that provides value to its customers due to its highly diverse workplace (Lawrence, 2001). At Home Depot, staff members are committed to creating a diverse work environment where all associates are included, respected and supported to do their best work to serve all customers better. They recognize the benefits of all growing associates to reach their full potential and they strive to promote a workplace where all associates have the opportunity to learn, grow and contribute (LatPro.com, 2003). In September 1996, 25,000 Home Depot employees won a class-action suit alleging discrimination against women and minorities in terms of promotions and pay equity. Home Depot settled for $104 million (iVillage.com, 1995-2003). This company now has an interest in preventing discrimination and resolving complaints internally to avoid further costly lawsuits and damage to its reputation as an equal opportunity employer (The Home Depot, 2003). After the lawsuit, a large group of investing firms got together and organized a new policy for Home Depot. The group filed a ruling with Home Depot, demanding that the retailer make a report, which the company had already filed with the Equal Employment Opportunity Commission revealing the race, sex, job and salary of all Home Depot employees public (iVillage.com, 1995-2003). Slowly Home Depot began to come around and acknowledged it had a problem. The company instituted a nationwide diversity-training program and job-awareness campaign. In each Home Depot store today is an information booth where applicants IJPPM 53,6 528 can see the kinds of jobs that are available. Employees can also test for these jobs right at the store without having to wait for a signal from upper management (iVillage.com, 1995-2003). The shareholders of Home Depot have also been working to make the retailer a better workplace for women and minorities (iVillage.com, 1995-2003). They have requested that the board of directors amend Home Depot’s written equal employment opportunity policy to prohibit explicitly discrimination based on race, religion, gender and national origin and to considerably apply this policy: By implementing a written policy prohibiting discrimination based on these attributes, Home Depot will ensure a respectful and supportive atmosphere for all employees and enhance its competitive edge by joining the growing ranks of companies g...