Diversity, in a business context, is hiring and promoting employees from a variety of different backgrounds and identities. Those characteristics may include various legally protected groups, such as people of different religions or races, or backgrounds that are not legally protected, such as people from different social classes or educational levels. A business or group with people from a variety of backgrounds is called diverse; a business or group with people who are very similar to each other is not diverse.
Proponents argue that businesses benefit by having diversity in the work force. [1] [2] [3] The business case for diversity stems from the progression of the models of diversity within the workplace since the 1960s. In the United States, the original model for diversity was situated around affirmative action drawing from equal opportunity employment objectives implemented in the Civil Rights Act of 1964. Equal employment opportunity was centered around the idea that any individual academically or physically qualified for a specific job could strive for (and possibly succeed) at obtaining the said job without being discriminated against based on identity. These initiatives were met with accusations that tokenism was the reason an individual was hired into a company when they differed from the dominant group. Dissatisfaction from minority groups eventually altered and/or raised the desire to achieve perfect employment opportunities in every job.
The social justice model evolved next and extended the idea that individuals outside the dominant group should be given opportunities within the workplace, not only because it was instituted as a law, but because it was the right thing to do. Kevin Sullivan an ex-vice president of Apple Inc. said that "diversity initiatives must be sold as business, not social work." [4]
In the deficit model, it is believed that organizations that do not have a strong diversity inclusion culture will invite lower productivity, higher absenteeism, and higher turnover which will result in higher costs to the company. [5] Establishments with more diversity are less likely to have successful unionization attempts. [6]
In a journal article entitled "The Multicultural Organization", Taylor Cox Jr. talks about three organization types that focus on the development of cultural diversity. The three types are:
In the monolithic organization, the amount of structural integration (the presence of persons from different cultural groups in a single organization) is minimal. This type of organization may have minority members within the workforce, but not in positions of leadership and power. [7] Even though Diversity, Equity, and Inclusion are three interconnected concepts represented by the abbreviation DE&I, they are not interchangeable. Diversity without equity and inclusion is often perceived as "tokenism". [8]
The plural organization has a more heterogeneous membership than the monolithic organization and takes steps to be more inclusive of persons from cultural backgrounds that differ from the dominant group. This type of organization seeks to empower those from a marginalized standpoint to encourage opportunities for promotion and positions of leadership. [7]
The workplace diversity can be categorized into single-gender and mixed genders. [9] It focuses on mostly "identity-based differences among and between two or more people". The multicultural organization not only contains many different cultural groups or different genders, but it values this diversity. It encourages healthy conflict as a source of avoiding groupthink. [10]
Diversity is believed by many to bring substantial benefits such as better decision making and improved problem solving, [11] greater creativity and innovation, which leads to enhanced product development, and more successful marketing to different types of customers. [7] [12] Diversity is also claimed to enhance organizations' abilities to compete in global markets. [13] Simply recognizing diversity in a corporation helps link the variety of talents within the organization. [14] [15] DePree believes that the act of recognizing diversity also allows for employees to feel have a sense of belonging, which increases their commitment to the company and allow each of them to contribute in a unique way. [16]
Standpoint theory suggests that marginalized groups bring a different perspective to an organization that challenges the status quo since their socially constructed world view will differ from that of the dominant group. [17] Although the standpoint of the dominant group will often carry more weight, encouraging conflicting standpoints to coexist within an organization which will create a forum for sanctioned conflict to ensue. Standpoint theory gives a voice to those in a position to see patterns of behavior that those immersed in the culture have difficulty acknowledging. [18] From this perspective, these unique and varying standpoints help to eradicate groupthink which can develop within a homogenous group. [12] Scott Page's (2007) [19] mathematical modeling research of team work reflects this view. His models demonstrated that heterogeneous teams consistently out-performed homogeneous teams on a variety of tasks.
Page points out, however, that diversity in teamwork is not always simple and that there are many challenges to fostering an inclusive environment in the workplace for diversity of thought and ideas. For example: "If we look at the evidence on whether identity diverse collections of people perform better than more homogeneous collections, we see mixed results at every level. At the country level, we find that in advanced economies, ethnic diversity proves beneficial. In poorer countries, it causes problems. In cities, we see similar effects. Diversity has the same pluses and minuses. Cognitive diversity increases innovation. Preference diversity leads to squabbles" (p. 14). Also, "We have no logical reason to think that identity diverse groups would perform better than more homogenous groups – unless we believe that mysterious collective cognitive capability emerges from the interactions of people with diverse identities" (p. 326).
In order to benefit from diversity, keep organizations competitive, and drive business success, comprehensive strategies are required that encompass all dimensions of diversity (race, gender, cognitive styles, beliefs, experience etc.). [20]
One of the greatest challenges an organization has when trying to adopt a more inclusive environment is assimilation for any member outside the dominant group. The interplay between power, ideology, and discursive acts which reinforce the hegemonic structure of organizations is the subject of much study. [21] Everything from organizational symbols, rituals, and stories serve to maintain the position of power held by the dominant group. [21]
When organizations hire or promote individuals that are not part of this dominant group into management positions, a tension develops between the socially constructed organizational norm and acceptance of cultural diversity.[ citation needed ] Some have claimed that cultural diversity in the workplace will increase interpersonal conflicts.[ citation needed ] Often these individuals are mentored and coached to adopt the necessary traits for inclusion into the privileged group as opposed to being embraced for their differences. [12] [17] According to the journal article "Cultural Diversity in the Workplace: The State of the Field", Marlene G. Fine explains that "those who assimilate are denied the ability to express their genuine selves in the workplace; they are forced to repress significant parts of their lives within a social context that frames a large part of their daily encounters with other people". Fine goes on to mention that "People who spend significant amounts of energy coping with an alien environment have less energy left to do their jobs. Assimilation does not just create a situation in which people who are different are likely to fail, it also decreases the productivity of organizations". [13] That is, with a diverse workforce, management may have to work harder to reach the same level of productivity as with a less diverse workforce.
Another challenge faced by organizations striving to foster a more diverse workforce is the management of a diverse population. Managing diversity is more than simply acknowledging differences in people. [22] A number of organizational theorists have suggested that work-teams which are highly diverse can be difficult to motivate and manage for a variety of reasons. A major challenge is miscommunication within an organization. Fine reported a study of "work groups that were culturally diverse and found that cross-cultural differences led to miscommunication". [23] That is, a diverse workforce led to challenges for management. The meaning of a message can never be completely shared because no two individuals experience events in exactly the same way. Even when native and non-native speakers are exposed to the same messages, they may interpret the information differently. [24] There are competencies, however, which help to develop effective communication in diverse organizational environments. These skills include self-monitoring, empathy, and strategic decision-making. Impromptu speaking is also considered a key allyship skill to communicate with authenticity in everyday words and reactions. [25]
Maintaining a culture which supports the idea of employee voice (especially for marginalized group members) is another challenge for diverse organisation. When the organizational environment is not supportive of dissenting viewpoints, employees may choose to remain silent for fear of repercussions, [26] or they may seek alternative safe avenues to express their concerns and frustrations such as on-line forums and affinity group meetings. [27] By finding opportunities such as these to express dissent, individuals can begin to gather collective support and generate collective sense-making which creates a voice for the marginalized members so they can have a collective voice to trigger change. [26]
Three approaches towards corporate diversity management can be distinguished: Liberal Change, Radical Change, and Transformational Change. [28]
The liberal concept recognizes equality of opportunity in practice when all individuals are enabled freely and equally to compete for social rewards. The aim of the liberal change model is to have a fair labor market from which the best person is chosen for a job based solely on performance. To support this concept, a framework of formal rules has been created and policymakers are responsible for ensuring that these rules are enforced on all so none shall be discriminated against. The liberal-change approach centers on law, compliance, and legal penalties for non-compliance.
One weakness of the liberal view is that the formal rules cannot cover every aspect of work life, as there is almost always an informal aspect to work such as affinity groups, hidden transcripts, and alternative informal communication channels. [29] [30]
In contrast to the liberal approach, radical change seeks to intervene directly in the workplace practices in order to achieve balanced workforces, as well as a fair distribution of rewards among employees. The radical approach is thus more outcome focused than focused on the forming the rules to ensure equal treatment. [30] One major tool of radical change is quotas which are set by companies or national institutions with the aim to regulate diversity of the workforce and equal opportunities.
Arguments for and against quota systems in companies or public institutions include contrasting ideas such as quotas
A quota system was introduced at the Swedish parliament with the aim of ensuring that women constitute at least a 'critical minority' of 30 or 40 percent of all parliament seats. Since the introduction of the system, women representation in parliament has risen dramatically even above the defined quota. Today, 47% of parliamentary representatives are women, a number which stands out compared to the global average of 19%.[ citation needed ]
Transformational change covers an equal opportunity agenda for both the immediate need as well as long-term solutions. [33] For the short term it implements new measures to minimize bias in procedures such as recruitment, promotion, and communication. The long term, however, is seen as a project of transformation for organizations. This approach acknowledges the existence of power systems and seeks to challenge the existing hegemony through implementation of equality values.
One illustrative case for transformational change is ageing management; [34] Younger employees are seen as more innovative and flexible, while older employees are associated with higher costs of salary, benefits, and healthcare needs. [35] Therefore, companies may prefer young workers to older staff. Through application of the transformational concept an immediate intervention provides needed relief while a longer-term culture shift occurs.
For the short-term, an organization can set up legislation preventing discrimination based on age (e.g., Age Discrimination in Employment Act). However, for the long-term solution, negative stereotypes of older employees needs to be replaced with the positive realization that older employees can add value to the workplace through their experience and knowledge base. [36] To balance this idea with the benefit of innovation and flexibility that comes with youth, a mixture of ages in the workforce is ideal. [37] Through transformational change, the short-term solution affords the organization the time necessary to enact deep rooted culture changes leading to a more inclusive environment.
In 2017, PwC's U.S. chairman, Tim Ryan, amassed more than 175 c-suite executives (some belonging to the Fortune 500 ) to sign their CEO Action for Diversity & Inclusion™ pledge. The pledge is a business commitment to advance diversity in the workplace and is made by executives from notable companies such as Walmart, Staples, Dow Chemical, Cisco and Morgan Stanley. [38] As of 2021, more than 2,000 CEOs have signed the pledge including James Murdoch, Tom Buttgenbach, Jeanne Crain, M. Patrick Carroll, James C. Foster and Wayne A.I. Frederic. [39] [40]
Following the murder of George Floyd in 2020, many companies made substantial commitments to racial equity by establishing dedicated diversity, equity, and inclusion teams. In early 2024 the Washington Post reported that there is a trend in corporate America to reduce in-house DEI positions (e.g., an employee in the human resources department who works to promote DEI principles across the organization) and delegate the work to external consultants. The number of DEI jobs reached its highest point in early 2023, but subsequently decreased by 5 percent that year and has further shrunk by 8 percent in 2024. The attrition rate for DEI roles has been approximately twice as high as that of non-DEI positions. The scaling back of DEI initiatives has aligned with a rise in legal challenges and political opposition to systematic endeavors aimed at enhancing racial equity. [41]
Intentional "diversity programs" can assist organizations facing rapid demographic changes in their local consumer market and labor pool by helping people work and understand one another better. [12]
Diversity inclusion initiatives must start with the commitment from the top. With a commitment from top leaders in an organization to change the existing culture to one of diversity inclusion, the diversity change management process can succeed. This process includes analyzing where the organization is currently at through a diversity audit, creating an action plan aligned with a diversity inclusion strategy, gaining support by seeking stakeholder input, and holding individuals accountable through measurable results. [12] [42]
Affirmative action refers to a set of policies and practices within a government or organization seeking to benefit marginalized groups. Historically and internationally, support for affirmative action has been justified by the idea that it may help with bridging inequalities in employment and pay, increasing access to education, and promoting diversity, social equity and redressing alleged wrongs, harms, or hindrances, also called substantive equality.
Within the realm of communication studies, organizational communication is a field of study surrounding all areas of communication and information flow that contribute to the functioning of an organization. Organizational communication is constantly evolving and as a result, the scope of organizations included in this field of research have also shifted over time. Now both traditionally profitable companies, as well as NGO's and non-profit organizations, are points of interest for scholars focused on the field of organizational communication. Organizations are formed and sustained through continuous communication between members of the organization and both internal and external sub-groups who possess shared objectives for the organization. The flow of communication encompasses internal and external stakeholders and can be formal or informal.
Diversity training is any program designed to facilitate positive intergroup interaction, reduce prejudice and discrimination, and generally teach individuals who are different from others how to work together effectively.
A glass ceiling is a metaphor usually applied to people of marginalized genders, used to represent an invisible barrier that prevents an oppressed demographic from rising beyond a certain level in a hierarchy. No matter how invisible the glass ceiling is expressed, it is actually an obstacle difficult to overcome. The metaphor was first used by feminists in reference to barriers in the careers of high-achieving women. It was coined by Marilyn Loden during a speech in 1978.
Recruitment is the overall process of identifying, sourcing, screening, shortlisting, and interviewing candidates for jobs within an organization. Recruitment also is the process involved in choosing people for unpaid roles. Managers, human resource generalists, and recruitment specialists may be tasked with carrying out recruitment, but in some cases, public-sector employment, commercial recruitment agencies, or specialist search consultancies such as Executive search in the case of more senior roles, are used to undertake parts of the process. Internet-based recruitment is now widespread, including the use of artificial intelligence (AI).
A virtual team usually refers to a group of individuals who work together from different geographic locations and rely on communication technology such as email, instant messaging, and video or voice conferencing services in order to collaborate. The term can also refer to groups or teams that work together asynchronously or across organizational levels. Powell, Piccoli and Ives (2004) define virtual teams as "groups of geographically, organizationally and/or time dispersed workers brought together by information and telecommunication technologies to accomplish one or more organizational tasks." As documented by Gibson (2020), virtual teams grew in importance and number during 2000-2020, particularly in light of the 2020 Covid-19 pandemic which forced many workers to collaborate remotely with each other as they worked from home.
Standpoint theory, also known as standpoint epistemology, is a foundational framework in social theory that examines how individuals' unique perspectives, shaped by their social and political experiences, influence their understanding of the world. Standpoint theory proposes that authority is rooted in individuals' personal knowledge and perspectives and the power that such authority exerts.
The Corporate Equality Index is a report published by the Human Rights Campaign Foundation as a tool to rate American businesses on their treatment of gay, lesbian, bisexual and transgender employees, consumers and investors. Its primary source of data are surveys but researchers cross-check business policy and their implications for LGBT workers and public records independently. The index has been published annually since 2002. Additionally, the CEI focuses on the positive associations of equality promoting policies and LGBT supporting businesses which has developed to reflect a positive correlation between the promotion of LGBT equality and successful organizations. Following the top 100 corporations that are publicly ranked under the CEI, participating organizations remain anonymous. For businesses looking to enforce and expand LGBT diverse and inclusive policies, the CEI provides a framework that allows businesses to recognize and address issues and policies that restrict equality for LGBT people in the workplace.
Workforce productivity is the amount of goods and services that a group of workers produce in a given amount of time. It is one of several types of productivity that economists measure. Workforce productivity, often referred to as labor productivity, is a measure for an organisation or company, a process, an industry, or a country.
A workplace is a location where someone works, for their employer or themselves, a place of employment. Such a place can range from a home office to a large office building or factory. For industrialized societies, the workplace is one of the most important social spaces other than the home, constituting "a central concept for several entities: the worker and [their] family, the employing organization, the customers of the organization, and the society as a whole". The development of new communication technologies has led to the development of the virtual workplace and remote work.
Occupational inequality is the unequal treatment of people based on gender, sexuality, age, disability, socioeconomic status, religion, height, weight, accent, or ethnicity in the workplace. When researchers study trends in occupational inequality they usually focus on distribution or allocation pattern of groups across occupations, for example, the distribution of men compared to women in a certain occupation. Secondly, they focus on the link between occupation and income, for example, comparing the income of whites with blacks in the same occupation.
Equality, Diversity and Inclusion: An International Journal is a peer-reviewed academic journal publishing research on 'equality, diversity, and inclusion' (EDI), also called 'diversity, equity, and inclusion' (DEI), an organizational frameworks which seek to promote "the fair treatment and full participation of all people", particularly groups "who have historically been underrepresented or subject to discrimination" on the basis of identity or disability. The journal published articles about racial, sexual, religious, disability, and age discrimination; equal opportunities; and affirmative action.
Social equity is concerned with justice and fairness of social policy. Since the 1960s, the concept of social equity has been used in a variety of institutional contexts, including education and public administration.
Cultural sensitivity, also referred to as cross-cultural sensitivity or cultural awareness, is the knowledge, awareness, and acceptance of other cultures and others' cultural identities. It is related to cultural competence, and is sometimes regarded as the precursor to the achievement of cultural competence, but is a more commonly used term. On the individual level, cultural sensitivity is a state of mind regarding interactions with those different from oneself. Cultural sensitivity enables travelers, workers, and others to successfully navigate interactions with a culture other than their own.
Co-cultural communication theory was built upon the frameworks of muted group theory and standpoint theory. The cornerstone of co-cultural communication theory is muted group theory as proposed in the mid 1970s by Shirley and Edwin Ardener. The Ardeners were cultural anthropologists who made the observation that most other cultural anthropologists practicing ethnography in the field were talking only to the leaders of the cultures, who were by and large adult males. The researchers would then use this data to represent the culture as a whole, leaving out the perspectives of women, children and other groups made voiceless by the cultural hierarchy. The Ardeners maintained that groups which function at the top of the society hierarchy determine to a great extent the dominant communication system of the entire society. Ardener's 1975 muted group theory also posited that dominant group members formulate a "communication system that support their perception of the world and conceptualized it as the appropriate language for the rest of society".
The concept of multicultural and diversity management encompasses acceptance and respect, recognition and valuing of individual differences. Diversity is defined as differences between people, that can include dimensions of race, ethnicity, gender, socioeconomic status, age, physical abilities, religious beliefs, political beliefs, or other ideologies. Multiculturalism refers to the existence of linguistically, culturally and ethnically diverse segments in an organisation.
Employee resource groups are groups of employees who join in their workplace based on shared characteristics or life experiences. ERGs are generally based on providing support, enhancing career development, and contributing to personal development in the work environment. In the past, ERGs have traditionally been focused on personality traits or characteristics for underrepresented groups, for example women, sexual orientation, gender, etc. With the resurgence of ERGs in the workplace, ERGs are expanding to "interest-based" groups gathered around particular activities. Some of these include job responsibility, environmental advocacy, community service and volunteerism, and workplace wellness. Further, as an emerging facet of human resources and employee engagement in the business world, the existence of ERGs is important for reference and understanding in the world of business. Exploring the topic of employee resource groups can provide insightful information for business employees and young professionals seeking to understand a new business.
UKG is an American multinational technology company with dual headquarters in Lowell, Massachusetts, and Weston, Florida. It provides workforce management and human resource management services.
Resistance to diversity efforts in organizations is a well-established and ubiquitous phenomenon that may be characterized by thoughts, feelings, or behaviors that undermine the success of diversity-related organizational change initiatives to recruit or retain diverse personnel. The use of such initiatives may be referred to as diversity management. Scholars note the presence of resistance to diversity before and after the civil rights movement; as pressures for diversity and social change increased in the 1960s, dominant group members faced workplace concerns over displacement by minorities.
Diversity, equity, and inclusion (DEI) or Diversity, equity, inclusion, and belonging (DEIB) are organizational frameworks which seek to promote the fair treatment and full participation of all people, particularly groups who have historically been underrepresented or subject to discrimination on the basis of identity or disability. These three notions together represent "three closely linked values" which organizations seek to institutionalize through DEI frameworks. Some experts say diversity and inclusion should be decoupled in some cases. Some frameworks, primarily in Britain, substitute the notion of "equity" with equality: equality, diversity, inclusion (EDI). Other variations include diversity, equity, inclusion and belonging (DEIB), justice, equity, diversity and inclusion, or diversity, equity, inclusion and access.
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