Training and Development

UNIT 3 WORKFORCE DIVERSITY AND

MULTICULTURAL FACTORS
Structure
3.0 Introduction
3.1 Objectives
3.2 Diversity in Organisations
3.2.1 Nature and Definition of Diversity
3.2.2 Reasons for the Emergence of Diversity
3.3 Specific Characteristics and Dimension of Diversity
3.3.1 Age
3.3.2 Gender
3.3.3 Ethnicity
3.3.4 Education
3.3.5 Others
3.4 Secondary Dimension of Diversity
3.5 The Value of Diversity
3.6 Managing Diversity
3.6.1 Individual Approaches to Managing Diversity
3.6.2 Organisational Approach to Managing Diversity
3.6.3 Identification of Skills, Interest and Aspiration of the Person
3.7 Multicultural Factors
3.7.1 Creating a Multicultural Organisation
3.7.2 Characteristics of Multicultural Organisation
3.8 Stages in the Creation of a Multicultural Organisation
3.8.1 Exclusionary Organisation
3.8.2 Club Organisation
3.8.3 Compliance Organisation
3.8.4 Affirmative Action Organisation
3.8.5 Redefining Organisation
3.8.6 Multicultural Organisation
3.9 Multicultural Organisation as a Competitive Advantage
3.10 Let Us Sum Up
3.11 Unit End Questions
3.12 Suggested Readings

3.0 INTRODUCTION
Organisations are becoming increasingly global and diverse, as a result of which
the composition of the workforce is changing. It is the responsibility of the
management to deal with the increasingly diverse workforce and develop ways
to manage the issues that come with it. In this unit we will discuss the nature of
diversity, the reasons for its emergence, the specific characteristics and dimensions
of diversity and its value in organisations. We will also discuss the management
of diversity in a multicultural organisation and how diversity can be used for
competitive advantage in the business world. 55
Step in Human Resource
Management 3.1 OBJECTIVES
On completing this unit, you will be able to:
• Define and describe diversity in organisations;
• Explain the reasons for the emergence of diversity;
• Elucidate the specific characteristics and dimension of diversity;
• Explain secondary dimension of diversity;
• Analyse the value of diversity;
• Explain how to manage diversity;
• Define and describe multicultural factors;
• Delineate the stages in the creation of multicultural organisation; and
• Analyse multicultural organisations as a competitive advantage.

3.2 DIVERSITY IN ORGANISATIONS

3.2.1 Nature and Definition of Diversity
Workforce Diversity is defined as “the similarities and differences in such
characters as age, gender, ethnic heritage, physical abilities and disabilities,
race and sexual orientation among the employees of organisations”.

Workforce diversity is also known as ‘cultural diversity’ and ‘cultural variety’.

Diversity in the organisational context refers to the differences in gender, race
and ethnicity in the composition of the workforce. In a broader context, it refers
to a mixture of items, objects or people that are characterised by differences and
similarities i.e. diversity refers to the recognition of the fact that people are
essentially different from each other. People may be similar but no two people
are the same. Therefore, managers have to be able to deal with both similarities
and differences among the employees. Diversity influences employees’
conceptions of work, expectations of rewards from the organisation and practices
in relating to others in the organisation. One of the key challenges for managers
in the 21st century will be to manage the opportunities and difficulties that form
a part of multicultural organisation.

Two important concepts in the management of diversity in organisations are

‘stereotypes’ and ‘prejudices’. A stereotype is a generalisation about a person
based on certain characteristics and traits. Managers could stereotype people on
the basis of age, race, gender, ethnic origin, etc. and treat them accordingly.
However, stereotyping is dangerous as it causes managers to ignore individual
differences between people and to judge them without taking into consideration
the current situation. Stereotyping can lead to prejudices, which can be explained
as the judgments that people make about others that reinforce beliefs about
inferiority and superiority. Prejudices cause managers to make assumptions about
the nature of others that may or may not be true. It becomes even more dangerous
when managers build job descriptions, reward systems and policies based on the
stereotypes and prejudices. Therefore, it is very important to avoid stereotypes
and prejudices in a diverse organisation for its effective functioning

56
3.2.2 Reasons for the Emergence of Diversity Workforce Diversity and
Multicultural Factors
There are broadly five main reasons for the emergence or organisational diversity
in recent years.

These include changing workforce, legislation and lawsuit, rapidly growing

increase in international business, The recognition and desire for diverse
viewpoints, and competitive pressures. These are depicted in the diagram given
below.

Changing Workforce
Demographics (age, gender,
ethnicity, and education)

The Recognition and Legislation

Desire for Diverse and
Viewpoints Lawsuits

Increasing
Diversity in Tody's
Organisations

Competitive Rapidly Growing

Pressues Increase in
International Business

1) Changing Demographics: Over the years, the composition of the workforce

has changed in the business world. Older workers, women and ethnic
minorities have entered the workforce. This causes managers to have to
deal with a workforce that is quite different from a traditional workforce of
young, male employees. The needs of all these different categories of workers
have to be kept in mind in developing policies as work.

2) Legislation and Lawsuits: Several laws have been passed in different

countries to prevent discrimination between employees, and to provide equal
opportunities to all without differentiating on the basis of age, gender or
ethnicity. Therefore organisations are legally required to accommodate a
diverse workforce.

3) Growth of International Business: More and more organisations are

entering the international business arena. This results in greater cultural
diversity because as companies expand, they have to become accustomed
to working with different cultures, customs and social norms.

4) Competitive Pressures: Diversity places an important role in giving

companies competitive advantage in the market. Companies that hire and
work with a diverse workforce have a greater chance of understanding their
57
Step in Human Resource markets better because of the availability of diverse view points and therefore,
Management
are able to develop products and services that meet market requirements.

5) Desire for Diverse Viewpoints: As described in the previous point,

companies that actively try to develop a diverse work force gain a competitive
advantage in terms of being able to develop better products and services for
the market. In addition to this, organisations that have a reputation for
‘celebrating diversity’ attract better quality of workers. Diverse organisations
show that they desire and value of diverse points of view, which allows
them to not only develop better products and services but also to develop a
richer work culture.

3.3 SPECIFIC CHARACTERISTICS AND

DIMENSIONS OF DIVERSITY
Diversity is composed of a number of demographic characteristics, of which the
most commonly recognised primary dimensions are age, gender, ethnicity and
education. An understanding of these characteristics is necessary for a complete
understanding of the nature of diversity.

3.3.1 Age
Workers in organisations have a wide age range. We find workers as young as in
their early 20s and also people nearing 60. In private organisations, there may be
people working even after they have crossed 60, as many private organisations
do not have a mandatory retirement age. This results in a diverse workforce with
diverse needs. The way young workers perceive their jobs and rewards is quite
different from the way older workers perceive them. Therefore, organisations
and managers have to make an effort to ensure that they do not discriminate on
the basis of age.

3.3.2 Gender
Gender roles have been changing in society and a large number of women, who
as as educated as men have entered the workforce. By a general estimate, women
make up about half of the workforce in organisations. Organisations therefore
must guard against discriminating on the basis of gender. Two important concepts
in gender diversity as Equal Pay for Equal Work and the Glass Ceiling effect.
The Equal Pay for Equal Work concept indicates that men and women who do
the same work should also be paid the same salary. There should not be a
discrimination against women because of their gender. Many developed countries
have passed laws to enforce the equal pay for equal work concept. The Glass
Ceiling effect is a term used in reference to women’s being prevented from
receiving promotions into top management positions. Although this is not done
openly, it is seen in some sectors that women cannot progress beyond a certain
level of seniority within organisations.

3.3.3 Ethnicity
As organisations become more global in nature, there is bound to be a greater
mix of people from different races in the workforce. Changing racial patterns of
the workforce indicate greater diversity. Managers are challenged to deal with
ethnic factors in terms of policies and practices concerning pay and promotions
58
and ensure that people of given equal opportunities, regardless of their ethnic Workforce Diversity and
Multicultural Factors
origin. Managers must also try to create a culture of inclusiveness where people
of all races feel supported and comfortable.

3.3.4 Education
The workforce in an organisation consists of people of different qualities and
qualifications. On one side are the employees who are highly educated and on
the other are the lower rung or blue collared workers. But regardless of the level
of education, it is responsibility of organisations to keep all their workers abreast
of the latest technology and knowledge requirements. Managers need to identify
the skill and competence level of each employee in order to design programmes
for the development.

3.3.5 Others
In addition to the basic aspects like age, gender, ethnicity and education, there
are other factors associated with diversity. Some of the other factors are language,
sexuality and disabilities. An inclusive organisation is one which recognises these
differences in people and creates a culture which embraces and promotes diversity
to the advantage of all.

3.4 SECONDARY DIMENSIONS OF DIVERSITY

In addition to the above described primary dimensions, there are secondary
dimensions. Secondary factors are those aspects that matter to employees as
individuals, and to some extent define them to others but which are less permanent
than the primary dimensions and can be changed or adapted. These include factors
like marital status, geographic location, socio-economic status, religious beliefs,
military experience, etc. The impact of secondary experiences varies at various
times of our lives. For example, a married person with children may find it difficult
to travel frequently on work, while a single person may find the travel exciting.
Managers need to keep all these differences between employees in view in trying
to design jobs and managerial policies.
Self Assessment Questions
1) Elucidate nature and definition of diversity in organisations
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2) Discuss the reasons for emergence of diversity.
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Step in Human Resource
Management 3) What are the specific characteristics and dimensions of diversity?
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4) What is secondary dimension of diversity?
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3.5 THE VALUE OF DIVERSITY

For several years in the past, organisations have had a fixed culture, and expected
all their employees to conform to the existing culture and value system. Uniformity
in the workforce was given importance and employees who were different from
the majority were expected to change to fit in with the organisational requirements.
This is known as ‘assimilation’. Assimilation can be defined as a process through
which members of a minority group are forced to learn the ways of the dominant
group. Within the organisational context, assimilation happens when people of
different types and backgrounds are hired and then made to mold themselves
into the existing organisational culture. For example, an organisation may enforce
an English-only policy, where all employees are expected to speak and use only
English in the workplace, regardless of their background.

Many organisations develop performance evaluation and incentive programmes

that reinforce the values of the dominant group. The dominant group generally
reflects the majority composition of the workforce. For instance, for an
organisation in Germany, the dominant group is likely to be composed of
Germans. Over time, the dominant group could become representative of the
workforce and the needs of the other employees are ignored.

However, since the late 1970 s, organisations have been becoming more diverse
as different kinds of people from different kinds of backgrounds have started
entering the workforce. Organisations also realised that expecting all employees
to commit to a set of predetermined systems was unpractical, as people are
essentially different, and what works for one person may not work for another.
Besides, employees were usually slow to change and showed a certain amount
of resistance to change. Therefore, it became necessary for organisations to not
only accept diversity but also to embrace it as a positive factor.

Today, organisations have come to realise that the composition of the workforce
affects organisational productivity. Managers can try to improve organisational
60
performance by taking advantage of the variety of talents, perspectives and Workforce Diversity and
Multicultural Factors
backgrounds of their employees. In other words, organisations have started valuing
diversity.

Valuing diversity means putting an end to the belief that any person who is not a
member of the dominant group must assimilate. Organisations that truly value
diversity, not only tolerate differences in the composition of the workforce, but
also encourage it. Valuing diversity is an opportunity for an organisation to develop
and utilise all the human resources available to the organisation in the best possible
way. Valuing diversity allows the organisation to benefit from the richness of
ideas and perspectives that give it an advantage over competitors. Fresh
perspectives can result in the development of a new product, opening of new
markets or improving service to existing customers. Another advantage in valuing
diversity is that there is less interpersonal conflict between the employees of the
organisation as all employees feel valued and needed. This creates better teamwork
and a greater commitment to organisational goals.

3.6 MANAGING DIVERSITY

There are a number of approaches that organisations can take to manage diversity.
These can be divided into individual approaches and organisational approaches.

3.6.1 Individual Approaches to Managing Diversity

There are two main aspects that come under the individual approaches to
managing diversity. These are ‘learning’ and ‘empathy’.

1) Learning: Learning involves gaining real or simulated experience in

situations that involve dealing with diversity. Many managers are unprepared
to deal with diversity, either because they have had no experience in managing
diversity or because they are unsure of how to respond to a situation. In
order to meet this challenge managers but make a conscious effort to learn
and experience as much as they can about developing appropriate behaviour.

2) Communication: One very important factor, which helps managers learn

how to deal with diversity, is communication. Managers must continuously
communicate with people of different ages, racial backgrounds and those
with disabilities in order to understand them better. This way they can gain
valuable insights into the different personal values of people and thereby
understand how different people like to be treated. For example, it has been
observed that people with disabilities usually do not like to be treated
differently from other employees. They only want to be given equal
opportunities as other employees. Communication can help managers
understand this better. Another important part of the learning process is
feedback. Managers should be open to feedback from employees and take
the feedback in a positive way. This can go a long way in helping managers
learn how to deal with diversity.
3) Empathy: Empathy is the ability to put oneself in another person’s place
and see things from that person’s point of view. Empathy goes hand in hand
with learning in helping managers deal with diversity. This is all the more
important as members of different groups feel that only they can truly
understand the problems and challenges they face. Empathy places an
61
Step in Human Resource important role in understanding problems that are of a more subtle nature.
Management
For example, women in offices often resent being asked to make or fetch
coffee for their male colleagues. They say that they do not mind doing it
once in a while as long as the male employees also do it for them in equal
part. However, just because they are women, they should not be expected to
do such things. Similarly, certain minorities may have strong feelings about
certain aspects of work, which they may not be comfortable with (like Jews
are forbidden to work on Sundays). Managers should be able to understand
such problems which may not be obvious at first glance, but could potentially
become serious.

3.6.2 Organisational Approaches to Managing Diversity

A variety of techniques form a part of the organisational approaches to managing
diversity. The most common ones are testing, training, mentoring and programmes
designed to promote work-life balance.

1) Testing: Organisations often use tests for selecting and evaluating people
during the recruitment process. However, it has been observed that most of
the tests used were designed keeping in mind the dominant group (for
example, white males). As a result, women and minorities who may be as
capable as white males of doing that particular job get low scores on the
test, which eliminates their chance of getting the job. Most of the traditionally
used evaluation tests are not suited to a diverse workforce. Therefore in
recent years a deal of attention has been given to developing tests valid for
diverse employees. One way in which tests can be made more relevant to a
diverse workforce is to use job specific tests rather than general aptitude or
knowledge tests. For example to hire a computer programmer, the company
should give a test which tests only programming knowledge. General aptitude
tests need not be included. However, if they are included, the management
must make sure that they are culturally unbiased and that all types of people
will be able to handle them. Another way in which the problem of tests can
be dealt with is to give more weightage to personal interviews and role play.
This way each candidate can be evaluated individually to determine his/her
capabilities. However, if pencil and paper tests are used, then scientific
norming should be done. Scientific norming is a process that ensures that
tests are equivalent across cultures. This way, all the test questions will
have the same meaning regardless of a person’s cultural background.

2) Training: Many companies now include diversity training as a part of their

regular training programmes. There are two parts to diversity training. The
first one concerns providing training to employees from diverse backgrounds
to help them perform better at their existing jobs or for promotion. The
other part of diversity training concerns training managers or employees
who deal with other employees from diverse backgrounds to handle diversity
more effectively.

Most of the diversity programmes get employees directly involved in the

training. One popular method used in diversity training is to divide people
into groups based on certain common factors. Then each group is asked to
describe other groups and also to listen to other groups describe them. The
purpose of this method is to help people of one group gains insights into
62
how they are perceived by other groups. The groups are also asked to describe
 the difficulties they face in working with other groups and to identify the Workforce Diversity and
Multicultural Factors
reason for these problems. This helps the groups develop a better rapport.

Trainers also use diversity board games in diversity training. The players of
diversity board games have to answer a series of questions related to areas
such as gender, race, age, sexual orientation, etc. On the basis of the response,
the players are either able to advance in the game or forced to backup. Mostly
diversity related games are used as supplements to other forms of diversity
training. They are used especially during the ice-breaking sessions of training
programmes.

One important condition for the success of diversity training programmes is

the support of the top management. It is also important to make attendance
of diversity training programmes compulsory for all managers and to include
suitable organisational rewards for promoting diversity in the organisation.

A major problem with diversity training programmes is the transfer problem.

That is to say, during the training programme employees see the value of
diversity training, but one the programme has ended they find it difficult to
transfer the knowledge gained during the training back to the job. This
problem needs to be addressed before diversity training programmes can
become truly successful.

3) Mentoring: Mentoring is another organisational level diversity initiative,

and many companies today use mentoring to meet the challenges of a diverse
workforce. A mentor is a trusted counselor, coach or advisor who guides an
employee at the workplace. The main purpose of a mentor is to support
members of a diverse group in their jobs, socialise them in the cultural
values of the organisation and help their chances for development and
advancement. Some of the main functions of a mentor are listed below:

3.6.3 Identification of Skills, Interests and Aspirations of the

Person
Instruct the person in the specific skills and knowledge critical to job performance
Help the person understand the unwritten rules of the organisation and guide
him or how to avoid saying or doing the wrong things.
Answer questions and provide important insights into the working of the
organisation
Offer emotional support
Serve as a role model
Create an environment in which the person can make mistakes and learn from
them without losing self confidence.
There are several steps to be followed in establishing a mentoring programme.
These are as follows:
• Secure the support of the top management
• Identify the mentors and their protégées. Care should be taken at this step to
pair people who will benefit in the best possible way through their association
with each other
63
Step in Human Resource • Provide orientation to both the mentor and the protégée. Mentors should be
Management
training in how to conduct themselves and protégées should be given
guidance on the types of questions they can ask their mentors in order to
benefit from the experience

• Throughout the duration of the mentoring programme, which usually lasts

about a year, the mentors and the protégées should meet regularly with the
support staff of the programme (diversity trainers and experts) to evaluate
their progress.

• At the end of the programme, both mentors and protégées should give their
feedback on how the programme went, so as to identify any shortcomings
and improve the programmes for the future.

1) Work/Family Programmes: Today as a large number of women have

entered the workforce, both men and women feel the need to achieve work
life balance. With the growth of nuclear families, and families where both
parents work, it has become necessary for organisations to implement
programmes that support work life balance. Some of the important work
life balance initiatives are flextime, the compressed workweek, job sharing
and telecommuting.

2) Flexi time: This is a system which allows employees greater autonomy by

permitting them to choose their daily start and finishing time within a given
period. Organisations that follow flexible working hours define the earliest
possible starting time and the latest possible quitting time i.e. no one may
work before 7 am and in the same way, no one can work beyond 5 pm. This
is called ‘band-width’. Within the band-width, time is divided into ‘core
hours’ and flexi-hours. Everyone must be at work during the core hours so
that the activities which are of an interdependent nature do not get disrupted.
The flexi-hours on the other hand give the employee the freedom to choose
to be at work or not.

3) Compressed workweek: The compressed work week is a system where the

work week is compressed into a fewer number of working days per week.
For example, organisations could choose to have four working days per
week instead of five, while keeping the total number of working hours per
week constant. This effectively means that people will have to work for
fewer days in the week but for longer hours each week. This gives employees
more free days with their families.

4) Job sharing: This is the splitting of a full time position between two people,
each of whom works part-time. The salary is also divided proportionately.
This system is generally useful for people who want to work, but need time
to fulfill other family obligations (like women with very young children).

5) Telecommuting: This involves working partly from home and partly from
office. This system works on the premise that what is important is that the
job gets done. It does not matter whether the employee works in the office
or from home. Sometimes, companies adopt a system where employees
come to office certain days of the week (for instance on Monday and Tuesday)
and telecommute the rest of the days. However, this cannot be practically
applied for all kinds of jobs.
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Research has found that work life balance programmes help decrease family Workforce Diversity and
Multicultural Factors
conflict, job dissatisfaction and stress-related problems. In addition to alternative
work schedules, many companies have initiated other family friendly programmes.
The table below gives the details.

Table 3.4: Innovative Work Family Programme

1. Child or elder care benefits These may include child care facilities at
the work site and transportation of aging
parents to a senior citizens center
2. Adoption benefits These include leave policies and
reimbursement for legal fees, medical
expenses, agency or placement fees,
temporary foster care and or travel
expenses.
3. Convenience benefits This refers to onsite services such as dry
cleaning, ATM machines, [postal services
and video rentals]
4. Life cycle accounts These are savings accounts designed to
pay for specific life events such as a
college education. Often employers will
match employee contribution.
5. Health promotion benefits These include such things as fitness
centers, health screenings, flu shots and
stress management clinics.
6. Education assistance benefits Examples include tutoring programmes,
tuition reimbursement and scholarships
7. Housing assistance This refers to such items as relocation
assistance, seminars and preferred
mortgage arrangements
8. Group purchase programme These include legal and financial planning
and discounts with local merchants, group
auto and home owners insurance and fleet
arrangements for auto purchase
9. Casual day programme This would be dress down days to have
everyone relaxed in an on the job family
atmosphere.
(Source: Adapted from Carol Sladek,(1995). A guide to offering work / life benefits. .
Compensation and Benefits Review. Jan-Feb PP 43-44.

3.7 MULTICULTURAL FACTORS

3.7.1 Creating a Multicultural Organisation
The creation of a multicultural organisation is essential for the effective
management of diversity. A multicultural organisation is one where employees
of mixed backgrounds, experiences and cultures can contribute and achieve their
fullest potential to benefit both themselves and the organisation. A multicultural
organisation is one which: 65
Step in Human Resource • Reflects the contributions and interests of diverse cultural and social groups
Management
in its mission, operations and product or service
• Acts on a commitment to eradicate social oppression in all forms within the
organisation
• Includes the members of diverse cultural and social groups as full participants
especially in decisions that shape the organisation.
• Follows through on broader external social responsibilities including support
of other institutional efforts to eliminate all forms of social oppression.

3.7.2 Characteristics of a Multicultural Organisation

There are six main characteristics of a multicultural organisation and these are
given below:
1) Pluralism: A pluralistic organisation is one that has a mixed membership
and takes steps to fully involve all people who differ from the dominant
group. Creating pluralism involves developing training and orientation
programmes to promote diversity, ensuring minority group input in all general
organisational decisions and including diversity in the organisation’s mission
statement.
2) Full Structural Integration: When an organisation has minority group
members serving at all levels, performing all functions and participating in
all work groups, an organisation can be said to have achieved full structural
integration. In order to achieve this, the organisation must ensure an equal
distribution of educational specialties and skill differences equally across
the organisation. Performance appraisal, rewards systems, benefits and work
schedules must also be equally distributed.
3) Integration of Informal Networks: Mentoring programmes, conducting
special social events and support groups for minorities can foster integration
in informal networks. These events give minority group members an
opportunity to express themselves and interact with dominant group members
with a view to achieving better understanding.
4) Absence of Prejudice: In a multicultural organisation, all organisation
members work in harmony without prejudices. There is a distinct absence
of stereotyping and biases. The organisation promotes this through the
conduct of Equal Opportunity Seminars, having in-house focus groups to
examine attitudes and biases related to diversity and having a task force to
monitor organisational policies and practices for evidence of discrimination
5) Equal Identification with Goals: Employees across the organisation
develop a sense of identity with the organisation’s goals and objectives.
Members of different groups share equally in taking ownership of the
achievement of organisational goals. This is achieved by taking the input of
minority group members in formulating and defining organisational goals,
so that all groups of employees can identify with them.
6) Minimal Intergroup Conflict: In a multicultural organisation, there is no
conflict based on cultural differences. Employees as provided with training
in developing positive attitudes as well as given the tools for effective conflict
resolution. Managers are also trained in mediation and listening which play
66 an important role in conflict resolution
 Workforce Diversity and
3.8 STAGES IN THE CREATION OF A Multicultural Factors

MULTICULTURAL ORGANISATION
Several stages have been identified in leading up to the creation of a multicultural
organisation and these are presented below.

3.8.1 Exclusionary Organisation

This type of organisation is almost the opposite of a multicultural organisation.
In an exclusionary organisation, the dominance of one group (usually the majority)
is clearly seen. The organisation also follows exclusionary hiring practices and
other forms of discrimination.

3.8.2 Club Organisation

In this type of organisation, the few who have traditionally help power, retain
most of the privileges. They may put up an appearance of hiring women and
minorities, but they only hire people who are deemed to have the ‘right’ kind of
credentials.

3.8.3 Compliance Organisation

A compliance organisation is better that the exclusionary and club organisations
as it hires people from diverse backgrounds. However, the commitment to
diversity is not proactive. In other words, diversity exists in these organisations
only because it required by law to hire people without discriminating on the
basis of background.

3.8.4 Affirmative Action Organisation

This type of organisation is proactively committed to eliminating discriminatory
practices and promoting diversity. The organisation actively supports and it
committed to hiring women, minorities, older employees and those challenged
by a disability. However, there is a perception that employees who benefit from
affirmative action are less competent in some way. This can lead to a form of
discrimination against affirmative action hires within the organisation. Thus,
this organisation falls short of the ideal of a multicultural organisation.

3.8.5 Redefining Organisation

A redefining organisation is characterised by an examination of all activities for
the purpose of evaluating their impact on all employees’ opportunities for growth
and success within the organisation. This organisation goes beyond being just
anti-racist and anti-sexist. It questions the core values that form the culture of
the organisation. It not only deals effectively with diversity, but understands the
value of diversity and takes steps to tap the potential advantages accruing from
having a diverse workforce.

3.8.6 Multicultural Organisation

A true multicultural organisation is one which has core cultural values committed
to diversity and where there is an ongoing commitment to eliminate all forms of
discrimination throughout the organisation. All members of the organisation,
regardless of their background, are involved in the decisions that shape the
mission, structure and culture of the organisation and are fully committed to
organisational goals. 67
Step in Human Resource
Management 3.9 MULTICULTURAL ORGANISATION AS A
COMPETITIVE ADVANTAGE
There are a few general reasons for the emergence and growth of multicultural
organisations:
• Some organisations grow very rapidly and hence, are required to hire more
and more people, which make it obligatory for them to hire people from
different backgrounds and learn to manage them better.
• Some organisations want to recruit the best talent from the market regardless
of background or age to give the best quality employees.
• Some organisations need to develop and sell products in diverse markets. In
this situation, it makes more sense for them to recruit and manage employees
who represent their different markets in order to obtain a better understanding
of the market.
• There are six main ways in which a diverse workforce can bestow competitive
advantage on an organisation. This is shown in the following table:
Advantage Contribution
1. Cost Managing diversity well can trim the sots of
integrating diverse workers
2. Resource Acquisition Companies that have the best reputation for
diversity will have the best chance of hiring the
most talented workers from the market
3. Marketing Diverse organisations gain a better insight into
their markets and cultural sensitivity will
improve the development and marketing of
products and services to different segments of
the population
4. Creativity Diversity of perspectives will improve levels of
creativity throughout the organisation
5. Problem Solving Problem solving and decision making will
improve through groups with more diverse
perspectives
6. System Flexibility Tolerance and valuing of diverse perspectives
throughout the organisation will make the
organisation more fluid, flexible and more
responsive to environmental changes.

Therefore, developing multicultural organisational practices is essential for any

organisation for its long term benefit

3.10 LET US SUM UP

In this chapter we have dealt with the nature and meaning of diversity, the reasons
for the emergence of diversity and the specific characteristics of diversity. We
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have also understood the value of diversity to organisations and the ways in
which organisations manage diversity at an individual and organisational level. Workforce Diversity and
Multicultural Factors
In the second part of the chapter we have dealt with the multicultural organisation,
its creation and the stages of its development. We have also discussed the
competitive advantages of a multicultural organisation.

3.11 UNIT END QUESTIONS

1) What is diversity in organisation context?
2) What are the organisational approaches to managing diversity?
3) What are the competitive advantages with multicultural organisations?

3.12 SUGGESTED READINGS

Luthans. F., Organisation Behaviour, 10th edition New Dehli, McGraw-Hill, Inc.

Moorhead, G. & Griffin, R. W (2004) Organisational Behaviour, 7th edition

New York, Houghton Mifflin Company.

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