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Managing Diversity

Managing diversity is an umbrella term for the strategies and practices organizations use to manage a diverse workforce. The term originated in North America but is now used in many different parts of the world. Managing diversity initiatives usually target diversity dimensions that are visible in employees’ physical characteristics (e.g., differences due to gender, race, age, and some disability conditions), but sometimes they encompass other, less visible dimensions (e.g., differences due to personality, hidden disability conditions, parental status, or cultural values). As organizational workforces become more diverse in terms of gender, race, age, and other demographic characteristics, organizations can experience both positive and negative effects. Demographic diversity may increase organizational innovativeness and productivity, because diverse employees bring a greater range of perspectives to bear on organizational decision making and are more likely to reach a wider range of customers in a diverse marketplace. However, diverse organizations also experience less employee commitment, more employee dissatisfaction, higher turnover, and greater intergroup conflict. As a result, organizations are increasingly investigating strategies designed to manage diversity and help them to achieve the best possible outcomes from a diverse workforce. The following entry will present the alternative diversity perspectives that organizations adopt in their diversity management efforts and describe three diversity practices (diversity recruitment, diversity training, and mentoring) that organizations can use to attract, develop, and retain a diverse workforce.

Fundamentals

Managing diversity is generally viewed as having two distinct components. One component involves the organization’s overall philosophy or perspective on diversity. Organizations may adopt one of three distinct perspectives reflecting management’s beliefs about the best way to manage diversity: discrimination-and-fairness, access-and-legitimacy, or integration-and-learning. The second component involves the specific practices or initiatives that the organization uses to manage diversity. Managing diversity practices are usually voluntarily adopted by organizations, and these efforts are often broader and more proactive than the requirements imposed by equal opportunity legislation. Three of the most common diversity management initiatives are diversity recruitment, diversity training, and mentoring programs. The two components of managing diversity are related, because an organization’s diversity perspective is likely to drive the organization’s choice among alternative diversity management practices.

Diversity Perspectives

The discrimination-and-fairness perspective focuses an organization’s attention on providing equal opportunities in hiring and promotion, suppressing prejudicial attitudes, and eliminating discrimination in its practices. In this perspective, the organization consciously dismantles hurdles that might constrain its ability to attract a diverse workforce. But once in the organization, diverse hires are expected to assimilate into the dominant organizational culture. Therefore, the organization is more likely to adopt identity-blind practices that can be applied to all employees, rather than identity-conscious practices that focus on particular groups. For example, a discrimination-and-fairness organization might be more likely to develop a general mentoring program designed to develop junior staff and prepare them for promotion and less likely to develop a mentoring program targeting junior female staff with a focus on the unique problems experienced by female employees.

An access-and-legitimacy perspective is based on an organization’s recognition that its markets and customers are diverse. Therefore, it is beneficial for the organization to match that customer diversity with diversity in its workforce. Organizations adopting this perspective increase employee diversity but may concentrate on sales and service positions where diverse employees have direct contact with customer markets. As a result of this focus, an access-and-legitimacy consumer products organization might have high racial minority representation among its salespeople but might not experience parallel levels of diversity among middle and upper level management.

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