Diversity Management

Presented byDr Carmen Maritz

Section 1: Introduction

• Increasing GLOBALISATION• Companies are urged to include

diversity management in their strategic objectives;

• “What” it is, • “Why” it is included, and • “How” it is measured is often unclear

• Diversity is the most talked about and least implemented corporate objective.

• In times of economic instability, poor results and restructuring – it is the strategic objective most likely to be dispensed with.

Section 1: Introduction

Section 1: External and Internal business case

• A need to integrate and value diversity for the benefit of people management;

• Corporate objectives

Section 1: External business caseExternal reason for managing diversity more effectively = higher

levels of customer satisfaction;

Market may include customers who speak a variety of languages,

who has different social orientations and who have differing

needs.

Government is taking a pro-active role in improving diversity by

prescribing certain legislation (EE, BCEA, SD) and certain charters

(Broad Based Black Economic Empowerment BBBEE)

Section 1: External business case

The benefits to the organisation would include:

Broad-based socio-economic empowerment charter for the mining industry

Section 1: External business caseThe BBBEE charter takes a ‘scoreboard’ approach to help government

process license applications.

Points are accumulated based on a number of transformation criteria.

Criteria Marking/points

Skills development 18/25 = 72%

Procurement 20/25 = 80%

Employment Equity 21/25 = 84%

Ownership 17/25 = 68%

Section 1: Internal business casePeople’s differences (language, gender, religion, nationality, generation

gaps ) should be optimised to add value to the organisation;

The motivation, loyalty and commitment, and hence productivity, of a

diverse workforce can be improved by eradicating all irrelevant pre-

judgments about differences which negatively affect employees’ self-

confidence, dignity and sense of belonging.

Section 1: Internal business case

When employees are being valued, challenged and appreciated = increase in performance

Section 1: Internal business case

Vegetable soup

Section 1: Internal business case

• Vegetable soup = all the ingredients are mashed and squashed together to deliver the end result.

• Cannot taste the individual ingredients

Vegetable soup

Section 1: Internal business case

Garden salad

Section 1: Internal business case

• Salad = all the ingredients are sliced and chopped together to deliver the end result.

• The individual taste of each ingredient is prevalent

Garden salad

SECTION 2:

TWO APPROACHES TO DIVERSITY

SECTION 2: Approaches to diversity in organisations

Section 2: Definition of diversity

Diversity: Encompasses all forms of difference amongst

individuals, including culture, gender, sexual orientation, religion,

ethnic groups, political affiliation etc.

Workforce diversity is a powerful force for change in organisations

Section 2: Primary and Secondary dimensions of diversity

Diverse human differences which are

inborn

Diverse differences

which can be changed

Hofstede’s model for understanding cultural diversity

Hofstede’s model for understanding cultural diversity

Individualist:•Loose social frameworks•Primary concern = themselves and their family;•Individuals looking after own interests;•Personal responsibility and individual decision making

Collectivist:•Tightly knit social frameworks•Loyalty and unity and a group approach to life and work;•Group cohesion and group decision making•Conformity and team unity is the norm

Hofstede’s model for understanding cultural diversity

High power distance:•Significant hierarchy;•Formality is the norm;•Titles are valued and used;•Seniority is based on position.

Low power distance:•Social inequality should be reduced to a minimum;•More trust amongst people;•Superiority is based on merit.

Hofstede’s model for understanding cultural diversity

High uncertainty avoidance:•Concerned with security;•Avoid conflict;•Need for consensus;•Inherent uncertainty in life is a threat.

Low uncertainty avoidance:•More tolerant of ambiguity;•Risk takers;•Conflict not a threat but seen as constructive.

Hofstede’s model for understanding cultural diversity

Masculinity:•Expect people (cultures) to be strong, powerful, assertive, competitive and directive

Femininity:•Expect people (cultures) to be relationship-orientated, nurturing, supportive and empathetic

Hofstede’s model for understanding cultural diversity

Long term orientation:•Strategic and well planned;•Long thought about;•Good consideration.

Short term orientation:•Tactical decision making and spontaneous action;•Opportunities are immediately capitalised upon;

Hofstede’s dimensions of cultural diversity

Cultural dimensions of the SA workforce

White South Africans:

Black South Africans:

SECTION 3:

TOWARDS A BETTER UNDERSTANDING OF DIVERSITY

The examples of the kaleidoscope images helps us to understand how social identities vary according to context at hand;

Individual social identity is a highly complex concept, comprising as it does a variety of dynamic identities and personality factors;

We need to differentiate between various individual identities and to manage them on the basis of the relevance to the particular context.

.

Section 3: Kaleidoscopes

SECTION 4:

Practical diversity skills

The solution to the effective management of diversity involves accepting the kaleidoscope while extracting from it only the relevant information.

This will ensure that we:

 

Section 4: Situationally adaptable approach

 

Section 4: Situationally adaptable approach

Relevant information

Judgement

Decision relevant to situation

Section 4: Three broad diversity skills

Section 4: Drafting a diversity strategy

• Requires effective strategic planning;

• Requires leadership competence;

• Requires individuals and organisations to be situationally adaptable and to respond to the needs of all stakeholders in a manner which ensures optimal performance.

Section 4: Drafting a diversity strategy

• The following aspects are critical in effective diversity management:

The critical components of an effective diversity strategy:

1.Managing the diversity component;

2.Target setting or affirmative action imperative – career development and training

Career development includes the following:

.

Section 4: Drafting a diversity strategy

Section 4: Drafting a diversity strategy

• The following aspects are critical in effective diversity management:

Section 4: The HR Diversity Model

Monitoring

Monitoring*Targets *Audit results *Diversity

committees *Performance management

Strategic alignment

Consultation

Communication

Diversity management

Staffing and people

management

External aspects of diversity

Role of HR

Section 4: Stereotypes and prejudices

The advantages of effective cultural diversity management

Section 5: Government Legislation Apartheid left behind a legacy of discrimination and prejudice against HDSAs;

The democratic government, during 1994, initiated reforms to ensure that all individuals have an equal chance of being considered for employment and to enjoy equal treatment once employed;

Affirmative action and Employment Equity are legally enforced in SA organisations and therefore organisations must comply to the law;

Diversity management is rather viewed as a competitive advantage and a strategic necessity to survive in a globally diverse environment.

Section 5: Employment Equity Act (55/1998)

Section 5: The Labour Relations Act (66/1995)

Section 5: The Constitution of the RSA (1996)

Section 5: The Basic Conditions of Employment Act (75/1997)